GGB · Gerdau S.A.

Gerdau S.A. delivered resilient 1Q26 results amid global volatility, with consolidated adjusted EBITDA surging 25% sequentially to R$3.0 billion, primarily propelled by North America's robust performance. This segment generated R$2.2 billion in adjusted EBITDA, up 23% from 4Q25, accounting for 75% of the total and underscoring its role as a key resilience driver. Shipments in North America rose 4.5% from the prior quarter, fueled by post-seasonal recovery, stronger order backlogs in non-residential construction and renewables, and favorable pricing from tariff adjustments, despite pressures in automotive special steel demand. Brazil faced headwinds from record flat steel imports (1.7 million tonnes, 28.5% penetration), oversupply, and seasonality, leading to 9.5% lower shipments and net sales down 12.7% to R$6.3 billion, though adjusted EBITDA improved 13% to R$578 million via cost discipline and production upticks post-maintenance. South America showed mixed results, with Peru offsetting Argentina/Uruguay import challenges, yielding R$186 million adjusted EBITDA, up 7%. Management highlighted operational flexibility, like record output at expanded Ouro Branco, and strategic sustainability moves including the 111 MWm Barro Alto Solar Complex covering 13% of Brazil energy needs and Gerdau NewEco low-carbon products. Financial strength supported shareholder returns: R$354 million dividends (R$0.18/share payable June 9) and R$211 million in buybacks (21% of 2026 program). CAPEX of R$1.1 billion aligns with R$4.7 billion annual guidance, with positive free cash flow of R$16 million despite working capital use. Net debt/EBITDA improved slightly to 0.74x, reflecting discipline.