- Gerdau SA (GGB) Q1 2026 Earnings Call Highlights: Strong North American Performance and ...
Apr 29, 2026
This article first appeared on GuruFocus.
Release Date: April 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Gerdau SA (NYSE:GGB) posted strong results in North America, achieving the best adjusted EBITDA for the first quarter since 2022. The company recorded a consolidated net income of 1 billion bureaus, a 50% increase compared to the previous quarter. Gerdau SA (NYSE:GGB) introduced Gerdau New Eco, a low-carbon steel solution, expanding its product portfolio with a lower carbon footprint. The company achieved a higher EBITDA margin in Brazil compared to the previous quarter, thanks to cost discipline. Gerdau SA (NYSE:GGB) plans to complete significant projects by the end of 2026, potentially adding nearly BRL1.5 billion to annual EBITDA.
Negative Points
The Brazilian market remains under pressure from excessive steel imports, impacting profitability. The company faces challenges in Brazil due to a decline in apparent consumption of long steel products. There are ongoing negotiations with input providers due to cost pressures, particularly in energy. The Miguel Burnier mining project is delayed, affecting the expected EBITDA contribution for the year. The company is dealing with productivity issues in civil construction and electromechanical assembly, impacting project timelines.
Q & A Highlights
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Q: Can you elaborate on the productivity improvements in Brazil and the main levers for cost reduction? A: Gustavo Verneck, CEO: The improvements stem from initiatives we control, such as logistics and industrial productivity. We see opportunities to enhance competitiveness and cost efficiency, particularly in logistics, as we serve all corners of Brazil. We are also negotiating with customers to manage cost pressures from energy and input prices. Rafael Japur, CFO, added that significant projects like the mining expansion in Miguel Burnier and the scrap processing center in Pindamonhangaba will contribute to cost savings and increased competitiveness.
Q: What are your expectations for CapEx in 2027, considering the completion of major projects? A: Rafael Japur, CFO: It's too early to provide formal guidance for 2027 CapEx. However, we anticipate maintenance CapEx to average around BRL3 billion annually over the next five years. We aim to balance competitive projects that generate additional EBITDA with maintaining a disciplined capital allocation strategy.
Story Continues
Q: Can you provide more details on the North American operations and their outlook? A: Gustavo Verneck, CEO: Demand in North America remains resilient, driven by sectors like data centers and infrastructure. Our business model focuses on merchants and structurals, benefiting from robust trade defense mechanisms. We have improved operational efficiency since 2018, and we expect stable, high-level steel consumption to continue.
Q: How do you view the current competitive dynamics in Brazil, particularly regarding imports and trade defense measures? A: Gustavo Verneck, CEO: We are optimistic about trade defense measures, as the evidence of damage from imports is clear. The Brazilian government is expected to implement more robust anti-dumping measures. We believe these actions will improve the competitive landscape and support the domestic steel industry.
Q: What are your expectations for the Miguel Burnier project and potential one-off actions for cash generation? A: Rafael Japur, CFO: The Miguel Burnier project is slightly delayed, and we may not achieve the full BRL400 million EBITDA this year. However, we are implementing initiatives to offset this through improved efficiencies and strategic ore purchases. Regarding cash generation, we continue to analyze our real estate assets for potential divestment opportunities, maintaining a disciplined approach to capital allocation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- Gerdau S.A. (GGB) Q1 2026 Earnings Call Prepared Remarks Transcript
Apr 29, 2026 · seekingalpha.com
Gerdau S.A. (GGB) Q1 2026 Earnings Call Prepared Remarks Transcript
- GERDAU S.A. - CONSOLIDATED INFORMATION
Apr 27, 2026
SÃO PAULO, April 27, 2026 /PRNewswire/ --
1Q26 Highlights
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$3.0 billion in 1Q26, up 25% from 4Q25. Notably, North America accounted for 75% of the Company's Consolidated EBITDA in the first quarter of 2026. Investments (CAPEX) of R$1.1 billion in 1Q26, 27% lower than in 4Q25, in line with guidance of R$4.7 billion for 2026. Return to shareholders: the Company approved a dividend distributionof R$0.18 per share, equivalent to R$354.1 million, to be paid as of June 09, 2026. Also, advanced with the 2026Share Buyback Program, with the acquisition of 21% of the authorized shares in Gerdau S.A. Inauguration of the Barro Alto Solar Complex in Goiás, with an installed capacity of ~111 MWm, marks an important step for Gerdau in its pursuit to enhance the competitiveness and sustainability of its operations in Brazil.
Additional information
Gerdau S.A. informs that it is filling today its 1Q26 results at the Securities and Exchange Commission (SEC) and at the Comissão de Valores Mobiliários (CVM), which are available at Gerdau's website. To access this document, please click on: https://ri.gerdau.com/en/notices-and-results/results-center/.
The 1Q26 Valuation Guide is also available on Gerdau's website.
https://ri.gerdau.com/en/financial-information/valuation-guide/
Investor Relations inform@gerdau.comCision
View original content:https://www.prnewswire.com/news-releases/gerdau-sa--consolidated-information-302754886.html
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- GERDAU S.A. - CONSOLIDATED INFORMATION
Apr 27, 2026 · prnewswire.com
SÃO PAULO, April 27, 2026 /PRNewswire/ -- 1Q26 Highlights Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$3.0 billion in 1Q26, up 25% from 4Q25. Notably, North America accounted for 75% of the Company's Consolidated EBITDA in the first quarter of 2026.
- GERDAU S.A. - CONSOLIDATED INFORMATION
Apr 27, 2026
SÃO PAULO, APRIL 27, 2026 /PRNEWSWIRE/ -- 1Q26 HIGHLIGHTS ADJUSTED EBITDA (EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION) OF R$3.0 BILLION IN 1Q26, UP 25% FROM 4Q25. NOTABLY, NORTH AMERICA ACCOUNTED FOR 75% OF THE COMPANY'S CONSOLIDATED EBITDA IN THE FIRST QUARTER OF 2026.
- Here are the major earnings after the close Monday
Apr 27, 2026
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* For Seeking Alpha's full earnings season calendar, click here [https://seekingalpha.com/earnings/earnings-calendar].
- Robeco Institutional Asset Management B.V. Sells 181,746 Shares of Gerdau S.A. $GGB
Apr 19, 2026 · defenseworld.net
Robeco Institutional Asset Management B.V. lowered its stake in Gerdau S.A. (NYSE: GGB) by 69.3% in the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 80,595 shares of the basic materials company's stock after selling 181,746 shares during the quarter.
- Marcos Eduardo Fara Wahrhaftig Sells 12,419 Shares of Gerdau (NYSE:GGB) Stock
Apr 15, 2026 · defenseworld.net
Gerdau S.A. (NYSE: GGB - Get Free Report) EVP Marcos Eduardo Fara Wahrhaftig sold 12,419 shares of the business's stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $4.06, for a total transaction of $50,421.14. The sale was disclosed in a document filed with the SEC, which is
- All You Need to Know About Gerdau (GGB) Rating Upgrade to Buy
Apr 14, 2026
Gerdau (GGB) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Gerdau is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Gerdau, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Story Continues
Earnings Estimate Revisions for Gerdau
This steel producer is expected to earn $0.50 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Gerdau. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.4%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Gerdau to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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Gerdau S.A. (GGB) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- Should Value Investors Buy Gerdau (GGB) Stock?
Apr 14, 2026
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Gerdau (GGB). GGB is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.47, which compares to its industry's average of 12.16. Over the past 52 weeks, GGB's Forward P/E has been as high as 7.73 and as low as 4.76, with a median of 6.35.
Investors should also note that GGB holds a PEG ratio of 0.64. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GGB's PEG compares to its industry's average PEG of 0.70. Over the past 52 weeks, GGB's PEG has been as high as 2.91 and as low as 0.56, with a median of 1.20.
Value investors will likely look at more than just these metrics, but the above data helps show that Gerdau is likely undervalued currently. And when considering the strength of its earnings outlook, GGB sticks out as one of the market's strongest value stocks.
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Gerdau S.A. (GGB) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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