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# Gerdau's North America Margin Hits 27.7%, Lifting Group EBITDA To R$3.8 Billion
- URL: https://www.bullished.co/gerdaus-north-america-margin-hits-27-7-lifting-group-ebitda-to-r-3-8-billion-0c00bfd4/
- Published: 2026-10-26T21:41:05.000Z
- Updated: 2026-10-26T21:41:05.000Z
- Description: Adjusted EBITDA rose 9.9% from the second quarter and 37.8% from a year earlier, and the board approved a R$0.34-per-share dividend.
- Author: Matteo Parrino
- Tags: Earnings, GGB, Industry: Materials

Gerdau's adjusted EBITDA reached [R$3,771 million](https://www.sec.gov/Archives/edgar/data/1073404/000110465926118862/tm2628297d1%5Fex99-1.htm?ref=bullished.co) in the third quarter of 2026, up 9.9% from the second quarter and 37.8% from the third quarter of 2025, the Brazilian steelmaker said Monday. The adjusted margin of 20.2% is the highest since the second quarter of 2023, as North American price increases outran rising costs.

## North America carries the quarter

Gerdau, Brazil's largest steel producer and a leading supplier of long and special steel globally, got more than 76% of consolidated adjusted EBITDA from North America. The region earned R$2.9 billion at a [27.7% margin](https://www.sec.gov/Archives/edgar/data/1073404/000110465926118862/tm2628297d1%5Fex99-1.htm?ref=bullished.co), which the company called the highest in four years. Its order backlog closed the quarter above 100 days, nearly 50% over historical averages, with demand from nonresidential construction, data centers and renewable energy.

Price adjustments added about R$559 million to quarterly EBITDA versus the second quarter, partly offset by higher operating costs and a R$279 million drag from exchange variation and other items. Shipments were flat at 2.9 million tonnes.

Brazil earned R$741 million, up 5.2% from the second quarter, helped by a smaller share of exports in the sales mix despite a competitive market. South America fell 22.0% to R$160 million after maintenance shutdowns and weak demand in Argentina.

## Net sales, profit and cash

Net sales were R$18.7 billion, up 4.6% from the second quarter. Adjusted net income was R$1.5 billion, up 3.9%, and earnings per share were R$0.79 against R$0.74\. Free cash flow was R$1.4 billion, helped by lower working capital consumption.

Net debt fell to R$7.7 billion, leaving net debt at 0.58 times adjusted EBITDA, down from 0.69 times in the second quarter. Fitch and S&P Global Ratings both moved their outlook on Gerdau to positive.

## Dividend, buyback and projects

The board approved dividends of R$0.34 per share, or R$667.0 million, payable December 15 to holders of record on November 10\. The company has spent R$344.1 million on its 2026 buyback, about 32% of the authorized shares.

Gerdau's U.S.-listed shares closed at $4.75, down 6.86%, in Monday trading. The company plans to start its Miguel Burnier mining project in the fourth quarter of 2026, and capital spending was R$955 million in the quarter.

Gerdau will discuss the results in a videoconference Tuesday at 11:00 a.m. New York time.

### Sources

- [Form 6-K — 3Q26 Results Gerdau S.A. Click here to access the videoconference RI.GERDAU.COM RI.GERDAU.COM Videoconference October 27 (Tuesday) 12:00 p.m. BRT 11:00 a.m. NY Quarterly Results 3Q26 | Gerd](https://www.sec.gov/Archives/edgar/data/1073404/000110465926118862/tm2628297d1%5Fex99-1.htm?ref=bullished.co) — SEC EDGAR