Gerdau's North America Margin Hits 27.7%, Lifting Group EBITDA To R$3.8 Billion
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.
Gerdau's adjusted EBITDA reached R$3,771 million 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, 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.
