Gerdau S.A. announced a 7% sequential rise in adjusted EBITDA for the second quarter of 2025, reaching R$2.6 billion, largely propelled by robust performance in its North American segment. The Brazilian steelmaker also detailed significant capital expenditures, a dividend distribution, progress on its share buyback program, and strategic debt issuances.

Gerdau S.A. Reports Increased Q2 2025 Adjusted EBITDA, Driven by North American Operations

Gerdau S.A. (NYSE: GGB, B3: GGBR3, GGBR4), a prominent player in the global steel sector, reported its second-quarter 2025 results on July 31, 2025, highlighting an advance in its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The company’s performance was notably bolstered by its North American operations, which significantly contributed to the consolidated financial outcome.

Second Quarter 2025 Performance Overview

For the second quarter of 2025, Gerdau S.A. recorded an adjusted EBITDA of R$2.6 billion, marking a 7% increase compared to the first quarter of the same year. This growth was primarily attributed to the strong performance of its North American operations, which accounted for 61% of the consolidated EBITDA for the period. This regional strength helped to mitigate weaker results observed in the Brazilian and South American markets.

Total net revenue for the quarter reached R$17.5 billion, a marginal 1% rise from the preceding quarter. The company’s earnings per share stood at R$0.43, increasing by R$0.06 from the first quarter. Steel sales during Q2 2025 were consistent with the prior quarter, totaling 2.8 million tons. In terms of shareholder returns, Gerdau announced a dividend distribution of R$0.12 per share, amounting to R$239.5 million. Furthermore, the company made substantial progress on its 2025 Share Buyback Program, having repurchased approximately 43.8 million shares, representing about 68% of the program’s target, with an investment of R$686.1 million.

Strategic Investments and Financial Management

Gerdau maintained a robust capital expenditure (CAPEX) program, investing R$1.6 billion in Q2 2025. A significant portion of this, 80%, was allocated to projects within Brazil. This quarterly investment represents roughly 50% of the total R$6.0 billion planned CAPEX for the full year 2025. Key projects in Brazil include the Itabiritos sustainable mining project in Miguel Burnier, which achieved 72% physical completion and is projected to begin operations in December 2025, with an expected annual EBITDA contribution of up to R$1.1 billion. Additionally, the hot-rolled coil expansion at Ouro Branco is in its ramp-up phase, aiming to increase flat steel capacity by 250,000 tonnes per year by 2026.

To enhance its financial flexibility and extend its debt maturity profile, Gerdau executed two significant debt issuances during the quarter: US$650 million in bonds and R$1.4 billion in debentures. As of June 2025, the company