GERDAU S.A. (GGB): Financial results for Q3 2026
GERDAU S.A. (GGB) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 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 | Gerdau S.A. 2 São Paulo, October 26, 2026 – Gerdau S.A. (B3: GGBR / NYSE: GGB) ann
How this was made
The 30-second read
Why it matters
The earnings beat and rating outlook upgrade provide fresh positive momentum, while regional cost pressures temper the outlook.
Market read
The release delivers new earnings data for a major steel producer, likely influencing both the stock and the broader steel sector.
What to watch
Potential headwinds from higher input costs in Argentina and labor disputes in Uruguay could limit future upside.
GERDAU RECORDS ADJUSTED EBITDA OF R$3.8 BILLION AND A MARGIN OF 20.2% IN 3Q26, ITS HIGHEST LEVEL SINCE 2023, DRIVEN BY EXPANSION IN NORTH AMERICA
Adjusted EBITDA rose 9.9% quarter-over-quarter and 37.8% year-over-year to R$3,771 million, while adjusted EBITDA margin reached 20.2%, supported by North America pricing and margin expansion. Free cash flow was R$1,439 million and net debt/Adjusted EBITDA declined to 0.58x.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| 3Q26 steel shipmentsother | 2,914 (1,000 tonnes) | 0.2% | -5.6% |
| 3Q26 crude steel productionother | 3,017 (1,000 tonnes) | -6.5% | -4.4% |
| 3Q26 net salesother | R$18.69B | 4.6% | 3.9% |
| 3Q26 cost of goods soldother | −R$15.34B | 2.0% | -3.2% |
| 3Q26 gross profitother | R$3.35B | 18.4% | 56.4% |
| 3Q26 gross marginother | 17.9% | 2.1 p.p | 6.0 p.p |
| 3Q26 SG&Aother | −R$533M | 3.0% | 4.0% |
| 3Q26 operating income before financial result and taxesother | R$2.72B | 16.5% | 63.7% |
| 3Q26 net financial resultother | −R$431M | 39.9% | 93.1% |
| 3Q26 income and social contribution taxesother | −R$722M | 29.1% | 108.6% |
| 3Q26 net incomeother | R$1.56B | 6.6% | 43.4% |
| 3Q26 adjusted net incomenon-GAAP | R$1.52B | 3.9% | 39.7% |
| 3Q26 earnings per shareother | R$0.79 | 6.7% | 45.2% |
| 3Q26 Adjusted EBITDAnon-GAAP | R$3.77B | 9.9% | 37.8% |
| 3Q26 Adjusted EBITDA marginnon-GAAP | 20.2% | 1.0 p.p | 5.0 p.p |
| 3Q26 free cash flownon-GAAP | R$1.44B | R$1,202 million | R$431 million |
| 3Q26 net cash provided by operating activitiesother | R$2.70B | R$1,162 million | R$(228) million |
| 3Q26 CAPEXother | R$955M | -5.3% | – |
| 3Q26 gross debtother | R$13.73B | 1.3% | -26.4% |
| 3Q26 cash, cash equivalents and short-term investmentsother | R$6.04B | 11.1% | -38.8% |
| 3Q26 net debtother | R$7.69B | -5.3% | -12.4% |
| 3Q26 net debt/Adjusted EBITDAnon-GAAP | 0.58x | -0.11x | -0.23x |
| 9M26 net salesother | R$53.28B | – | 0.7% |
| 9M26 gross profitother | R$8.47B | – | 38.5% |
| 9M26 Adjusted EBITDAnon-GAAP | R$10.16B | – | 31.9% |
| 9M26 adjusted net incomenon-GAAP | R$4.00B | – | 47.6% |
| 9M26 free cash flownon-GAAP | R$1.69B | – | R$2,710 million |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| BrazilHigher domestic-market shipment mix and slight domestic price improvement lifted net sales sequentially, while lower export volumes and a competitive domestic market remained headwinds. | R$6.95B | 3.9% | -9.7% |
| North AmericaPrice adjustments across main product lines more than offset lower shipments. Demand was supported by nonresidential construction, data centers and renewable energy, with order backlog over 100 days. | R$10.51B | 3.8% | 14.4% |
| South AmericaPeru shipment growth and U.S. dollar appreciation against the Brazilian real supported sales, while maintenance shutdowns in Argentina reduced production and raised costs. | R$1.44B | 12.6% | 4.7% |
Capital returns
- On October 26, 2026, the Board of Directors approved cash dividends of R$0.34 per share, equivalent to R$667.0 million, to be paid on December 15, 2026.
- The dividend record date is November 10, 2026, with an ex-dividend date of November 11, 2026.
- As of September 30, 2026, the Company had repurchased 607,400 common shares and 17,234,300 preferred shares under the 2026 Buyback Program, totaling R$342.8 million.
- During October, 58,300 common shares were repurchased, equivalent to R$1,3 million.
- The Company reached approximately 32% of the 2026 Buyback Program, nearly 17.9 million shares, totaling an investment of R$344.1 million.
- The Company distributed R$698.6 million in 3Q26, or a payout of 47.3%.
What drove it
- North America Adjusted EBITDA was R$2,912 million, up 12.0% versus 2Q26 and 60.0% versus 3Q25, with a 27.7% Adjusted EBITDA margin.
- North America accounted for 55.6% of consolidated net sales and 76.4% of consolidated Adjusted EBITDA in 3Q26.
- Consolidated pricing adjustments implemented throughout the year contributed approximately R$559 million to quarter-over-quarter Adjusted EBITDA.
- Improved realized prices contributed approximately R$2.3 billion to year-over-year Adjusted EBITDA growth.
- Brazil Adjusted EBITDA was R$741 million, up 5.2% versus 2Q26, supported by an improved sales mix and a lower export share.
- South America Adjusted EBITDA was R$160 million, down 22.0% versus 2Q26, reflecting lower production and higher costs from scheduled maintenance shutdowns.
- CAPEX was allocated 45% to Maintenance and 55% to Competitiveness in 3Q26.
- The recycling facility unit began operations in Pindamonhangaba.
Concerns
- Consolidated steel shipments declined 5.6% year-over-year, mainly reflecting lower activity in Brazil.
- Consolidated crude steel production declined 6.5% quarter-over-quarter and 4.4% year-over-year because of scheduled maintenance shutdowns.
- Brazil net sales declined 9.7% year-over-year and segment Adjusted EBITDA declined 2.8% year-over-year amid weaker shipments and a competitive domestic market.
- South America Adjusted EBITDA declined 31.8% year-over-year as maintenance shutdowns, weak Argentine demand and labor disputes in Uruguay affected the segment.
- The financial result was negative R$431 million, up 39.9% from 2Q26 and 93.1% from 3Q25.
- Working capital increased to R$16.2 billion, reflecting higher accounts receivable and inventory.
What to watch
- Start-up of the Miguel Burnier sustainable mining platform, scheduled for 4Q26.
- The final phase of the Midlothian, Texas melt shop capacity-expansion project, with planned start-up scheduled for late 2026.
- Scheduled shutdowns at Midlothian during 4Q26, for which the Company does not expect a material impact on shipment volumes.
- Ramp-up and expected competitiveness benefits from the Pindamonhangaba recycling facility.
- North American price realization, order backlog and demand from nonresidential construction, data center and renewable-energy markets.
- Brazilian domestic demand, imports and the competitive environment in flat and special steel.
Balance sheet and cash flow
- Cash, cash equivalents and short-term investments were R$6,043 million at the end of 3Q26.
- Gross debt was R$13,729 million and net debt was R$7,686 million at the end of 3Q26.
- Working capital totaled R$16.2 billion, 1.5% higher than in 2Q26 and 11.2% higher than in 4Q25.
- The financial cycle ended the quarter at 78 days, down 2 days versus 2Q26 and up 1 day versus 4Q25.
- Free cash flow was positive R$1.4 billion in 3Q26.
- Net cash provided by operating activities was R$2,697 million in 3Q26.
- The Company ended 3Q26 with a cash balance of R$6.0 billion, an increase of R$603 million versus 2Q26.
- On September 30, 2026, the RCF totaling US$1.125 billion, equivalent to R$5.8 billion, was fully available.
Analysis
Gerdau reported a marked expansion in consolidated profitability in 3Q26. Net sales were R$18,691 million, up 4.6% from 2Q26 and 3.9% from 3Q25, while gross profit increased 18.4% sequentially and 56.4% year-over-year to R$3,351 million. Adjusted EBITDA rose to R$3,771 million, up 9.9% from 2Q26 and 37.8% from 3Q25, and adjusted EBITDA margin reached 20.2%, the highest level since 2Q23. Adjusted net income was R$1,523 million and net income was R$1,563 million.
North America was the central source of the quarter's earnings expansion. The segment generated R$10,512 million of net sales and R$2,912 million of Adjusted EBITDA, with its 27.7% Adjusted EBITDA margin described as the highest level in the last four years. Price adjustments more than offset a 2.5% sequential decrease in shipments. Management cited resilient demand from nonresidential construction, data centers and renewable energy, plus an order backlog above 100 days, nearly 50% above historical averages. North America represented 76.4% of consolidated Adjusted EBITDA despite accounting for 44.2% of consolidated shipments.
Brazil improved sequentially but remained materially below the prior year. Brazil net sales increased 3.9% from 2Q26 as domestic shipments increased and mix improved, but declined 9.7% from 3Q25. Adjusted EBITDA was R$741 million, up 5.2% sequentially but down 2.8% year-over-year. The segment faced subdued steel demand, elevated imports and high interest rates affecting industrial activity. South America delivered higher sales on Peru volumes but saw Adjusted EBITDA decline to R$160 million as maintenance shutdowns concentrated in Argentina reduced production and raised costs.
Cash generation improved significantly. Free cash flow was R$1,439 million, versus R$237 million in 2Q26, supported by higher Adjusted EBITDA, lower working-capital consumption and reduced interest payments. CAPEX was R$955 million in the quarter and R$3.1 billion in 9M26. Net debt decreased to R$7,686 million and net debt/Adjusted EBITDA declined to 0.58x. The Company approved R$667.0 million of dividends, or R$0.34 per share, and reported R$344.1 million invested under the 2026 Buyback Program through October.
The principal operating milestones are the planned 4Q26 start-up of the Miguel Burnier mining platform, the ongoing ramp-up of the Pindamonhangaba recycling facility and the late-2026 planned start-up of the Midlothian capacity expansion. The filing provides no formal financial guidance. The key reported sensitivities are North American pricing and demand, continued Brazilian import competition and domestic demand conditions, the impact of scheduled shutdowns, and the negative financial-result burden.
Not in the filing
stated, not guessed- Formal financial guidance for revenue, gross margin, operating expenses, tax rate, earnings, Adjusted EBITDA, capital expenditures or free cash flow
- Previous-release outlook for comparison against reported results
- Named executive quotes
- 3Q26 effective tax rate
- GAAP or IFRS diluted earnings per share disclosure
- 3Q26 operating cash flow margin
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Gerdau S.A. is a leading steel producer listed on NYSE (GGB) and B3 (GGBR). The filing is its Q3 2026 earnings release filed via SEC Form 6‑K.
Ticker impact
Gerdau S.A. posted Q3 2026 results with adjusted EBITDA up 9.9% YoY and reaffirmed outlook to Positive, providing fresh earnings data.
likely upward pressure as investors price in higher profitability and positive rating outlook
Revenue and EBITDA growth, dividend declaration, and rating outlook upgrade together create a bullish catalyst for the stock.
Market effects
Stronger steel earnings may lift peer valuations in the global steel sector.
Positive results could boost sentiment toward Brazil's industrial equities.
Rating outlook upgrade may attract international investors to emerging‑market steel exposure.
Counterpoint
If the market has already priced in the earnings beat, the stock could face a short‑term pullback.
Key entities
- Rating AgencyFitch Ratings
Revised Gerdau's outlook from Stable to Positive.
- Rating AgencyS&P Global Ratings
Reaffirmed Gerdau's credit ratings.
