GERDAU S.A. - CONSOLIDATED INFORMATION

Rhea-AI Summary

Gerdau reported stable financial performance in Q1 2025 with adjusted EBITDA of R$2.4 billion, maintaining levels from Q4 2024. Strong results from North American operations helped offset weaker performance in Brazil.

Key highlights include:

• R$1.4 billion in CAPEX investments, with 60% focused on asset competitiveness
• Planned R$6.0 billion investment for 2025 maintenance and competitiveness initiatives
• Dividend distribution of R$0.12 per share (R$243.5 million) from Q1 results
• Share buyback of 9.4 million shares, representing 15% of 2025 program

The company launched a new hot-rolled coil mill expansion at Ouro Branco, Minas Gerais, adding 250,000 tonnes capacity for higher value-added steel production in Brazil.

Positive

• EBITDA maintained at R$2.4 billion in Q1, showing stability from previous quarter
• Strong performance in North American operations offsetting Brazilian market weakness
• Expansion of hot-rolled coil mill adding 250,000 tonnes capacity for higher value-added steel production
• Active capital return through R$243.5 million dividend distribution (R$0.12 per share)
• Ongoing share buyback program with 9.4 million shares repurchased (0.5% of outstanding shares)

Negative

• Weaker performance in Brazilian operations
• Significant CAPEX investment of R$1.4 billion requiring substantial capital allocation
• 60% of investments focused on asset competitiveness rather than growth initiatives

Insights

Financial Analyst

Gerdau reports stable EBITDA with regional variations, continues dividends and share buybacks, while investing in higher-value steel production.

Gerdau's Q1 2025 results reveal an adjusted EBITDA of R$2.4 billion, unchanged from Q4 2024, demonstrating operational stability amid mixed regional performance. The company's North American operations showed improvement, effectively counterbalancing weaker results in Brazil.

Capital allocation remains balanced across growth initiatives and shareholder returns. The 60% of CAPEX directed toward asset competitiveness (from a total quarterly investment of R$1.4 billion) indicates management's strategic focus on enhancing operational efficiency rather than mere maintenance. This forward-looking approach is further evidenced by the launch of the hot-rolled coil mill expansion at Ouro Branco, which adds 250,000 tonnes of capacity specifically for higher value-added steel products.

For shareholders, Gerdau continues to provide returns despite the challenging Brazilian market conditions. The declared dividend of R$0.12 per share (totaling R$243.5 million) maintains the company's commitment to regular distributions. Simultaneously, the repurchase of 9.4 million shares in Q1 (representing 15% of the 2025 Share Buyback Program and 0.5% of outstanding shares) demonstrates management's confidence and provides additional support for shareholder value.

The quarter's performance reflects Gerdau's balanced approach to navigating variable market conditions across regions while maintaining operational stability and investing in strategic initiatives aimed at improving long-term competitive positioning in higher-margin product segments.

SÃO PAULO, April 28, 2025 /PRNewswire/ -- 1Q25 Highlights

• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$2.4 billion in the first quarter, in line with 4Q24. The performance of the period was influenced by better results from the North America operations, which offset the weaker performance in Brazil.
• Investments (CAPEX) of R$1.4 billion in 1Q25, with 60% of this total allocated to asset competitiveness. For 2025, the approved investment plan projects R$6.0 billion in projects focused on maintenance and competitiveness initiatives.
• Dividend distribution in the amount of R$0.12 per share, equivalent to R$243.5 million, to be paid based on 1Q25 results.
• In 1Q25, the Company repurchased 9.4 million of shares of Gerdau S.A. (NYSE: GGB, BM&Fbovespa: GGBR3, GGBR4), approximately 15.0% of the 2025 Share Buyback Program and 0.5% of the Company's outstanding shares.
• Launch of the hot-rolled coil mill expansion at the Ouro Branco industrial unit in Minas Gerais. With the start-up of the new rolling mill, Gerdau adds 250,000 tonnes of hot-rolled coils, marking another step in the Company's strategy to produce higher value-added steel in Brazil.

Additional information

Gerdau S.A. informs that it is filling today its 1Q25 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 1Q25 Valuation Guide is also available at Gerdau's website.
https://ri.gerdau.com/en/financial-information/valuation-guide/ 

View original content:https://www.prnewswire.com/news-releases/gerdau-sa--consolidated-information-302440405.html

SOURCE Gerdau S.A.

FAQ

What is Gerdau's (GGB) EBITDA for Q1 2025?

Gerdau reported an adjusted EBITDA of R$2.4 billion in Q1 2025, which remained stable compared to Q4 2024. This performance was driven by stronger North American operations, which helped offset weaker results in Brazil.

How much is Gerdau's (GGB) dividend payment for Q1 2025?

Gerdau will pay a dividend of R$0.12 per share, totaling R$243.5 million, based on Q1 2025 results.

How many shares did Gerdau (GGB) repurchase in Q1 2025?

Gerdau repurchased 9.4 million shares in Q1 2025, representing 15% of the 2025 Share Buyback Program and 0.5% of the company's outstanding shares.

What is Gerdau's (GGB) investment plan for 2025?

Gerdau plans to invest R$6.0 billion in 2025, focusing on maintenance and competitiveness initiatives. In Q1 2025, the company invested R$1.4 billion, with 60% allocated to asset competitiveness.

What expansion is Gerdau (GGB) implementing at Ouro Branco?

Gerdau is expanding its hot-rolled coil mill at the Ouro Branco industrial unit in Minas Gerais, adding 250,000 tonnes of hot-rolled coil production capacity to increase higher value-added steel production in Brazil.