GERDAU S.A. - CONSOLIDATED INFORMATION

Rhea-AI Summary

Gerdau S.A. (NYSE: GGB) reported strong Q2 2025 financial results, with adjusted EBITDA reaching R$2.6 billion, marking a 7% increase from Q1 2025. North American operations were particularly robust, contributing 61% of consolidated EBITDA.

The company announced a dividend of R$0.12 per share (R$239.5 million total) and continued its share buyback program, having repurchased 43.8 million shares (68% of the 2025 program) for R$686.1 million. Capital investments (CAPEX) totaled R$1.6 billion, with 80% directed to Brazil. The company also strengthened its financial position through new debt issuances totaling US$650 million in bonds and R$1.4 billion in debentures.

Positive

• Adjusted EBITDA increased 7% quarter-over-quarter to R$2.6 billion
• Strong North American operations contributing 61% of consolidated EBITDA
• Continued shareholder returns through R$0.12 per share dividend
• Successfully executed 68% of share buyback program
• Strengthened financial position through new bond and debenture issuances

Negative

• Decline in results from Brazil and South American operations
• Significant debt issuance of US$650 million bonds and R$1.4 billion debentures

Insights

Financial Analyst

Gerdau shows regional strength diversity with North America offsetting weaker South American performance; maintains capital return focus through dividends and buybacks.

Gerdau's R$2.6 billion Q2 EBITDA represents a 7% sequential improvement, with North American operations emerging as the clear standout, contributing 61% of consolidated EBITDA. This geographic diversification has proven valuable as it effectively counterbalanced weaker performance in Brazil and South America, demonstrating the company's portfolio resilience against regional market fluctuations.

Capital allocation remains weighted toward growth in Brazil, with 80% of the R$1.6 billion quarterly CAPEX directed there. The company has now deployed approximately half of its planned R$6.0 billion investment for 2025, indicating disciplined execution of its annual capital program at the halfway mark.

Shareholder returns continue through a R$0.12 per share dividend (totaling R$239.5 million) and aggressive share repurchases. The buyback program has reached 68% completion, with about 43.8 million shares repurchased representing a R$686.1 million investment. This demonstrates management's confidence in the company's intrinsic value and commitment to capital return.

The dual debt issuances—US$650 million in bonds and R$1.4 billion in debentures—have extended the company's debt maturity profile, enhancing financial flexibility while taking advantage of current market conditions to optimize the capital structure. This proactive liability management provides greater operational runway while potentially reducing refinancing risk.

SÃO PAULO, July 31, 2025 /PRNewswire/ --

2Q25 Highlights

• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$2.6 billion in 2Q25, up 7% compared to 1Q25. The highlight was the performance of operations in North America, which accounted for 61% of the consolidated EBITDA for the quarter and offset the decline in results in Brazil and South America.
• Investments (CAPEX) of R$1.6 billion in 2Q25, with 80% allocated to Brazil. The Company has already invested approximately 50% of the total planned for 2025 (R$6.0 billion).
• Dividend distribution of R$0.12 per share, equivalent to R$239.5 million, based on 2Q25 results.
• The Company has reached approximately 68% of the 2025 Share Buyback Program, having repurchased around 43.8 million shares of Gerdau S.A., totaling an investment of R$686.1 million in the program so far. Management emphasizes that the current share repurchase plan remains in effect.
• During 2Q25, Gerdau carried out two issuances: bonds and debentures totaling US$650 million and R$1.4 billion, respectively, extending the Company's debt maturity profile.

Additional information

Gerdau S.A. (NYSE: GGB, B3: GGBR3, GGBR4) informs that it is filling today its 2Q25 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 2Q25 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-302519216.html

SOURCE Gerdau S.A.

FAQ

What was Gerdau's (GGB) EBITDA in Q2 2025?

Gerdau reported adjusted EBITDA of R$2.6 billion in Q2 2025, representing a 7% increase compared to Q1 2025.

How much dividend did Gerdau (GGB) announce for Q2 2025?

Gerdau announced a dividend of R$0.12 per share, totaling R$239.5 million, based on Q2 2025 results.

What is the progress of Gerdau's 2025 share buyback program?

Gerdau has completed 68% of its 2025 Share Buyback Program, repurchasing approximately 43.8 million shares for R$686.1 million.

How much debt did Gerdau (GGB) issue in Q2 2025?

Gerdau issued US$650 million in bonds and R$1.4 billion in debentures during Q2 2025 to extend its debt maturity profile.

What was Gerdau's CAPEX in Q2 2025 and where was it allocated?

Gerdau's CAPEX was R$1.6 billion in Q2 2025, with 80% allocated to Brazil, representing approximately 50% of the planned R$6.0 billion for 2025.