GERDAU S.A. - CONSOLIDATED INFORMATION
Rhea-AI Summary
Gerdau S.A. (NYSE: GGB) reported strong financial results for Q4 2024, with adjusted EBITDA reaching R$ 2.4 billion, marking a 17.2% increase compared to Q4 2023. The company's CAPEX investments totaled R$ 2.4 billion in Q4 2024 and R$ 6.2 billion for the full year 2024, with plans to invest R$ 6 billion in maintenance and competitiveness projects in 2025.
The company announced a dividend distribution of R$ 0.10 per share, amounting to R$ 203.4 million for Q4 2024. Throughout 2024, Gerdau returned R$ 2.9 billion to shareholders through dividends and share buybacks, achieving a 65.9% return. Additionally, the company completed its 2024 share buyback program and approved a new 12-month program to repurchase up to 64.5 million shares.
Positive
- Adjusted EBITDA increased 17.2% year-over-year to R$ 2.4 billion in Q4 2024
- Significant shareholder returns of R$ 2.9 billion in 2024 (65.9% return)
- New share buyback program approved for up to 64.5 million shares
- Substantial CAPEX investment of R$ 6.2 billion in 2024
Negative
- None.
Insights
Gerdau's Q4 2024 results reveal a compelling financial narrative, with the 17.2% year-over-year EBITDA growth to R$2.4 billion demonstrating operational resilience in a challenging steel market. This performance is particularly noteworthy given the cyclical nature of the steel industry and suggests effective cost management and pricing power.
The company's capital allocation strategy shows a balanced approach between reinvestment and shareholder returns. The R$6.2 billion CAPEX in 2024 and planned R$6 billion investment for 2025 indicate a strong commitment to maintaining competitive advantages through operational efficiency. These investments, focused on maintenance and competitiveness, are important for preserving market position in the capital-intensive steel industry.
Shareholder returns have been exceptional, with R$2.9 billion distributed through dividends and buybacks, achieving a 65.9% return. The new buyback program for 64.5 million shares represents a strategic move to enhance shareholder value, particularly if management believes the shares are undervalued. The combination of consistent dividends (R$0.10 per share for Q4) and share repurchases demonstrates confidence in the company's cash flow generation capacity.
The maintenance-focused CAPEX strategy for 2025 suggests a prudent approach to capital deployment, prioritizing operational efficiency over aggressive expansion. This conservative stance could prove advantageous in navigating potential market volatility while maintaining strong cash flow generation to support continued shareholder returns.
SÃO PAULO, Feb. 19, 2025 /PRNewswire/ -- 4Q24 Highlights
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of
Investments (CAPEX) amounted to
Dividend distribution in the amount of
The Company concluded the 2024 share buyback program and approved a new buyback program for up to 64.5 million shares of Gerdau S.A., with a 12-month term.
Additional Information
Gerdau S.A. informs that it is filling today its 4Q24 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 4Q24 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-302380830.html
SOURCE Gerdau S.A.
FAQ
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