GGBR4 after 2Q26: North America carries 74% of EBITDA while Brazil recovers slowly

On 4 August 2026, Gerdau S.A. published its 2Q26 results (reference date 30 June 2026). Consolidated adjusted EBITDA reached R$ 3.4 billion, up 16% from 1Q26 and 34% from 2Q25. The adjusted EBITDA margin widened to 19.2% — the strongest consolidated margin in several quarters. Adjusted net income totaled R$ 1.5 billion (R$ 0.74 per share), up 45% quarter on quarter. Steel shipments hit 2.9 million tonnes, a modest 3% gain versus both the prior quarter and the year-ago period. The headline looks uniformly strong. The useful lesson is geographic: Brazil and North America ship similar tonnage, but North America generated roughly 74% of consolidated adjusted EBITDA at a 25.7% margin, while Brazil's recovery remains sequential — better than March, still below June 2025.

What the earnings package actually shows

Figures below follow Gerdau's 2Q26 earnings release (IFRS, Brazilian reais):

Capacity utilisation reached 82%, up 2 p.p. from 1Q26 and 4 p.p. from 2Q25. Gross profit of R$ 2.8 billion rose 23% sequentially and 39% year on year — a cleaner read on operating leverage than net sales alone, which grew only 2% year on year because weaker Brazil and South America revenue and a 10.9% weaker average USD/BRL exchange rate partially offset North America's gains.

Three segments, one consolidated number

Gerdau reports three operating segments. In 2Q26 their economics diverged sharply:

North America and Brazil each shipped about 1.35 million tonnes — nearly a 50/50 split by volume. By value and earnings, they are not close: North America accounted for roughly 56% of consolidated net sales and about three quarters of consolidated adjusted EBITDA.

North America: backlog, prices, and tariff tailwind

North America was the quarter's engine. Shipments rose 5.5% from 1Q26 and 7.3% from 2Q25 — the highest common-long-steel volume under the current industrial footprint. Management cited an order backlog above 100 days, the highest since 2021, supported by demand in renewables, data centres, and manufacturing. Realised prices and a richer mix of value-added products drove net sales 8.3% higher sequentially and 10.8% year on year. Adjusted EBITDA of R$ 2.6 billion was up 59% from 2Q25; margin expanded 7.8 p.p. to 25.7%. CEO Gustavo Werneck noted that Section 232 tariff adjustments have contributed to a more favourable environment for local producers since 2Q25. The BRL translation of those USD earnings was partially diluted by the weaker dollar versus both prior periods.

Brazil: sequential recovery, structural import pressure

Brazil improved but remains the harder story. Adjusted EBITDA of R$ 705 million rose 22% from 1Q26 on better domestic mix, higher realised prices in some lines, and productivity gains. Year over year, however, EBITDA was still 19.6% lower and margin 1.4 p.p. narrower than 2Q25. Net sales fell 8.6% year on year despite 6.6% sequential growth.

Management highlighted two opposing forces on imports. Steel imports fell more than 30% in 2Q26 versus both 1Q26 and 2Q25 — the first decline since 2022, mostly in flat products — and Brazil renewed a tariff-quota system in June 2026 covering roughly 30% of Gerdau's domestic volumes. At the same time, average import penetration in 1H26 was still 22.5%. Flat steel volumes recovered on lower imports and gradual demand from wind and shipbuilding; special steel benefited from heavy-vehicle signs of life, though ANFAVEA data still show 11% lower heavy-vehicle production in 1H26 versus 1H25. Cost pressures from metal inputs, logistics, and freight persisted; operating gains only partially offset them.

South America: Peru timing, Argentina and Uruguay mix

South America delivered R$ 205 million of adjusted EBITDA (+10% sequentially, +37% year on year). Shipments fell 7.8% quarter on quarter after Peru front-loaded volumes in 1Q26. Higher domestic share in Argentina and Uruguay improved mix; Peru maintained healthy pricing in civil construction.

Cash, capital return, and balance sheet

Free cash flow turned positive at R$ 237 million, up R$ 1.0 billion year on year, helped by EBITDA growth and lower capex disbursements versus 2Q25. Working capital consumed about R$ 933 million in the quarter — inventories and receivables rose with higher production and sales.

Capital return stayed active. The board approved R$ 0.23 per share in dividends (R$ 451.3 million), payable 11 September 2026 (ex-date 20 August). Metalúrgica Gerdau declared R$ 0.11 per share separately. Gerdau S.A.'s 2026 share buyback was 31% complete at quarter-end (R$ 334 million invested). Total shareholder distributions in 2Q26 reached R$ 555.9 million, a 40.3% payout on parent-company net income.

Net debt ended at R$ 8.1 billion; leverage of 0.69x adjusted EBITDA (LTM) sits below the company's debt policy and improved from 0.74x in 1Q26 and 0.85x in 2Q25. Cash and equivalents totaled R$ 5.4 billion; the US$ 875 million revolving credit facility was fully undrawn.

Capex was R$ 1.0 billion in the quarter — 45% of the R$ 4.7 billion full-year guidance by mid-year. Key projects (Miguel Burnier mining platform, Pindamonhangaba scrap processing, Midlothian TX expansion) were on track for start-up in 2H26.

How the market read the print

Financial press coverage after the release noted that consolidated EBITDA came in above sell-side expectations — Estadão cited XP analysts placing the beat at roughly 6% versus their forecast, with about two-thirds of the surprise attributed to North America and the remainder to Brazil cost performance. Itaú BBA highlighted North America's 25.7% margin and backlog above 100 days, while flagging that Brazil's recovery should remain gradual. These are third-party interpretations, not audited facts — but they explain why a quarter with similar Brazil/North America tonnage can still feel like a "US story" to the market.

How to use the explorer on this package

1. Open GGBR4. Find the ITR with reference 30/06/2026 and the August 2026 earnings materials.
2. Start with adjusted EBITDA (R$ 3.4 bn, 19.2% margin) and split by segment — volume parity between Brazil and North America does not imply earnings parity.
3. Compare North America (R$ 2.6 bn, 25.7%) with Brazil (R$ 705 m, 10.5%) on both sequential and year-over-year bases.
4. Read net sales (+2% YoY) against adjusted EBITDA (+34% YoY) — geography and mix matter more than consolidated tonnage (+3%).
5. Check free cash flow (+R$ 237 m) against working-capital consumption before treating the quarter as a clean cash-generation run-rate.
6. For the current quote, use the company page; this article freezes only figures already reported in the release and press.

Limits of this reading

• Adjusted EBITDA and adjusted net income are non-IFRS measures; reconciliations appear in the earnings release and CVM filing.
• Segment percentages use three reportable segments before eliminations; consolidated figures include inter-segment adjustments.
• Import data and penetration rates mix quarterly and half-year horizons — both appear in management commentary.
• FX translation effects materially affect BRL-reported North America results when the dollar weakens.
• Analyst "above consensus" comments reflect third-party models, not company guidance.
• Capex and project start-up timelines are management targets subject to operational risk.

Where to view in the explorer

• GGBR4 — Gerdau S.A.
• Company list
• Blog

Sources

• Gerdau S.A. 2Q26 earnings release (SEC Exhibit 99.1 / CVM filing), 04/08/2026 — consolidated and segment figures, leverage, FCF, capex, capital return
• Gerdau S.A. press release (PRNewswire), 04/08/2026 — highlights, DFESA energy acquisition progress
• Gerdau 2Q26 earnings call summary (Cerbat Gem), 08/08/2026 — CEO commentary on North America demand and Brazil imports
• Estadão / e-Investidor, August 2026 — market reaction, XP and Itaú BBA segment read-throughs
• GGBR4 on the explorer — filings and quote

Disclaimer

This article is for informational and educational purposes only. It is not investment advice. Adjusted figures differ from reported IFRS results, and segment allocations involve management adjustments. Gerdau operates across multiple geographies and currencies; when in doubt, the official CVM filings and Gerdau IR materials prevail. Refer to those documents and, if needed, a licensed professional.