Metalurgica Gerdau (GOAU4) Q4 2025 earnings summary

Executive summary

• North America delivered strong results in 2025, with EBITDA up 18.5% year-over-year and record shipments, while Brazil faced challenges from increased steel imports and competition.

• Geographic diversification and production flexibility supported resilience, with consolidated steel shipments reaching 11.6 Mt, up 5.9% year-over-year.

• The Miguel Burnier mining project achieved 91% physical progress and is set to reduce production costs at Ouro Branco.

• Fourth quarter 2025 results showed North America contributed 73% of consolidated EBITDA, offsetting seasonal and competitive pressures in Brazil.

Financial highlights

• 2025 EBITDA reached R$10.1 billion, down 7% year-over-year, mainly due to Brazil's competitive environment, while North America offset weaker results elsewhere.

• Adjusted net income for 2025 was R$3.4 billion, a 21% decrease from the previous year, excluding R$2.0 billion in non-cash impairment losses in Brazil.

• CapEx for 2025 totaled R$6.1 billion; 2026 guidance is R$4.7 billion, a 24% reduction.

• Free cash flow for Q4 2025 was R$1.4 billion; annual cash flow turned positive at R$394 million.

• Dividends and share buybacks in 2025 totaled R$2.4 billion.

Outlook and guidance

• 2026 CapEx guidance set at R$4.7 billion, focusing on maintenance, competitiveness, and enhancing free cash flow flexibility.

• Moderate demand growth expected in Brazil for 2026, with optimism around new trade defense measures and infrastructure focus.

• North America expected to maintain high steel consumption and strong order backlogs, with margin growth supported by demand in solar, data centers, and infrastructure.

• The startup of the Miguel Burnier mining project and Midlothian expansion are expected to contribute to cost reductions and capacity.