Gerdau S.A. (NYSE: GGB) released its fourth‑quarter 2025 financial results, reporting revenue of $3.29 billion—up 7.2% from the $3.07 billion consensus estimate—and a net loss of $239.6 million. The company’s earnings per share fell to –$0.1281, a miss of $0.2042 against the $0.0761 consensus, marking a 268% shortfall relative to expectations.
Segment performance underscored a stark contrast between the company’s North American and Brazilian operations. North America delivered strong demand, with shipments and pricing power offsetting the impact of higher input costs. In Brazil, intensified competition from imported steel and rising input prices compressed margins, leading to a 13% decline in adjusted EBITDA to R$2.37 billion versus R$2.57 billion in Q3 2025. Trade‑tariff adjustments under Section 232 helped stabilize the U.S. market, while ongoing investigations into rebar imports added uncertainty to the Brazilian segment.
Management highlighted a disciplined cost‑control program that has kept operating expenses in line with revenue growth. The company guided 2026 capital expenditures to R$4.7 billion, a reduction of R$1.4 billion from 2025, signaling a shift toward free‑cash‑flow generation. The Miguel Burnier iron‑ore project, now 91% complete, is expected to lower production costs in the first half of 2026 and support margin recovery in Brazil.
Investor reaction was muted, with the market focusing on the EPS miss rather than the revenue beat. The company’s guidance for 2026, particularly the lower CapEx and the emphasis on the Miguel Burnier project, was interpreted as a cautious outlook amid ongoing competitive pressures in Brazil.
Overall, the earnings release provides a clearer view of Gerdau’s dual‑market dynamics, the impact of trade policy, and the company’s strategic focus on cost efficiency and capital discipline. The results and guidance suggest that while North American demand remains robust, Brazil will continue to face margin compression until the new iron‑ore project fully operationalizes.
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