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An update from Gerdau SA ( (GGB) ) is now available.
Gerdau S.A., the Brazilian-based multinational steel producer with operations across the Americas, reported first-quarter 2026 results on April 27, 2026 that underscore the growing importance of its North American business. The company manufactures long, flat and special steels and iron ore, and is increasingly complementing its industrial footprint with renewable power assets to support lower-carbon products such as its newly launched Gerdau NewEco line.
For 1Q26, net sales slipped 1.5% quarter-on-quarter to R$16.7 billion, but adjusted EBITDA rose 24.6% to R$3.0 billion and adjusted net income jumped 51% to R$1.0 billion, driven largely by a strong North American performance that contributed about 75% of consolidated EBITDA. Gerdau maintained low leverage at 0.74x net debt to adjusted EBITDA, generated slightly positive free cash flow despite working capital consumption, and cut capex to R$1.1 billion while reaffirming its R$4.7 billion full-year guidance.
Management highlighted persistent pressure in Brazil from record steel imports, particularly flat products, which depressed domestic shipments even as crude steel output increased with the ramp-up of the expanded Ouro Branco hot-rolled coil line. South American operations showed mixed results, with Argentina and Uruguay hurt by oversupply and imports, while Peru delivered solid construction-driven growth, illustrating the diversification benefits of the regional portfolio.
On the capital allocation front, the board approved R$354 million in dividends, equivalent to R$0.18 per share, payable from June 9, 2026, and advanced the 2026 share buyback program by repurchasing about 21% of the authorized volume. Strategically, Gerdau inaugurated the 111 MWm Barro Alto Solar Complex in Goiás, expected to supply roughly 13% of its power needs in Brazil, and received Worldsteel’s Steel Sustainability Champion 2026 recognition, reinforcing its positioning as a resilient, cash-generative and increasingly sustainability-focused player in the global steel industry.
The most recent analyst rating on (GGB) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Gerdau SA stock, see the GGB Stock Forecast page.
Spark’s Take on GGB Stock
According to Spark, TipRanks’ AI Analyst, GGB is a Neutral.
The score is driven primarily by mixed financial performance: improved top-line and a solid balance sheet are outweighed by sharply weaker margins and weaker cash conversion. The latest earnings call adds modest support via lower 2026 CapEx, conservative leverage and buybacks, while technical indicators and valuation are broadly neutral rather than strong positives.
To see Spark’s full report on GGB stock, click here.
More about Gerdau SA
Gerdau S.A. is a Brazilian steelmaker with operations in Brazil, North America and South America, producing long, flat and special steels, as well as iron ore. The company serves construction, industrial and automotive markets and has been investing in capacity expansions and renewable energy to boost competitiveness and support its decarbonization strategy.
Average Trading Volume: 21,267,376
Technical Sentiment Signal: Buy
Current Market Cap: $8.07B
For detailed information about GGB stock, go to TipRanks’ Stock Analysis page.