Gerdau increased its net profit by 32% y/y in Q1

Brazilian steelmaker Gerdau reported a 32% year-on-year increase in consolidated net income for the first quarter of 2026 compared to the same period in 2025, reaching $203.5 million, according to Steelorbis.

Gerdau’s net revenue for January–March decreased by 3.8% year-on-year – to $3.4 billion. At the same time, production costs fell by 6.5% year-on-year (to $2.9 billion), enabling the company to significantly improve its financial performance. Gross profit for the quarter rose by 17.8% – to $460.6 million, while operating profit jumped by 32.3% year-on-year – to $368.3 million.

The group’s production figures for the first quarter of 2026 showed the following trends:

• steel output increased by 5.5% year-on-year – to 3.15 million tons;
• steel product sales decreased by 1.6% year-on-year – to 2.8 million tons.

From a regional perspective (excluding intra-group eliminations), the North American division was the main driver of profit.

North America accounted for 79.1% of the Group’s total EBITDA and 54.3% of its net income. This region accounted for 43.9% of steel shipments.

The Brazilian division contributed 20.3% of EBITDA and 41.3% of net income, while accounting for nearly half of the group’s total steel shipments—49%.

South America (excluding Brazil) contributed 6.9% to EBITDA, accounting for 10.5% of shipments and 0.7% of net income.

As previously reported, Gerdau has warned of risks to the Brazilian steel industry due to increased imports in the absence of effective protective measures. As a result, several Brazilian companies are already operating at a loss and may face difficulties in sustaining their operations.

As a reminder, Gerdau announced in March that it was raising prices on certain types of commercial long products. The increase applied to specific grades of angles, channels, and steel strips. Depending on the product type, prices rose by $40/t and $60/t.