Key Highlights

  • Gerdau (NYSE:GGB) reported third quarter 2026 adjusted EBITDA of 3.771 billion Brazilian reais, up 37.8% from a year earlier, on net sales of 18.691 billion reais, according to the company release.
  • Adjusted EBITDA margin reached 20.2%, the highest since the second quarter of 2023, and net income was 1.563 billion reais, or 0.79 reais per share.
  • Published market data listed EPS of USD 0.77 against a USD 1.00 estimate, a 22.79% miss, a currency basis the company release does not reconcile.
  • Gerdau (NYSE:GGB) declared a dividend of 0.34 reais per share, totaling 667.0 million reais, payable December 15, 2026 to holders of record on November 10, 2026.

Strong Quarter, Odd Comparison

Net sales were 18.691 billion reais, up 3.9% from a year earlier, and adjusted net income was 1.523 billion reais, up 39.7%. Free cash flow was 1.439 billion reais and net debt to adjusted EBITDA was 0.58 times. EPS of 0.79 reais compared with 0.54 reais a year earlier. Because the published miss lists a dollar estimate of USD 1.00 against USD 0.77, the shortfall may reflect currency conversion or estimates that did not update for the 3.9% sales growth, so the miss label should be treated with caution. The company's own comparison is clear: EPS rose from 0.54 reais to 0.79 reais, up about 46%, simple arithmetic, and quarterly EBITDA margin gained 5.0 points from a year earlier.

North America Carries Earnings

North America produced adjusted EBITDA of 2.912 billion reais, up 12.0% sequentially and 60.0% from a year earlier, at a 27.7% margin, which is about 76% of the consolidated total. Its order backlog exceeded 100 days. Brazil earned 741 million reais at a 10.7% margin, as management cited a competitive market with high supply, exports falling to 13% of shipments from 21% and imports rising 19.8% sequentially, with flat steel imports up 33.8%. South America earned 160 million reais, down 31.8% year over year, with Argentina and Uruguay weak. Shipments in North America were 1.313 million tonnes, down 2.5% sequentially, so the profit gain came from pricing and margin rather than volume.

Outlook and Risks

Total steel shipments were 2.914 million tonnes, down 5.6% year over year. The company gave no numeric guidance, but said the Miguel Burnier mining project should start in the fourth quarter and the Midlothian, Texas capacity expansion in late 2026, with no material impact expected on North American shipments from Midlothian shutdowns. Fitch and S&P revised the outlook on Gerdau to positive from stable. Risks include import pressure in Brazil, softer volumes, weak Argentine and Uruguayan demand, and reliance on one region for most profit. Brazilian shipments were flat sequentially at 1.351 million tonnes, which means domestic volume has not yet responded to the margin recovery, and total shipments fell 5.6% year over year.

Where Things Stand

Gerdau's EBITDA jumped 37.8% on North American strength even though published market data shows an EPS miss, which looks like a basis and currency mismatch rather than weak operations. That answers the headline, with the caveat that the reconciliation was not possible. Gerdau (NYSE:GGB) has leverage of 0.58 times and a positive outlook from two ratings agencies, but Brazil import pressure and falling shipments are risks, and no numeric guidance was given.