On Monday, October 26, 2026, Metalúrgica Gerdau S.A. (GOAU4) reported adjusted net income of R$ 1.5 billion in the third quarter of 2026 (3Q26), up 4.0% compared to 2Q26 and 39.7% versus 3Q25. In the same period, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) totaled R$ 3.8 billion, an increase of 10.0% quarter over quarter, with an adjusted EBITDA margin of 20.2%.
Consolidated net revenue reached R$ 18.7 billion in 3Q26, an increase of 4.6% over 2Q26 and 3.9% compared to 3Q25, while steel sales came to 2.9 million tonnes, virtually flat versus the previous quarter and 5.6% below 3Q25. Operating income before financial result and taxes was R$ 2.7 billion, 16.5% higher than in 2Q26 and 63.8% above 3Q25, and free cash flow was positive at R$ 1.5 billion, supported by lower working capital consumption.
The consolidated financial result for 3Q26 was a net expense of R$ 429 million, compared to a net expense of R$ 306 million in 2Q26 and R$ 221 million in 3Q25, mainly due to exchange rate fluctuations. Gross debt totaled R$ 13.7 billion on September 30, 2026, with cash and financial investments of R$ 6.1 billion, resulting in net debt of R$ 7.6 billion and a net debt/adjusted EBITDA ratio of 0.57x, below 0.69x in 2Q26 and 0.81x in 3Q25.
Based on 3Q26 results, the board of directors approved the distribution of dividends of R$ 0.16 per share, totaling R$ 211.6 million, to be paid on December 16, 2026, with record date on November 10, 2026. In the quarter, the company distributed approximately R$ 213.5 million in shareholder payouts and share buybacks, equivalent to a 40.5% payout, and kept its 2026 Share Buyback Program in progress, which has already used R$ 21.4 million and reached 22% of the maximum volume of 10 million preferred shares authorized.
In terms of capital structure, the global revolving credit facility was renewed for five years, increasing the available limit from US$ 875 million to US$ 1.125 billion. Rating agencies Fitch and S&P Global Ratings revised Gerdau’s credit outlook from stable to positive, while maintaining the brAAA rating on the national scale and BBB on the global scale.
