GGBR4: quote, dividends and indicators for Gerdau

Gerdau S.A. is a Brazilian corporation established in 1961, the result of a reorganization of businesses that date back to 1901 with the Pontas de Paris nail plant in Porto Alegre. Indirectly controlled by the Gerdau family, the company has grown through acquisitions, mergers, and international expansion, becoming the largest steel producer in Brazil and one of the main suppliers of long steel in the Americas and of specialty steels on a global scale. The corporate structure has Metalúrgica Gerdau S.A. as its holding company, while Gerdau’s shares, including tickers GGBR3 and GGBR4, trade on B3 and also on the New York Stock Exchange (NYSE), reflecting its presence in both Brazilian and international capital markets.

Gerdau’s main activities are focused on the production and sale of steel products, with a portfolio ranging from semi-finished goods to higher value-added finished products, as well as iron ore for its own use. The company operates across the entire steel value chain, running mills in Brazil, the United States, Canada, Argentina, Peru, Uruguay and, through a joint venture, in Mexico. Its business model combines integrated mills, which produce steel from iron ore in blast furnaces, and mini-mills (semi-integrated mills), which predominantly use steel scrap in electric arc furnaces (EAF). As of December 31, 2025, consolidated annual installed capacity, excluding joint ventures and affiliates, reached around 15.7 million tonnes of crude steel and 15.0 million tonnes of rolled products, with a total of 29 steel-producing units in operation worldwide.

Gerdau’s product portfolio covers a wide range of industrial, construction, and agricultural applications. In semi-finished products, the company produces billets, blooms, and slabs, which serve as inputs for rolling into rebar, wire rod, rolled bars, and flat products. In common long steels, production includes rebar, wire rod, bars, and light and structural shapes, widely used in construction and manufacturing. In drawn products, the company offers smooth and barbed wire, galvanized wire, fences, concrete reinforcing mesh, nails, and staples, serving construction, manufacturing, and agribusiness industries. In specialty steels, geared to applications with high mechanical requirements, Gerdau supplies automotive chains (light and heavy vehicles, auto parts, and agricultural machinery) and sectors such as oil and gas, wind power, machinery and equipment, mining, and rail. The integrated Ouro Branco mill in Minas Gerais also produces flat products such as hot-rolled coils and heavy plates, serving both the domestic and export markets. Additionally, the company mines iron ore in Minas Gerais, with mines such as Várzea do Lopes and Miguel Burnier, producing sinter feed, pellet feed/concentrate, hematitinha and lump ore, mainly to supply its own mills.

Gerdau’s operations are organized into geographic business segments: Brazil, North America, and South America (excluding Brazil). The Brazil Segment encompasses long, flat, and specialty steel operations, as well as iron ore mining, with capacity of approximately 7.9 million tonnes of crude steel and 8.2 million tonnes of finished products per year. The North America Segment comprises long and specialty steel mills in Canada and the United States, where the company operates 10 steel production units and is positioned among the leading regional producers of rebar, bars, and shapes. The South America Segment covers operations in Argentina, Peru, and Uruguay, following the sale of its interest in Diaco S.A. and Gerdau Metaldom Corp. in 2024. In 2025, consolidated net sales totaled R$ 69.9 billion, distributed across Brazil, North America, and South America, with a predominance of revenue from Brazilian and North American operations. Most production is directed to local markets, with complementary exports that help dilute fixed costs and adjust capacity utilization in response to demand cycles.

Gerdau’s customer base is diversified and spread across more than 50 countries, covering manufacturing, construction, and agriculture. In 2025, no customer accounted for more than 10% of total net revenue, indicating a dispersed demand profile. In Brazil, the company serves both construction retail and large contractors, as well as industrial sectors such as automotive, machinery and equipment, home appliances, and transportation. In North America and other international markets, Gerdau maintains relationships with traditional steel consumers, including customers in Europe and the United States, subject to different tax and regulatory regimes. The company also operates service (fab shop) and downstream processing units, reforestation projects, and power generation operations, integrating activities that support the steel value chain.

Gerdau’s geographic footprint is shaped by a strategy of proximity to raw material suppliers and end markets. Mills and distribution centers are located with an eye to logistics costs and access to scrap, ore, and final customers. The company invests in multimodal transportation solutions, combining road, rail, maritime, and coastal shipping, and also operates or uses its own and third-party port terminals. In Brazil, its equity stake in MRS Logística ensures strategic access to the rail network connecting Minas Gerais, Rio de Janeiro, and São Paulo, as well as key ports. Most exports from Brazil are shipped through the private Praia Mole terminal in Espírito Santo, while abroad, the private terminal in Chimbote, Peru, stands out for serving the local mill. This logistics setup is designed to maintain price competitiveness and delivery reliability, a key factor in a sector that is intensive in the transport of heavy cargo.

From a regulatory standpoint, Gerdau is subject to a broad set of industrial, mining, environmental, and safety regulations, both in Brazil and in the other countries where it operates. In the iron ore mining segment in Brazil, operations comply with the Brazilian Mining Code, regulations of the National Mining Agency (ANM), and environmental and forestry legislation, including dam safety rules. Mining concessions and mine manifestos cover thousands of hectares in Minas Gerais and are valid until ore body depletion, subject to compliance with legal requirements and the payment of royalties, such as the Financial Compensation for Mineral Exploration (CFEM), whose rate for iron ore is 3.5%, calculated on gross revenue or specific parameters depending on the operation. In addition, the company holds environmental licenses for its industrial, mining, and forestry operations, which are subject to periodic renewals and the potential imposition of new technical conditions.

Gerdau is also affected by international trade regulations, such as tariffs, antidumping measures, and safeguard actions applied by different countries to steel products. The introduction of Section 232 tariffs in the United States, the imposition and subsequent review of safeguard measures and antidumping duties by the European Union, and Mercosur agreements with other markets are examples of factors that influence export dynamics and the competitive positioning of its products. The company adjusts its production mix and sales allocation in line with these conditions, both to mitigate the risk of trade barriers and to capture opportunities arising from changes in international trade policy.

In environmental, social, and governance (ESG) matters, Gerdau follows an Environmental Policy, a Corporate Environmental Guideline, and an Environmental Management System that guide impact management, the use of natural resources, and compliance with licenses and permits. The company is a major recycler of metal scrap, using this input in approximately 70% of the steel it produces and annually transforming around 10 million tonnes of scrap into steel products. This model, combined with the extensive use of mini-mills and the charcoal-based route at certain mills, contributes to relatively lower greenhouse gas emissions compared with traditional routes based exclusively on coal-fired blast furnaces. In terms of transparency, Gerdau publishes an Annual Report with ESG information aligned with IIRC, GRI, and SASB guidelines, covering financial performance, governance, environment, social responsibility, health, safety, and people management, with independent assurance of the disclosed content. GGBR3 and GGBR4 shares, traded on B3, represent an ownership interest in a company with a significant presence in the global steel industry, a strong industrial base, and exposure to steel demand cycles in Brazil and the Americas.