GOAU4: quote, dividends and indicators for Metalúrgica Gerdau

Metalúrgica Gerdau S.A. is a Brazilian corporation founded in 1901 in the city of Porto Alegre, originally as the nail factory Pontas de Paris, established by the Gerdau family. Over time, the company evolved from an industrial operation focused on nail products to become the holding company Metalúrgica Gerdau S.A., controlled by the Gerdau family and the direct controlling shareholder of Gerdau S.A., one of the largest steel groups in the Americas. Metalúrgica Gerdau’s shares are traded on B3 under the tickers GOAU3 and GOAU4, which positions it as a relevant investment vehicle in the steel conglomerate. Its centenary trajectory includes organic and inorganic expansion, geographic and technological diversification, and the consolidation of a governance structure typical of a large industrial holding company.

Metalúrgica Gerdau’s business model is centered on its role as a controlling holding company, with its main asset being its stake in Gerdau S.A., which is dedicated to the production and sale of steel products. The controlled company’s industrial operation is based on a combination of integrated plants and mini-mills (semi-integrated plants), which use both iron ore and scrap metal as inputs. On December 31, 2025, Gerdau had consolidated installed capacity of approximately 15.7 million tons of crude steel and 15.0 million tons of rolled products, distributed across 29 steel-producing units worldwide. In that same fiscal year, consolidated assets totaled R$ 81.7 billion, with shareholders’ equity of R$ 53.8 billion, consolidated net sales of R$ 69.9 billion and total consolidated net income of R$ 1.4 billion, reflecting the scale and relevance of the steel group that forms the economic base of Metalúrgica Gerdau.

The controlled company’s industrial activities cover a broad portfolio of steel and mining products. The mix includes semi-finished products such as slabs, blooms and billets, used as inputs for rolling into rebar, wire rod, rolled bars and seamless tubes. In common long steels, Gerdau produces rebar, wire rod, bars and light and structural shapes, widely used in civil construction and industrial applications. The company also produces drawn products such as plain, barbed and galvanized wire, fences, wire mesh, nails and staples, mainly aimed at the construction, manufacturing and agricultural segments, generally sold in local markets. In special steels, production is geared to applications with high mechanical requirements, serving mainly the automotive chain (auto parts and systems for light and heavy vehicles and agricultural machinery), as well as sectors such as oil and gas, wind power, machinery and equipment, mining and rail. Complementing this, the controlled company produces flat steel, mainly hot-rolled coils and heavy plates at the Ouro Branco plant, as well as iron ore from mines located in Minas Gerais, with a portfolio that includes sinter feed, pellet feed/concentrate, hematitinha and lump ore, with a significant portion destined for internal consumption.

Gerdau’s operating structure, which is the economic base of Metalúrgica Gerdau, is organized into geographic business segments: Brazil, North America and South America (except Brazil). The Brazil Segment concentrates the long, flat, special steel and iron ore operations, with annual capacity of around 7.9 million tons of crude steel and 8.2 million tons of finished steel products, as well as jointly controlled entities and associates in the country. The North America segment groups long and special steel mills in Canada and the United States, including joint venture operations in Canada and Mexico, with ten steel-producing units in the United States and three in Canada. South America covers operations in Argentina, Peru and Uruguay, following the sale in 2024 of the stakes in Diaco S.A. and Gerdau Metaldom Corp., which were previously included in the segment. In 2025, consolidated net revenue was R$ 69.9 billion, distributed among Brazil, North America and South America, with Brazilian and North American operations predominating in consolidated revenue. The segment information reflects the regionalization of steel markets and the importance of local dynamics of demand, exchange rates and competition.

Gerdau has a diversified geographic presence, with mills located in Brazil, Canada, the United States, Argentina, Peru, Uruguay and a joint venture operation in Mexico. In Brazil, standouts include the integrated plants in Ouro Branco, Divinópolis and Barão de Cocais (the latter with production suspended since 2024), as well as multiple mini-mills distributed throughout the country. Abroad, operations are mostly based on mini-mills, using electric arc furnaces to melt scrap. In 2025, consolidated shipments reached 11.36 million tons, with each geographic segment making a significant contribution and with a predominance of sales directed to the local markets where the company produces, although there are also export flows, especially from Brazil. The controlled company has developed commercial relationships with customers in more than 50 countries on all continents, which exposes the group to different regulatory, tax and trade regimes, including tariff and antidumping measures in markets such as the United States and the European Union.

From a market perspective, Gerdau operates mainly in supplying steel and derivatives to the construction, manufacturing and agricultural industries. Its customer base is diversified, with no material concentration in a single buyer, since no customer accounted for more than 10% of net revenue in 2025. Distribution is carried out through direct sales from the mills, its own network and independent distributors, with a strong logistics component that includes road, rail, maritime and cabotage transport. The equity stake in MRS Logística S.A. provides strategic access to the rail network connecting Minas Gerais, Rio de Janeiro and São Paulo, as well as key ports, reducing costs and supporting competitiveness. Ports such as Praia Mole, in Espírito Santo, are important for exporting flat and long products, while in Peru the company operates its own terminal in Chimbote to serve the local mill.

Gerdau’s industrial, forestry and mining activities in Brazil are subject to a comprehensive regulatory framework that includes licenses and permits granted by environmental agencies and by the National Mining Agency (ANM), the successor to the former DNPM. The iron ore operations, tied to mineral rights located mainly in the Quadrilátero Ferrífero region of Minas Gerais, comply with the rules of the Brazilian Mining Code, environmental legislation and dam safety regulations. The company holds mining concessions and mine manifests in areas such as Miguel Burnier, Várzea do Lopes, Gongo Soco and Dom Bosco, covering thousands of hectares. Mineral exploitation is subject to payment of the Financial Compensation for the Exploitation of Mineral Resources (CFEM), with a 3.5% rate on iron ore, calculated on gross sales revenue, current price or reference value, depending on the type of operation. The validity of the concessions depends on compliance with legal and environmental obligations, including land reclamation, operational safety and submission of periodic information to the authorities.

In terms of environmental, social and governance practices, Gerdau maintains an Environmental Policy, corporate guidelines and an environmental management system focused on license management, impact monitoring and optimization of natural resource use. The industrial strategy combines integrated mills and mini-mills, the latter associated with intensive use of scrap and lower greenhouse gas emissions per ton produced. In Brazil, part of the integrated production uses charcoal from planted forests, as in the Divinópolis plant, in an effort to reduce emissions compared to the use of mineral coal. The company discloses ESG information in its Annual Report, aligned with international standards such as IIRC, GRI and SASB, with a materiality matrix and key performance indicators in environmental, social and governance dimensions, assured by an independent third party. As a holding company listed on B3, Metalúrgica Gerdau, through its exposure to Gerdau S.A., is linked to this set of ESG practices and results, which are reflected in risk management, relations with communities and transparency for the capital markets, especially for holders of GOAU3 and GOAU4 shares.