Gerdau ends 2nd quarter with adjusted Ebitda of R$2.6 billion

The Company continues to record strong financial results and is focusing on its strategy to improve competitiveness by optimizing its assets in Brazil.

– Adjusted net income totals R$ 945 million between April and June.

– Gerdau has been actively involved in various initiatives to support, recover and rebuild the state of Rio Grande do Sul, with the allocation of over R$26 million.

Gerdau, Brazil’s largest steel producer, ended the second quarter of 2024 with adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of R$ 2.6 billion and adjusted EBITDA margin of 15.8%. Adjusted net income totaled R$ 945 million between April and June, while net sales amounted to R$ 16.6 billion and steel shipments reached 2.7 million tonnes.

“The steel market remained challenging in the second quarter of 2024, still impacted by the excessive entry of imported steel in Brazil, which reflected in the Company’s performance in the period. Gerdau remains focused on a business strategy guided by strong discipline in cost management, higher competitiveness and optimization of its assets,” said Gustavo Werneck, CEO of Gerdau. “The initiatives to adapt the Company’s structure to the current business scenario announced in the second quarter will be reflected in the results of the coming periods, ensuring the creation of higher value to all its stakeholders,” he added.

“During the second quarter of 2024, we made important adjustments to our operations in Brazil seeking greater competitiveness. In addition to the impacts of cost reduction in the medium term, these initiatives are aligned with the transformation of the Company’s production capacity aiming at the modernization of assets and creation of higher value for our clients,” said Rafael Japur, CFO of Gerdau.

Capex reaches R$ 1.4 billion in the 2nd quarter of 2024

During the second quarter of 2024, Gerdau invested R$ 1.4 billion, of which R$ 716 million was allocated to maintenance and R$ 704 million to expansion and technological upgrades. Of the total invested between April and June, R$ 187 million went to expanding the forest assets, as well as for upgrading and streamlining environmental controls and technologies, all of which resulted in energy efficiency and lower greenhouse gas emissions.

Rio Grande do Sul

Gerdau, whose centennial history began in Porto Alegre 123 years ago, has been actively involved in various fronts to support Rio Grande do Sul in light of the climate events that affected the state. The Company has allocated over R$ 26 million to a series of support, recovery and reconstruction initiatives in the state. These actions seek to contribute to emergency and structural projects so that Rio Grande do Sul can regain its leadership and strength, which are characteristics of the Gaúcho people.

The initiatives include the partnership with the UN Refugee Agency (UNHCR) to provide 100 emergency housing units, which will benefit up to 600 people affected by the rains in the metropolitan region of Porto Alegre. The action is part of the fund opened by the Company and the NGO Gerando Falcões for fundraising aimed at the reconstruction of housing in the state of Rio Grande do Sul.

Payment of dividends

Gerdau S.A. and Metalúrgica Gerdau S.A. will pay dividends on August 20 and 21, respectively. Gerdau S.A. will pay R$ 252.4 million (equivalent to R$ 0.12 per share) and Metalúrgica Gerdau S.A. will pay R$ 82.6 million (equivalent to R$ 0.08 per share), in both cases to shareholders of record on August 9, 2024.