Gerdau ends 3RD quarter with adjusted Ebtida of R$ 3.0 Billion

Quarterly performance reflects the advancement of cost and expense reduction initiatives and the strategy to enhance competitiveness by optimizing its assets in Brazil

Gerdau, Brazil’s largest steel producer, ended the third quarter of 2024 (3Q24) with adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of R$ 3.0 billion and adjusted EBITDA margin of 17.4%. Adjusted net income totaled R$ 1.4 billion between July and September, while net sales amounted to R$ 17.4 billion and steel shipments reached 2.8 million tonnes.

“During the third quarter, we advanced in our initiatives to reduce costs and expenses and in our plan to improve competitiveness by optimizing our assets in Brazil. At the same time, we noticed an increase in steel demand in the domestic market compared to the previous quarter. Despite the higher demand in the domestic market, our volumes continue to be affected by the excessive influx of imported long and flat steels into the country, which stayed high from July to September,” said Gustavo Werneck, CEO of Gerdau. “We remain focused on creating value for our clients and stakeholders through a complete portfolio of innovative steel products, solutions and services, as well as the Company’s commitment to building an even more sustainable future,” he added.

“The results achieved in the third quarter of 2024 already reflect the adjustments made to our operations in Brazil aimed at enhancing our competitiveness and operational efficiency, as well as strong discipline in cost management across all our business units. Note that the EBITDA and EBITDA margin of the Brazil Business Division in the period between July and September achieved the best performance of the last eight quarters,” said Rafael Japur, CFO of Gerdau.

Capex reaches R$ 1.5 billion in the 3rd quarter of 2024

In the third quarter of 2024, Gerdau invested R$ 1.5 billion, with 39% allocated to maintenance and 61% to projects for competitiveness gains, expansion and technological upgrades. Of the total invested between July and September, approximately R$ 200 million was allocated to updating and improving environmental controls and technological enhancements that result in energy efficiency and reduced greenhouse gas emissions.

Sustainability

For the third straight year, Gerdau won the Steelie Awards, the most prestigious global award in the steel industry, organized by the World Steel Association (worldsteel). In the 15th edition of the awards, the Company was the winner in the “Excellence in Sustainability” category with the case “ESG in the supply chain.” Gerdau presented its action plan to engage and encourage its suppliers to develop sustainable initiatives.

Payment of dividends

Gerdau S.A. and Metalúrgica Gerdau S.A. will pay dividends on December 16 and 17, respectively. Gerdau S.A. will pay R$ 619.4 million (equivalent to R$ 0.30 per share) and Metalúrgica Gerdau S.A. will pay R$ 131.9 million (equivalent to R$ 0.13 per share), in both cases to shareholders of record on November 18, 2024.