| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 81 | 23.3x | 17.8x | Top tier | |
Growth | 16 | 0.6% | 7.1% | Bottom tier | |
Quality | 43 | 4.6% | 4.5% | Around median | |
Safety | 70 | 1.3x | 2.6x | Top tier | |
Capital Return | 70 | 6.71% | 2.12% | Top tier | |
Momentum | 96 | 62.1% | 2.9% | Top tier | |
Sentiment | 74 | 3 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Gerdau S.A. produces steel and serves markets including North America and Brazil, with exposure to products such as beams, structural sections, special steel, and long and flat products. The North American business relies on metal construction, renewable energy, data centers, infrastructure, and semiconductor plants, while the Brazilian business is also linked to heavy vehicles, manufacturing, and construction. In North America, half of the portfolio goes to the distribution market, where price changes are passed through more quickly than in industrial sectors, manufacturing, and downstream activities.
In fiscal year 2025, revenue was $69.9 billion, gross profit was $8.0 billion, and net income was $1.4 billion, equivalent to a calculated gross margin of approximately 11.4%. This compares with revenue of $67.0 billion, gross profit of $9.2 billion, and net income of $4.6 billion in fiscal year 2024; meaning that revenue growth in fiscal year 2025 was accompanied by a contraction in gross profit of approximately 13% and a decline in net income of approximately 70%. The calculated gross margin also declined from approximately 13.7% in fiscal year 2024 and approximately 16.4% in fiscal year 2023.
In quarter 2 of fiscal year 2026, the company recorded adjusted earnings before interest, taxes, depreciation, and amortization of BRL 3.4 billion, the highest since quarter 3 of fiscal year 2023, while adjusted net income rose 45% quarter over quarter to BRL 1.5 billion. North America led the improvement, with shipments increasing 7% year over year and adjusted earnings before interest, taxes, depreciation, and amortization rising 15% compared with quarter 1 of fiscal year 2026, while Brazil achieved only a slight improvement under pressure from imports. Free cash flow was BRL 237 million, and the net debt-to-earnings before interest, taxes, depreciation, and amortization ratio remained stable at 0.69 times.
The analyst consensus is “Buy,” with a unified target of $6.10; the highest and lowest targets are both at the same level, meaning there is no actual range reflecting differences of opinion. This target is above the 52-week range high of $5.18, compared with a low of $2.98, but the absence of dispersion in the targets and an available price-to-earnings ratio, together with the approximately 70% decline in fiscal year 2025 net income, makes achievement of the valuation dependent on a recovery in Brazil's profitability and execution of cost-reduction projects.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
North America was the primary driver, with shipments growing 7% year over year and adjusted earnings before interest, taxes, depreciation, and amortization rising 15% compared with quarter 1 of fiscal year 2026. At the group level, adjusted earnings before interest, taxes, depreciation, and amortization reached BRL 3.4 billion, the best level since quarter 3 of fiscal year 2023. Adjusted net income also rose 45% quarter over quarter to BRL 1.5 billion, while Brazil's improvement was limited to a slight increase due to import pressure.
Gerdau benefits from strong steel demand in data centers, renewable energy, infrastructure, and electricity transmission projects. Management noted that the company supplies approximately 40 semiconductor plants and that the order book remained strong through the August 5, 2026 results presentation. Half of the North American portfolio is also directed to the distribution market, where price changes are passed through more quickly than in industrial sectors, manufacturing, and downstream activities.
The company expects to begin ore production in quarter 3 of fiscal year 2026 and complete the capacity ramp-up by the end of fiscal year 2026 or the beginning of fiscal year 2027. Gerdau is targeting a cash cost of approximately $30 per ton delivered to Ouro Branco, with an annual operating and financial benefit within a range of BRL 1 billion to BRL 1.1 billion at full operation. When combined with the Pindamonhangaba center and the Midlothian expansion, management expects a potential annual contribution of approximately BRL 1.4 billion to BRL 1.5 billion.
Automated analysis for informational purposes only — not investment advice.
Management said the Brazilian operations had accumulated losses since the second half of fiscal year 2025, while steel imports remained high and pressured prices and profitability. The company also faces more moderate growth in construction and manufacturing, with no meaningful improvement in unit prices expected during quarter 3 of fiscal year 2026. The response includes improving the sales mix and productivity, increasing self-generated energy to more than 50% of consumption, bringing Miguel Burnier into operation, and reducing production capacity in Recife.
Gerdau S.A. announced distributions of BRL 0.23 per share based on the results of quarter 2 of fiscal year 2026, while Metalurgica Gerdau announced a distribution of BRL 0.11 per share. The Gerdau S.A. share repurchase program was 31% complete at the end of that quarter. This policy is supported by a net debt-to-earnings before interest, taxes, depreciation, and amortization ratio of 0.69 times, but management emphasized that it does not want to increase borrowing merely to fund distributions exceeding available cash flow.
