Gerdau Delivers Strong 2Q26 Results and Boosts Energy Self-Generation
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Gerdau SA ( (GGB) ) has provided an update.
On August 5, 2026, Gerdau reported strong second‑quarter 2026 results, highlighted by shipment growth in Brazil and North America, a 16% quarter‑on‑quarter increase in adjusted EBITDA to R$3.4 billion, and a 45% rise in adjusted net income to R$1.5 billion. The company benefited from resilient demand, notably in North American data center and renewable energy markets, while maintaining low leverage at 0.69x ND/EBITDA and generating positive free cash flow.
Operationally, Gerdau increased its stake in Dona Francisca Energética, lifting self‑generated energy to over 50% of its total consumption and reinforcing cost and sustainability advantages. In Brazil, EBITDA rose 15% versus the first quarter amid gradual demand improvement and a slight easing of import penetration, while in North America shipments of common long steel hit a record under the current industrial configuration, with backlogs exceeding 100 days and margins expanding.
The company advanced shareholder‑return initiatives through an ongoing share buyback program and declared dividends for Gerdau S.A. and Metalúrgica Gerdau S.A. to be paid in September 2026. Management also outlined a near‑term outlook of stable margins in North America and slight margin expansion in Brazil, supported by new mining and scrap projects in Brazil, trade‑defense measures against high import levels, and the phased expansion of the Midlothian plant in the United States.
The most recent analyst rating on (GGB) stock is a Buy
with a $6.00 price target.
To see the full list of analyst forecasts on Gerdau SA stock,
see the GGB Stock Forecast page.
Spark’s Take on GGB Stock
According to Spark, TipRanks’ AI Analyst, GGB is a Neutral.
The score is driven primarily by weakened financial performance due to materially compressed margins and cyclical earnings volatility, partly offset by a solid balance sheet and improving (but variable) cash flow. Technicals are supportive with a clear uptrend and positive momentum, while valuation is relatively attractive with a low P/E and a moderate dividend yield.
To see Spark’s full report on GGB stock,
click here.
More about Gerdau SA
Gerdau S.A., based in São Paulo, is a major Brazilian steelmaker with operations across Brazil, North America and South America, producing long and flat steel as well as special steel products. The company serves civil construction, infrastructure, manufacturing, energy, automotive, agriculture and industrial sectors, and has been expanding its energy self-generation capabilities to support its steel operations.
Average Trading Volume: 17,444,950
Technical Sentiment Signal: Buy
Current Market Cap: $9.13B
Learn more about GGB stock on TipRanks’ Stock Analysis page.
