What were Gerdau's key financial results for Q2 2025?

Brazilian steelmaker Gerdau closed the second quarter with a net debt of R$ 8.1 billion and a leverage ratio (net debt/EBITDA) of 0.69x — an improvement from the 0.74x recorded in the previous quarter, signalling continued balance-sheet discipline.

How much did Gerdau invest, and where did the money go?

The company invested R$ 1 billion between April and June, down from R$ 1.6 billion in the same period last year. Of that amount, 80% was directed to Brazilian operations. For the full first half of the year, capex reached 45% of the annual target.

Which region drives Gerdau's earnings?

The North American operation was the clear standout, accounting for roughly 56% of consolidated net revenue and 74% of adjusted EBITDA. Brazil contributed 37% of net revenue and 20.1% of EBITDA. The remaining South American markets — Argentina, Peru and Uruguay — added 7% of net revenue and 5.8% of EBITDA.

What does this mean for investors and the steel sector?

The falling leverage ratio and the dominant role of the US market suggest Gerdau is managing costs carefully while relying on stronger North American steel demand to support margins. The reduced capex compared to last year also points to a more conservative investment posture for 2025.

Key Facts:
  • Net debt: R$ 8.1 billion at end of Q2
  • Leverage (net debt/EBITDA): 0.69x, down from 0.74x in Q1
  • Q2 capex: R$ 1 billion (vs R$ 1.6 billion in Q2 last year)
  • 80% of Q2 capex allocated to Brazil
  • H1 capex = 45% of full-year target
  • North America: 56% of net revenue, 74% of adjusted EBITDA
  • Brazil: 37% of net revenue, 20.1% of EBITDA
  • South America (Argentina, Peru, Uruguay): 7% of net revenue, 5.8% of EBITDA