Gerdau S.A. announced its first-quarter 2025 financial results, reporting an adjusted EBITDA of R$2.4 billion. This figure surpassed the LSEG poll estimate of R$2.29 billion, demonstrating stronger-than-expected operational performance in some segments. However, the adjusted EBITDA also represented a nearly 15% decline year-over-year, indicating headwinds in certain markets.
The company's adjusted net profit for the quarter declined by 39% year-over-year to R$758 million, with net income at $127.8 million, or 6 cents per share. Total revenue for the period was $2.96 billion. These figures reflect a challenging environment, particularly in Brazil, which was partially offset by stronger performance in North America.
North American operations were a key driver, contributing 49% of the group's operating results, benefiting from changes in U.S. steel trade policy. In a significant strategic decision, Gerdau confirmed the cancellation of studies for a special steel mill in Mexico. This decision was made in response to the 25% U.S. steel import tariff, highlighting the impact of trade policies on capital allocation.
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