Gerdau S.A.
- Open
- 4.68
- Day high
- 4.74
- Day low
- 4.59
- Prev close
- 4.59
- Volume
- 9.4M
- Mkt cap
- $9.0B
- P/E (TTM)
- 21.5
- EPS (TTM)
- $0.21
- P/B
- 0.9
- P/S
- 0.7
- Yield
- 3.14%
- Per share
- $0.14
- ▲Insiders net buying $187K over the last 3 months (1 open-market buy, 3 sales)
- 🏛Institutions accumulating (13F)
Gerdau S.A. (GGB) is a Basic Materials company listed on NYSE. The stock is up 52% over the past year. Over the trailing 3 months, insiders filed 1 open-market buy and 3 sales (SEC Form 4).
Gerdau S.A. (GGB) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
GGB earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $0.15 | $0.15 | +0.0% | $3.5B | +2.2% |
| Apr 28, 2026 | $0.15 | $0.10 | -33.3% | $3.3B | -0.6% |
| Oct 30, 2025 | $0.11 | $0.10 | -9.1% | $3.4B | +9.1% |
| Jul 31, 2025 | $0.09 | $0.08 | -11.1% | $3.2B | -1.6% |
| Feb 19, 2025 | $0.12 | $0.06 | -50.0% | $2.7B | -12.7% |
| Jul 31, 2024 | $0.07 | $0.09 | +28.6% | $3.0B | -1.9% |
| May 3, 2024 | $0.09 | $0.12 | +33.3% | $3.2B | +0.3% |
| Feb 20, 2024 | $0.59 | $0.41 | -30.5% | $3.0B | -3.9% |
| May 3, 2023 | $0.27 | $0.29 | +7.4% | $3.7B | -2.0% |
| Mar 1, 2023 | $1.37 | $0.12 | -91.1% | $3.4B | -8.2% |
| Nov 9, 2022 | $0.29 | $0.27 | -6.9% | $3.9B | -2.0% |
| Aug 3, 2022 | $0.34 | $0.40 | +17.6% | $4.4B | +2.5% |
GGB insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 27, 2026 | Wahrhaftig Marcos Eduardo Faracoother: Executive Vice President | Grant | 107,749 | $3.75 |
| Aug 14, 2026 | Mattiello Marcos Zillesother: Senior Management | Sell | 10,387 | $5.11 |
| Aug 12, 2026 | Johannpeter Andre Bier Gerdauother: Chairman of Board of Directors | Sell | 99,200 | $4.94 |
| Aug 10, 2026 | Japur Rafael Dornelesother: VP, CFO and IR Officer | Sell | 10,000 | $5.10 |
| Jun 15, 2026 | Da Cunha Gustavo Werneckofficer: CEO and Board Member | Buy | 165,224 | $4.73 |
| May 28, 2026 | Metz Mauricioother: Executive Vice President | Sell | 5,000 | $4.70 |
| May 26, 2026 | Japur Rafael Dornelesother: VP, CFO and IR Officer | Sell | 5,000 | $4.75 |
| May 22, 2026 | Peres Cesar Obino da Rosaofficer: Officer | Sell | 8,000 | $4.60 |
| May 15, 2026 | Metz Mauricioother: Executive Vice President | Sell | 5,000 | $4.85 |
| May 12, 2026 | Da Cunha Gustavo Werneckofficer: CEO and Board Member | Sell | 432,854 | $4.87 |
| May 12, 2026 | Da Cunha Gustavo Werneckofficer: CEO and Board Member | Grant | 432,774 | — |
| May 8, 2026 | Metz Mauricioother: Executive Vice President | Sell | 2,000 | $4.69 |
| May 7, 2026 | Wang Chia Yuanother: Senior management | Sell | 40,000 | $4.75 |
| May 5, 2026 | Da Cunha Gustavo Werneckofficer: CEO and Board Member | Sell | 88,000 | $4.50 |
| May 4, 2026 | Wang Chia Yuanother: Senior management | Sell | 20,000 | $4.54 |
Source: GGB SEC Form 4 filings, latest Aug 27, 2026. For informational purposes only — not investment advice.
See the full GGB insider & 13F page →Gerdau S.A. company profile
Overview
Gerdau S.A. (NYSE:GGB) is a Brazilian multinational steel company founded in 1901 and headquartered in São Paulo, Brazil. Originally established as a nail factory by João Gerdau, the company has grown over its 124-year history to become one of the largest steel producers in the Americas. Gerdau went public on the New York Stock Exchange in 1999 and operates across multiple countries including Brazil, the United States, Canada, Argentina, Peru, and Uruguay. The company has evolved from a small family business into a major integrated steel producer with operations spanning from iron ore mining to finished steel products.
Business
Gerdau operates in the steel manufacturing industry, which involves converting iron ore and scrap metal into various steel products used across construction, automotive, manufacturing, and infrastructure sectors. The company's operations are organized into four main business segments: **Brazil Business** represents the largest portion of revenues, producing long steel products such as rebars (reinforcing bars used in concrete construction), wire rods, merchant bars, and light structural shapes primarily for Brazil's construction and manufacturing industries. This segment also includes flat steel products like hot-rolled coils and heavy plates, as well as iron ore mining operations. The Brazil segment faces significant challenges from imported steel, particularly from China, which has captured approximately 22% market penetration. **North America Business** operates steel mills in the United States and Canada, focusing on long steel products for the construction industry, particularly non-residential construction. This segment has shown resilient performance with stable demand and healthy margins, benefiting from infrastructure investments and potential reshoring trends. The business serves niche markets in structural profiles and construction materials. **South America Business** encompasses operations in Argentina, Peru, and Uruguay, producing similar long steel products for regional construction and manufacturing markets. Argentina presents particular challenges due to economic instability, while Peru and Uruguay show more positive outlooks. **Special Steel Business** produces high-grade specialty steel products used in automotive parts, agricultural machinery, oil and gas equipment, wind energy, and heavy vehicles. These products require more sophisticated metallurgical processes and command higher margins. The segment serves both Brazilian and North American automotive and industrial markets. The company also operates mining operations that produce iron ore, primarily for internal consumption in steel production, and has been investing in renewable energy generation through solar farms and small hydroelectric plants to reduce energy costs and environmental impact.
Revenue model
Gerdau generates revenue primarily through product sales of steel products to industrial customers, construction companies, distributors, and manufacturers. The company sells through three main channels: independent distributors, direct sales from mills, and through its own retail network. Revenue is generated from tonnage sold multiplied by steel prices, which fluctuate based on raw material costs (iron ore, scrap metal, coking coal), supply-demand dynamics, and global steel market conditions. The company's profitability is significantly influenced by several key factors. Raw material costs represent the largest expense, particularly iron ore, scrap metal, and energy costs. Gerdau has some vertical integration through its iron ore mining operations, which provides partial cost control. Steel import competition, especially from China, creates pricing pressure in Brazilian markets where imports have reached 22% market penetration, forcing domestic producers to compete on price. Currency fluctuations affect both costs and revenues, as the company operates across multiple countries with different currencies. Energy costs are substantial in steel production, leading Gerdau to invest in renewable energy generation to reduce this expense. The company has been implementing a cost reduction program targeting BRL 1.5 billion in savings compared to 2023 levels. Capacity utilization significantly impacts profitability, as steel production has high fixed costs, making volume crucial for margin improvement. Market demand varies by geography and end-use sector. North American operations benefit from infrastructure spending, reshoring trends, and stable construction demand. Brazilian operations face challenges from economic volatility and import competition. The special steel segment commands higher margins but is more sensitive to automotive and industrial production cycles.
Competitive moat
Gerdau's competitive position reflects a moderate moat with both strengths and vulnerabilities. The company benefits from geographic diversification across the Americas, which provides some protection against regional economic downturns and allows for operational flexibility. Its integrated operations, including iron ore mining and energy generation, offer some cost advantages and supply chain control compared to purely steel-focused competitors. The company's long-established market presence and distribution networks, particularly in Brazil where it has operated for over a century, provide customer relationships and market knowledge that are difficult for new entrants to replicate quickly. Gerdau's focus on long steel products for construction creates some differentiation from flat steel producers, and its special steel capabilities serve niche markets with higher technical requirements. However, the moat faces significant challenges. Steel production is fundamentally a commodity business with limited product differentiation, making companies vulnerable to price competition and import pressure. The Brazilian market's 22% import penetration, primarily from subsidized Chinese steel, demonstrates the vulnerability to low-cost international competition. High capital requirements for steel production create barriers to entry but also limit flexibility to adapt quickly to market changes. The company lacks strong switching costs or network effects that characterize stronger moats. Customers can relatively easily switch between steel suppliers based on price and delivery terms. Additionally, steel demand is highly cyclical and tied to construction and manufacturing activity, creating inherent volatility that limits pricing power during downturns.
Risks & safety
Gerdau demonstrates a **moderate margin of safety** with solid financial fundamentals but exposure to cyclical industry risks. **Liquidity and Solvency:** - Strong current ratio of 2.64x indicating good short-term liquidity - Cash and short-term investments of $1.08 billion provide adequate buffer - Low debt-to-equity ratio of 0.29x shows conservative capital structure - Net debt-to-EBITDA ratio of approximately 0.32x indicates minimal leverage risk - Positive free cash flow generation capability demonstrated over multiple years **Valuation Metrics:** - P/E ratio of 11.0x appears reasonable for a cyclical industrial company - EV/EBITDA of 4.8x suggests moderate valuation relative to cash generation - Price-to-book ratio of 0.59x indicates trading below book value - Graham number analysis suggests potential undervaluation **Other Considerations:** - Cyclical industry exposure creates earnings volatility risk - Import competition pressure, particularly in Brazil, threatens margins - Geographic diversification provides some risk mitigation - Ongoing cost reduction programs support profitability improvement potential
Recent development
Over the past few years, Gerdau has implemented several strategic initiatives to adapt to challenging market conditions and position for future growth. The company launched an ambitious cost reduction program targeting BRL 1.5 billion in savings compared to 2023 levels, focusing on operational efficiency and controllable expenses across all business segments. A major strategic development has been the expansion into flat steel products with the completion of hot-rolled coil (HRC) production capacity at the Ouro Branco facility. This new capability, targeting 250,000 additional tons by year-end 2025, allows Gerdau to replace third-party material purchases and diversify its product mix beyond traditional long steel products. The company has also been modernizing its facilities, including the Jackson plant in Tennessee and implementing new continuous casting processes. Gerdau has been actively addressing import competition challenges in Brazil, where Chinese steel imports have reached 22% market penetration. The company is working with government authorities to implement more effective trade defense mechanisms, including hard quotas, closing import loopholes, and accelerating anti-dumping measures. The company has made significant investments in sustainability and energy independence, acquiring small hydroelectric power plants and investing in solar farms at the Barro Alto complex. These renewable energy investments are expected to reduce energy costs and support environmental goals. Capital allocation strategy has focused on returning cash to shareholders through dividend payments and share buyback programs, with 74% of net income returned to shareholders. The company completed 44% of its current share buyback program while maintaining financial flexibility for strategic investments.
GGB company profile · for informational purposes only — not investment advice.
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