Gerdau’s 4Q25 Profit Flat Year-on-Year as U.S. Offsets Brazil Slump

North America drives 73% of EBITDA, cushioning margin compression in the domestic market.

Feb 23, 2026 6:30 PM

By Brazil Stock Guide – Gerdau S.A. (B3: GGBR; NYSE: GGB) reported adjusted net income of R$ 670 million ($124 million) in the fourth quarter of 2025, virtually stable versus R$ 666 million in 4Q24. Net revenue rose 0.9% year-on-year to R$ 16.97 billion ($3.15 billion), while adjusted EBITDA declined 0.7% to R$ 2.37 billion ($440 million). The comparison highlights a structural shift: stronger U.S. earnings offset weaker margins in Brazil.

Steel sales reached 2.86 million metric tons (3.15 million short tons), up 5.2% from 4Q24. For full-year 2025, sales increased 5.9% to 11.63 million metric tons. Net debt to EBITDA stood at 0.76x, versus 0.48x a year earlier. Free cash flow totaled R$ 1.41 billion ($261 million), more than triple the R$ 427 million recorded in 4Q24.

North America widens the gap

Adjusted EBITDA in North America reached R$ 1.83 billion ($339 million), up 125% year-on-year. Revenue in the region rose 15.4% to R$ 8.70 billion. The EBITDA margin expanded to 21.1% from 10.8% in 4Q24. Higher domestic demand and trade protection under Section 232 supported pricing and volumes.

The order backlog reached 85 days, compared with roughly 70 days in recent quarters. Construction, including data centers and renewable energy projects, sustained momentum.

Brazil margins compress

In Brazil, adjusted EBITDA fell 64.5% year-on-year to R$ 509 million ($94 million). The EBITDA margin dropped to 7.1%, down from 18.5% in 4Q24. Net revenue declined 7.6% to R$ 7.18 billion.

Steel imports represented 21% of Brazil’s market in 4Q25. Total imports reached 6.4 million metric tons in 2025, up 7.4% from the prior year. Flat steel imports surged nearly 30%, pressuring prices and profitability.

The company said the results reflect resilient performance in North America and stronger seasonality effects in Brazil.

What it means

The year-on-year stability in profit masks diverging cycles. U.S. operations now anchor earnings stability, while Brazil faces structural oversupply and aggressive imports. Capital expenditure totaled R$ 1.5 billion in the quarter and R$ 6.1 billion in 2025. For 2026, capex is set at R$ 4.7 billion.