By Brazil Stock Guide – Gerdau S.A. (B3: GGBR; NYSE: GGB) has revised their strategic investment plan, trimming total CAPEX from R$9.2 billion (US$1.7 billion) to R$5.2 billion (US$952 million) through 2027. Of that amount, R$4 billion (US$733 million) has already been deployed, with R$1.2 billion (US$220 million) still to be invested over the next two years
The shift, announced during Investor Day 2025, reflects the removal of completed projects, the suspension of certain initiatives in Brazil due to weak local demand, and a reduction in the expansion plan for the Midlothian plant in the U.S.. Conversely, the Miguel Burnier mining project in Minas Gerais saw its budget increase to R$3.6 billion (US$659 million), driven by currency effects and an expanded scope
Mining as a game-changer
Miguel Burnier has become the company’s transformational bet: it is expected to deliver R$400 million (US$73 million) in EBITDA by 2026 and up to R$1.1 billion (US$202 million) annually after ramp-up. The project includes 5.5 million tons/year of high-grade pellet feed (65%), integrated logistics via ore pipeline, and 40 years of certified reserves.
Altogether, Gerdau’s “Main Projects” are forecast to add R$1.5 billion (US$275 million) in annual EBITDA once fully matured. The company emphasized, however, that the numbers are subject to market volatility and foreign exchange swings, and do not represent performance guarantees.
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