Gerdau S.a. · BMFBOVESPA:GGBR3
Gerdau — Q2 2025 Earnings Presentation
20 slides from Gerdau's earnings presentation, Aug 1, 2025
Slide 1: 2Q25 Earnings Release
August 01, 2025 2Q25 Earnings Release
Slide 2: Disclaimer
DISCLAIMER This document may contain forward - looking statements. These statements arebasedon estimates and information that may be incorrect or inaccurate andthat may not occur. These estimates are also subject to risks, uncertainties, and assumptions that include, among other factors, general eco
Slide 3: Highlights
3 HIGHLIGHTS NEW RECORD FOR STEEL IMPORTS The import penetration rate stood at 26% , +3.9 p.p. vs. 2Q24 reinforcing the need for effective trade defense measures 0 . 85 tCO 2 e PER TONNE OF STEEL, LOWEST LEVEL IN HISTORICAL SERIES Result presented along with 2024 annual report, highlighting the Comp
Slide 4: Finished Steel Imports: record pace despite trade defense measures
This content is RESTRICTED. Finished Steel Imports Steel imports continue at a record pace despite trade defense measures in place Trade defense measures need to be deepened in pursuit of competitive equality IMPACTS OF UNFAIR IMPORT LEVELS Imported Volumes - Finished Steel (Mt) 2025e: Actual figure
Slide 5: Financial Performance
5 FINANCIAL PERFORMANCE CAPEX: R$1.6 b ~50% of total Capex estimated for the year already invested GERDAU S.A.: ~R$240 m METALÚRGICA S.A.: ~R$80 m 2Q25 DIVIDENDS: Payment as of August 18, 2025 R$0.12/share R$0.08/share SHARE BUYBACK: % executed R$ invested % outstanding shares Gerdau S.A. 68% ~R$686
Slide 6: Outlook
OUTLOOK* 6 NORTH AMERICA 2H25: Margins expansion BRAZIL 2H25: Margins upturn ▪ Robust volumes, with backlogs remaining higher than historical levels (>70 days). Market with a healthy outlook, especially for demand from non - residential construction sector; ▪ Metal spread expansion due to continued
Slide 7: Q&A
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Slide 8: Appendices
Appendices
Slide 9: Workplace Safety
9 WORKPLACE SAFETY Continued focus on people’s safety Accident Frequency Rate 0.71 in 2Q25 0.99 1.28 1.16 1.10 1.08 0.87 0.83 0.76 0.70 0.59 0.61 0.71 // 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1T25 2T25 Number of Accidents per Million Hours Worked per each Gerdau Employee
Slide 10: Brazil Quarterly Overview
10 QUARTERLY OVERVIEW Penetration rate of steel imports in the quarter reached the highest volume since the inception of the historical series: critical 26.0% (3.9 p.p. higher than in 2Q24); Shipment volume down 5.2% from 1Q25, impacted by the lower exports level, partially offset by the volume uptu
Slide 11: North America
12 NORTH AMERICA Shipments (1,000 tonnes) Net Sales (R$ million) EBITDA (R$ million) EBITDA Margin QUARTERLY OVERVIEW Better volumes, driven by lower level of imports due to the redefinition of Section 232 tariffs and the resulting supply rebalancing; Backlog at high levels and ending 2Q25 averaging
Slide 12: South America
13 UTILIZATION RATE Rolled Steel 76% Crude Steel 65% Shipments (1,000 tonnes) Net Sales (R$ million) EBITDA (R$ million) EBITDA Margin QUARTERLY OVERVIEW ARGENTINA Slight volumes upturn, however, the main sectors served still see weaker demand; Recovery of production and shipment driven by a resilie
Slide 13: Operational Performance
14 OPERATIONAL PERFORMANCE 1 Non - accounting measurement prepared by the Company. The Company states the Adjusted EBITDA to provide additional information about cash generated in the period. 2 Includes iron ore and co - products sales. FUNDAMENTAL GEOGRAPHICAL DIVERSIFICATION TO ENSURE RESILIENT RE
Slide 14: Cash Flow & Net Cash Variation
15 CASH FLOW & NET CASH VARIATION 1 I ncludes the cash effect of customers, inventories, and suppliers accounts. | 2 Includes the cash effect of income tax on the Company’s several subsidiaries, as well as the portion accrued in previous periods and due in the current period . | 3 Includes the addit
Slide 15: Liquidity & Indebtedness
16 LIQUIDITY & INDEBTEDNESS CASH, DEBT AND LEVERAGE (R$ billion) LIQUIDITY POSITION AND DEBT AMORTIZATION 1 (R$ billion) RATINGS: GROSS DEBT < R$12 BILLION AVERAGE TERM > 6 YEARS NET DEBT/EBITDA ≤ 1.5X BBB STABLE BBB STABLE Baa2 STABLE 0.53x 0.32x 0.48x 0.69x 0.85x 1Q25 2Q25 5.9 2Q24 3.7 3Q24 8.8 5.
Slide 16: Return to Shareholders: Dividends and Share Buyback
DISTRIBUTION OF DIVIDENDS ABOVE THE MANDATORY MINIMUM AND SOLID IMPLEMENTATION OF THE SHARE BUYBACK PROGRAM RETURN TO SHAREHOLDERS 2025 SHARE BUYBACK PROGRAM DISTRIBUTION OF DIVIDENDS AMOUNT PERSHARE AMOUNT PER SHARE METALÚRGICA GERDAU S.A. GGBR GOAU Total program: up to 64.5 million shares Repurcha
Slide 17: Capex Investments in Business Growth and Competitiveness
Environmental returns and safety² 1 It does not consider contributions made by Gerdau Next . 2 Investments with environmental and safety returns are included in the CAPEX guidance . 3 After the investment matures . 2025e¹ 2Q25¹ ~R$1.6 b Maintenance Competitiveness CAPEX INVESTMENTS IN BUSINESS GROWT
Slide 18: Strategic Capex Main Projects
STRATEGIC CAPEX MAIN PROJECTS MIDLOTHIAN EXPANSION “PHASE 1” PHYSICAL PROGRESS FINANCIAL PROGRESS 51% 59% Solar Panels & Midlothian Industrial Unit START - UP (PHASE 1): 2 ND SEMESTER OF 2025 POTENTIAL EBITDA: ~ R$140 MILLION MIGUEL BURNIER MINING Intermediate Pile PHYSICAL PROGRESS FINANCIAL PROGRE
Slide 19: Save the Date: Gerdau Investor Day 2025
SAVE THE DATE GERDAU Investor Day 2025 SãoPaulo - SP October 1 st
Slide 20: Investor Relations Contact
inform@gerdau.com | ri.gerdau.com Follow Gerdau on social media. Earnings Release 3Q25 October 30,2025 Videoconference October 31,2025