Steelmaker Gerdau lifted its adjusted EBITDA margin to 20.2% in the third quarter, the highest since 2Q23, as improved North American prices supported earnings even as shipments fell from a year earlier.
The company’s Form 6-K, filed with the U.S. Securities and Exchange Commission, put adjusted EBITDA at R$3.771 billion for the three months ended Sept. 30. That was up 37.8% from the year-earlier quarter and 9.9% from the second quarter of 2026.
North America generated R$2.911 billion in adjusted EBITDA and posted a 27.7% margin. Gerdau said better realized prices supported the result; it also reported the region’s order backlog above 100 days at quarter-end, nearly 50% higher than its historical average.
Price adjustments made during the year added about R$559 million to adjusted EBITDA versus the prior quarter. Higher operating costs offset some of the contribution. The group margin stood five percentage points above its level a year earlier.
Steel shipments were 2.914 million tonnes, up 0.2% quarter over quarter but down 5.6% year over year. Crude steel production fell 6.5% from the prior quarter, mainly because of scheduled maintenance shutdowns, according to Gerdau.
Adjusted net income rose 39.7% to R$1.523 billion, while net sales increased 3.9% to R$18.691 billion. Free cash flow reached R$1.439 billion, compared with R$237 million in the second quarter. Net debt was R$7.686 billion at quarter-end, or 0.58 times adjusted EBITDA for the trailing 12 months.
The company approved a dividend of R$0.34 per share, totaling R$667 million, with payments beginning Dec. 15, 2026. It also reported R$344.1 million invested in its 2026 share-repurchase program, reaching 32% of the authorized shares.
Through September, capital expenditures totaled R$3.1 billion, or 66% of Gerdau’s 2026 plan. Its recycling facility in Pindamonhangaba had begun operations. The sustainable mining platform at Miguel Burnier was in final integrated testing, with operations expected to begin in the fourth quarter of 2026.
Gerdau scheduled a results videoconference for Tuesday, Oct. 27, at 11 a.m. ET.
