Gerdau reports 40% jump in Q3 adjusted profit as North American strength offsets Brazil weakness

Gerdau’s third-quarter adjusted profit rose nearly 40% year over year as strong North American operations offset tougher conditions in Brazil, according to company results reported on October 26.

Profit growth outpaced modest sales growth

Adjusted net profit reached R$1.52 billion, up 39.7% from the third quarter of 2025, while net sales increased 3.9% to R$18.69 billion, equivalent to about US$3.5 billion. Reported net income, the accounting measure, was R$1.56 billion, up 43.4% from R$1.09 billion a year earlier.

Gerdau also reported adjusted EBITDA of R$3.77 billion, or roughly 20% of sales. The company’s board declared a dividend of R$0.34 per share, scheduled for payment on December 15 to Brazilian shareholders and December 22 for holders of New York-listed American depositary receipts.

North America drove regional performance

Management said demand in Gerdau’s largest market remained strong and that the order backlog stayed above historical averages. Regional gross profit increased 78% to R$2.75 billion, making North America the principal contributor to the quarter’s earnings growth.

The adjusted profit result was below an LSEG poll consensus of R$1.77 billion, even as sales and adjusted EBITDA were broadly in line with expectations, according to Finimize.

Brazil remained more competitive

Gerdau reported a more competitive Brazilian market, with high supply in some steel segments. The regional weakness contrasted with the stronger demand environment and order backlog in North America.

The company’s results indicate that its North American performance was sufficient to drive substantial year-over-year profit growth despite pressure in Brazil. Whether that mix can be sustained depends in part on conditions in both markets, a point scheduled to be addressed in Gerdau’s earnings call on October 27.

Next verification point

Gerdau is scheduled to hold its earnings call on October 27, where management is expected to provide fuller detail on steel volumes and the outlook. Any assessment of future earnings remains conditional on that discussion and subsequent operating data.