Earnings release
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GO GERDAU Shape the future 2026 Results Gerdau S.A. SEPPY Videoconference August 5 ( Wednesday ) 12:00 p.m. BRT Click here to access the videoconference RI.GERDAU.COM Exhibit 99.1
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Quarterly Results2Q26 | GerdauS.A. 2 SãoPaulo, August 4,2026 – GerdauS.A. (B3: GGBR /NYSE: GGB)announces itsresults for thesecond quarter of2026. Theconsolidatedfinancialstatements of theCompany arepresented inBrazilian Reais(R$), inaccordance withInternationalFinancialReportingStandards (IFRS)and theaccountingpracticesadopted in Brazil.The informationin this reportdoes not includethe data ofassociates andjoint controlledentities, exceptwhen statedotherwise.GERDAU ENDS2Q26 WITHIMPROVEDRESULTS,REFLECTING ACOMBINATIONOFOPERATIONALSTRENGTH ANDA FOCUS ONPROFITABILITYMAININDICATORS 1 -Includes iron oreand co-productssales. 2 - Non-accountingmeasurementcalculated by theCompany. TheCompanypresentsAdjusted EBITDAto provideadditionalinformation oncash generatedin the period. 3-Measurementcalculated basedon Gerdau S.A.'sNet income.Steel shipmentstotaled 2.9 milliontonnes in 2Q26,up 3% from1Q26; Net salestotaled R$17.9billion in 2Q26,up 7% from1Q26; Adjustednet income ofR$1.5 billion in2Q26, up 45%from 1Q26;Adjusted EBITDAof R$3.4 billion in2Q26, up 16%from 1Q26;Adjusted EBITDAMargin of 19.2%,1.5p.p. and4.6p.p. higherthan in 1Q26 and2Q25,respectively;Positive FreeCash Flow ofR$237 million,despite workingcapitalconsumption andpayment ofinterest andincome tax;Based on the2Q26 results, theCompany hasapprovedR$451.3 millionas dividends(R$0.23 pershare), to be paidas of September11, 2026; 2026Share BuybackProgramadvances, withthe acquisition of31% of theauthorizedshares in GerdauS.A.; CAPEX ofR$1.0 billion in2Q26, reaching6M26, 45% ofR$4.7 billionguidance for2026. In May2026, Gerdaureleased its 2025Annual Report,which details theCompany’senvironmental,social, andfinancialperformance andhighlights itscommitment tosustainablepractices;Gerdau hasmade progress inthe acquisition ofDona FranciscaEnergética(DFESA)entering intoagreements thatcould result in100% ownershipof the asset andincrease theCompany’s self-generatedenergy to morethan 50% of itsenergyconsumption inBrazil.CONSOLIDATED2Q26 1Q26 ∆2Q25 ∆ 6M266M25 ∆Shipments ofsteel (1,000tonnes) 2,9082,811 3.4% 2,8233.0% 5,7195,682 0.7% Netsales1 (R$million) 17,87116,716 6.9%17,526 2.0%34,586 34,901-0.9% AdjustedEBITDA2 (R$million) 3,4302,958 15.9%2,561 33.9%6,388 4,96328.7% AdjustedEBITDA Margin2(%) 19.2% 17.7%1.5 p.p 14.6%4.6 p.p 18.5%14.2% 4.2 p.pAdjusted netincome² (R$million) 1,4661,013 44.7% 86469.7% 2,4791,622 52.8%Earnings pershare (R$) ³ 0.740.51 44.4% 0.4371.3% 1.25 0.7958.2% Netdebt/AdjustedEBITDA 0.69x0.74x -0.05x0.85x -0.16x0.69x 0.85x-0.16x Free cashflow (R$ million)237 16 221 (772)1,009 253 -2,0252,278EXCHANGERATE (USD xBRL) AverageUSD 5.04945.2591 -4.0%5.6661 -10.9%5.1543 5.7591-10.5% USD atthe end of theperiod 5.17665.2194 -0.8%5.4571 -5.1%5.1766 5.4571-5.1%
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QuarterlyResults 2Q26 |Gerdau S.A. 3MESSAGEFROMMANAGEMENTThe Companysaw a markedimprovement inits results in2Q26, driven bya combination ofenhanced salesmix, higherrealized prices,and initiativesaimed atbolstering itsbusinesscompetitiveness.On aconsolidatedbasis, wereported anAdjustedEBITDA ofR$3.4 billion andan AdjustedEBITDA marginof 19.2%, withsequentialgrowth acrossall theCompany’sreportablesegments.Adjusted netincome totaledR$1.5 billion,and steelshipmentsreached 2.9million tonnes.In 2Q26, NorthAmericaoperationsremainedamong thequarter’s keyhighlights. Theregion continuedto benefit from afavorabledemandenvironment,supported bystrategicsegments suchas renewableenergy, datacenters, andmanufacturing.Additionally,ongoingproductivitygains and highasset utilizationrates contributedto anotherquarter ofimprovedperformance.We ended 2Q26with an AdjustedEBITDA ofR$2.6 billion, up15% from 1Q26,underscoringNorth America’ssignificantcontribution tothe Company’sconsolidatedAdjustedEBITDA. InBrazil, improvedresults weredriven by abetter sales mix- a greater shareof shipments tothe domesticmarket - and byhigher realizedprices in certainproduct lines.Even amid ascenario of still-moderatedemand, theoperationaladvancementsachievedthroughout thequarter helpedoffset part of thecost pressuresassociated withinput inflationand risinglogistics costs.In 2Q26, werecorded anAdjustedEBITDA ofR$705 million,up 22% from1Q26, reflectingthe gradualrecovery trend inresults of ourBrazilianoperations. InSouth America,results wereboosted byincreasedcapacityutilization andimproved salesmix. In Peru,operationscontinued to besupported byresilient demandand prices,particularly inthe civilconstructionsector. InArgentina andUruguay,shipmentvolumesgraduallyrecoveredthroughout thequarter, stillreflectingcompetitivemarketconditions andweaker demand.As a result, thesegmentrecorded anAdjustedEBITDA ofR$205 million,10% higher thanin 1Q26. Thequarter’sperformanceimprovementhas contributedto maintainingsolid cashgeneration,enabling theCompany tocontinueexecuting itscapital allocationstrategy in abalancedmanner. Weinvested a totalof R$1.0 billionin CAPEXduring theperiod, reachingin 6M26, 45% ofthe total plannedfor 2026, whileadvancing ourkey strategicprojects. At thesame time, weapproved adividenddistribution ofR$0.23 pershare in 2Q26,totaling R$451.3million, andcontinued toexecute the2026 ShareBuybackProgram,investing R$334million andrepresenting31% of theauthorizedrepurchasevolume. With125 years ofhistory, weremain firmlycommitted toenhancing theCompany’scompetitiveness,swiftly adaptingto marketchanges, andgenerating apositive impactin the regionswhere weoperate. Wewould like tothank ouremployees,customers,suppliers,partners,shareholdersand otherstakeholders fortheir trust andsupport inbuilding ourhistory andcontinuouslycreating value.THEMANAGEMENT
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Quarterly Results2Q26 | GerdauS.A. 4PERFORMANCEBY BUSINESSSEGMENTBRAZIL –includes the long,flat, and specialsteel operationsand the iron oreoperation locatedin Brazil, as wellas jointly-controlled andassociatedcompanieslocated in Brazil;NORTHAMERICA –includes the longand special steeloperations inCanada andUnited States, aswell as jointlycontrolledcompanies inCanada andMexico; SOUTHAMERICA –includes theoperations inArgentina, Peruand Uruguay.Valuation GuideADJUSTEDEBITDA3F0F0F1 (R$ MILLION)AND ADJUSTEDEBITDAMARGIN (%)BRAZIL NORTHAMERICASOUTHAMERICA 1 Non-accountingmeasurementcalculated by theCompany. TheCompany statesAdjusted EBITDAto provideadditionalinformation oncash generatedin the period. Thepercentage ofAdjusted EBITDAfrom businesssegments iscalculatedconsidering thetotal AdjustedEBITDA of thethree businesssegments.Annual Report
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QuarterlyResults 2Q26 |Gerdau S.A. 5BRAZILPRODUCTION& SHIPMENTS▪ In 2Q26,crude steelproduction was6.2% and10.0% higherthan in 1Q26and 2Q25,respectively,driven byincreasedutilization ratesat mini mills.As a result, thesegment’scapacityutilization raterose by 5 p.p.and 6 p.p.versus 1Q26and 2Q25,respectively; ▪According toBrazil SteelInstitute data,steel importsdecreased bymore than 30%in 2Q26 versus1Q26 and2Q25, a trendobservedmostly in flatsteel segment.This was thefirst decline insteel importssince 2022;nevertheless,we believe thesectorcontinues toface significantchallenges, asthe averagesteel importpenetrationrate stood at22.5% in 1H26;▪ In thiscontext, wehighlight therenewal of thetariff quotasystem forsteel products,including a30% reductionin the annualquota volumefor certainNCMs(MercosurCommonNomenclature),including wirerod, seamedtubing, hot-rolled coils,and cold-rolledcoils. Thismeasure,renewed inJune 2026,coversapproximately30% of thevolumes soldby Gerdau inBrazil; ▪ Duringthe quarter,demand forsteel remainedmoderate. Thecivilconstructionsectorperformedrelativelysteadily, whilesome industrialsectorscontinued toface greaterpressure. Inthe automotiveindustry, a keymarket forGerdau’sspecial steel,we observedsigns of upturnin the heavyvehiclesegmentthroughout thequarter.Nevertheless,according todata from theNationalAssociation ofMotor VehicleManufacturers(ANFAVEA),heavy vehicleproduction inthe first half of2026 was 11%lower than inthe sameperiod of theprevious year;▪ In 2Q26, totalshipmentswere 2.1%higher than in1Q26, fueledby increaseddomesticshipments.Growth for thequarterreflected anupturn in flatsteel volumes,supported by adecline inimports and agradualrebound indemand fromthe wind andshipbuildingsectors, as wellas special steelshipmentgrowth. In thecommon longsteel segment,despite higherdomesticshipments, themarketremainedunder greaterpressure fromlocalcompetition.Year-over-year,total shipmentsremainedstable, thoughwith a greatershare ofexports (18%in 2Q26 versus14% in 2Q25).BRAZIL 2Q261Q26 ∆ 2Q25∆ 6M26 6M25∆ Volumes(1,000 tonnes)Production ofcrude steel1,560 1,4696.2% 1,41910.0% 3,0292,864 5.8%Shipments ofsteel 1,3521,324 2.1%1,356 -0.3%2,676 2,788-4.0%Domesticmarket 1,1131,036 7.5%1,163 -4.3%2,149 2,242-4.1% Exports239 288-17.3% 19423.3% 527 546-3.4%Shipments oflong steel 961947 1.5% 9402.3% 1,9081,912 -0.2%Domesticmarket 739704 5.0% 822-10.1% 1,4431,602 -10.0%Exports 222243 -8.6% 11888.7% 465 31050.3%Shipments offlat steel 391378 3.5% 417-6.2% 768 876-12.2%Domesticmarket 374332 12.8% 3419.8% 706 63910.5% Exports16 46 -63.8%76 -78.3% 62237 -73.9%
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QuarterlyResults 2Q26| Gerdau S.A.6OPERATINGRESULT 1-Includes ironore and co-productssales. 2-Non-accountingmeasurementreconciledwithinformationstated in theNote 22 totheCompany’sFinancialStatements,as set forthby CVMResolutionNo. 156 ofJune 23,2022. ▪ In2Q26, Netsales went up6.6% versus1Q26,reflecting theslightimprovementin realizedprices acrosssome productlines andbetter salesmix. Year-over-year,Net salesdeclined8.6%, stillimpacted bylower realizedpricescompared tothe previousyear; ▪ TheCost of goodssold came5.0% higherthan in 1Q26,explained byincreasedshipments ofhigher value-addedproducts andpressures onproductioncostsresulting fromrising metalinput prices,in addition tohigherlogistics andfreight costs.Nevertheless,the operatinggainsachievedduring thequarter,mainlyboosted byhigherproductionvolumes,helped topartially offsetthese effects.Year-over-year, the Costof goods soldwent down6.4%,benefitingfrom lowercost pertonne due toproductivitygains andgreaterdilution offixed costs inthecomparableperiod, whenthe OuroBranco unitunderwentstructural andoperationaladjustmentsaimed atpreparing fornewinvestments;▪ As a result,AdjustedEBITDA was22.0% higherthan in 1Q26and 19.6%lower than in2Q25.Although6M26EBITDAremainedlower in theyear-over-yearcomparison,we haveobserved agradualimprovementin resultsover the pastfew quarters,driven byenhancedoperatingprofitability.BRAZIL 2Q261Q26 ∆ 2Q25∆ 6M26 6M25∆ Results (R$million) Netsales¹ 6,6866,271 6.6%7,317 -8.6%12,95714,811-12.5%Domesticmarket 5,8165,269 10.4%6,345 -8.3%11,08512,522-11.5%Exports 8701,002 -13.2%972 -10.5%1,871 2,289-18.2% Costof goods sold(6,356)(6,053) 5.0%(6,794) -6.4%(12,410)(13,493)-8.0% Grossprofit 329 21851.0% 522-37.0% 5471,317 -58.5%Gross margin(%) 4.9%3.5% 1.4 p.p7.1% -2.2 p.p4,2% 8.9%-4.7 p.pSelling,general andadministrativeexpenses(221) (222)-0.5% (255)-13.2% (444)(481) -7.7%Otheroperatingincome(expenses)(25) (16)52.3% (2)956.2% (41)(7) 463.6%Depreciationandamortization574 550 4.2%546 5.1%1,124 1,0358.6%ProportionalEBITDA ofassociatedcompaniesand jointlycontrolledentities2 4848 0.5% 67-27.4% 96109 -11.4%AdjustedEBITDA² 705578 22.0%877 -19.6%1,283 1,973-35.0%AdjustedEBITDAMargin² (%)10.5% 9.2%1.3 p.p 12.0%-1.4 p.p 9.9%13.3% -3.4p.p
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QuarterlyResults 2Q26 |Gerdau S.A. 7NORTHAMERICAPRODUCTION&SHIPMENTS ▪In 2Q26, crudesteelproductioncame 1.3%lower than in1Q26,reflectingmaintenanceshutdownscarried outthroughout thequarter andthe completionof therestocking ofbilletinventories inline with theschedule ofplannedshutdowns forthe secondhalf of 2026.Year-over-year,productionremained atsimilar levels.It is worthnoting thatfrom 2Q25onward, theSection 232tariffadjustmentshavecontributed toa morefavorableenvironmentfor localproducers; ▪ In2Q26, steelshipmentswent up 5.5%and 7.3%versus 1Q26and 2Q25,respectively. Inthe commonlong steelsegment, theorder backlogremainedabove 100days, thehighest levelsince 2021,contributing tothe highestquarterlyshipmentvolume sincethe Company’scurrentindustrialstructure; ▪ Inthe specialsteel segment,tighter supply,driven by adecline inimports andindustryconsolidation,sustained agradualrecovery in theoperation’sshipmentvolume, whichhitits highestlevel since thesecond quarterof 2019.Nevertheless,demand levelsremain belowhistoricalaverages,particularly inthe non-automotivesectors.OPERATINGRESULT 1-Non-accountingmeasurementreconciled withinformationstated in theNote 22 to theCompany’sFinancialStatements, asset forth byCVMResolution No.156 of June23, 2022. ▪ In2Q26, Netsales was8.3% and10.8% higherthan in 1Q26and 2Q25,respectively,fueled byincreasedshipmentvolume, higherrealized pricesand a greatershare of highervalue-addedproducts in thesales mix. Thepriceadjustmentsimplementedover the pastfew quarterscontributed tothe Net salesgrowth pertonne;however, theU.S. dollardepreciationagainst theBrazilian realpartiallymitigatedthese gains inbothcomparisons; ▪Cost of salesper tonne was5.0% higherthan in 1Q26,driven byincreasedshipmentvolume andpressuresrelated torisingproductioncosts, such asmaintenance,fuel, andelectricity.Nevertheless,the cost pertonnedecreasedquarter-over-quarter, mainlydriven by theU.S. dollardepreciationagainst theBrazilian real.Year-over-year, the Costof goods soldremainedstable, as thepositive foreignexchangeeffect (-10.9%)offsetshipmentgrowth andproductioncosts; ▪ As aresult,AdjustedEBITDA came15.4% and59.0% higherthan in 1Q26and 2Q25,respectively. In6M26,incrementalEBITDAtotaled roughlyR$2.0 billionyear-over-year,primarilydriven byimprovedresults in thelong steeloperations andby the positivecontributionfrom jointlycontrolledentities inMexico.NORTHAMERICA2Q26 1Q26 ∆2Q25 ∆ 6M266M25 ∆Volumes(1,000 tonnes)Production ofcrude steel1,493 1,513-1.3% 1,4850.5% 3,0062,880 4.4%Shipments ofsteel 1,3471,276 5.5%1,256 7.3%2,623 2,4855.6% Bars 569546 4.3% 5444.7% 1,1151,056 5.6%Shapes 697668 4.4% 6477.8% 1,3661,310 4.3%Downstream80 62 28.3%65 23.4% 142119 19.4%NORTHAMERICA2Q26 1Q26 ∆2Q25 ∆ 6M266M25 ∆Results (R$million) Netsales 10,1269,349 8.3%9,139 10.8%19,476 17,9078.8% Cost ofgoods sold(7,798) (7,430)5.0% (7,744)0.7% (15,227)(15,518) -1.9%Gross profit2,328 1,92021.3% 1,39566.9% 4,2482,390 77.8%Gross margin(%) 23.0%20.5% 2.5 p.p15.3% 7.7 p.p21.8% 13.3%8.5 p.p Selling,general andadministrativeexpenses(181) (188)-3.5% (204)-11.1% (369)(417) -11.4%Otheroperatingincome(expenses) 1511 30.9% 31-53.0% 26 31-17.0%Depreciationandamortization273 282 -3.2%317 -13.9%554 627-11.6%ProportionalEBITDA ofassociatedcompaniesand jointlycontrolledentities 166227 -27.1% 9672.0% 393 20295.1%AdjustedEBITDA12,600 2,25215.4% 1,63559.0% 4,8522,833 71.3%AdjustedEBITDAMargin1 (%)25.7% 24.1%1.6 p.p 17.9%7.8 p.p 24.9%15.8% 9.1 p.p
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QuarterlyResults 2Q26 |Gerdau S.A. 8SOUTHAMERICAPRODUCTION& SHIPMENTS1- Includesresale ofproductsimported fromthe BrazilSegment. ▪ In2Q26, thegrowth incrude steelproductionmainlyreflected thesustained levelof assetutilization inPeru, alongwith the steadyrecovery ofactivities inArgentina andUruguay. As aresult, thesegment’scapacityutilization rateincreased by 4p.p. and 12p.p. versus1Q26 and2Q25,respectively; ▪Steelshipmentscame 7.8%lower than in1Q26, drivenby weakervolumes inPeru followingthe shipmentanticipationobserved inthe previousquarter. InArgentina andUruguay,despite thequarter-over-quarter declinein volumes, wesaw a highershare ofshipmentsdestined forthe domesticmarket,contributing toa morefavorable mix.Year-over-year,shipmentswere down2.2%, mainlyimpacted byweakerdemand in thekey sectorsserved inArgentina andUruguay.OPERATINGRESULT 1-Non-accountingmeasurementreconciled withinformationstated in theNote 22 to theCompany’sFinancialStatements, asset forth byCVMResolution No.156 of June23, 2022. ▪ In2Q26, Netsales wentdown 8.4%from 1Q26,mainlyreflectingweakershipmentvolumes andthe impact ofthe U.S. dollardepreciationagainst theBrazilian real(-4.0%).Conversely,Net sales pertonneremainedstable,benefiting froman improvedsales mix inArgentina, witha higher shareof the domesticmarket, andpricesremaining athealthy levelsin Peru. Year-over-year, Netsales was3.9% lower,mainlyimpacted bythe foreignexchangeeffect(-10.9%),which morethan offset thebenefitsresulting fromthe improvedsales mix; ▪Cost of goodssold came10.7% lowerthan in 1Q26,also driven byweakershipmentvolumes andforeignexchangeeffects duringthe quarter.Meanwhile, thecost per tonnein U.S. dollarsremainedstable,benefiting fromhigher capacityutilization inArgentina andUruguay andthe ongoingimplementationof operationalefficiencyinitiatives inPeru. Year-over-year, theCost of goodssold was 9.1%lower, withPeru operationstanding out,as it benefitedfromproductivitygains in boththe melt shopand rollingmills, inaddition togreater fixedcosts dilution; ▪As a result,AdjustedEBITDA came10.4% and37.4% higherthan in 1Q26and 2Q25,respectively. In6M26,incrementalEBITDAtotaled roughlyR$53 millionyear-over-year,mainly boostedby shipmentgrowth.SOUTHAMERICA2Q26 1Q26 ∆2Q25 ∆ 6M266M25 ∆Volumes(1,000 tonnes)Production ofcrude steel175 167 4.4%148 18.1% 342292 16.9%Shipments ofsteel¹ 282 306-7.8% 288-2.2% 588 52511.9% SOUTHAMERICA2Q26 1Q26 ∆2Q25 ∆ 6M266M25 ∆Results (R$million) Netsales 1,2791,396 -8.4%1,331 -3.9%2,675 2,697-0.8% Cost ofgoods sold(1,108) (1,241)-10.7% (1,219)-9.1% (2,349)(2,425) -3.1%Gross profit171 155 10.5%112 52.5% 326272 19.8%Gross margin(%) 13.4%11.1% 2.3 p.p8.4% 5.0 p.p12.2% 10.1%2.1 p.p Selling,general andadministrativeexpenses (43)(42) 0.4% (42)1.4% (85) (87)-2.6% Otheroperatingincome(expenses) 2 3-31.5% 1146.2% 5 5-9.5%Depreciationandamortization75 70 5.7% 78-4.7% 145 148-1.9% AdjustedEBITDA1 205186 10.4% 14937.4% 391 33815.7%AdjustedEBITDAMargin1 (%)16.0% 13.3%2.7 p.p 11.2%4.8 p.p 14.6%12.5% 2.1 p.p
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Quarterly Results2Q26 | GerdauS.A. 9CONSOLIDATEDRESULTS Theconsolidatedresults for 2Q26highlighted theCompany’senhancedprofitability,driven by afavorablecombination ofpricemovements, animproved salesmix, and ongoingadvances inoperationalefficiencyinitiatives.Although Braziland NorthAmericaaccounted forsimilar shares ofconsolidatedsteel shipmentsin 2Q26, ourNorth Americaoperationsaccounted forroughly 56% ofconsolidated Netsales and 74% ofconsolidatedAdjustedEBITDA,evidencing itsgreatercontribution tothe Company’svalue creation. Atthe same time,the operationalprogressobserved acrossall regionsreinforces thepillarsunderpinningGerdau’sstrategy, whichcombines adiversifiedgeographicpresence,productionflexibility, andoperationaldiscipline. Weremain focusedon sustainablevalue creationand our ability toadapt to changesin the marketswhere weoperate,enhancing ourposition to taplong-term growthopportunities.PRODUCTION &SHIPMENTSCONSOLIDATED2Q26 1Q26 ∆2Q25 ∆ 6M266M25 ∆ Volumes(1,000 tonnes)Crude steelproduction 3,2283,149 2.5% 3,0525.8% 6,377 6,0375.6% Shipmentsof steel 2,9082,811 3.4% 2,8233.0% 5,719 5,6820.7% In 2Q26,crude steelproduction was2.5% and 5.8%higher than in1Q26 and 2Q25,respectively,boosted byhigher capacityutilization at mini-mills in Brazil andSouth America,as well assustained highproduction levelsin North America.As a result, thecapacityutilization ratereached 82% in2Q26, up 2 p.p.from 1Q26 and 4p.p. higher thanin 2Q25. Steelshipments totaled2.9 million tonnesin 2Q26, 3.4%and 3.0% higherthan in 1Q26 and2Q25,respectively,notably NorthAmerica, whichrecorded thehighest shipmentvolume ofcommon longsteel under thecurrentoperationalstructure. STEELSHIPMENTS(1,000 TONNES)BY SEGMENT(%) BRAZILNORTHAMERICASOUTHAMERICA
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Quarterly Results2Q26 | GerdauS.A. 10 GROSSPROFIT Netsales totaledR$17.9 billion in2Q26, 6.9%higher than in1Q26, mainlyfueled byincreasedshipmentvolumes and amore favorablepricingenvironment inNorth America.Year-over-year,Net sales came2.0% higher,reflectingimproved resultsin North America,which more thanoffset the declinein Net sales inBrazil and SouthAmerica, as wellas the impact ofthe U.S. dollardepreciationagainst theBrazilian realduring the period(- 10.9%). Cost ofgoods sold came4.3% higher thanin 1Q26, drivenby increasedshipmentvolumes,pressures onproduction andlogistics costs,and greatershare of value-added productsin the sales mix.These impactswere partiallyoffset byoperating gainsand higher assetutilizationthroughout thequarter. Year-over-year, Costof goods soldwent down 2.9%,benefiting fromthe U.S. dollardepreciationagainst theBrazilian real andthe decline in thecost per tonne inBrazil. As aresult, Grossprofit totaledR$2.8 billion in2Q26, 23.3% and39.3% higherthan in 1Q26 and2Q25,respectively,reflecting theCompany'senhancedoperatingprofitability. NETSALES (R$MILLION)SHARE BYSEGMENT (%)CONSOLIDATED2Q26 1Q26 ∆2Q25 ∆ 6M266M25 ∆ Results(R$ million) Netsales 17,87116,716 6.9%17,526 2.0%34,586 34,901-0.9% Cost ofgoods sold(15,041) (14,422)4.3% (15,495)-2.9% (29,463)(30,924) -4.7%Gross profit2,829 2,29423.3% 2,03139.3% 5,1233,977 28.8%Gross margin15.8% 13.7% 2.1p.p 11.6% 4.2 p.p14.8% 11.4% 3.4p.p BRAZILNORTHAMERICASOUTHAMERICA
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Quarterly Results2Q26 | GerdauS.A. 11 SELLING,GENERAL &ADMINISTRATIVEEXPENSESSelling, general &administrativeexpenses (SG&A)totaled R$517million in 2Q26,0.9% and 7.1%lower than in1Q26 and 2Q25,respectively,reflecting ongoingefforts ofexpenses controland discipline,also the impact ofthe U.S. dollardepreciationagainst theBrazilian real onoverseasoperations. As apercentage of Netsales, SG&Adecreased 0.2 p.p.versus 1Q26 and0.3 p.p. versus2Q25, ending thequarter at 2.9% inthe Net salesratio. ADJUSTEDEBITDA ANDADJUSTEDEBITDA MARGIN1 – Non-accountingmeasurementcalculated inaccordance withCVM ResolutionNo. 156 of June23, 2022. 2 – Non-accountingmeasurementreconciled withinformation statedin the Company’sFinancialStatements, as setforth by CVMResolution No.156 of June 23,2022. (a) Amountscomposed of thelines “Proportionaloperating incomebefore financialresult and taxes ofassociatedcompanies andjointly controlledentities” and“Proportionaldepreciation andamortization ofassociatedcompanies andjointly controlledentities" in Note22 to theCompany’sFinancialStatements.Gerdau ended2Q26 with anAdjusted EBITDAof R$3.4 billionand an AdjustedEBITDA Margin of19.2%. Quarter-over-quarter,Adjusted EBITDAwent up 15.9%,mainly reflecting astrongperformance inNorth America,volumes recoveryand improvedsales mix in Brazil.Year-over-year,Adjusted EBITDAcame 33.9%higher, driven bythe relevantgrowth in NorthAmerica’sEBITDA, whichmore than offsetthe decline inBrazil’s EBITDA.In 6M26,incrementalEBITDA totaledroughly R$1.4billion year-over-year, fueled by themore favorabledemandenvironment inNorth America andproductivity gainsacross allreportablesegments.CONSOLIDATED2Q26 1Q26 ∆2Q25 ∆ 6M266M25 ∆ Results(R$ million) SG&A(517) (522) -0.9%(557) -7.1%(1,039) (1,100)-5.5% Sellingexpenses (189)(186) 2.0% (205)-7.9% (375) (399)-6.2% Generalandadmininstrativeexpenses (328)(336) -2.5% (352)-6.7% (664) (700)-5.2%%SG&A/Net Sales2.9% 3.1% -0.2p.p 3.2% -0.3 p.p3.0% 3.2% -0.1p.p BREAKDOWNOFCONSOLIDATEDEBITDA - (R$million) 2Q261Q26 ∆ 2Q25 ∆6M26 6M25 ∆ Netincome 1,4661,013 44.7% 86469.7% 2,4791,622 52.8% Netfinancial result308 321 -4.1%335 -8.2% 629643 -2.3%Provision forincome and socialcontribution taxes559 500 11.8%286 95.5% 1,059606 74.8%Depreciation andamortization 921902 2.0% 937-1.7% 1,823 1,8100.7% EBITDA -CVM Instruction¹3,254 2,73618.9% 2,42234.3% 5,9904,682 27.9%Equity in earningsof unconsolidatedcompanies (55)(82) -32.9% (26)108.0% (137) (36)283.6%ProportionalEBITDA ofassociatedcompanies andjointly controlledentities (a) 214276 -22.5% 16331.3% 490 31057.9% Losses dueto non-recoverability offinancial assets 1728 -39.3% 3546.0% 45 7584.0% AdjustedEBITDA² 3,4302,958 15.9%2,561 33.9%6,388 4,96328.7% AdjustedEBITDA margin19.2% 17.7% 1.5p.p 14.6% 4.6 p.p18.5% 14.2% 4.2p.pCONCILIATIONOFCONSOLIDATEDEBITDA - (R$million) 2Q261Q26 ∆ 2Q25 ∆6M26 6M25 ∆EBITDA - CVMInstruction¹ 3,2542,736 18.9%2,422 34.3%5,990 4,68227.9%Depreciation andamortization (921)(902) 2.0% (937)-1.7% (1,823)(1,810) 0.7%OPERATINGINCOMEBEFOREFINANCIALRESULT ANDTAXES 2,3321,834 27.2%1,485 57.1%4,167 2,87145.1%
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Quarterly Results2Q26 | GerdauS.A. 12QUARTERLYCHANGE INADJUSTEDEBITDA (R$MILLION)ADJUSTEDEBITDA (R$MILLION) ANDADJUSTEDEBITDA MARGIN(%) FINANCIALRESULTCONSOLIDATED(R$ million) 2Q261Q26 ∆ 2Q25 ∆6M26 6M25 ∆Financial result(308) (321) -4.1%(335) -8.2% (629)(643) -2.3%Financial income112 126 -10.8%141 -20.3% 238295 -19.2%Financialexpenses (453)(443) 2.2% (457)-0.9% (896) (894)0.2% Exchangevariation 86 816.4% 88 -2.1%167 164 1.9%Inflationadjustments inArgentina (55)(66) -16.1% (60)-7.7% (121) (129)-5.9% Financialexpenses fromBonds buybacks- - - (40) - - (40) -Gains onfinancialinstruments, net2 (19) - (7) - (17)(39) -56.4% TheFinancial resultwas negativeR$308 million in2Q26, down4.1% from 1Q26,due to the lessereffect of inflationadjustments inArgentina. Year-over-year, theFinancial resultcame 8.2% lowerthan in theprevious period,when it wasprimarilyimpacted byexpenses relatedto the Bondsbuyback.
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Quarterly Results2Q26 | GerdauS.A. 13ADJUSTED NETINCOME 1–Accountingmeasurementdisclosed in theCompany’sIncomeStatement. 2 -Non-accountingmeasurementcalculated by theCompany tostate the Netincome adjustedfor non-recurringitems thatinfluencedresults, ifapplicable. 3 -Measurementcalculated basedon Net income ofGerdau S.A.Adjusted Netincome totaledR$1.5 billion, up44.7% and69.7% from1Q26 and 2Q25,respectively. Bothvariations areexplained by thedynamics of theCompany’soperating andfinancial results,as detailed in theexplanations ofAdjusted EBITDAand Financialresult.ADJUSTED NETINCOME (R$MILLION) ANDADJUSTED NETMARGIN (%)CONSOLIDATED(R$ million)(R$milhões) 2Q261Q26 ∆ 2Q25 ∆6M26 6M25 ∆OperatingIncome beforeFinancial Resultand Taxes¹ 2,3321,834 27.2%1,485 57.1%4,166 2,87145.1% Financialresult (308) (321)-4.1% (335)-8.2% (629)(643) -2.3%Income beforetaxes¹ 2,0251,513 33.8%1,150 76.1%3,538 2,22858.8% Incomeand socialcontributiontaxes (559) (500)11.8% (286)95.5% (1,059)(606) 74.8% Netincome¹ 1,4661,013 44.7% 86469.7% 2,4791,622 52.8%Earnings pershare (R$) ³ 0.740.51 44.4% 0.4371.3% 1.25 0.7958.2%
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Quarterly Results2Q26 | GerdauS.A. 14 The Netdebt/AdjustedEBITDA ratioended thequarter at 0.69x,a healthyleverage leveland below thedebt policy,reiterating theCompany'scapacity toexecute itsinvestmentscommitmentsnecessary for itsbusiness’developments.CAPITALSTRUCTUREANDINDEBTEDNESSDEBTBREAKDOWN(R$ million) 2Q261Q26 ∆ 2Q25 ∆Short term 630910 -30.8%2,553 -75.3%Long term12,928 12,9250.0% 15,537-16.8% Grossdebt 13,55813,834 -2.0%18,090 -25.1%Gross debt /Totalcapitalization¹20.2% 20.8%-0.7 p.p 24.8%-4.6 p.p Cash,cash equivalentsand short-terminvestments5,440 5,590-2.7% 8,974-39.4% Net debt8,118 8,245-1.5% 9,116-11.0% Net debt ²(R$) / AdjustedEBITDA ³ (R$)0.69x 0.74x-0.05x 0.85x-0.16x 1- Totalcapitalization =Shareholders’equity + Grossdebt – Interest ondebt. 2- Net debt= Gross debt –Interest on debt –Cash, cashequivalents, andfinancialinvestments. 3-Adjusted EBITDAin the last 12months. On June30, 2026, Grossdebt totaledR$13.6 billion,2.0% lower thanin 1Q26,reflecting theinterest paymenton loans, and theU.S. dollardepreciationagainst theBrazilian real(-0.8%). Year-over-year, Grossdebt was 25.1%lower due to loansettlements andthe impact of theU.S. dollardepreciationagainst theBrazilian real(-5.1%). In termsof cash position,we ended thequarter withR$5.4 billion inavailable cash,resulting in a Netdebt of R$8.1billion for theperiod and a Netdebt/EBITDAratio of 0.69x, alower levelversus 1Q26 and2Q25, mainlyreflecting theAdjusted EBITDAgrowth during thecomparableperiods. Atquarter-end, theGross debtexposure bycurrency wasnearly 53%denominated inU.S. dollars, 46%in Brazilian reaisand 1% in othercurrencies. Inrelation to theaverage paymentterm, we endedat 7.6 years, andthe weightedaverage nominalcost was 6.13%per annum forU.S. dollar-denominateddebts and CDI –0.15% forBrazilian reais-denominateddebts. On June30, 2026, theCompany’sGlobal RevolvingCredit Facility(RCF) totalingUS$875 million(equivalent toR$4.5 billion),was fullyavailable. DEBT(R$ BILLION) &LEVERAGERATIOLIQUIDITYPOSITION ANDDEBTAMORTIZATION(R$ BILLION)
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Quarterly Results2Q26 | GerdauS.A. 15INVESTMENTS(CAPEX) CAPEXtotaled R$1.0billion in 2Q26, andin 6M26 reached45% of the totalplanned for theyear. Of theamount invested inthe quarter, 44%was allocated toMaintenance and56% toCompetitiveness,in line with theCompany’sstrategy to boostefficiency andreduce itsoperating costs. In2Q26, 80% of theCAPEX wereallocated tooperations inBrazil. We continueto make progresstoward completingthe integratedtesting phase ofthe Miguel Burniersustainable miningplatform, which isscheduled to beginoperations in thethird quarter of2026. In addition,we have advancedthe scrapprocessing projectinPindamonhangaba,reaching 90% ofphysical progressat the quarter-endand remaining ontrack to beginoperations in thethird quarter of2026. In NorthAmerica, theinvestment toexpand capacity atthe Midlothian (TX)unit continues toevolve, with 80% ofphysical progressand remains ontrack to beginoperations in thesecond half of2026. Phase 1 ofexpansion projectwill add 150thousand tonnes ofcrude steel peryear to our largestNorth Americanasset, while alsoimprovingproductivity andoperationalefficiency. As theinvestment willrequire a relativelyshort maintenanceshutdown—of lessthan two months—limited to the meltshop area, theCompany does notexpect any materialimpact on shipmentvolumes,supported by theuse of semi-finished productinventories built upover recentquarters. TOTALCAPEX (R$MILLION)WORKINGCAPITAL & CASHCONVERSIONCYCLE Workingcapital ended 2Q26totaling R$15.9billion, 5.4% and9,5% higher than in1Q26 and 4Q25,respectively. Thesechanges are in linewith the Net salesgrowth, shipmentvolumes, and steelproduction duringthe comparableperiods, reflectingincreased Accountsreceivable andInventory. Thefinancial cycle(Working capitaldivided by Netsales in thequarter) decreased1 day vs. 1Q26 andincreased 3 daysvs. 4Q25. Detailedinformation onWorking capitalaccounts ispresented inNotes5, 6 and 11to theFinancialStatements.
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Quarterly Results2Q26 | GerdauS.A. 16 FREECASH FLOWCONSOLIDATED(R$ million) 2Q261Q26 ∆ 2Q25 ∆6M26 6M25 ∆Adjusted EBITDA3,430 2,958 4712,561 868 6,3884,963 1,425Working capital¹(933) (980) 47(286) (647) (1,913)(1,053) (860)Income tax² (657)(93) (564) (458)(199) (750) (774)24 CAPEX³(1,064) (1,168)104 (1,659) 595(2,232) (3,498)1,266 Interest4(630) (71) (559)(499) (131) (701)(614) (87)ProportionalEBITDA of JVs556 (258) 314 (156)212 (202) (284) 82Intangibles andleasing6 (171)(149) (22) (159)(12) (320) (309)(11) Others7 206(223) 429 (117)323 (17) (455) 438Free cash flow237 16 221 (772)1,009 253 (2,025)2,278 1-Includesthe cash effect ofcustomers,inventories, andsuppliersaccounts. 2-Includes the casheffect of incometax on theCompany’sseveralsubsidiaries, aswell as the portionaccrued inprevious periodsand due in thecurrent period. 3-Includes theaddition of R$1.0billion in CAPEXinvestments in2Q26, adjusted forthe cash effect ofthe change inaccounts payableto property, plant,and equipmentsuppliers relatedto acquisitionsfrom previousperiods, paid inthe current period.4-Includes thepayment ofinterest on loansand financing andinterest on lease.5- ProportionalEBITDA ofassociatedcompanies andjoint controlledentities (jointventures), net ofdividends receivedfrom these JVs. 6-Disbursements forother intangibleassets and leasepayments. 7-Other changesinclude the OtherAssets andLiabilitiesaccounts.RECONCILIATIONOF ADJUSTEDEBITDA TO FREECASH FLOW (R$MILLION) Freecash flow waspositive R$237million in 2Q26,R$220 millionhigher than in1Q26, primarilydriven by AdjustedEBITDA growthand the effect ofthe joint ventures’pro rata EBITDA,partially offset byinterest paymentson loans, as setforth in the debtamortizationschedule. Year-over-year, Freecash flowincreased R$1.0billion, mainlyreflecting AdjustedEBITDA growthand lowerdisbursements ofCAPEX, partiallyoffset by higherworking capitalconsumption.RECONCILIATIONOF FREE CASHFLOW WITH THECASH FLOWSTATEMENT 1 –Non-accountingmeasurementcalculated by theCompany to stateFree cash flow. 2 –Accountingmeasurementdisclosed in theCompany’s Cashflow statement.CONSOLIDATED(R$ million) 2Q261Q26 ∆ 2Q25 ∆6M26 6M25 ∆Free cash flow¹237 16 221 (772)1,009 253 (2,025)2,278 (+)Purchases ofproperty, plant andequipment 1,0641,168 (104) 1,659(595) 2,232 3,498(1,266) (+)Additions in otherintangibles 38 37 141 (3) 75 74 1 (+)Leasing payment133 111 22 118 15245 235 10 (-)Short-terminvestments (94)(3) (91) (352) 259(97) (490) 393 (+)Proceeds frommaturities andsales of short-terminvestments 156179 (23) 321 (164)336 622 (286) Netcash provided byoperatingactivities² 1,5351,509 26 1,014521 3,044 1,9151,129
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Quarterly Results2Q26 | GerdauS.A. 17 NETCASH VARIATION(R$ MILLION) Weended 2Q26 witha cash balance ofR$5.4 billion, areduction ofR$150 millionversus 1Q26,mainly driven bythe dividendpayments and theshare buybackprogram. Thisresult was partiallyoffset by positiveFree cash flow,evidencing theCompany’soperationsstrength andcapitalmanagementefficiency.RETURN TOSHAREHOLDERSDIVIDENDS OnAugust 4, 2026,the Board ofDirectors ofGerdau S.A.approved thedistribution ofdividends in theamount of R$0.23per share,equivalent toR$451.3 million.The payment willbe made onSeptember 11,2026, based onshareholders ofrecord on August19, 2026, with ex-dividend date onAugust 20, 2026.The Companymaintains itspolicy ofdistributing theminimum amountof 30% of parentcompany GerdauS.A.’s corporateannual Netincome afterrecording thereserves providedfor in its Bylaws.SHAREBUYBACKPROGRAM Asreleased in theMaterial Fact ofFebruary 23,2026, the Board ofDirectorsapproved a newshare buybackprogram (“2026BuybackProgram”) issuedby Gerdau S.A.,with an amount ofup to 55,000,000preferred sharesto berepurchased,representingapproximately4.4% ofoutstandingpreferred shares(GGBR4) and/orADRs backed byoutstandingpreferred shares(GGB) and up to1,441,120common shares,representingapproximately10% ofoutstandingcommon shares(GGBR3). As ofJune 30, 2026, theCompany hadrepurchased353,000 commonshares and16,013,200preferred sharesunder the 2026Buyback Program,totaling R$311.3million. In addition,during July1F 2 ,35,100 commonshares and1,020,900preferred shareswere repurchased,equivalent toR$22.5 million. Asa result, GerdauS.A. has reachedapproximately31% of the 2026Buyback Program,nearly 17.4 millionshares (includingGGBR3 andGGBR4), totalingan investment ofR$334.0 million inreferred program.Managementpoints out that thecurrent sharebuyback planremains in effect.In addition, onAugust 4, 2026,the Board ofDirectorsapproved thecancellation of163,100 commonshares and6,975,000preferred sharesissued by theCompany. Afterthe cancellation ofshares, theCompany’s sharecapital will consistof 716,975,719common sharesand1,261,042,330preferred shares,with no par value.Maintaining theconsistency ofreturns toshareholdersthrough thepayment ofdividends in linewith the policy andthe solid executionof the sharebuyback program,the CompanydistributedR$555.9 million in2Q26, or a payoutof 40.3%.2Considersbuybacks madethrough July 17,2026.
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Quarterly Results2Q26 | GerdauS.A. 18 RETURNTOSHAREHOLDERS1 – Dividendsconsider theamounts resolvedto be paid onSeptember 11,2026, andbuyback considersoperations carrieduntil June 30,2026. 2 –Measurementcalculatedconsideringpayout and sharesrepurchaseddivided by theparent company’sNet income afterrecording thereserves providedfor in its Bylaws.CAPITALMARKETS OnJune 30, 2026,Gerdau S.A.shares werepriced atR$20.78/share(GGBR4),R$17.84/share(GGBR3) andUS$4.04/share(GGB). TheCompanyvoluntarilycomplies with thestandards of theLevel 1 CorporateGovernance listingsegment of B3S.A., the Brazilianstock exchange,where its sharesare traded, withhigh standards ininformationdisclosure,transparency, andcorporategovernance. In theU.S. market,Gerdau S.A.shares have beentraded in the NewYork StockExchange since1999 through theissuance of LevelII ADRs, whichrequirescompliance withall theregistrations setforth in theSecurities Act, of1933, andinformationdisclosurerequirements inthe SecuritiesExchange Act, of1934. SHAREPERFORMANCEVS. IBOVESPA(BASE 100)Source:Bloomberg
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QuarterlyResults 2Q26 |Gerdau S.A. 19GGBR4LIQUIDITYGGBLIQUIDITYSource:Bloomberg OnJune 30, 2026,the Company’sshare capitalcomprised717,138,819commonshares and1,268,017,330preferredshares, ofwhich 128,000commonshares and21,847,510preferredshares wereheld in treasury.On the samedate, GerdauS.A.’s marketcap4F2F 3totaledapproximatelyR$40.8 billion.In 2Q26, thefree float ofcommon andpreferredsharesaccounted fornearly 63.5% oftotal shares,reaching1,259,790,542shares. FREEFLOATDISTRIBUTION(GGBR4): B3 +NYSEREFERENCEDATE06/30/2026OWNERSHIPSTRUCTURE(GGBR3 +GGBR4)REFERENCEDATE06/30/2026RATINGSCredit RatingAgenciesReports 3Themarket capconsiders onlyoutstandingshares, notincludingshares held intreasury.AGENCYNATIONALSCALEGLOBALSCALEOUTLOOKLAST UPDATEStandard &Poors brAAABBB StableMay, 2026 FitchRatings brAAABBB PositiveJuly, 2026Moody’s - Baa2Stable March,2026
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Quarterly Results2Q26 | GerdauS.A. 20APPENDICESASSETSGERDAU S.A.CONSOLIDATEDBALANCESHEETS Inthousands ofBrazilian reais(R$) 06/30/202612/31/2025CURRENTASSETS Cashand cashequivalents5,155,2325,929,170 Short-term investments285,262 445,627Trade accountsreceivable - net5,999,3844,810,640Inventories16,099,61114,731,081 Taxcredits 976,0301,282,249Income andsocialcontribution taxesrecoverable292,107 685,811Dividendsreceivable 4,8754,981 Fair valueof derivatives20,965 36,623Other currentassets 605,183678,89929,438,64928,605,081 NON-CURRENTASSETS Taxcredits 1,464,6501,429,324Deferred incometaxes 2,590,5062,561,980Judicial deposits170,028 150,893Other non-current assets346,099 387,708Prepaid pensioncost 9,328 9,328Investments inassociates andjoint ventures3,700,8063,944,474Goodwill11,279,80511,995,727 Rightof use 1,485,4161,271,462 OtherIntangibles689,658 691,365Property, plantand equipment,net 30,797,76830,640,83352,534,06453,083,094TOTAL ASSETS81,972,71381,688,175
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Quarterly Results2Q26 | GerdauS.A. 21LIABILITIESGERDAU S.A.CONSOLIDATEDBALANCESHEETS Inthousands ofBrazilian reais(R$) 06/30/202612/31/2025CURRENTLIABILITIESTrade accountspayable -domestic market4,371,0253,641,918 Tradeaccounts payable- debtor risk427,181 381,415Trade accountspayable - imports1,383,765986,338 Short-term debt587,576 897,295Debentures42,174 44,609Taxes payable389,171 400,293Income andsocialcontribution taxespayable 104,032289,862 Payrolland relatedliabilities 840,963915,508 Leasingpayable 478,164386,472Employeebenefits 679 594Environmentalliabilities 234,572382,800 Fairvalue ofderivatives 9673,306 Othercurrent liabilities1,397,4221,557,01010,257,6919,887,420 NON-CURRENTLIABILITIESLong-term debt8,564,4208,877,457Debentures4,363,9194,362,790Deferred incometaxes 399,746353,828Provision for tax,civil and laborliabilities2,383,4602,292,412Environmentalliabilities 326,507237,865Employeebenefits 355,120404,085 Leasingpayable1,134,1811,002,689 Othernon-currentliabilities 452,921471,14017,980,27418,002,266EQUITY Capital24,273,22524,273,225Capital reserves11,597 11,597Treasury stocks(514,193)(520,067)Retainedearnings22,587,28023,054,501Transactions withnon-controllinginterests withoutchange of control(2,904,670)(2,904,670)Other reserves10,091,3159,670,807EQUITYATTRIBUTABLETO THE EQUITYHOLDERS OFTHE PARENT53,544,55453,585,393 NON-CONTROLLINGINTERESTS190,194 213,096EQUITY53,734,74853,798,489TOTALLIABILITIES ANDEQUITY81,972,71381,688,175
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Quarterly Results2Q26 | GerdauS.A. 22 INCOMESTATEMENTGERDAU S.A.CONSOLIDATEDSTATEMENTSOF INCOME Inthousands ofBrazilian reais(R$) For thethree-monthperiod ended Forthe six-monthperiod ended06/30/202606/30/202506/30/202606/30/2025 NETSALES17,870,63217,525,75034,586,29334,901,086 Costof sales(15,041,444)(15,495,203)(29,463,238)(30,923,986)GROSS PROFIT2,829,1882,030,5475,123,0553,977,100 Sellingexpenses(189,195)(205,407)(374,758)(399,319)General andadministrativeexpenses(328,059)(351,505)(664,371)(700,463) Otheroperating income30,774 77,34687,512 101,721Other operatingexpenses(47,661) (89,456)(96,086)(136,930)Impairment offinancial assets(17,318) (2,631)(45,731) (6,579)Equity inearnings ofunconsolidatedcompanies54,632 26,443136,695 35,713INCOMEBEFOREFINANCIALINCOME(EXPENSES)AND TAXES2,332,3611,485,3374,166,3162,871,243Financial income112,333 140,766238,214 294,848Financialexpenses(452,705)(456,639)(895,496)(893,288)Buyback ofbonds - (39,646)- (39,646)Exchangevariations, net30,779 28,07446,167 34,315Income andsocialcontributiontaxes 1,854(7,294) (17,121)(38,856)INCOMEBEFORE TAXES2,024,6221,150,5983,538,0802,228,616Current(559,231)(348,373)(1,023,997)(623,193)Deferred 65562,272 (34,682)16,878 Incomeand socialcontributiontaxes (558,576)(286,101)(1,058,679)(606,315) NETINCOME1,466,046864,4972,479,4011,622,301
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Quarterly Results2Q26 | GerdauS.A. 23 CASHFLOW GERDAUS.A.CONSOLIDATEDSTATEMENTSOF CASH FLOWIn thousands ofBrazilian reais(R$) For thethree-monthperiod ended Forthe six-monthperiod ended06/30/202606/30/202506/30/202606/30/2025 Cashflows fromoperatingactivities Netincome for theperiod 1,466,046864,4972,479,4011,622,301Adjustments toreconcile netincome for theperiod to netcash provided byoperatingactivities:Depreciation andamortization920,775 936,5431,823,1691,810,379 Equityin earnings ofunconsolidatedcompanies(54,632) (26,443)(136,695)(35,713)Exchangevariation, net(30,779) (28,074)(46,167) (34,315)(Gains) Losseson derivativefinancialinstruments, net(1,854) 7,29417,121 38,856Post-employmentbenefits 63,32167,717 138,675145,762 Long-term incentiveplans 35,41841,330 75,02382,232 Incometax 558,576286,1011,058,679606,315 Losseson disposal ofproperty, plantand equipment8,702 11,66913,918 20,260Impairment offinancial assets17,318 2,63145,731 6,579Provision(Reversal) of tax,civil, labor andenvironmentalliabilities, net40,907 (54,987)91,299 (27,370)Interest incomeon short-terminvestments(31,832) (30,702)(76,964) (72,693)Interest expenseon debt anddebentures269,107 314,435551,371 573,375Interest expenseon leaseliabilities 39,70333,226 71,36866,391 Reversalof net realizablevalue adjustmentin inventory, net(8,398) (9,981)(33,655) (7,454)3,292,3782,415,2566,072,2744,794,905Changes inassets andliabilities(Increase)Decrease intrade accountsreceivable(31,944) 256,365(1,273,725)(938,903)(Increase)Decrease ininventories(995,524)170,341(1,870,511)(333,718)Increase(Decrease) intrade accountspayable 94,886(712,356)1,231,795219,511 Increasein otherreceivables(13,427) (5,353)(18,467) (10,538)Increase(Decrease) inother payables143,472(128,890)(173,709)(587,477)Dividends fromassociates andjoint ventures269,612 7,486287,866 27,103Purchases ofshort-terminvestments(93,680)(352,381)(96,773)(489,680)Proceeds frommaturities andsales of short-term investments156,369 320,664335,866 622,257Cash provided byoperatingactivities2,822,1421,971,1324,494,6163,303,460Interest paid onloans andfinancing(590,646)(465,351)(629,614)(547,286)Interest paid onlease liabilities(39,703) (33,226)(71,368) (66,391)Income andsocialcontributiontaxes paid(656,777)(458,083)(749,311)(774,451) Netcash provided byoperatingactivities1,535,0161,014,4723,044,3231,915,332 Cashflows frominvestingactivitiesPurchases ofproperty, plantand equipment(1,064,263)(1,659,430)(2,232,238)(3,498,150)Proceeds fromsales of property,plant andequipment,investments andother intangibles5,223 16,2879,538 30,066Additions in otherintangibles(38,275) (41,000)(75,450) (74,388)Payment foracquisition ofcompany control- (240,093) -(673,272) Capitalincrease in jointventures - - (89)(88,800) Netcash used ininvestingactivities(1,097,315)(1,924,236)(2,298,239)(4,304,544) Cashflows fromfinancingactivitiesPurchases oftreasury stocks(104,882)(491,612)(311,273)(772,504)Dividends andinterest oncapital paid(363,012)(260,767)(550,053)(463,399)Proceeds fromloans andfinancing226,7636,894,932308,2068,144,166Repayment ofloans andfinancing(164,726)(2,852,773)(464,726)(2,907,289)Leasing payment(133,153)(118,125)(244,545)(234,908) Netcash (used)provided infinancingactivities(539,010)3,171,655(1,262,391)3,766,066Exchangevariation on cashand cashequivalents(19,344)(240,502)(257,631)(643,734)(Decrease)Increase in cashand cashequivalents(120,653)2,021,389(773,938)733,120 Cashand cashequivalents atbeginning ofperiod 5,275,8856,479,5445,929,1707,767,813 Cashand cashequivalents atend of period5,155,2328,500,9335,155,2328,500,933
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Quarterly Results2Q26 | GerdauS.A. 24RESULTS BYBUSINESSSEGMENTGERDAU S.A.INFORMATIONBY BUSINESSSEGMENT Inthousands ofBrazilian reais(R$) Brazil NorthAmerica SouthAmericaEliminationsConsolidated2Q26 RESULTSShipments(tonnes)1,351,9371,346,828282,010 (72,866)2,907,909 Netrevenues6,685,72910,126,0841,279,042(220,223)17,870,632 Costof goods sold(6,356,498)(7,797,952)(1,107,970)220,976(15,041,444)Gross Profit329,2312,328,132171,072 7532,829,188 GrossMargin 4.9%23.0% 13.4% -15.8% SG&A(221,426)(181,357)(42,610) (71,861)(517,254) Otheroperating(expenses)revenue (24,758)14,719 1,925(8,773) (16,887)Depreciation andamortization573,601 272,64374,531 - 920,775ProportionalEBITDA fromoperations withjointly controlledentities 48,323165,700 - -214,023 AdjustedEBITDA 704,9712,599,837204,918 (79,881)3,429,845AdjustedEBITDA Margin10.5% 25.7%16.0% - 19.2%EBITDA/tonelada- R$/ton 5211,930 727 -1,179 BrazilNorth AmericaSouth AmericaEliminationsConsolidated1Q26 RESULTSShipments(tonnes)1,324,3921,276,212305,723 (95,355)2,810,972 Netrevenues6,271,1079,349,4741,396,003(300,923)16,715,661 Costof goods sold(6,053,064)(7,429,536)(1,241,250)302,056(14,421,794)Gross Profit218,0431,919,938154,753 1,1332,293,867 GrossMargin 3.5%20.5% 11.1% -13.7% SG&A(222,473)(187,875)(42,452) (69,075)(521,875) Otheroperating(expenses)revenue (16,253)11,242 2,81010,514 8,313Depreciation andamortization550,303 281,60870,483 - 902,394ProportionalEBITDA fromoperations withjointly controlledentities 48,106227,233 - -275,339 AdjustedEBITDA 577,7262,252,146185,594 (57,428)2,958,038AdjustedEBITDA Margin9.2% 24.1%13.3% - 17.7%EBITDA/tonne -R$/ton 436 1,765607 - 1,052Brazil NorthAmerica SouthAmericaEliminationsConsolidated2Q25 RESULTSShipments(tonnes)1,356,4711,255,518288,432 (77,198)2,823,223 Netrevenues7,316,6039,139,0261,331,189(261,068)17,525,750 Costof goods sold(6,794,331)(7,744,464)(1,219,042)262,634(15,495,203)Gross Profit522,2721,394,562112,147 1,5662,030,547 GrossMargin 7.1%15.3% 8.4% -11.6% SG&A(255,018)(203,979)(42,003) (55,912)(556,912) Otheroperating(expenses)revenue (2,344)31,325 782(41,873) (12,110)Depreciation andamortization545,917 316,78578,192 (4,351)936,543ProportionalEBITDA fromoperations withjointly controlledentities 66,42496,603 - -163,027 AdjustedEBITDA 877,2511,635,296149,118(100,570)2,561,095AdjustedEBITDA Margin12.0% 17.9%11.2% - 14.6%EBITDA/tonne -R$/ton 647 1,302517 - 907
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QuarterlyResults 2Q26| Gerdau S.A.25 BrazilNorth AmericaSouthAmericaEliminationsConsolidatedRESULTS6M26Shipments(tonnes)2,676,3292,623,041587,732(168,221)5,718,881 Netrevenues12,956,83619,475,5582,675,045(521,146)34,586,293Cost of goodssold(12,409,562)(15,227,488)(2,349,220)523,032(29,463,238)Gross Profit547,2744,248,070325,825 1,8865,123,055Gross Margin4.2% 21.8%12.2% -14.8% SG&A(443,899)(369,232)(85,062)(140,936)(1,039,129)Otheroperating(expenses)revenue(41,011)25,961 4,7351,741 (8,574)Depreciationandamortization1,123,904554,251145,014 -1,823,169ProportionalEBITDA fromoperationswith jointlycontrolledentities96,429392,933 - -489,362AdjustedEBITDA1,282,6974,851,983390,512(137,309)6,387,883AdjustedEBITDAMargin 9.9%24.9% 14.6%- 18.5%EBITDA/tonne- R$/ton 4791,850 664 -1,117 BrazilNorth AmericaSouthAmericaEliminationsConsolidatedRESULTS6M25Shipments(tonnes)2,787,5852,484,550525,328(115,771)5,681,692 Netrevenues14,810,82117,907,2192,696,697(513,651)34,901,086Cost of goodssold(13,493,414)(15,517,701)(2,424,828)511,957(30,923,986)Gross Profit1,317,4072,389,518271,869(1,694)3,977,100Gross Margin8.9% 13.3%10.1% -11.4% SG&A(480,806)(416,907)(87,359)(114,710)(1,099,782)Otheroperating(expenses)revenue(7,276)31,263 5,230(64,426)(35,209)Depreciationandamortization1,035,283627,240147,856 -1,810,379ProportionalEBITDA fromoperationswith jointlycontrolledentities108,625201,902 - -310,527AdjustedEBITDA1,973,2332,833,016337,596(180,830)4,963,015AdjustedEBITDAMargin 13.3%15.8% 12.5%- 14.2%EBITDA/tonne- R$/ton 7081,140 643 -874
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Quarterly Results2Q26 | Gerdau S.A.26 WHO WE ARELARGESTBRAZILIAN STEELPRODUCER With125 years of history,Gerdau is Brazil’slargest producer ofsteel, and a leadingsupplier of long andspecial steel globally.In Brazil, Gerdaualso produces flatsteel and iron ore.Dedicated toempoweringindividuals whoshape the future, theCompany is abenchmark forinternationalization inthe Brazilianindustrial sector. It ispresent in severalcountries in theAmericas and relieson 30,000employees across allits operations.Gerdau has 29 steelproduction units,including 13industrial units inNorth America.Recognized as thelargest recycler inLatin America,Gerdau utilizes scrapas a significant rawmaterial, with nearly70% of its steelproduction derivedfrom scrap. Annually,it transforms 10million tonnes ofscrap into a diverserange of steelproducts. As a resultof its sustainableproduction matrix,Gerdau currently hasone of the lowestaverage greenhousegas (CO ₂ e)emissions,accounting for halfthe global averagefor the sector.Gerdau shares arelisted on the SãoPaulo (B3) and NewYork (NYSE) stockexchanges (NYSE).For moreinformation, visit theInvestor Relationswebsite:https://ri.gerdau.com/
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Rafael Japur Vice Presidentand Investor RelationsOfficer Mariana Velho DutraIR Manager Ariana PereiraRenata Albuquerque ArthurAlves Trovo Adriana CostaAdriana Costa FollowGerdau on Social Media IRCONTACTS InvestorRelations website:http://ri.gerdau.com/ IR e-mail: inform@gerdau.comPress e-mail:atendimentogerdau.br@bcw-global.com