Gerdau's N. American earnings rise in Q3 due to fall in imports

North American steel shipments totaled 1,293,000 metric tons, an increase of 10% from the previous quarter and 3% higher than a year earlier.

Tariff boost

In North America, the company benefited from a decline in steel imports resulting from Section 232 tariffs and resilient US demand.

The average order backlog during the quarter was 70 days, stable, and above historical levels of ~60 days.

This reflected “consistent demand in the primary sectors served, as well as the scenario of a continued decline in imports.”

Gerdau cited non-residential construction and renewable energy sectors as the main drivers for higher shipments in Q3’25.

“In addition, shipments of downstream products hit all-time high levels in the quarter, fueled by greater demand from the local market,” the company said in a statement on Oct. 30.

Company-wide, Gerdau SA logged Q3’25 net sales of R$17.98 billion, up 3.5% year over year, on net income that fell 19.6% to R$1.09 billion.

Investment

Gerdau said the cap-ex to improve capacity at its largest North American mill in Midlothian, Texas, was revised to include only Phase 1 of the project. It is estimated to have a disbursement of R$1.2 billion vs. R$1.5 billion previously.

Additionally, potential annual EBITDA after ramp-up has been revised to R$275 million. This includes an increase in melt shop capacity of 150,000 metric tons per year. Start-up is anticipated for H2’26.

The company noted hot commissioning of the new downstream facility (Solar Pile Project) began at Midlothian as well.

“In response to the growing demand for renewable energy, it has been designed to be the North America’s safest and most automated solar pile production facility,” Gerdau said.

The completion of the ramp-up is scheduled for Q4’26.