Gerdau NA ends 2025 with strong demand, higher shipments

Fourth-quarter North American steel shipments of 1.22 million metric tons (mt) declined sequentially due to normal seasonality but showed notable year-over-year (y/y) growth. The company attributed the trend to “the best momentum for the local industry, due to declining import levels” and stronger positioning in higher-value products. Gerdau NA reported crude steel utilization of 79% and rolled steel utilization of 80% for the quarter.

Gerdau’s North American operations posted Q4’25 net sales of R$8.7 billion (US$1.68 billion), down 5% from the previous quarter but up 15% y/y. Adjusted EBITDA increased 0.6% sequentially and 126% y/y to R$1.83 billion.

For full-year 2025, Gerdau NA reported a 7.8% y/y increase in bar shipments (to 2,151,000 mt), an 8.5% rise in shapes shipments (to 2,590,000 mt), and a 38% jump in downstream shipments (to 258,000).

Net sales of R$35.8 billion increased 12.1% y/y in North America, while adjusted EBITDA grew 18.5% to R$6.5 billion.

Gerdau’s North America segment includes its long and special steel operations in the US and Canada, as well as jointly controlled companies in Canada and Mexico.

Demand

Gerdau said non-residential construction – particularly data centers – and renewable energy remained the strongest drivers of North American shipments throughout 2025. Downstream products benefited the most; Gerdau said it intentionally reduced rebar and semi-finished volumes to prioritize a more profitable mix.

Special bar quality (SBQ) markets were softer, the company said. The automotive sector continued to face “more challenging dynamics.” High interest rates and uncertainty around Section 232 developments weighed heavily on the sector. Growth in light- and heavy-vehicle inventories slowed.

Backlog and pricing

Order backlog in North America ended the quarter at 85 days, well above the recent average of ~70 days, signaling continued strength heading into 2026.

Gerdau said metal spreads expanded during the quarter as domestic demand improved, and scrap costs remained stable. While Q4’25 sales and volumes were sequentially lower, they were supported by firmer pricing; in US dollars, net sales per mt rose 1.3%.

Trade and tariffs

Gerdau highlighted the ongoing impact of US trade actions, noting that Section 232 tariff adjustments helped rebalance supply and demand in 2025.

It also pointed to active US trade investigations into rebar imports from Algeria, Bulgaria, Egypt, and Vietnam. The US Department of Commerce has issued what the company said are positive preliminary rulings ahead of a final determination, expected in Q2’26.

Midlothian project update

Gerdau continues to advance its major North American expansion project in Midlothian, Texas.

Phase 1 of the steel processing facility reached 74% physical progress and 88% financial progress, with startup scheduled for the second half of this year.

The project will add 150,000 mt of annual crude steel capacity. It is expected to contribute roughly R$275 million in potential EBIDTA once fully ramped.

Outlook

For Q1’26, Gerdau expects margin expansion supported by seasonal volume recovery, a strong backlog, and stable costs.

Looking further out into the year, Gerdau sees solid demand in solar, data centers, and infrastructure, but more subdued demand in automotive and oil and gas.

The company is also keeping a close eye on Section 232 developments and USMCA negotiations.

Brazil

All told, Brazil-based Gerdau SA’s consolidated quarterly results were dragged down by a weaker performance from its Brazilian operations.

“In Brazil, meanwhile, we faced more pronounced seasonal effects, scheduled maintenance shutdowns, and a still challenging competitive environment, which resulted in lower volumes and margins,” the company explained.

The company’s Brazilian operations operated at a 73% utilization rate throughout the quarter. Rolled steel utilization was just 58%, according to a presentation released with Gerdau’s earnings report.

Gerdau produces both long and flat products in Brazil.