Gerdau's N. American ops log higher profits in Q1

In North America, the company reported steel shipments of 1,276,000 metric tons (mt), up 4% year over year (y/y).

Meanwhile, net sales rose 7% y/y to R$9,349 million ($1.87 billion) in the first quarter, while adjusted EBITDA increased 88% to R$2,252 million ($450.6 million) in the same comparison.

“The upturn in shipment volumes following the year-end seasonality, coupled with a more favorable pricing environment and operational discipline drove enhanced results in Q1’26,” the company said in a statement on Wednesday.

Overall, the steelmaker had net sales of R$16,716 in Q1’26, down 4% y/y as adjusted EBITDA rose 23% to R$2,958 million.

Midlothian, Texas, facility

Gerdau said the investment to expand capacity at its Midlothian, Texas, plant continues to progress.

“The start-up and completion timeline remains unchanged, with commissioning expected in the second half of 2026,” Gerdau said.

The project will add 150,000 mt of crude steel per year to its largest North American asset. It will also improve productivity and operational efficiency.

“As the investment will require a relatively short maintenance shutdown—of less than two months—limited to the steelmaking area, the company does not expect any material impact on sales volumes,” Gerdau said.

The Midlothian facility is a steelmaking and recycling operation that makes long products such as reinforcing bar and other steel products.

Outlook

Looking ahead in North America, the company said it has a robust order backlog (~90 days) that should sustain shipment volumes at a healthy level.

It also has a positive outlook for the renewable energy and data center markets in the short term.

Gerdau continues to monitor potential Section 232 tariff changes, the upcoming USMCA review in July, and changing trade dynamics in Canada.