Gerdau loses money in Q4 2025

Brazil-based steel producer Gerdau S.A., whose operations include recycled-content electric arc furnace mills and metals recycling facilities in the United States and Canada, has reported a net loss of nearly more than $250 million in the fourth quarter of 2025, although the global money says its North American operations remained a profit center.

For the full year, the steelmaker recorded profits of about $275 million despite the setback in the year’s final quarter. That year-end net income figure, however, was down by nearly 70 percent compared with 2024.

In comments to investors described as coming from “the management” of Gerdau, the company says in part, “While our North America operations sustained a strong performance, even with the typical yearend seasonality, in Brazil [we] faced more pronounced seasonal effects, scheduled maintenance shutdowns and a still challenging competitive environment [that] resulted in lower volumes and margins.”

In North America, Gerdau says its production of steel increased by 27 percent in the fourth quarter of 2025 compared with one year earlier and rose by less than 1 percent compared with the prior quarter. The company says it made steel in North America in late 2025 with a 17.9 percent gross margin.

For the entire year in the region, Gerdau states, “Steel shipments were 13.9 percent higher [compared with 2024], evidencing not only the best momentum for the local industry, due to declining import levels, but also the strengthening of our position in key markets and the growing share of higher value-added products and solutions throughout the year.”

In Brazil, Gerdau says imports were a leading cause of its problems in late 2025. “In addition to the weaker seasonal consumption, the imported steel penetration rate remained at high levels, ending the fourth quarter of 2025 at 21 percent, heightening unfair competition in the domestic market.”

The company expresses some optimism relative to the year underway, commenting, “It is worth noting important advances in [Brazilian] trade defense measures announced in recent months for the steel sector.”

In slides accompanying Gerdau’s latest presentation to investors, the company says of 2026 that the “market remains challenging, with a slight recovery expected in long steel shipment volumes in the domestic market after the seasonal period.”

In North America in 2026, Gerdau foresees strong demand “with a positive trend in the solar energy, data centers and infrastructure sectors, with customers reporting healthy backlog levels.” Adds the firm, however, “The automotive sector continues to face more challenging dynamics, impacting the special steel segment.”