Core Viewpoint - Gerdau S.A. has completed its offer to purchase outstanding 4.875% notes due 2027, with all validly tendered notes accepted for purchase [1][3]. Offer Details - The offer was made for cash to purchase all outstanding 4.875% notes due 2027, guaranteed by Gerdau and its subsidiaries [1]. - The offer expired on June 9, 2025, at 5:00 p.m. New York City time [3]. - A total principal amount of US$418,244,000 was outstanding, with US$237,646,000 tendered [2]. - The consideration for the notes accepted was US$1,007.83 per US$1,000 principal amount [2]. Settlement Information - Settlement of the offer is expected to occur within three business days following the expiration date, specifically on June 12, 2025 [4]. Additional Information - Gerdau Trade has engaged several financial institutions, including BofA Securities, Goldman Sachs, J.P. Morgan, and Morgan Stanley, to act as dealer managers for the offer [6]. - Further details regarding the offer can be found in the Offer Documents available through the designated tender agent [5].

SÃO PAULO, June 9, 2025 /PRNewswire/ -- Gerdau S.A. ("Gerdau") (NYSE: GGB) announces the consideration to purchase for cash any and all of the outstanding 4.875% notes due 2027 (the "Notes") issued by Gerdau Trade Inc. ("Gerdau Trade"), fully, unconditionally and irrevocably guaranteed by Gerdau (by itself and as successor in interest of Gerdau Aços Especiais S.A.), Gerdau Açominas S.A. and Gerdau Aços Longos S.A. (together, the "Guarantors") (the "Offer").The Offer is being made pursuant to the terms and s ...

Core Viewpoint - The recommendation for Gerdau S.A. (NYSE: GGB) shares has been raised from hold to buy, indicating a positive outlook for the company's stock performance [1]. Company Summary - Gerdau S.A. is being analyzed based on over 5 years of experience in equity analysis in Latin America, suggesting a strong foundation for the investment recommendation [1].

SÃO PAULO, June 3, 2025 /PRNewswire/ -- Gerdau S.A. ("Gerdau") (NYSE: GGB) announces that its wholly-owned subsidiary, Gerdau Trade Inc. ("Gerdau Trade" or the "Offeror") has commenced an offer to purchase for cash any and all of its outstanding 4.875% notes due 2027 (the "Notes"), which are fully, unconditionally and irrevocably guaranteed by Gerdau (by itself and as successor in interest of Gerdau Aços Especiais S.A.), Gerdau Açominas S.A. and Gerdau Aços Longos S.A. (together, the "Guarantors") (the "Off ...

Group 1 - The recommendation is to hold Gerdau (NYSE: GGB) shares following the release of Q1 2025 results [1] - This article continues from a previous coverage published on May 7, 2024, maintaining the same recommendation [1] - The analyst has over 5 years of experience in equity analysis in Latin America, providing in-depth research and insights for informed investment decisions [1]

G E R D A U S.A. GERDAU S.A. CONSOLIDATED BALANCE SHEETS In thousands of Brazilian reais (R$) (Unaudited) | | Note | March 31, 2025 | December 31, 2024 | | --- | --- | --- | --- | | CURRENT LIABILITIES | | | | | Trade accounts payable - domestic market | 11 | 4,637,773 | 3,892,296 | | Trade accounts payable - debtor risk | 11 | 448,278 | 459,899 | | Trade accounts payable - imports | 11 | 1,347,230 | 1,365,909 | | Short-term debt | 12 | 2,096,638 | 697,049 | | Debentures | 13 | 158,467 | 37,988 | | Taxes pa ...

Core Points - Gerdau S.A. has filed its Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission (SEC) and the Brazilian Securities and Exchange Commission (CVM) [1] - The Form 20-F is accessible on the Company's Investor Relations website [1] - Shareholders can request a free copy of the Form 20-F by contacting the Investor Relations team via email [2]

Industry Dynamics - The steel industry is highly cyclical, with demand fluctuations significantly impacting the company's financial condition and results of operations [32]. - In 2024, steel imports in Brazil reached nearly 6 million tonnes, an 18% increase from 2023, adversely affecting the company's competitiveness [48]. - The ongoing geopolitical conflicts, such as the Russian invasion of Ukraine, could adversely affect steel demand and prices, impacting the company's financial condition [41]. - The company faces significant competition from heavily subsidized steel imports, particularly from China, which may affect its market share and profitability [44]. - The Brazilian government has implemented temporary tariff hikes on some steel products, but these measures have proven insufficient to address the competitive imbalance [51]. Production and Capacity - The company's largest mill, Ouro Branco, accounted for 58.1% of total crude steel output in the Brazil Business Segment in 2024 [54]. - Gerdau is the largest Brazilian producer of steel, with approximately 70% of its steel production derived from scrap, transforming about 10 million tonnes of scrap into various steel products annually [142]. - In 2023, Brazil produced 32 million tonnes of crude steel, with 75.9% produced through integrated processes and 22.8% through mini mills [144]. - The Brazil Business Segment had an annual production capacity of approximately 6.8 million tonnes of crude steel and 6.6 million tonnes of finished steel products [186]. - The North America Business Segment has an annual production capacity of approximately 5.7 million tonnes of crude steel and 4.8 million tonnes of finished steel products [191]. Financial Performance - In 2024, Gerdau's total consolidated net sales were R$ 67.0 billion, a decrease of 2.7% from R$ 68.9 billion in 2023 [176]. - Gerdau's total consolidated net income for 2024 was R$ 4.6 billion, compared to R$ 5.5 billion in 2023 [176]. - The North America Business Segment generated net sales of R$ 25.9 billion in 2024, a decrease from R$ 26.9 billion in 2023 [184]. - In 2024, net sales in Brazil were R$25,962.2 million, a decrease of 3.2% from R$26,830.7 million in 2023 [211]. - North America's net income was R$2,913.9 million in 2024, accounting for 63.4% of its net sales [211]. Market Conditions - The Brazilian GDP increased by 3.4% in 2024, while steel consumption grew by 8.8%, indicating a strong demand for steel products [155]. - Brazilian steel exports in 2024 totaled 9.6 million tonnes, accounting for 31% of total sales [157]. - Gerdau's total exports in 2024 reached 966,000 tonnes, with South America representing 42% and Central America 37% of the exports [203]. - The automotive sector accounted for around 80% of the Special Steel Segment's shipments, with a decline in U.S. demand impacting shipments by approximately 15.3% [200]. Regulatory and Compliance Issues - The SEC approved new rules requiring significant climate-related disclosures, which may increase compliance costs and divert management attention [70]. - The company is subject to potential legal and regulatory actions due to new climate-related regulations, which could adversely affect its financial condition [71]. - Future compliance with stricter environmental regulations may increase operational costs and impact financial performance [107][110]. - Regulatory changes, such as the reinstatement of a 25% tariff on steel imports by the U.S., may impact the company's competitiveness and revenue [104]. Operational Challenges - Rising steel scrap prices or reduced supply could negatively impact production costs and operating margins, affecting profitability [52]. - Unexpected equipment failures may lead to production curtailments, increasing costs and reducing shipments and earnings [60]. - The company is vulnerable to inflationary cost pressures, especially regarding electricity, natural gas, and CO2 prices, which could adversely affect operations [57]. - Energy shortages or higher energy prices could negatively impact Gerdau's financial condition and results of operations, particularly in energy-intensive processes [72]. Strategic Initiatives - The company has invested in expanding iron ore production capacity to mitigate exposure to price volatility [55]. - Gerdau's certified iron ore reserves amount to 476 million dry metric tons, including 138 million tonnes of proven reserves and 338 million tonnes of probable reserves [84]. - Gerdau's logistics strategy includes long-term relationships with logistic suppliers to optimize transportation costs and efficiency [221]. Economic Influences - The Brazilian economy is influenced by international economic conditions, particularly those in the United States, which can affect market prices of Gerdau's shares [125]. - Political instability in Brazil continues to impact investor confidence, potentially leading to economic deceleration and increased volatility in securities [122]. - Inflationary pressures in Brazil may lead to higher interest rates, reducing demand for Gerdau's products and negatively impacting profit margins [124]. Risks and Vulnerabilities - The company faces risks from fluctuations in foreign exchange rates, which can increase the cost of servicing its foreign currency debt and adversely affect financial performance [93]. - The company is exposed to risks from tax, environmental, civil, and labor disputes, which could negatively affect its financial condition and results of operations [100]. - The company is exposed to risks from information technology system failures, which could disrupt operations and result in significant financial losses [76]. - The company’s financial condition may be adversely affected by potential defaults from clients or financial institutions [101][102]. Workforce and Management - The company experienced workforce labor contract suspensions lasting up to five months and laid off approximately 600 employees due to increased predatory steel imports in Brazil [74]. - The company faces risks related to the loss of senior management, which could adversely affect its operational strategy and financial condition [130]. - Gerdau's corporate structure allows the controlling shareholder to make decisions that may conflict with the interests of non-controlling shareholders, potentially impacting financial outcomes [128].

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of BRL10.8 billion for 2024, reflecting improved competitiveness through strategic cost reduction initiatives, particularly in Brazil [9][12] - The company achieved savings of BRL1.5 billion in controllable expenses, leading to a new level of operating efficiency compared to 2023 [12] - A total of BRL6.2 billion was invested in CapEx in 2024, with a guidance of BRL6 billion for 2025, split equally between competitiveness and maintenance efforts [13][15] Business Line Data and Key Metrics Changes - The company plans to report results using three segments: Brazil, North America, and South America, starting Q1 2025, to better reflect market dynamics [15] - The company is focusing on increasing its share of flat steel in its product mix, moving away from rebar due to competitive pressures [45][46] Market Data and Key Metrics Changes - The Brazilian market faced challenges from high penetration rates of imported steel, which reached almost 20% by the end of 2024 [9] - In North America, shipments and backlog recovered to historical levels, with a positive outlook for non-residential demand and infrastructure [19][31] Company Strategy and Development Direction - The company is committed to enhancing competitiveness through investments in renewable energy and strategic acquisitions, such as the purchase of two hydroelectric plants [10] - The focus remains on growth and competitiveness of assets with the greatest potential for long-term value generation [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the construction industry in Brazil, citing a record number of property launches, but acknowledged potential challenges from rising inflation and high interest rates [18] - The company is monitoring the impact of new trade defense measures in the U.S. and their potential to improve competitiveness [20][22] Other Important Information - The company distributed almost BRL2.9 billion to shareholders in 2024, representing a payout of approximately 66% of profits [14] - The company is transitioning to a new reporting format to provide clearer insights into its operations and market exposure [15][16] Q&A Session Summary Question: Insights on U.S. market recovery and Brazilian demand - Management noted a recovery in backlog and shipments in North America, with expectations for a positive scenario in 2025, while cautioning about potential declines in Brazilian demand due to economic conditions [28][31][42] Question: Strategic view on the Brazilian market and rebar capacity - Management indicated that while there is still demand for rebar, competitiveness remains a challenge, and future investments will focus on segments with higher margins [41][45] Question: CapEx guidance and energy investments - The CapEx guidance for 2025 includes investments in energy generation assets, with a flatter disbursement curve expected throughout the year [62][66] Question: Special steel margins and outlook - Management acknowledged that special steel margins in North America may recover faster than traditional operations, influenced by scrap prices [109][110] Question: Working capital expectations - Management anticipates some investment in working capital due to increased demand in North America and Brazil, with a significant release noted in Q4 2024 [136][138]

4Q24 Earnings Release February 20, 2025 DISCLAIMER This document may contain forward-looking statements. These statements are based on estimates and information that may be incorrect or inaccurate and that may not occur. These estimates are also subject to risks, uncertainties, and assumptions that include, among other factors, general economic, political, and commercial conditions in Brazil and in the markets where we operate, as well as existing and future government regulations. Potential investors are c ...