Gerdau(US:GGB)2025-10-30 21:17Financial Performance - Net sales for Q3 2025 reached R$17,983,143, a 3.5% increase from R$17,378,032 in Q3 2024[4] - Net income for Q3 2025 was R$1,089,880, a decrease of 19.7% compared to R$1,356,245 in Q3 2024[5] - Gross profit for the nine-month period ended September 30, 2025, was R$6,119,192, down 14.8% from R$7,183,230 in the same period of 2024[4] - Comprehensive income for the nine-month period ended September 30, 2025, was a loss of R$1,810,061, compared to a gain of R$7,569,992 in the same period of 2024[5] - Net income for the nine-month period ended September 30, 2025, was R$2,712,181, a decrease of 36.7% compared to R$4,276,098 for the same period in 2024[7] - The Adjusted EBITDA for the three-month period ended September 30, 2025, was R$2,736,858, down from R$3,015,962 in the same period of 2024, indicating a decrease of about 9.2%[173] - The total financial expenses for the nine-month period ended September 30, 2025, were R$1,429,577, compared to R$1,074,408 for the same period in 2024, reflecting an increase of approximately 33%[171] Assets and Liabilities - Total assets as of September 30, 2025, amounted to R$87,255,733, slightly up from R$86,814,493 at the end of 2024[3] - Current liabilities increased to R$12,353,460 as of September 30, 2025, from R$10,851,391 at the end of 2024, reflecting a rise of 13.8%[3] - Long-term debt rose to R$10,966,428 as of September 30, 2025, up from R$9,110,972 at the end of 2024, indicating an increase of 20.3%[3] - The company’s equity attributable to the equity holders of the parent decreased to R$54,539,163 from R$57,948,759 at the end of 2024, a decline of 5.5%[3] - Total financing increased to R$14,069,338 as of September 30, 2025, compared to R$9,808,021 as of December 31, 2024, reflecting a rise of 43.3%[63] Cash Flow and Investments - Cash and cash equivalents increased to R$9,389,572 as of September 30, 2025, compared to R$7,767,813 at the end of 2024, representing a growth of 20.8%[2] - Cash provided by operating activities decreased to R$6,395,731, down 39.8% from R$10,538,576 in the previous year[7] - Net cash used in investing activities increased significantly to R$6,034,590, compared to R$2,610,224 in the prior year, reflecting higher capital expenditures[7] - The company made a payment for the acquisition of company control amounting to R$673,272 during the nine-month period[7] Segment Performance - The North America Segment reported net sales of R$27,091,832 for the nine-month period ended September 30, 2025, compared to R$24,395,817 in 2024, reflecting a growth of about 11.1%[179] - The Brazil Segment's net sales for the nine-month period were R$21,719,406, slightly down from R$21,760,539 in 2024, showing a marginal decline of about 0.2%[179] - The South America Segment's net sales for the nine-month period were R$4,072,991, slightly down from R$4,047,756 in 2024, indicating a marginal increase of about 0.6%[179] Shareholder Information - The company reported a balance of R$2,056,535 thousand in financing agreements due by October 2027[140] - The share buyback program resulted in the acquisition of 1,767,911 common shares and 61,156,300 preferred shares at average prices of R$17.78 and R$18.89 respectively[149] - The company credited dividends of R$0.12 per share for both the 1st and 2nd quarters of 2025, totaling R$480,383,000 proposed dividends[158] - The total number of common shares decreased to 718,066,519 as of September 30, 2025, from 719,956,830 at the end of 2024, reflecting a cancellation of treasury stocks[146] Tax and Legal Matters - The company has contingent liabilities related to tax claims totaling R$2,250,113 thousand as of September 30, 2025, up from R$2,137,038 thousand as of December 31, 2024[128] - Gerdau S.A. is involved in lawsuits related to Corporate Income Tax and Social Contribution on Net Income, with an updated amount of R$1,544,833 as of September 30, 2025, compared to R$1,486,615 on December 31, 2024[131] Market and Economic Conditions - Gerdau is monitoring the potential effects of increased U.S. tariffs on Brazilian exports, which could impact domestic steel consumption[23] - The Company will continuously monitor the steel market through 2025 to identify any significant drops in demand from key sectors such as automotive and construction[184]