Financial Data and Key Metrics Changes - Gerdau ended 2025 with an EBITDA of BRL 10.1 billion, down 7% compared to 2024, primarily due to a challenging environment in Brazil marked by increased competition [8] - Adjusted net income for 2025 was BRL 3.4 billion, down 21% year-on-year, reflecting operational performance [9] - The company achieved a free cash flow generation of BRL 1.4 billion in Q4 2025, resulting in a positive annual cash flow of BRL 394 million for the year [10] Business Line Data and Key Metrics Changes - North American operations showed strong performance with record shipments in December 2025, benefiting from resilient demand and reduced import levels [5] - Brazilian operations faced challenges with a 7.5% increase in steel imports, impacting profitability despite trade defense measures [5][12] Market Data and Key Metrics Changes - North America experienced stable steel consumption at high levels, with order backlogs above historical averages, particularly in sectors like solar energy and infrastructure [12] - In Brazil, the market is expected to see moderate growth in demand in 2026, despite the influx of imported steel [12] Company Strategy and Development Direction - Gerdau's strategy focuses on geographic diversification and productivity, with significant investments in sustainable mining projects to reduce production costs [6] - The company plans to maintain a disciplined approach to capital allocation, with a CapEx guidance of BRL 4.7 billion for 2026, down from BRL 6.1 billion in 2025 [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about trade defense measures in Brazil, which could improve market conditions and profitability [12][50] - The outlook for North America remains positive, with expectations of continued strong performance and no substantial reduction in profitability [34][39] Other Important Information - Gerdau paid out BRL 2.4 billion in dividends and share buybacks throughout 2025, reflecting a commitment to returning value to shareholders [10] - The company is exploring the potential divestment of non-core assets, including forest and real estate holdings, to generate value [56][61] Q&A Session All Questions and Answers Question: Outlook for Brazil business margins - Management expects stability in margins for Q1 2026, with potential for improvement in the second half of the year as the Miguel Burnier project ramps up [14][25] Question: Details on impairment losses - Impairment losses were attributed to conservative cash flow projections and underutilization of assets in Brazil, with some plants operating below capacity [15][22] Question: Capacity adjustments in Brazil - Management does not plan to close additional capacity in 2026, focusing instead on optimizing operations without further reductions [26] Question: South America operations outlook - South America is expected to recover margins in the first half of 2026, with a return to mid-teen profitability levels [31] Question: North America profitability sustainability - North America is expected to maintain strong profitability, supported by a robust order book and favorable market conditions [34][39] Question: Potential listing of U.S. operations - Management is monitoring the potential for a separate listing of U.S. operations but has no concrete plans at this time [42] Question: Impact of anti-dumping measures - Management is optimistic about the expansion of trade defense measures in Brazil, which could improve competitive conditions [50][53] Question: Growth avenues in the U.S. segment - Gerdau is focused on organic growth and smaller acquisitions, particularly in high-value products, rather than significant capacity expansions [74][79]