Brazilian steelmaker Gerdau announced its financial results for the second quarter of 2025. The company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 6.6 percent quarter on quarter to BRL 2.6 billion ($ 491 million). Net profit increased 14 percent quarter on quarter, reaching BRL 864 million ($ 163 million). Steel shipments also rose 1.6 percent quarter on quarter, totaling 2.9 million metric tons.
Shift in investment focus
Gerdau CEO Gustavo Werneck told investors that new capacity expansion projects in Brazil have been put on hold, with a focus shifting towards optimizing existing assets. Additionally, the company plans to prioritize its operations in Europe, particularly in Spain, and continue investments in digital transformation initiatives.
"This will be reduced, especially investing less in Brazil and we will maintain investments in North America because we understand that, with everything that is happening in the short and medium term and future demand, that will remain solid. It is important that we have a competitive and relevant presence in the US market," he said.
Strong performance in the US market
Gerdau’s North American segment showed strong results supported by increased infrastructure spending and government policies promoting domestic steel production, such as the Inflation Reduction Act (IRA) and Section 232 tariffs. Werneck noted that demand in North America is expected to remain robust, with ongoing investments planned to support growth. The North American operations recently achieved B Corp certification, marking a key sustainability milestone.
Impacts of US tariffs
About the tariffs imposed by the US, Werneck stated that “We are a bit more concerned in the second half of the year because there might be potential impacts coming from the tariffs imposed by the US on Brazil. And this should have an impact on the automotive and auto parts industry, which is an important supplier. That is an important segment for us, because 15 percent of our deliveries in Brazil are earmarked for the automotive sector.”
Sustainability and outlook
The company also confirmed its ongoing commitment to reducing carbon intensity, with 86 percent of the scrap used in production coming from recycled materials. Gerdau’s management stated that it will continue to focus on operational efficiency, financial discipline, and sustainability goals in the second half of the year while closely monitoring developments in the Chinese steel market.