Gerdau Wins Its Sector in a Year Profit Fell 69 Percent
Gerdau took the Valor 1000 steel category for a fifth year on 8 September. Net profit fell 69 percent and its chief executive calls Brazil survival mode. The post Gerdau Wins Its Sector in a Year Profit Fell 69 Percent appeared first on The Rio Times .
Gerdau secured its sector lead in the 26th Valor 1000 yearbook, released on September 8, 2026. The award marks their fifth consecutive victory in the metallurgy and steel category. Chief Executive Gustavo Werneck emphasized that investment in the United States is focused due to better prospects and higher returns, while Brazilian operations are considered a survival mode.
Net revenue saw a 4.2% increase to 69.9 billion reais, whereas net income fell by an alarming 69.2% to 1.418 billion reais, resulting in a 2.0% margin. Adjusted earnings stood at 10.1 billion reais, which contrasts with Valor's reported 7.4 billion unadjusted earnings. In Brazil, Gerdau has ceased investment growth due to intense predatory competition, comparing costs and indicators favorably against international producers.
However, Brazil faces a challenge with Chinese steel imports occupying nearly a quarter of the domestic market, leading to a 17.6% decrease in imports in the first half of 2026. Despite the decline, domestic demand also dropped by 5.3% in apparent consumption and 1.5% in crude steel output. Gerdau has reduced its 2026 capital spending to 4.7 billion reais, a 21.7% decrease from the initial plan.
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