Gerdau S.A. (NYSE: GGB)

Gerdau S. A. is a Brazilian steel producer engaged in the production and commercialization of a wide range of steel products through mills located in Brazil, Canada, the United States, Argentina, Peru, Uruguay and Mexico. It is the largest Brazilian producer of steel, a leading producer of long steel in the Americas and one of the world's leading suppliers of special steel. The company also operates as the largest recycling company in Latin America, using ferrous scrap for about 70% of its steel output. As of December 31 2025 Gerdau reported total consolidated installed annual capacity of approximately 15,700,000 tonnes of crude steel and 15,000,000 tonnes of rolled steel products. In the same year the company recorded consolidated net sales of R$69.9 billion and consolidated net income of R$1.4 billion. The Brazil segment has annual production capacity of approximately 7,900,000 tonnes of crude steel and 8,200,000 tonnes of finished steel products, while the North America segment capacity stands at about 6,900,000 tonnes of crude steel and 6,000,000 tonnes of finished steel products and the South America segment capacity is roughly 900,000 tonnes of crude steel and 800,000 tonnes of finished steel products.

Gerdau S. A. generates revenue primarily from the sale of steel products including semifinished billets, blooms and slabs; finished construction products such as rebar, wire rods, structural shapes, hot rolled coils and heavy plates; finished industrial products like commercial rolled steel bars, light profiles and wires; agricultural products such as stakes, smooth wire and barbed wire; and special steel items for automotive, oil and gas, wind energy and other industrial applications. The company also sells iron ore produced from its mines for internal consumption and derives additional income from scrap recycling activities. In 2025 the Brazil segment contributed R$29,688,000,000 to net sales, the North America segment contributed R$35,787,000,000 and the South America segment contributed R$5,561,000,000. These figures reflect the company's diversified product mix and geographic footprint across the Americas. The company's product portfolio also includes semifinished steel that is sold to rolling plants, finished construction steel for infrastructure projects, industrial steel for machinery and equipment, agricultural steel for fencing and stakes, and special steel grades engineered for high mechanical demand in sectors such as automotive and energy. Revenue is diversified across product lines with construction steel representing a significant share, followed by industrial and agricultural steel, while special steel commands premium pricing due to its tailored properties.

Gerdau S. A. holds the top position in Brazil's steel market and ranks among the leading long steel producers in North and South America. Its main competitors in Brazil include ArcelorMittal Brasil, Simec, Sinobrás, Aço Verde do Brasil and Companhia Siderúrgica Nacional; in North America it faces Commercial Metals Company, Nucor Corporation and Steel Dynamics Inc.; and in South America it competes with regional producers and imports, particularly from Asia. Competitive advantages stem from product diversification, a decentralized mill network proximate to raw material sources and customers, extensive scrap recycling capabilities, low cost iron ore from its own mines and a vertically integrated value chain that includes mining, steelmaking and downstream processing. The company operates 29 steel producing facilities globally, with 10 units in the United States, three in Canada and the remainder in Brazil and South America. According to World Steel Association Gerdau was the world’s 33rd largest steel producer based on consolidated crude steel production in 2024. Gerdau’s strategic location of mills near scrap sources and iron ore mines reduces logistics costs and enhances supply chain reliability, while its integrated mining operations secure a consistent feedstock for its blast furnaces.

Gerdau S. A. serves a diversified customer base comprising construction companies, manufacturers of machinery and equipment, and agricultural producers. Its products are used in residential and nonresidential building projects, industrial manufacturing and farming operations across the Americas. The company also supplies steel service centers, fabricators and original equipment manufacturers that require long steel, flat steel and special steel grades. While the filing does not disclose specific customer names, the reach of its sales network underscores its importance to infrastructure development and industrial supply chains in the regions where it operates. In addition to direct sales, Gerdau leverages a network of independent distributors and its own retail arm to reach end users in the construction, manufacturing and agricultural sectors.