Gerdau's 2026Q3 gross margin of 17.9% and net margin of 8.3% signal a meaningful operating recovery from the 10.9% gross margin posted in 2025Q4, yet the earnings series remains volatile, with diluted EPS swinging from -$0.66 to $0.79 across adjacent quarters and suggesting the rebound may be cyclical rather than…
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Gross margin widened from 10.9% in 2025Q4 to 17.9% in 2026Q3 on revenue of roughly $18.7B, but revenue growth has been uneven and EPS has been distorted by volatile quarterly results, so the margin recovery should be viewed as provisional until it persists through a full cycle.
Gerdau is forecast to grow earnings and revenue by 31.3% and 3.9% per annum respectively, with EPS expected to grow by 27.6% per annum.
Gerdau trades at a forward P/E of 7 with a 3.14% dividend yield, indicating potential undervaluation relative to earnings.
In Q1 2026, 75% of Gerdau's adjusted EBITDA came from North America, highlighting regional operational strength.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 26, 2026 | $0.15-16.7% vs $0.18 | $3.8B+3.3% vs $3.6B |
Q3 2026 Aug 4, 2026 | $0.15+0.0% vs $0.15 | $3.4B+0.3% vs $3.4B |
Q2 2026 Apr 27, 2026 | $0.10-33.3% vs $0.15 | $3.3B-0.6% vs $3.4B |
Q1 2026 Feb 23, 2026 | -$0.12-209.3% vs $0.11 | $3.3B+4.5% vs $3.2B |
Gerdau remains a buy, supported by robust North American operations and diversified geographic exposure. GGB trades at 4.2x EV/EBITDA, with a conservative upside to 5x and a sector average at 7.8x. Healthy cash generation, disciplined investments, and a solid balance sheet underpin my positive outlook.
Gerdau S.A. ( GGB ) Q3 2026 Earnings Call October 27, 2026 11:00 AM EDT Company Participants Mariana Dutra - General Manager of IR Gustavo Da Cunha - Chief Executive Officer & Director Rafael Japur - Executive VP & Investor Relations Officer Conference Call Participants Leonardo Correa - Banco BTG Pactual S.A.
Gerdau NYSE: GGB reported third-quarter 2026 EBITDA of BRL 3.8 billion and an EBITDA margin of 20.2%, its highest margin since the second quarter of 2023, as strong North American demand and operating performance offset continued pressure in Brazil.
SÃO PAULO, Oct. 26, 2026 /PRNewswire/ -- 3Q26 Highlights Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) reached R$3.8 billion in 3Q26, up 10% from 2Q26, with an adjusted EBITDA margin of 20.2%, both marking the highest levels since the second quarter of 2023. North America Segment was once again the key highlight of the quarter, accounting for more than 76% of consolidated EBITDA.
Benchmark GGB against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Gerdau S.A. (GGB)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $4.38 | $8.66B | 17.50 | 4.23% | 3.86% | 5.04% | 2.65% | |
| $244.97 | $55.79B | 15.44 | 5.73% | 9.26% | 15.63% | 0.91% | |
| $222.90 | $32.15B | 16.34 | 3.63% | 8.82% | 21.07% | 0.88% | |
| $11.46 | $6.54B | -14.16 | -3% | -2.36% | -7.84% | — | |
| $417.00 | $21.29B | 19.33 | 3.32% | 6.38% | 15.05% | 1.16% | |
| $62.28 | $6.89B | 10.59 | 20.46% | 6.98% | 14.62% | 1.21% |
Gerdau S.A. (GGB) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Gerdau S.A. (GGB) stock FAQ — growth, dividends, profitability & financials explained
Gerdau S.A. (GGB) reported $70.25B in revenue over the trailing twelve months. Revenue was $69.86B in fiscal year 2025. That is 2967% more than the $2.28B of fiscal year 1998.
Gerdau S.A. (GGB) grew revenue by 0.8% over the trailing twelve months, compared with the twelve months before.
Yes. Gerdau S.A. (GGB) earned $2.71B in net income over the trailing twelve months (a 3.9% net margin).
Yes. Gerdau S.A. (GGB) pays a dividend that yields 2.65% at the current price, a moderate yield.
Gerdau S.A. (GGB) had a return on equity (ROE) of 5.0% over the trailing twelve months. That is below the market's typical 10-15%.
Gerdau S.A. (GGB) generated $3.91B in free cash flow over the trailing twelve months.
