Gerdau expects Brazil margin compression in fourth quarter 2026
GGB•Gerdau expects seasonal demand weakness, a less favorable sales mix and elevated input costs to compress Brazil margins in the fourth quarter of 2026. North American margins are expected to remain stable, while full-year capital spending guidance is R$ 4.7 billion.
1. Regional margin outlook
Gerdau expects Brazil margins to compress in the fourth quarter of 2026, reflecting seasonal demand weakness, export-driven sales mix deterioration and elevated input costs. North American margins should remain stable as higher prices offset seasonal volume weakness and rising scrap costs; third-quarter EBITDA margin in the region was 27.7%, its highest in four years.
2. Spending and mining plans
Full-year 2026 capital spending guidance is R$ 4.7 billion, with 66% invested in the first nine months. Miguel Burnier mining operations are expected to start in the fourth quarter and have potential EBITDA of approximately R$ 1.1 billion.
