Daniel Sassoon's questions to Gerdau SA (GGB) leadership • Q2 2025
Question
Daniel Sassoon questioned Gerdau's gross debt level, which is above its stated policy, and asked if the policy might be reviewed. He also probed for details on potential long-term structural adjustments in Brazil beyond immediate cost-cutting measures.
Answer
CFO Rafael Japur described the high gross debt as a temporary mismatch between cash generation in North America and spending in Brazil, expecting it to normalize. CEO Gustavo Ferneki confirmed that Gerdau is developing long-term structural responses for its Brazilian operations to adapt to unfair competition, with more details to be shared at the upcoming Investor Day.