Leo Koheja's questions to Gerdau SA (GGB) leadership • Q2 2025
Question
Leo Koheja asked about the recent increase in net debt and its implications for cash conversion and future leverage targets. He also questioned the feasibility of a rebar price increase in Brazil, given the intense import pressure and recent price deflation.
Answer
CFO Rafael Japur explained that the debt increase funded significant CapEx and shareholder returns, and he anticipates positive free cash flow in the second half of the year. CEO Gustavo Ferneki expressed disappointment with Brazil's trade defense policies but stated Gerdau will defend its market share and believes there is room for price recovery, though the fight will be difficult.