Raphael Bastos Bezerra

Raphael Bastos Bezerra asked about the negative surprise in Gerdau's South America segment in Q4, seeking expectations for its performance in the coming year. He also questioned the sustainability of the strong profitability in the North America segment, considering metal spreads and local player optimism, and inquired about the main drivers and the possibility of a separate listing for the U.S. operation.

Answer

CFO Rafael Japur attributed the Q4 South America surprise to increased logistics costs from higher Argentinian exports, expecting a recovery to mid-teens margins in 2026. For North America, Japur noted strong order books and no expected substantial profitability reduction, despite varied dynamics across products. CEO Gustavo Werneck emphasized the improved operating performance and strategic positioning in North America, giving confidence in sustained solid results. Werneck also stated that while company restructuring and value unlocking are always reviewed, there is no tangible plan for a U.S. listing currently, but it remains an option if it unlocks shareholder value.

Raphael Bastos Bezerra asked about the negative surprise in South America's performance in Q4 2025, seeking expectations for the region in 2026. He also inquired about the sustainability of North America's strong profitability, its main drivers, and whether Gerdau is considering a separate listing for its U.S. operations.

Answer

CFO Rafael Japur attributed South America's Q4 performance to increased, costly exports from Argentina to maintain utilization, expecting a recovery to mid-teens margins in 2026. For North America, he noted strong order books (90 days backlog) and differentiated dynamics across products and regions, not foreseeing a substantial short-term profitability reduction. CEO Gustavo Werneck emphasized the improved operational soundness and competitiveness of North American assets compared to competitors, particularly in structural beams, and expressed less concern about margin discrepancies between regions. He confirmed that while value-unlocking strategies like separate listings are always monitored, there are no tangible plans or action plans for a U.S. listing currently.