Gerdau S A : ends 1st quarter with adjusted Ebitda of R$ 2.8 billion

Gerdau ends 1st quarter with adjusted Ebitda of R$ 2.8 billion 02/05/2024

Results reflect the resilience of the U.S. market and recovery of performance across all business divisions

- Adjusted net income totals R$1.2 billion between January and March.

- Gerdau is Brazil's industry leader in reputation according to the 10^th edition of the Merco ranking. The Company is the only steel producer to figure in the survey and came first in the "Mining, Steel and Metallurgy" category.

Special steel at Gerdau USA | Gerdau publicity

Gerdau, Brazil's largest steel producer, ended the first quarter of 2024 with adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$ 2.8 billion and adjusted EBITDA margin of 17.4%. Adjusted net income totaled R$ 1.2 billion between January and March, while net sales amounted to R$ 16.2 billion and steel shipments reached 2.7 million tonnes.

"Gerdau's performance in the first quarter reflects the resilience of the U.S. economy in steel consuming segments, which has helped maintain domestic demand at healthy levels. We also observed EBITDA growth at other business divisions," said Gustavo Werneck, CEO of Gerdau. "Gerdau continues to stand out by delivering strong financial results and through a business strategy focused on creating value for all its stakeholders, guided by strict discipline in cost management and continuous improvement in the competitiveness of its assets. We continue to seek opportunities to adapt the Company's structure to the current business scenario," he concluded.

"The financial results of the first quarter of 2024 reflect the efforts of our teams in the constant pursuit of operational excellence, while focusing on an austere policy of cost control. Gerdau continues to have a solid balance sheet, maintaining its cycle of sustainable growth and sharing value with its stakeholders," said Rafael Japur, CFO of Gerdau.

Capex reaches R$ 858 million in the 1^st quarter of 2024

During the first quarter of 2024, Gerdau invested R$ 858 million, of which R$ 434 million went to maintenance and R$ 424 million to expansion and technological upgrades. Of the total invested in the quarter, R$ 198.3 million went to expanding the forest assets, as well as for upgrading and streamlining environmental controls and technologies, all of which resulted in energy efficiency and lower greenhouse gas emissions.

Sustainability

Gerdau is the industrial B2B with the best reputation in Brazil, according to the 10^th edition of the Merco 2023 Ranking, climbing ten positions from last year to reach the 24^th place among the 100 Brazilian organizations evaluated. The Company is the only steel producer in the ranking and retained its leadership of the "Mining, Steel and Metallurgy" category.

Conducted by Monitor Empresarial de Reputação Corporativa (Merco) Brazil to identify the 100 companies with the best reputation in Brazil, the surveys covered more than 11,000 respondents. Merco's research methodology includes six evaluations among 25 different groups/sources of information, which consider economic and financial results, quality of the sales offering, talent, ethics and corporate responsibility, international dimension and innovation. These attributes are used to outline the reputation profile of companies.

Bonus for shareholders and payment of dividends

Gerdau S.A. increased its capital stock by R$ 4,058 million by capitalizing a portion of the balance in its Profit Reserve, and issuing 351,413,410 new shares, distributed to shareholders as bonus shares at the ratio of one new share for five shares of the same type held on April 17, 2024.

Also, Gerdau S.A. and Metalúrgica Gerdau S.A. will pay dividends on May 27 and 28, respectively. Gerdau S.A. will pay R$ 589.0 million (equivalent to R$ 0.28 per share) and Metalúrgica Gerdau S.A. will pay R$ 196.2 million (equivalent to R$ 0.19 per share), in both cases to shareholders of record on May 15, 2024.