Gerdau Insiders Sell Into Best EBITDA Since Q3 2023
Gerdau S.A. reported Q2 adjusted EBITDA of BRL 3.4 billion, its strongest since Q3 2023, with net income rising 45% to BRL 1.5 billion, while the CFO and a board member sold a combined $541,048 in sha
Gerdau CFO, Board Member Sell Into Q2 Earnings Strength
NEW YORK, August 14 —
Gerdau S.A. (GGB) has missed Wall Street's earnings estimates four consecutive quarters, with gaps as wide as 32.9%. That makes the timing of insider sales during its best EBITDA quarter since Q3 2023 harder to dismiss. The CFO sold shares two days before the Q2 earnings call; a board member sold 99,200 shares the day after.
- Q2 adjusted EBITDA BRL 3.4 billion, Gerdau's strongest since Q3 2023; net income rose 45% to BRL 1.5 billion.
- Four consecutive EPS misses ranging from -6.9% to -32.9% below estimates; most recent miss was -7.5%.
- CFO sold shares two days before the call; board member sold 99,200 shares the next day, combined $541,048.
North America Takes the Weight
Gerdau's three-segment structure puts São Paulo-based operations on one axis and North America on another; Q2 showed why the separation matters. The North America Business, which sells structural steel, rebar, wire rod, and specialty steel into construction, energy, and industrial markets, posted EBITDA 15% above Q1 2026 levels, driven by a 7% year-over-year gain in steel shipments. Management cited renewable energy projects, data centers, semiconductor fabrication, and infrastructure investment as specific demand drivers. Those tailwinds have years to run, and potential August price increases could extend the move. Investors can test the valuation with the DCF calculator before the next earnings print.
Selling Into the Inflection
The CFO and a board member each cut their positions during Gerdau's best earnings quarter in nearly three years. CFO Rafael Dorneles Japur sold shares two days before the call; board member Andre Bier Gerdau sold 99,200 shares the day after per filings, for combined disposals of $541,048. Insider selling is not automatically bearish, but the context adds weight: four consecutive quarters of EPS misses, with the worst reaching 32.9% below consensus, means management has consistently failed to convert strong EBITDA into shareholder returns. Selling into the exception to that pattern, rather than holding through it, is the plain signal.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| GGB | $9.3B | 7.7x | +61.6% |
| SID | $1.2B | 13.3x | -29.7% |
| BBD | $34.3B | 5.6x | +6.4% |
| ITUB | $80.5B | 7.3x | +8.5% |
| CIG | $5.6B | 13.1x | 0.0% |
| ABEV | $43.2B | 13.0x | +29.7% |
What Q3 Confirms or Breaks
Gerdau's Brazil Business faces sustained heavy import pressure, with capacity adjustments at the Recife mill limiting near-term pricing power. A planned maintenance outage at Midlothian will add a BRL 100 million to BRL 150 million accounting headwind. Set against those drags, management's case for a BRL 1.4 billion to BRL 1.5 billion annual EBITDA addition from the Miguel Burnier mining expansion and recycling investments is the multi-year bull thesis. A fifth consecutive EPS miss in Q3 would confirm the EBITDA-to-EPS gap is structural rather than cyclical, and is the number that would make the constructive case hard to hold. Run the free Gerdau S.A. deep-dive before that print.
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Frequently Asked Questions
Why did Gerdau insiders sell shares around Q2 earnings?
CFO Rafael Dorneles Japur sold shares two days before the Q2 earnings call, and board member Andre Bier Gerdau sold 99,200 shares the day after, per filings, for combined disposals of $541,048. Those moves occurred around Gerdau's strongest EBITDA quarter since Q3 2023. The article notes insider selling is not automatically bearish, but the context of four consecutive EPS misses adds weight to the timing.
What were Gerdau's Q2 2026 EBITDA and earnings results?
Q2 adjusted EBITDA reached BRL 3.4 billion, the company's strongest since Q3 2023, while net income rose 45% to BRL 1.5 billion. Despite that EBITDA strength, Gerdau has missed Wall Street's EPS estimates four consecutive quarters, with shortfalls ranging from 6.9% to 32.9% below consensus.
What is driving Gerdau's North America segment performance?
The North America Business posted EBITDA 15% above Q1 2026 levels, with steel shipments up 7% year over year. Management cited renewable energy projects, data centers, semiconductor fabrication, and infrastructure investment as demand drivers. Potential August price increases could extend the run.
What headwinds does Gerdau face heading into Q3 2026?
The Brazil Business faces sustained heavy import pressure, with capacity adjustments at the Recife mill limiting near-term pricing power. A planned maintenance outage at Midlothian will add a BRL 100 million to BRL 150 million accounting headwind. A fifth consecutive EPS miss in Q3 would signal the EBITDA-to-EPS gap is structural rather than cyclical.
What is the Gerdau Miguel Burnier mining expansion?
Management projects the Miguel Burnier mining expansion and recycling investments will add BRL 1.4 billion to BRL 1.5 billion in annual EBITDA. The article describes this as the multi-year bull thesis for the stock. Q3 results will determine whether the constructive case remains tenable.
Gerdau reported Q2 2026 adjusted EBITDA of BRL 3.4 billion — its strongest quarterly result since Q3 2023 — but CFO Rafael Dorneles Japur sold shares two days before the earnings call and board member Andre Bier Gerdau sold 99,200 shares the day after it. Institutional investors at Bank of America and Assenagon are moving in the opposite direction.
Sources & Filings