SÃO PAULO, July 22, 2026, 18:07 BRT
- Gerdau’s ADR gained 2.7%, closing at $4.77, as its preferred shares rose 2.4% to R$24.06. Regular trading remained closed on the São Paulo and New York exchanges.
- The acquired company’s firm energy is estimated at approximately 14.4 average megawatts, implying R$10.7 million in cash per extra average megawatt.
- Nucor Corp. NYSE:NUE will report its quarterly earnings on July 27, while Gerdau is set to disclose its results on August 4.
Shares of Gerdau S.A. (NYSE:GGB; BVMF:GGBR4) rose on Wednesday across both platforms. The company’s ADR closed at $4.77, up 2.7%. The preferred stock ended the session at R$24.06, increasing 2.4%.
Brazil’s rise was similar to the Ibovespa’s 2.44% climb, making it less likely that Wednesday’s local advance was specifically linked to the deal.
Monday’s filing offers investors a more transparent metric. Gerdau bought a 23.03% stake in DFESA, a privately held hydroelectric generator, spending about R$154 million on the acquisition. The transaction was financed using existing cash resources.
April records indicated the company’s energy averaged 35.6 megawatts before completion. Gerdau now manages approximately 50 megawatts on average.
The projected gap stands at 14.4 average megawatts, representing R$10.7 million in cash per MWavg increase.
The spending accounts for 5.1% of first-quarter adjusted EBITDA. This figure also matches 3.3% of Gerdau’s total capital investment plan of R$4.7 billion through 2026.
The deal functions primarily as a hedge against costs instead of a substantial investment in capacity. Gerdau said the move is set to increase renewable self-generation and improve cost competitiveness.
The following U.S.-listed steel stocks closed the session at the following levels.
| Company | Wednesday close | Daily move |
|---|---|---|
| Gerdau S.A. NYSE:GGB | $4.77 | gained 2.69% |
| Steel Dynamics Inc. NASDAQ:STLD | $238.64 | added 2.19% |
| Nucor Corp. NYSE:NUE | $235.90 | went up 1.15% |
| Commercial Metals Co. (NYSE:CMC) | $68.07 | was up 0.50% |
Steel Dynamics reported second-quarter revenue of $6.1 billion, with net income at $534 million. CEO Mark D. Millett said “steel pricing continued to improve.” PR Newswire
This plays a key role in Gerdau’s near-term earnings. In the first quarter, North America accounted for 75% of adjusted EBITDA.
The ADR remained 0.6% below its July 15 closing level at $4.80. Wednesday’s gain reversed losses from the prior two sessions.
Nucor is scheduled to announce its earnings after markets close on Monday next week. The company will hold its July 28 call to provide additional perspective on U.S. steel pricing and profit margins.
Gerdau is scheduled to release its second-quarter earnings on August 4, followed by a conference call discussing the results the day after.
Gerdau has a conditional agreement to purchase a further 23.03% stake in DFESA. Completion of the deal would bring its ownership to 100% and boost firm energy generation to 65.94 MWavg.
Risks remain. Steel Dynamics reported that Asian imports rose despite 50% tariffs set by the U.S. Gerdau stated Brazilian imports accounted for 27% in the first quarter. Hydro production continues to face risks from rainfall and operational issues.
At present, the hydro acquisition functions as a cost hedge instead of driving an earnings reset. The focus of the August report will be whether U.S. steel spreads become more significant.
