“There Are Always Synergies,” Says Gerdau (GGBR4) CEO on Potential Acquisitions in 2026

• Gerdau’s Acquisition Strategy: “Synergies Are Everywhere”
• Brazil’s Steel Sector: Antidumping Measures and “Red Ink”
• North America’s Boom and Mexico’s Pause
• Mining in Minas Gerais: “Sustainability Is Possible”
• FAQs: Gerdau’s 2026 Moves Decoded

Gerdau (GGBR4) is actively evaluating acquisition opportunities across its operational geographies, including Brazil, as it eyes potential assets like those recently put up for sale by CSN (CSNA3). CEO Gustavo Werneck emphasizes the company’s disciplined approach to synergies, while financial VP Rafael Japur highlights operational challenges and antidumping measures. With a focus on North America and Brazil, Gerdau navigates market volatility, tariff shifts, and strategic pauses—like its Mexico project—amid evolving trade dynamics. Here’s a deep dive into their 2026 strategy.

Gerdau’s Acquisition Strategy: “Synergies Are Everywhere”

Gerdau’s CEO Gustavo Werneck isn’t shy about the company’s appetite for strategic deals. “Every time steel assets hit the market, we scrutinize them closely. There’s always some synergy—it’s rare to find a deal that doesn’t offer value,” he said on February 24, 2026. This comes as CSN explores divesting its cement unit and infrastructure holdings to raise R$15–18 billion. While Werneck confirms no formal process is underway for CSN’s steel assets, he notes such deals typically take 12–18 months to structure. “For now, it’s just speculation,” he added, but Gerdau’s 60–70% capacity utilization in Brazil leaves room for growth.

Brazil’s Steel Sector: Antidumping Measures and “Red Ink”

Gerdau’s Q4 2025 EBITDA margin in Brazil slumped to 7.1%, its second-worst quarterly performance since 2015’s 6.9% “perfect storm.” Despite 2025’s antidumping policies, VP Rafael Japur admits most Brazilian operations remain unprofitable. “We’re cautiously optimistic,” he said, expecting import pressures to ease slightly this year—though a significant drop isn’t likely until 2027. A pending July 2026 decision on hot-rolled steel tariffs could boost output at Gerdau’s Ouro Branco plant. “Domestic demand is solid, but imports are suffocating us,” Werneck remarked, ruling out further capacity cuts in 2026.

North America’s Boom and Mexico’s Pause

North America was a bright spot, with margins jumping to 21.1% in late 2025 from 10.8% a year earlier. Werneck sees no near-term slowdown, citing robust order books. Meanwhile, the Mexico specialty steel plant remains on hold until USMCA trade revisions clarify by mid-2026. “We won’t MOVE blindly,” he said. Trump-era tariff rollbacks, however, may reopen export avenues for Gerdau’s Brazilian ops, particularly in auto parts. “Clients who left the U.S. market could return,” Werneck noted.

Mining in Minas Gerais: “Sustainability Is Possible”

Amid 2026’s heavy rains and mining setbacks in Minas Gerais, Werneck struck a defiant tone. “Some think sustainable mining is impossible here, but we’ve proven otherwise,” he said, pointing to Gerdau’s IRMA-certified Miguel Burnier iron ore mine. The CEO expressed confidence in local peers despite “short-term challenges.”

FAQs: Gerdau’s 2026 Moves Decoded

Is Gerdau buying CSN’s steel assets?

Not yet. CEO Gustavo Werneck confirmed no formal process exists, though Gerdau routinely assesses such opportunities. Any deal WOULD take 12+ months to finalize.

Why is Gerdau’s Brazil margin struggling?

Antidumping measures since 2025 haven’t fully offset cheap imports. Margins hit 7.1% in Q4 2025—barely above 2015’s crisis-level 6.9%.

When will the Mexico plant resume?

Postponed until USMCA trade terms solidify post-July 2026. “We need clarity,” Werneck emphasized.