Report published August 27, 2026
Gerdau: 2Q26 Credit Review and 2035 Bond Outlook – UBS
Source and citation context
- Issuer
- UBS
- Report date
- August 27, 2026
- Analysis as of
- August 27, 2026
Authors / editors: Donald McLauchlan (Latin America Credit Strategist)
Finvaulta summarizes UBS's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
UBS CIO views Gerdau as a resilient investment-grade credit supported by strong 2Q26 earnings, low leverage of 1.2x, and ample liquidity. The analysts recommend the Gerdau 5.75% bond due June 2035 for a hold-to-maturity strategy.
Key Takeaways
- 1.Gerdau posted strong 2Q26 results, driven by favorable North American demand (renewables, data centers, manufacturing) and a higher domestic sales share in Brazil, with net revenue up 14.3% y-o-y and EBITDA jumping 50.2% y-o-y.
- 2.Leverage decreased to a healthy 1.2x net debt/EBITDA with strong interest coverage of 5.8x and substantial liquidity buffers, including over USD 1.0bn in cash and an undrawn USD 875mn revolving credit facility.
- 3.UBS CIO maintains a preference for the Gerdau 5.75% US SEC-registered bond maturing in June 2035 for a hold-to-maturity strategy, yielding 5.588% to its first call date.
Table of Contents
- Sound 2Q26...
- ...sound and stable debt ratios...
- ...and the balance sheet is liquid
- Stable IG status
- Risk factors
- Our bottom line
- Required disclosures
- UBS CIO risk views
- UBS CIO valuation views
- Sell recommendations
- Issuer valuation views
- Risk information
Report data
Table 1 - Gerdau - Quarterly financial data — as of August 27, 2026.
| Metric | Estimate | Context |
|---|---|---|
| Net Revenues | 3539 USD mn | Quarterly net revenue driven by higher realized prices and sales mix. |
| EBITDA | 679 USD mn | Quarterly EBITDA expansion reflecting strong operating cash flow generation. |
| EBITDA Margin | 19.2% | Quarterly EBITDA margin up from 14.6% in 2Q25 and 17.7% in 1Q26. |
| Leverage (Total Debt / LTM EBITDA) | 1.2 x | Company leverage remains low and manageable. |
| Yield-to-Worst (Gerdau 5.75% 2035) | 5.588% | Yield-to-worst to first call date of 9 March 2035 at offer price of 101.084. |
Reports in this series
Emerging markets bonds for all investors is shown in chronological order through this edition, published on August 27, 2026.
Part of the Emerging markets bonds for all investors series — view all 5 editions
Looking for the latest edition? Emerging markets bonds for all investors en 1665703 (Sep 2, 2026)
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Authors / Editors
Reported Data Context
- Net Revenues: 3539 USD mn (2Q26) · Source: Company reports
- EBITDA: 679 USD mn (2Q26) · Source: Company reports
- EBITDA Margin: 19.2 % (2Q26) · Source: Company reports
- Leverage (Total Debt / LTM EBITDA): 1.2 x (2Q26 (LTM June 2026)) · Source: Company reports
- Yield-to-Worst (Gerdau 5.75% 2035): 5.588 % (2026-08-27)