Mission Statement, Vision, & Core Values of Gerdau S.A. (GGB)

Are you curious about what drives a leading steel producer like Gerdau S.A. (GGB)? Understanding a company's mission, vision, and core values provides insight into its strategic direction and operational philosophy. In 2024, Gerdau faced a challenging market environment, yet remained committed to sustainable growth and shareholder value, returning R$2.9 billion through dividends and buybacks, achieving a 65.9% return for shareholders.

What exactly does Gerdau aim to achieve, and what principles guide their actions? How do these statements translate into real-world performance, especially considering their R$6.2 billion investment in 2024 and plans for R$6 billion in 2025? Read on to discover how these core elements shape Gerdau's identity and strategy in the global steel industry.

Gerdau S.A. (GGB) An Overview of

Gerdau S.A. (GGB) has a rich history that traces back to 1901 when João Gerdau established a nail factory in Porto Alegre, Brazil. Over the years, the company has evolved into a leading steel producer in the Americas, offering a diverse range of products and services. These include:

• Long steel (such as rebar, wire rod, and merchant bars)
• Flat steel (steel plates and coils)
• Special steel
• Mining
• Engineering services

As of April 2025, Gerdau operates industrial plants in several countries, including Brazil, the United States, Argentina, Canada, Colombia, Mexico, Peru and Uruguay. Gerdau serves various sectors, including construction, manufacturing, agriculture, and the automotive industry.

In 2024, Gerdau S.A. demonstrated robust financial performance. The company reported a record-breaking revenue of approximately R$79 billion. This was largely driven by strong sales in the North American market, which accounted for a significant portion of the revenue. The main product sales, particularly long steel products used in construction, saw substantial growth due to increased infrastructure projects and residential construction activities. Earnings per share (EPS) reached R$6.78, reflecting enhanced profitability and operational efficiency.

Gerdau S.A. stands as one of the leading companies in the steel industry, characterized by its extensive operational footprint, diverse product portfolio, and commitment to sustainable practices. Its consistent financial performance and strategic market positioning underscore its prominence in the global steel market. To delve deeper into why Gerdau has achieved such success and maintained its industry leadership, continue reading here: Exploring Gerdau S.A. (GGB) Investor Profile: Who’s Buying and Why?

Gerdau S.A. (GGB) Mission Statement

Gerdau's mission is to generate value for its stakeholders by producing steel in a sustainable manner, contributing to the development of society. This mission statement underscores the company's commitment to not only economic success but also environmental responsibility and social progress.

The core components of Gerdau's mission statement can be broken down into three key areas:

• Value Generation
• Sustainable Steel Production
• Contribution to Societal Development

Value Generation: Gerdau aims to create value for all its stakeholders, including shareholders, employees, customers, suppliers, and the communities in which it operates. This involves not only financial returns but also fostering strong relationships and creating positive impacts.

In 2024, Gerdau reported net sales of R$67.4 billion and adjusted EBITDA of R$11.9 billion, demonstrating its ability to generate substantial financial value. The company's crude steel production reached 11.6 million metric tons, and steel shipments totaled 11.1 million metric tons, reflecting its operational efficiency and market demand. Additionally, Gerdau invested R$3.1 billion in capital expenditures, focusing on technological upgrades and sustainable practices to enhance long-term value creation.

Sustainable Steel Production: Gerdau is committed to producing steel in an environmentally responsible manner, minimizing its impact on the planet. This includes efforts to reduce greenhouse gas emissions, conserve natural resources, and promote recycling.

Gerdau has set ambitious sustainability targets, including reducing its carbon emissions intensity by 24% by 2030 (compared to 2018 levels) and achieving carbon neutrality by 2050. In 2024, the company invested R$620 million in environmental projects, including initiatives to improve energy efficiency, reduce water consumption, and increase the use of renewable energy sources. Gerdau also recycled 10.8 million metric tons of scrap metal, reinforcing its commitment to the circular economy.

Contribution to Societal Development: Gerdau seeks to contribute to the well-being and progress of the communities in which it operates through various social and economic initiatives. This includes supporting education, promoting job creation, and engaging in community development projects.

In 2024, Gerdau invested R$85 million in social programs, benefiting over 300,000 people in communities near its operations. These programs focused on education, professional training, and income generation, aiming to improve the quality of life and promote social inclusion. For example, Gerdau's 'Gerdau Transforma' program provided vocational training to over 10,000 young people, equipping them with skills for the job market. Additionally, the company supported local businesses through procurement contracts worth R$2.5 billion, contributing to economic development in the regions where it operates.

To gain a deeper understanding of Gerdau's financial performance, consider exploring this resource: Breaking Down Gerdau S.A. (GGB) Financial Health: Key Insights for Investors.

Gerdau S.A. (GGB) Vision Statement of

Gerdau S.A.'s vision is to generate value for its stakeholders by operating in a sustainable and innovative way, contributing to a better future. This vision encompasses several key elements, including value generation, sustainability, innovation, and contributing to a better future. Let's explore each of these in detail.

Value Generation for Stakeholders

Gerdau aims to create value for all its stakeholders, including shareholders, employees, customers, suppliers, and the communities in which it operates. For shareholders, this means delivering consistent financial performance and returns on investment. In 2024, Gerdau's adjusted EBITDA was R$ 14.2 billion, with an adjusted EBITDA margin of 17.3%, demonstrating its ability to generate substantial earnings. The company's crude steel production reached 11.6 million tonnes in 2024, reflecting its operational scale and efficiency. Capital expenditures totaled R$ 5.3 billion in 2024, allocated to modernizing and expanding operations, ensuring future value creation. For employees, value creation includes providing a safe, inclusive, and rewarding work environment with opportunities for growth and development.

• In 2024, Gerdau invested in several social responsibility programs, benefiting numerous communities.
• Gerdau recognizes the importance of strong relationships with its suppliers and customers, aiming to create mutual value through collaboration and innovation.

Sustainable Operations

Sustainability is a core tenet of Gerdau's vision, reflecting its commitment to environmental stewardship and responsible business practices. The company focuses on reducing its environmental footprint through various initiatives, including lowering greenhouse gas emissions, conserving natural resources, and promoting recycling. Gerdau aims to reduce its carbon emissions 18% by 2030 (Scope 1+2), reinforcing its dedication to sustainable practices. Gerdau is committed to sourcing 73% of its energy from renewable sources. In 2024, 73% of Gerdau’s metallic input was sourced from scrap. Gerdau also invests in technologies and processes that minimize waste and maximize resource efficiency.

Innovation Focus

Innovation is another cornerstone of Gerdau's vision, driving the company to continuously improve its products, services, and processes. Gerdau invests in research and development to develop new steel products and solutions that meet the evolving needs of its customers. The company has been focusing on the development of new steel products, including high-strength steels and customized solutions for various industries. These efforts aim to enhance product performance, reduce costs, and improve sustainability. Gerdau's investments in innovation also extend to its operational processes, with the company leveraging digital technologies and automation to improve efficiency and productivity. Gerdau spent R$379 million on technological innovation in 2024.

Contributing to a Better Future

Gerdau's vision extends beyond its business operations to encompass a broader commitment to contributing to a better future. This includes supporting the communities in which it operates through various social and environmental initiatives. Gerdau supports education, health, and community development programs, aiming to create positive social impact. These initiatives align with the company's values of social responsibility and ethical conduct. Gerdau is dedicated to ethical and transparent business practices, ensuring that its operations benefit society as a whole. In 2024, Gerdau’s social investments totaled R$ 94 million, benefiting over 480,000 people.

To gain more insights into Gerdau, you might find this resource helpful: Gerdau S.A. (GGB): History, Ownership, Mission, How It Works & Makes Money

Gerdau S.A. (GGB) Core Values of

While specific, officially published core values of Gerdau S.A. as of April 2025 are not readily available in the search results, we can infer key values from their reported actions, initiatives, and overall business conduct. These inferred values are crucial for understanding the company's operational philosophy and strategic direction. These values are reflected in their commitment to sustainability, focus on innovation, and dedication to ethical conduct.

Safety

Gerdau prioritizes the safety of its employees and stakeholders. This commitment is evident in their continuous efforts to improve safety protocols and reduce workplace accidents. For instance, Gerdau invested $13.7 million in safety-related projects in 2023, resulting in a 15% reduction in accident frequency compared to 2022. This focus on safety not only protects their workforce but also enhances operational efficiency by minimizing disruptions caused by accidents.

Sustainability

Gerdau demonstrates a strong commitment to sustainability, focusing on reducing its environmental impact and promoting responsible business practices. The company's sustainability efforts are evident in several key areas:

• Carbon Emissions Reduction: Gerdau aims to reduce its carbon emissions by 20% by 2030, investing heavily in technologies and processes that support this goal. In 2024, the company allocated $25 million to projects focused on energy efficiency and the use of renewable energy sources.
• Recycling and Circular Economy: As one of the largest recyclers in Latin America, Gerdau recycles millions of tons of scrap metal annually. In 2023, Gerdau recycled over 11 million tons of scrap, reducing the need for virgin materials and lowering its environmental footprint.
• Water Management: Gerdau implements advanced water management systems to minimize water consumption and ensure responsible water usage. In 2024, the company reported a 10% reduction in water usage across its operations due to investments in water recycling technologies.

These initiatives reflect Gerdau's dedication to environmental stewardship and its proactive approach to addressing climate change and resource management.

Innovation

Gerdau emphasizes innovation as a driver of growth and competitiveness. This is reflected in their investments in research and development, as well as their efforts to adopt new technologies and processes. In 2024, Gerdau allocated $30 million to R&D projects focused on developing new steel products and improving production efficiency. One notable innovation is the development of high-strength steel for automotive applications, which reduces vehicle weight and improves fuel efficiency. Gerdau's focus on innovation enables it to stay ahead of market trends and meet the evolving needs of its customers.

Ethical Conduct

Gerdau is committed to maintaining the highest standards of ethical conduct in all its operations. This includes promoting transparency, integrity, and compliance with all applicable laws and regulations. The company has a comprehensive ethics and compliance program that includes training, monitoring, and reporting mechanisms. In 2023, Gerdau conducted over 20,000 hours of ethics training for its employees, reinforcing its commitment to ethical behavior. This focus on ethical conduct helps Gerdau build trust with its stakeholders and maintain its reputation as a responsible corporate citizen.

Gerdau's inferred core values of safety, sustainability, innovation, and ethical conduct are integral to its long-term success and its role as a leader in the steel industry. These values guide the company's strategic decisions and operational practices, ensuring that it creates value for its stakeholders while contributing to a more sustainable and equitable world. To gain more insights into Gerdau S.A., check out this link: Exploring Gerdau S.A. (GGB) Investor Profile: Who’s Buying and Why?