Gerdau cancels about 7 million shares held in treasury

Gerdau S.A. (NYSE: GGB) has announced the cancellation of 7,700,000 preferred shares and 418,800 common shares, which were previously held in treasury, as part of its ongoing capital management strategy. This action, approved by the company’s Board of Directors, does not result in a reduction of the overall capital stock. Following the cancellation, Gerdau’s capital structure remains unchanged at 717,363,819 common shares and 1,275,397,330 preferred shares.

The move is intended to streamline the company’s share structure and optimize its capital allocation. The updated share count will be formalized during a future Shareholders’ Meeting. This follows a similar share cancellation in October 2025, when Gerdau canceled 12,650,000 preferred shares and 283,900 common shares.

In addition to the share cancellation, Gerdau has also launched a new 2026 share buyback program, authorizing the repurchase of up to 55,000,000 preferred shares and 1,441,120 common shares over an 18-month period starting February 24, 2026. The buyback program aligns with the company’s enhance shareholder value strategy through efficient capital management.

These actions reflect Gerdau’s continued focus on balancing cash returns to shareholders through dividends and strategic share repurchases while maintaining financial flexibility.