Gerdau S.A. (NYSE:GGB)
Latest TTM Net Income: $590.07 Million
Closing price on June 26: $2.89
Gerdau S.A. (NYSE:GGB) is a standout among penny stocks, delivering steady profitability and resilience across economic cycles. With a trailing twelve month net income of $590.07 million and a current share price of just $2.89, Gerdau S.A. (NYSE:GGB) offers strong value for long term investors seeking income and growth.
The Brazilian steelmaker reported BRL758 million in net income and BRL2.4 billion in adjusted EBITDA in Q1 2025, with North American operations leading the recovery thanks to stronger volumes and improved pricing. Although its Brazil segment faced margin pressures from new project costs and an influx of imported steel, Gerdau S.A. (NYSE:GGB) diversified global footprint helped balance performance, highlighting its strategic geographic resilience.
Gerdau continues to invest in its long term competitive edge. It allocated BRL1.4 billion in CapEx this quarter, focusing on mining expansion at Miguel Burnier and flat steel production at Ouro Branco, projects expected to enhance margins and reduce reliance on third party inputs. The company’s net debt to EBITDA ratio remains low at 0.69x, reflecting a healthy balance sheet and disciplined capital management.
A shareholder friendly approach adds to GGB’s appeal: the company returned 74% of Q1 net income via dividends and buybacks, well above its stated payout policy. The ongoing share repurchase program, already 44% complete, further underscores management's confidence in the stock’s value.
Looking ahead, Gerdau S.A. (NYSE:GGB) expects continued strength in the U.S. market, supported by a robust construction backlog and favorable tariff policies. In Brazil, the company remains cautious but hopeful for stronger trade protections. With strong fundamentals, solid cash flows, and strategic capital deployment, Gerdau S.A. (NYSE:GGB) is one of the most profitable penny stocks to watch in 2025.
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