Gerdau S.A.
GGB Basic Materials Steel
Gerdau S.A.’s revenue for fiscal 2025 (year ended December 2025) was $12.5 billion, up 0.68% from fiscal 2024. In the quarter to June 2026, revenue grew 14.3%, EPS grew 87.5%, free cash flow grew 172.0% and total debt fell 4.72%, each against the same quarter a year earlier. Insiders bought in the last twelve months.
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Gerdau S.A. (GGB) Beneish M-score
Gerdau S.A.'s Beneish M-score for fiscal 2025 is −2.86; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −2.86 | (0.11) |
| FY2024 | −2.76 | (0.28) |
| FY2023 | −2.48 | (0.08) |
| FY2022 | −2.41 | (0.33) |
| FY2021 | −2.08 | 0.55 |
| FY2020 | −2.63 | (0.09) |
| FY2019 | −2.54 | (0.05) |
| FY2018 | −2.49 | 0.32 |
| FY2017 | −2.81 | 0.48 |
| FY2016 | −3.29 | 0.05 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.90 | — | 0.83 | |
| Gross margin index | 1.20 | — | 0.64 | |
| Asset quality index | 0.97 | — | 0.39 | |
| Sales growth index | 1.01 | — | 0.90 | |
| Depreciation index | 0.89 | — | 0.10 | |
| SG&A index | 0.94 | — | −0.16 | |
| Total accruals to total assets | (0.08) | — | −0.38 | |
| Leverage index | 1.04 | — | −0.34 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.86 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| GGB Gerdau S.A. | −2.9× |
| TX Ternium S.A. compare | −2.9× |
| WS Worthington Steel, Inc. compare | −2.8× |
| PKX POSCO Holdings Inc. compare | −2.7× |
| SID National Steel Company compare | −2.6× |
| SIM Grupo Simec, S.A. de C.V. compare | −2.5× |
| RS Reliance, Inc. compare | −2.5× |
| MTL Mechel PAO compare | −1.9× |
| CLF Cleveland-Cliffs Inc. compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI