Brazilian financial sector awaits Q3 2026 earnings from Gerdau and Bradesco

Major Brazilian entities Gerdau and Bradesco are set to release their third-quarter 2026 financial results, with markets focusing on divergent operational realities and credit quality.

Gerdau faces pressure in its domestic operations due to high costs in metallurgical coal, logistics, and freight. While Itaú BBA projects a consolidated EBITDA of R$ 3.65 billion—a 6% increase from the previous quarter—this growth is expected to be driven primarily by North American operations, where profitability margins are projected at 27.8%. In contrast, Gerdau’s Brazilian margins are expected to remain stagnant around 10.5%. Additionally, a recent adjustment to the minimum road freight floor by the National Land Transport Agency (ANTT), driven by rising diesel prices, may impact future quarters.

Bradesco is expected to report an adjusted net profit of R$ 7.145 billion, representing a 15% annual increase according to Bloomberg consensus. Analysts are monitoring the bank's return on equity (ROE) and the quality of its credit portfolio. While XP Investimentos anticipates healthy revenue expansion, asset quality remains pressured by certain credit portfolios. Furthermore, a recent capital increase of nearly R$ 10 billion may pressure ROE in the short term, even as it strengthens the bank's growth capacity.