Exhibit 99.1

São Paulo, August 04, 2021 – Gerdau S.A. (B3: GGBR4 / NYSE: GGB) announces its results for the second quarter of 2021. The consolidated financial statements of the Company are presented in Brazilian real (R$), in accordance with International Financial Reporting Standards (IFRS) and the accounting practices adopted in Brazil. The information in this report does not include the data of associates and jointly controlled entities, except where stated otherwise.

GERDAU’S PERFORMANCE IN 2Q21

Operating Results

Production and Shipments

In 2Q21, crude steel production staged a robust recovery in relation to 2Q20, since that quarter was affected by production stoppages at the Company’s mills in 2020 due to Covid-19 and the associated impacts on the business. Compared to 1Q21, the higher production is explained by the scheduled maintenance stoppages in that period at the Brazil BD. In 2Q21, Gerdau reached a production capacity utilization rate of around 80%, which represents the highest level since 2018 and signals healthy demand in its main operations. Steel shipments in 2Q21 grew in relation to the prior-year quarter, accompanying the recovery in key consumer sectors in the countries where Gerdau has operations. In relation to 1Q21, shipments increased in the domestic market of the Brazil BD and at the North America BD.

Net Sales

Net sales in 2Q21 were higher than in 1Q21 and 2Q20, accompanying the growth in volumes shipped and the increase in sales per tonne shipped. The accelerating increase in raw material costs over the last few months was offset by higher sales.

Cost of Goods Sold

The growth in shipments combined with the higher costs of the main raw materials used by the Company led Costs of Goods Sold in 2Q21 to increase by 71% compared to 2Q20 and by 9% in relation to 1Q21. The rise in costs in the period were led by two of the main elements composing steel costs: the scrap consumed by the Company, which rose 75% year over year, and iron ore, which increased 197% year over year.

Gross Profit

Gross profit and gross margin increased in the quarter compared to 1Q21, since the 12% increase in net sales per tonne surpassed the 9% increase in cost per tonne. This result was driven mainly by the strong performance of the construction industry in the United States and Brazil. In addition, all Business Divisions benefited from the favorable moment of the commodity, with global steel prices setting record highs.

Selling, General & Administrative Expenses

Selling, general and administrative expenses presented important decrease when analyzed as a ratio of net sales, reaching 2.5% in 2Q21, compared to 3.5% in 1Q21.

EBITDA & EBITDA Margin

1 – Non-accounting measure calculated in accordance with CVM Instruction 527.

2 – Non-accounting measure calculated by the Company. The Company presents Adjusted EBITDA to provide additional information on cash generation in the period.

3 - Accounting measure reported in the consolidated Income Statement.

The Company’s Adjusted EBITDA and adjusted EBITDA margin in 2Q21 set all-time highs for a single quarter. The results reflect the scenario of strong demand for steel in all countries where the Company operates, combined with the ability of the teams in seizing the opportunities arising in the market.

EBITDA (R$ million) & EBITDA Margin (%)

Financial Result & Net Income

1 - Accounting measure disclosed in the consolidated Income Statement.

2 - Non-accounting measure calculated by the Company to show net profit adjusted by non-recurring events that influenced the result.

The financial result, adjusted by non-recurring items, increased in 2Q21 compared to 2Q20 and 1Q21 due to the effects from exchange variation on the Company’s foreign-denominated liabilities.

On May 13, 2021, the Federal Supreme Court ruled the Embargoes for Declaration that the National Treasury Attorney's Office had opposed and rejected them as to the allegation of omission, or contradiction and, in the point related to the ICMS excluded from the calculation basis of the Pis and Cofins contributions, it signed the understanding that it is the ICMS informed in the invoice. After this judgment, the concept of virtually certain for the purposes of the entry of economic benefits and recognition of the asset and the corresponding gain started to be demonstrated (although the lawsuits pending of judgment have not became final and unappealable on June 30, 2021). Therefore, the Company recorded in the 2nd quarter of 2021 the amounts of tax credits to which it is entitled, in the amount of R$ 856 million (R$ 565 million net of taxes), of which R$ 393 million in the Tax Credits Recovery line and R$ 463 million in the Tax Credits Monetary Update line. As these amounts are non-recurring items, the Company is presenting adjusted EBITDA and Net Income.

Adjusted net income in 2Q21 also set a new quarterly record for the Company, supported by EBITDA growth.

Dividends

On August 3, 2021, the Board of Directors of Gerdau S.A. approved the distribution of dividends in the amount of R$ 921.0 million (R$ 0.54 per share), which is a quarterly record, to be paid as an advance on the minimum mandatory dividend for fiscal year 2021, as stipulated in the Bylaws.

Management reaffirms its understanding that the best way to increase absolute dividends is through strong cash generation, which it has been delivering, enabling it to maintain its policy of distributing 30% of adjusted net income.

Record date: shareholding position on August 16, 2021

Ex-dividend date: August 17, 2021

Payment date: August 26, 2021

Working Capital & Cash Conversion Cycle

The cash conversion cycle (working capital divided by daily net sales in the quarter) returned to more balanced levels, from 57 days in March 2021 to 60 days in June 2021, reflecting the increases of 15% in inventories and of 13% in accounts receivable. Note that these are natural adjustments given the stronger global demand for steel and the resulting increases in sales and shipments.

Working Capital (R$ million) & Cash Conversion Cycle (days)

Financial Liabilities

On June 30, 2021, only 1% of gross debt was due in the short term while 99% was concentrated in the long term. The Company reduced its consolidated exposure denominated in U.S. dollar from 77% in March 2021 to 74%, and increased its consolidated exposure denominated in Brazilian real from 23% to 26% of total gross debt in the same comparison period.

On June 30, 2021, 33% of cash was denominated in U.S. dollar.

The evolution in key debt indicators is shown below:

The reduction in the net debt/EBITDA ratio from 0.96x on March 31, 2021 to 0.65x on June 30, 2021 is explained by the strong EBITDA generation in 2Q21, which reached an all-time high.

Gross Debt Maturity Schedule

(R$ billion)

At the end of June 2021, the weighted average nominal cost of gross debt was 5.36%, with 4.78% for the portion denominated in BRL, 5.7% plus foreign-exchange variation for the portion denominated in USD contracted by companies in Brazil and 5.11% for the portion contracted by subsidiaries abroad. On June 30, 2021, the average gross debt term was 7.7 years, with the debt maturity schedule well balanced and well distributed over the coming years.

Investments

Capital expenditures came to R$ 566 million in 2Q21, with R$ 218 million allocated to general maintenance, R$ 103 million to maintenance of the Ouro Branco Mill and R$ 245 million to technological expansion and updating. Of the amount invested in the quarter, 54% was allocated to the Brazil BD, 21% to the Special Steel BD, 21% to the North America BD and 4% to the South America BD.

ESG Factors

Gerdau published its Annual Report 2020 with information on its sustainability initiatives, business strategy and financial performance that, for the second time, was based on the standards of the Global Reporting Initiative (GRI), which further reinforces its commitment to transparency with its stakeholders. This year, Gerdau also compiled its key metrics in a separate publication designed to make it easier to search for its key indicators of Environmental, Social and Governance (ESG) aspects.

With dozens of indicators, the document covers general content and specific performance to support readers in their analysis of the Gerdau’s economic, social, environmental and governance performance in 2020. The report also presents the Company’s materiality matrix and associates the indicators with the UN Sustainable Development Goals (SDG). In addition, this year’s report presents a correlation of GRI data with select indicators based on the standards of the Sustainability Accounting Standards Board (SASB).

Gerdau’s Annual Report 2020 is available at the link: https://www2.gerdau.com.br/relatorio-anual-2020.

Diversity & Inclusion

Gerdau accelerated its initiatives in becoming a more diverse and inclusive organization, given its understanding that it must strengthen and consolidate its actions in this topic to remain competitive in the future. Gerdau already is a signatory to important public commitments, such as the UN Global Compact, the Corporate Network for Social Inclusion (REIS), the LGBTI+ Rights Forum, the Business Coalition to End Violence Against Women & Girls and the Business Coalition for Racial & Gender Equality. More recently, Gerdau joined two major Brazilian movements against racism, Mover and the Be Anti-racist Manifesto, and also supports the recently launched Pact to Promote Racial Equality.

Gerdau also became a signatory to the Women 360 Movement, which promotes business policies and practices that foster the inclusion of women in the labor market. These commitments represent practical tools for not only improving representativeness in terms of race, gender, LGBTI+ and persons with disabilities, but also for accelerating the pipeline of managerial and senior leadership positions for people from these groups.

Internally the Company’s programs work to accelerate diversity, such as the Gerdau Helda Program, which prepares women for management positions, and the Belong Program, which recruits and trains women and persons with disabilities to work in operational areas.

Since the launch of Inspire Gerdau, in 2020, we have achieved advances in the program jointly with our chain of partners. Today, 140 suppliers have adhered to the pact and undertook eight commitments to foster diversity. In return, we offer a Development Journey that includes training, benchmarking and mentoring on implementing practices to promote diversity and inclusion.

Free Cash Flow

Free cash flow in 2Q21 was positive R$ 1.2 billion, which reflects the record-high EBITDA highlighted above.

Free Cash Flow (R$ million)

Free Cash Flow, Quarterly (R$ million)

PERFORMANCE BY BUSINESS DIVISION (BD)

The information in this report is divided into four Business Divisions (BD) in accordance with Gerdau’s corporate governance, as follows:

NET SALES

EBITDA & EBITDA MARGIN

BRAZIL BD

1 – Includes iron ore sales.

Production and Shipments

The scenario for steel production in Brazil remains highly positive. According to data from the Brazilian Steel Institute (IABr), in the first six months of 2021, the country produced 18.0 million tons of crude steel, up 24% from the same period last year. The highlight was the production of flat and long steel products, which increased by 32% in the comparison period. Shipments in the domestic market grew by 44%, to 12 million tonnes.

Crude steel production at the Brazil BD in 2Q21 was higher than in 2Q20, which is basically explained by the performance of shipments to the domestic market, driven by demand from the construction and industrial sectors. Compared to 1Q21, the growth in production is explained by the scheduled maintenance stoppages at the Brazil BD in that quarter and by the stronger demand in 2Q12 mentioned above.

In this scenario, domestic sales registered strong growth in 2Q21 compared to 2Q20, with shipments to the local market growing by 46%. Gerdau’s flexible business model and close relations with clients and partners proved essential for enabling it to rapidly take advantage of the favorable scenario in all regions of the country. Only 8% of shipments were directed to export markets given the decision to prioritize the domestic market.

In 2Q21, 320,000 tonnes of iron ore were sold to third parties and 554,000 tonnes were consumed internally.

Operating Result

Net sales in 2Q21 were higher than in 2Q20, which is basically explained by the higher volumes shipped to the domestic market, the capture of economies of scale and the efforts made over recent years to cut costs and expenses. The percentage of shipments to the domestic market as a ratio of total sales increased from 80% in 2Q20 to 92% in 2Q21. That said, and given the changes in the scenario of the international steel industry and the costs of its main inputs, the Company has been working to rebuild and protect its margins given the upcycle in the costs of its main raw materials.

Cost of goods sold in 2Q21 increased in relation to both comparison periods, reflecting the higher costs of raw materials in general (e.g., the cost of scrap consumed increased over 140% in relation to 2Q20 and over 10% in relation to 1Q21, while the cost of iron ore rose over 190% and 40% in relation to 2Q20 and 1Q21, respectively).

Gross profit and gross margin increased in relation to both comparison periods, supported by higher shipments and the better market mix, with 92% of shipments directed to the domestic market. The change in mix led the increase in net sales per tonne sold to outpace the increase in cost per tonne sold.

In 2Q21, the Brazil BD delivered its highest quarterly EBITDA ever. The result reflects the strong scenario for the global steel industry combined with the ability of Gerdau’s teams in seizing the opportunities arising from this scenario.

EBITDA (R$ million) & EBITDA Margin (%)

NORTH AMERICA BD

Production and Shipments

Steel production in 2Q21 increased in relation to 2Q20, driven by strong demand from the construction and industrial sectors. Note that the North America BD currently is operating near its full capacity, with the rolling mills at over 90% of their capacity.

Shipments in 2Q21 compared to 1Q21 remained stable at high levels. Demand from the non-residential construction and industrial sectors remained at healthy levels. Total investments in construction (CPIP) grew by 8% in the 12 months to May, to US$ 1.5 trillion. Note that the leading indicator for non-residential construction (ABI) recovered to strong expansion territory, reaching 57.1 in June 2021. The industrial sector also remained strong, as shown by the Institute for Supply Management (ISM) index, which reached 60.6 in June 2021 (near the 10-year record).

Operating Result

The growth in net sales in 2Q21 compared to 2Q20 was driven by the increase in net sales per tonne sold in the comparison period.

Cost of goods sold increased in 1Q21 in relation to 1Q20, affected by higher scrap costs.

Gross profit and gross margin increased in 2Q21 in relation to 2Q20, explained by the better metals spread and by the initiatives to reduce costs with production at full capacity (above 90% utilization).

EBITDA set an all-time high while EBITDA margin reached 20% for the first time since 2008, accompanying the better performance of gross profit and gross margin.

EBITDA (R$ million) & EBITDA Margin (%)

SOUTH AMERICA BD

Production and Shipments

Steel production and shipments increased in 2Q21 in relation to 2Q20, supported by the continued good performance of the construction industry, especially in Peru. Compared to 1Q21, the decrease in steel production and shipments is explained by the production restrictions in Argentina caused by the challenges imposed by Covid-19.

Operating Result

Net sales increased in 2Q21 in relation to 2Q20 due to higher shipments and the strong correlation of these countries with international steel prices.

Cost of goods sold increased, in line with the higher shipments and higher raw material prices, especially the increase of over 46% in in the cost of scrap consumed.

Gross profit and gross margin increased in 2Q21 compared to 2Q20, since the increase in net sales per tonne sold surpassed the increase in costs per tonne sold in the period.

EBITDA and EBITDA margin were higher in 2Q21 than in 2Q20, reflecting the robust demand from the construction industry, mainly in Peru, and the important contribution from the joint ventures in Colombia and the Dominican Republic. Compared to 1Q21, EBITDA and EBITDA margin decreased due to lower shipments to Argentina.

EBITDA (R$ million) & EBITDA Margin (%)

SPECIAL STEEL BD

Production and Shipments

Steel production increased significantly in 2Q21 compared to 2Q20, a period when the Special Steel BD was severely affected by the Covid-19 pandemic. In relation to 1Q21, steel production decreased, accompanying the reduction in shipments.

Steel shipments registered strong growth in 2Q21 compared to 2Q20, reflecting the gradual recovery of the automotive industry in Brazil and the United States over recent quarters. Compared to 1Q21, steel shipments remained practically stable, affected indirectly by the supply of semiconductors, which are used in all electronic components of vehicles.

In Brazil, according to Anfavea, vehicle production increased 57% in the first half of 2021 compared to the same period of 2020. The highlight was the growth of over 100% in the production of heavy vehicles, which use approximately 10 times more special steel than light vehicles and are less affected by the supply of semiconductors.

In the United States, vehicle sales grew 32% in the year to May compared to the same period of 2020. Meanwhile, vehicle production advanced 42%. We also have been observing a gradual recovery in demand from the oil and gas industry and related distribution activities.

Operating Result

The increase in net sales and cost of goods sold in 2Q21 compared to 2Q20 is mainly due to the growth in shipments, driven by the recovery in demand mentioned above.

Gross profit and gross margin continued their upward trend in the period, supported by the dilution of fixed costs resulting from higher shipments. Note that this division has been posting a gradual recovery in performance, as shown by the increase in the steel production capacity utilization rate from less than 30% in 2Q20 to over 70% in 2Q21.

EBITDA and EBITDA margin increased in 2Q21 compared to both periods, accompanying the performance of gross profit and gross margin in the period. As a result, the Special Steel BD returned to margin levels not seen since 2018.

EBITDA (R$ million) & EBITDA Margin (%)

THE MANAGEMENT

*Adjusted net profit is a non-accounting measure calculated by the Company, reconciled with the financial statements and consists of net income (loss) adjusted by non-recurring events that influenced profit or loss, without cash effect.