Ternium S.A. Annual Report 2025 Summary

Ternium S.A. reported its 2025 Annual Report, highlighting a challenging year marked by increased U.S. trade measures and global economic uncertainties. Despite a 13% decrease in steel segment net sales and a 10% decline in revenue per ton due to lower realized steel prices, Ternium implemented a comprehensive cost-reduction and efficiency program, which included optimizing blast furnace stability and logistics. Steel shipments decreased by 4%, with notable drops in Mexico and Other Markets, partially offset by gains in the Southern Region. The company made significant progress on downstream expansion at its Pesquería industrial center in Mexico, including new cold-rolling and galvanizing facilities, and advanced the construction of a new direct reduced iron plant and steel slab mill. Adjusted EBITDA decreased by 24% to $1.5 billion, with a margin of 10%. Net income was $303 million, impacted by a $405 million write-down of deferred tax assets at Usiminas and a $117 million provision for litigation related to the Usiminas acquisition. Net income attributable to owners of the parent was $425 million, or $2.17 per ADS. Capital expenditures reached $2.5 billion, primarily for the Pesquería expansion. The company proposed an annual dividend of $2.70 per ADS. Ternium continued its focus on R&D, developing advanced steel products and exploring decarbonization technologies, including turquoise hydrogen production and carbon capture initiatives.