Grupo Simec SAB de CV

Latest Results (21.11.2025):

Grupo Simec S.A.B. de C.V. — reporting for the first nine months of 2025 (and with comparative third quarter 2025 detail) — showed weaker year‑to‑date results: 9M25 net sales fell 10% to Ps.22,320 million and shipments declined to 1.40 million tons, gross profit fell 13% to Ps.5,427 million, operating profit dropped 15% to Ps.3,784 million and EBITDA fell 11% to Ps.4,594 million. Net income plunged 91% year‑over‑year to Ps.763 million, driven mainly by a swing from a prior period net exchange gain to a net exchange loss in 9M25; Q3 2025 showed sequential improvement in volumes and sales but mixed margin effects.

Net sales and volumes (9M2025)

Net sales for the first nine months of 2025 were Ps.22,320 million, down 10% vs. 9M2024. Finished steel shipments fell ~9% to 1.4 million tons. Domestic sales fell 9% to Ps.12,569 million and international sales fell 11% to Ps.9,751 million.

Profitability — gross, operating, EBITDA (9M2025)

Gross profit declined 13% to Ps.5,427 million (gross margin 24% vs. 25% a year earlier). Operating profit was Ps.3,784 million (17% margin), down 15%. EBITDA declined 11% to Ps.4,594 million.

Net income and financial results (9M2025)

Net income fell sharply to Ps.763 million (a 91% decrease). The main driver was comprehensive financial cost: 9M25 recorded a net financial loss of Ps.2,229 million versus a net financial income of Ps.4,907 million in 9M24, largely reflecting a net FX loss of Ps.3,050 million (vs. a Ps.3,799 million FX gain in 9M24).

Costs and SG&A (9M2025)

Cost of sales decreased 9% to Ps.16,893 million but rose slightly as a percent of sales (76% vs. 75%). SG&A increased 11% to Ps.2,036 million and rose to ~9% of sales (from 7%), pressuring operating margins.

Quarterly trend — Q3 2025 vs Q2 2025

Sequentially, Q3 2025 sales rose 6% to Ps.7,485 million and shipments increased to 499k tons from 425k in Q2. Average selling price dropped ~10%. Q3 gross profit rose 5% to Ps.1,759 million but gross margin slipped to 23%. Operating profit was slightly lower at Ps.1,159 million and EBITDA edged down to Ps.1,428 million. Q3 net income was positive at about Ps.459 million (vs. a loss in Q2).

Liquidity and debt

Reported consolidated debt at September 30, 2025 consisted of U.S.$302,000 of MTNs (reported equivalent Ps. ~5.5 million) with accrued interest noted (US$863,000 / Ps.15.8 million). The company did not report material changes in debt capacity in this release.