Ternium SA

Latest Results (01.09.2026):

Ternium S.A. first quarter of 2026 results: Adjusted EBITDA of $479 million (up 21% vs. 4Q25), net income of $372 million (includes $132 million deferred tax gain and a $48 million Usiminas‑related litigation provision), and equity holders’ net income of $213 million ($1.09 per ADS). Steel product shipments were 3.709 million tons (roughly stable q/q), mining shipments were 2.826 million tons (down 16% q/q). Cash provided by operating activities was $217 million, capital expenditures were $406 million (Pesquería expansion), free cash flow was negative $189 million, and net cash was $327 million at March 31, 2026.

Adjusted EBITDA

Adjusted EBITDA for 1Q26 was $479 million, a 21% sequential increase driven by higher realized steel prices across key markets, partially offset by higher raw material and purchased slab costs; the adjusted EBITDA margin rose to 12% of net sales.

Net income and EPS

Consolidated net income was $372 million in 1Q26. After non‑controlling interests, owners’ net income was $213 million, equal to $1.09 per ADS. Results include a $132 million deferred tax gain and a $48 million loss related to the Usiminas litigation provision.

Shipments and volumes

Steel product shipments were 3.709 million tons in 1Q26 (flat q/q, -4% y/y). Mining shipments were 2.826 million tons (down 16% q/q, -8% y/y), affected by heavy rains in Brazil and seasonal patterns.

Cash flow, capex and free cash flow

Cash from operations was $217 million after a $233 million working capital increase (mainly higher receivables). Capital expenditures totaled $406 million (mainly Pesquería expansions). Free cash flow was negative $189 million for the quarter.

Net cash and liquidity

Net cash ended at $327 million at March 31, 2026, down from $712 million at December 31, 2025, reflecting the $406 million capex program and the $315 million Usiminas share acquisition, partially offset by $150 million recovered from Techgen.

Segment performance — Steel

Steel segment net sales rose 5% q/q to $3,814 million, supported by higher realized prices and stronger commercial market activity in Mexico; steel cash operating income increased sequentially to $410 million and cash operating income per ton improved to $111/ton.

Segment performance — Mining

Mining segment net sales declined q/q to $284 million due to lower volumes, but cash operating income increased to $61 million driven by higher realized iron ore prices; mining cash operating income per ton rose to $22/ton.

Corporate actions and one‑offs

Ternium completed the acquisition of 153.1 million Usiminas shares for $315 million and received $150 million from Techgen after loan repayment. The quarter included a $48 million provision update for ongoing Usiminas litigation.

Outlook

Ternium expects higher Adjusted EBITDA in 2Q26 versus 1Q26, driven by higher shipments (Mexico and Argentina) and improved per‑ton revenue in Mexico and Brazil, while noting that higher costs per ton will partially offset margin gains.