TX · Ternium S.A.

Ternium S.A.'s Board of Directors lowered its 2025 dividend proposal from $2.70 per ADS to $2.20 per ADS, reducing the total payout to $432 million from a higher prior amount, signaling heightened caution in response to global uncertainties, particularly the potential economic fallout from the Middle East conflict. This adjustment includes the already-paid interim dividend of $0.90 per ADS ($177 million) in Q4 2025, leaving a proposed final dividend of $1.30 per ADS ($255 million) contingent on shareholder approval at the May 12, 2026 meeting, with payment on May 15, 2026 and record date May 14, 2026. Despite the cut, the company upholds its financial outlook, anticipating a sequential rise in adjusted EBITDA for Q1 2026 and additional gains in Q2, underscoring confidence in operational momentum. The move prioritizes balance sheet fortification, a prudent strategy for steel producers facing macroeconomic volatility, tariffs, and cyclical demand risks in key markets. Investors should note this reflects a conservative capital allocation shift, potentially preserving liquidity for investments in low-carbon technologies and community programs amid forward-looking risks like GDP fluctuations and global production dynamics.