TX · Ternium S.A.

Ternium's Q1 2026 results showed sequential improvement with Adjusted EBITDA up 21% to $479 million, primarily from higher realized steel prices across key markets like Mexico and Brazil, though partially offset by elevated raw material and slab costs. Steel segment net sales grew 5% to $3,814 million on 5% higher volumes to 3.7 million tons, with Mexico driving gains via stronger commercial demand post-destocking and better import defenses. Brazil's Usiminas focused on profitability amid volatility, while Southern Region shipments dipped on Argentina slowdowns. Mining shipments fell 16% sequentially to 2.8 million tons due to Brazilian rains, but higher iron ore prices lifted cash operating income. Net income of $372 million benefited from $132 million deferred tax gains on currency appreciations in Argentina and Brazil, tempered by a $48 million litigation provision update for the 2012 Usiminas stake. CAPEX of $406 million advanced Pesquería expansions, including new cold-rolling and galvanizing lines, with steel shop startup eyed by year-end; the $315 million Usiminas share acquisition from Nippon Steel and Mitsubishi closed. Operating cash flow of $217 million absorbed $233 million working capital build from receivables and inventories. Net cash fell to $327 million, supported by $150 million Techgen loan repayment. Outlook signals Q2 Adjusted EBITDA growth on higher Mexico/Argentina volumes and revenue per ton in Mexico/Brazil, despite cost pressures; Brazil antidumping measures and Argentina uneven recovery noted.