Ternium Announces Third Quarter and First Nine Months of 2025 Results
LUXEMBOURG, LU / ACCESS Newswire / October 28, 2025 / Ternium S.A. (NYSE:TX) today announced its results for the third quarter and first nine months ended September 30, 2025.
The financial and operational information contained in this press release is based on Ternium S.A.'s operational data and consolidated condensed interim financial statements prepared in accordance with IAS 34 "Interim financial reporting" (IFRS) and presented in U.S. dollars ($) and metric tons. Interim financial figures are unaudited. This press release includes certain non-IFRS alternative performance measures such as Adjusted EBITDA, Cash Operating Income, Free Cash Flow and Net Cash. The reconciliation of these figures to the most directly comparable IFRS measures is included in Exhibit I.
Third Quarter of 2025 Highlights
Interim dividend figure compared to third quarter of 2024. Other figures compared to second quarter of 2025.
Note 1: Includes a $405 million non-cash charge in connection with a write-down of deferred tax assets at Usiminas and a $32 million loss stemming from the quarterly update of the value of a provision for ongoing litigation related to the acquisition of a participation in Usiminas.
Summary of Third Quarter of 2025 Results
3Q25
2Q25
DIF
3Q24
DIF
9M25
9M24
DIF
3,757
3,719
1
%
4,123
-9
%
11,333
11,858
-4
%
2,017
1,980
2
%
1,781
13
%
5,788
4,701
23
%
3,955
3,947
0
%
4,480
-12
%
11,834
13,773
-14
%
215
199
8
%
175
23
%
546
1,221
-55
%
420
403
4
%
368
14
%
1,146
1,768
-35
%
11
%
10
%
8
%
10
%
13
%
(32
)
(40
)
(31
)
(117
)
(814
)
(405
)
-
-
(405
)
-
(270
)
259
93
132
(159
)
21
215
32
303
(335
)
0.10
1.10
0.16
1.54
(1.70
)
Note: Each American Depositary Share, or ADS, represents 10 shares of Ternium's common stock. Results are based on a weighted average number of shares of common stock outstanding (net of treasury shares) of 1,963,076,776.
Third Quarter of 2025 Highlights
In the third quarter of 2025, Ternium continued improving its Adjusted EBITDA Margin, as steel production costs decreased, mainly reflecting lower raw material and purchased slab costs, as well as efficiency gains.
Net result in the third quarter of 2025 was a loss of $270 million. This result includes a $405 million income tax charge in connection with a write-down of deferred tax assets at Usiminas and a $32 million loss stemming from the quarterly update of the value of a provision for ongoing litigation related to the acquisition of a participation in Usiminas.
As of the end of September 2025, Ternium's Net Cash position stood at $715 million, decreasing by $303 million since June 2025. This decline reflects the cash demands associated with the ongoing expansion of the company's industrial center in Pesquería, Mexico, and changes in the fair value of Argentine securities.
Interim Dividend Payment
Ternium's board of directors approved the payment of an interim dividend of $0.90 per ADS ($0.09 per share), or $177 million based on total shares of common stock outstanding, net of treasury shares.
The interim dividend payment date will be November 11, 2025, with record date on November 10, 2025.
Considering the dividend paid in May 2025 and the announced interim dividend for November 2025, total distributions during 2025 will amount to $2.70 per ADS. Considering Ternium's ADS prevailing market prices, this is equivalent to a dividend yield of approximately 7%.
Outlook
Ternium anticipates a slight decrease in Adjusted EBITDA for the fourth quarter of 2025 compared to the third quarter, largely due to the typical seasonal reduction in shipments in all of the company's markets. Ternium expects its Adjusted EBITDA Margin to remain in line with the third quarter, as a projected decline in revenue per ton in Mexico and Argentina should be largely balanced by ongoing reductions in cost per ton. This reflects lower raw material costs, as well as Ternium's ongoing commitment to implementing cost optimization strategies throughout its operations.
In Mexico, the company expects shipments to decline sequentially in the fourth quarter of 2025, reflecting both subdued construction activity and end-of-year seasonality. The Mexican steel market continues to face challenges, particularly from ongoing tariff negotiations with the United States, which have contributed to an environment of uncertainty.
In Brazil, while the steel market continues to face significant challenges from a persistent influx of unfairly traded steel imports, particularly from Asian producers, Usiminas is proactively strengthening its competitiveness through ongoing cost reduction initiatives and operational improvements, leading to expectations of achieving a better cost per ton in the fourth quarter of 2025 compared to the previous quarter.
In Argentina, with the uncertainty related to the mid-term elections now behind us, the most dynamic sectors of the economy, such as agriculture, mining, and oil and gas, offer significant opportunities for the company's value chain.
3Q25
2Q25
DIF
3Q24
DIF
9M25
9M24
DIF
3,804
3,812
-0
%
4,368
-13
%
11,417
13,453
-15
%
151
135
12
%
112
34
%
417
320
31
%
3,955
3,947
0
%
4,480
-12
%
11,834
13,773
-14
%
Adjusted EBITDA
Adjusted EBITDA in the third quarter of 2025 equals net Income adjusted to exclude:
Depreciation and amortization;
Income tax results;
Net financial results;
Equity in earnings of non-consolidated companies; and
Provision charge for ongoing litigation related to the acquisition of a participation in Usiminas.
And adjusted to include the proportional EBITDA in Unigal (70% participation).
Adjusted EBITDA margin equals adjusted EBITDA divided by net sales. For more information see Exhibit I - Alternative performance measures - "Adjusted EBITDA".
Steel Segment
In the third quarter of 2025, the Steel Segment's net sales remained stable sequentially with slightly higher sales volumes offset by slightly lower realized steel prices. Year-over-year, the Steel Segment's net sales declined by 13% in the third quarter of 2025. Sales volumes decreased by 9% year-over-year, primarily driven by lower shipments in Mexico and Brazil, partially offset by higher shipments in the Southern Region. Steel revenue per ton declined by 5% year-over-year, reflecting lower realized steel prices particularly in the Southern Region and Other Markets.
Ternium's shipments in Mexico posted a moderate sequential increase in the third quarter of 2025. On a year-over-year basis, sales volumes in the third quarter declined, as ongoing uncertainty surrounding trade negotiations with the U.S. and weak infrastructure investments in the country continued to dampen overall steel demand.
In Brazil, shipments in the third quarter of 2025 showed a modest sequential increase. On a year-over-year basis, sales volumes declined. Although steel demand in the country grew during 2025, this was offset by a sharp increase in flat steel product imports.
In the Southern Region, shipments showed a slight sequential decrease in the third quarter of 2025. Year-over-year, sales volumes increased, reflecting better steel demand in Argentina.
In Other Markets, declining shipments in the US were partially offset by higher sales volumes in other destinations both sequentially and year-over-year.
Steel Cash Operating Income
The Steel Segment's Cash Operating Income increased by $41 million sequentially in the third quarter of 2025, mainly driven by better margins. The margin improvement reflected the company's efforts to increase the efficiency in its operations and a decrease in raw material, purchased slab and energy costs, partially offset by a slight decrease in realized steel prices.
Year-over-year, the Steel Segment's Cash Operating Income increased by $82 million in the period, driven by better margins partially offset by lower sales volumes. The margin improvement mainly reflected a decrease in raw material and purchased slab costs, partially offset by lower realized steel prices.
Note: For a reconciliation of the Steel Segment's Cash Operating Income and Cash Operating Income per Ton and Margin to the most directly comparable IFRS measures, see Exhibit I - Alternative performance measures - "Cash Operating Income - Steel Segment".
Mining Segment
The Mining Segment's net sales decreased by 5% sequentially in the third quarter of 2025, reflecting lower sales volumes and a slight decrease in realized iron ore prices. Year-over-year, the Mining Segment's net sales increased slightly in the third quarter of 2025, as an increase in sales volumes was mostly offset by lower realized iron ore prices.
Mining Cash Operating Income
The Mining Segment's cash operating income decreased sequentially and year-over-year in the third quarter of 2025. The sequential decrease was primarily driven by lower margins and reduced sales volumes. On a year-over-year basis, the decline reflected lower margins, partially offset by increased sales volumes. The margin compression in the third quarter of 2025, as compared to the prior quarter and to the same period in 2024, was the result of higher unit costs and lower realized iron ore prices.
Note: For a reconciliation of the Mining Segment's Cash Operating Income and Cash Operating Income per Ton and Margin to the most directly comparable IFRS measures, see Exhibit I - Alternative performance measures - "Cash Operating Income - Mining Segment".
Net Financial Results
Net financial results for the third quarter of 2025 were a loss of $35 million. This included a loss of $34 million in net foreign exchange results, driven mainly by the impact of the Argentine Peso's depreciation against the U.S. dollar on Ternium Argentina's net long local currency position and the impact of the Mexican Peso's appreciation against the U.S. dollar on Ternium Mexico's net short local currency position.
3Q25
2Q25
3Q24
9M25
9M24
3
1
17
18
83
(34
)
(35
)
57
(38
)
(32
)
8
17
11
54
(131
)
(12
)
(12
)
(11
)
(35
)
(47
)
(35
)
(30
)
74
(2
)
(127
)
Income Tax Results
Ternium Mexico, Ternium Argentina and Ternium Brasil use the U.S. dollar as their functional currency and are, therefore, affected by deferred tax results. These results account for the impact of local currency fluctuations against the U.S. dollar, as well as for the effect of local inflation.
In the third quarter of 2025, Ternium's income tax expense totaled $444 million. This included a $405 million charge in connection with the write-down of deferred tax assets at Usiminas, following the performance of a recoverability assessment of such assets.
3Q25
2Q25
3Q24
9M25
9M24
(13
)
(47
)
(63
)
(85
)
(312
)
(25
)
151
(80
)
128
(178
)
(405
)
-
-
(405
)
-
(444
)
104
(143
)
(362
)
(490
)
Net Income
Net result in the third quarter of 2025 was a loss of $270 million. This result includes a loss of $405 million in connection with the write-down of deferred tax assets at Usiminas, and a loss of $32 million on account of interest accruals and the appreciation of the Brazilian Real in connection with the provision for ongoing litigation concerning the acquisition of a participation in Usiminas.
Equity Holder's Net Income was $21 million in the period, or $0.10 per ADS, mainly after accounting for the participation of a 76.7% non-controlling interest in Usiminas and a 37.4% non-controlling interest in Ternium Argentina.
3Q25
2Q25
3Q24
9M25
9M24
21
215
32
303
(335
)
(290
)
44
61
(171
)
176
(270
)
259
93
132
(159
)
3Q25
2Q25
3Q24
9M25
9M24
0.10
1.10
0.16
1.54
(1.70
)
Cash Flow and Liquidity
In the third quarter of 2025, cash from operations amounted to $535 million. Working capital decreased by $174 million as a result of a $125 million decline in inventories and a $76 million increase in trade payables and other liabilities, partially offset by a $27 million increase in trade and other receivables.
The inventory value reduction was mainly driven by lower unit costs. Capital expenditures totaled $711 million in the third quarter, primarily reflecting the progress made in the construction of the new facilities at Ternium's industrial center in Pesquería, Mexico.
Ternium's Net Cash position as of the end of September 2025 was $715 million, decreasing by $303 million since the end of June 2025. This reduction included a $114 million decline in the fair value of Argentine securities. As of September 30, 2025, Ternium Argentina's consolidated position of cash and cash equivalents and other investments amounted to $0.9 billion.
Conference Call and Webcast
Ternium will host a conference call on October 29, 2025, at 8:30 a.m. ET in which management will discuss third quarter of 2025 results. A webcast link will be available in the Investor Center section of the company's website at www.ternium.com.
Forward Looking Statements
Some of the statements contained in this press release are "forward-looking statements". Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to gross domestic product, related market demand, global production capacity, tariffs, cyclicality in the industries that purchase steel products, and other factors beyond Ternium's control.
About Ternium
Ternium is a leading steel producer in the Americas, providing advanced steel products to a wide range of manufacturing industries and the construction sector. We invest in low carbon emissions steelmaking technologies to support the energy transition and the mobility of the future. We also support the development of our communities, especially through educational programs in Latin America. More information about Ternium is available at www.ternium.com.
Income Statement
3Q25
2Q25
3Q24
9M25
9M24
3,955
3,947
4,480
11,834
13,773
(3,346
)
(3,337
)
(3,902
)
(10,085
)
(11,334
)
608
610
578
1,749
2,439
(396
)
(403
)
(412
)
(1,195
)
(1,278
)
3
(8
)
9
(8
)
60
215
199
175
546
1,221
(53
)
(56
)
(54
)
(164
)
(144
)
56
57
71
182
227
(37
)
(31
)
57
(19
)
(210
)
25
25
17
65
51
(32
)
(40
)
(31
)
(117
)
(814
)
174
155
236
494
331
(444
)
104
(143
)
(362
)
(490
)
(270
)
259
93
132
(159
)
21
215
32
303
(335
)
(290
)
44
61
(171
)
176
(270
)
259
93
132
(159
)
Statement of Financial Position
SEPTEMBER 30, 2025
DECEMBER 31, 2024
10,104
8,381
1,018
1,022
582
469
0
23
1,047
1,194
904
961
13,656
12,050
1,064
902
75
4
4,132
4,751
1,775
1,562
1,438
2,160
1,323
1,691
9,807
11,071
8
7
23,471
23,129
Statement of Financial Position (cont.)
SEPTEMBER 30, 2025
DECEMBER 31, 2024
11,976
11,968
4,325
4,163
16,300
16,132
614
553
43
89
11
21
856
766
1
5
161
164
1,494
1,560
3,181
3,158
527
410
30
107
697
630
2,128
1,926
5
50
51
46
552
670
3,990
3,839
7,171
6,997
23,471
23,129
Statement of Cash Flows
3Q25
2Q25
3Q24
9M25
9M24
(270
)
259
93
132
(159
)
197
197
184
578
554
394
(202
)
204
142
474
(25
)
(25
)
(17
)
(65
)
(51
)
32
40
31
117
814
(6
)
(9
)
3
(6
)
(10
)
1
1
(1
)
5
(70
)
174
781
(176
)
901
(273
)
38
0
(17
)
(17
)
155
535
1,044
303
1,786
1,435
(711
)
(810
)
(446
)
(2,038
)
(1,304
)
(24
)
319
(164
)
538
166
3
0
0
4
2
2
1
3
4
5
-
(5
)
-
(5
)
-
(729
)
(495
)
(606
)
(1,497
)
(1,132
)
-
(353
)
-
(353
)
(432
)
-
(2
)
(3
)
(2
)
(49
)
(15
)
(15
)
(13
)
(50
)
(46
)
71
9
852
653
1,286
(387
)
(162
)
(652
)
(934
)
(1,183
)
(330
)
(523
)
183
(686
)
(425
)
(524
)
26
(121
)
(397
)
(123
)
Exhibit I - Alternative Performance Measures
These non-IFRS measures should not be considered in isolation of, or as a substitute for, measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have a standardized meaning under IFRS and, therefore, may not correspond to similar non-IFRS financial measures reported by other companies.
Adjusted EBITDA
3Q25
2Q25
3Q24
9M25
9M24
(270
)
259
93
132
(159
)
197
197
184
578
554
444
(104
)
143
362
490
35
30
(74
)
2
127
(25
)
(25
)
(17
)
(65
)
(51
)
32
40
31
117
814
-
-
-
-
(34
)
8
7
8
21
27
420
403
368
1,146
1,768
3,955
3,947
4,480
11,834
13,773
11
%
10
%
8
%
10
%
13
%
Exhibit I - Alternative Performance Measures (cont.)
Cash Operating Income - Steel Segment
3Q25
2Q25
3Q24
9M25
9M24
333
190
381
766
1,252
(96
)
10
(219
)
(202
)
(71
)
146
144
138
432
410
-
-
-
-
(34
)
8
7
8
21
27
391
350
309
1,018
1,583
3,757
3,719
4,123
11,333
11,858
104
94
75
90
134
3,804
3,812
4,368
11,417
13,453
10
%
9
%
7
%
9
%
12
%
Cash Operating Income - Mining Segment
3Q25
2Q25
3Q24
9M25
9M24
(35
)
(38
)
(58
)
(75
)
(131
)
23
38
64
77
179
51
53
46
146
145
38
54
52
148
192
3,207
3,323
3,020
9,589
8,389
12
16
17
15
23
268
281
264
829
810
14
%
19
%
20
%
18
%
24
%
Exhibit I - Alternative Performance Measures (cont.)
Free Cash Flow
3Q25
2Q25
3Q24
9M25
9M24
535
1,044
303
1,786
1,435
(711
)
(810
)
(446
)
(2,038
)
(1,304
)
(175
)
234
(143
)
(252
)
130
Net Cash
SEPTEMBER 30, 2025
JUNE 30, 2025
SEPTEMBER 30, 2024
1.3
1.9
1.6
1.4
1.5
2.3
(2.0
)
(2.4
)
(2.2
)
0.7
1.0
1.7
Note: Ternium Argentina's consolidated position of cash and cash equivalents and other investments amounted to $0.9 billion and $1.0 billion as of September 30 and June 30, 2025, respectively, and $1.2 billion as of September 30, 2024.
Sebastián Martí
Ternium - Investor Relations
+1 (866) 890 0443
+54 (11) 4018 8389
www.ternium.com
SOURCE: Ternium S.A.