Ternium (TX) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA rose 21% sequentially to $479 million in Q1 2026, driven by higher realized steel prices, especially in Mexico and Brazil, partially offset by increased raw material and slab costs.

• Net income reached $372 million, benefiting from strong operating performance, FX gains, and deferred tax gains of $132 million, with a $48 million litigation provision loss related to Usiminas.

• Steel shipments were stable at 3.7 million tons, while mining shipments fell 16% sequentially to 2.8 million tons due to adverse weather in Brazil.

• The ramp-up of the Pesquería project in Mexico is ahead of schedule, with new production lines operational and full capacity expected by October.

• Recognition for quality and sustainability was received from Ariston Group, John Deere, and the World Steel Association.

Financial highlights

• Net sales increased 4% sequentially to $3.93 billion, flat year-over-year.

• Adjusted EBITDA reached $479 million in Q1 2026, up from $395 million in Q4 2025, with margin improving to 12%.

• Net income rose to $372 million in Q1 2026, mainly due to stronger operating income, FX gains, and deferred tax gains.

• Deferred tax gain was $132 million, mainly from currency fluctuations and inflation in Argentina and Brazil.

• Net cash position declined to $327 million at quarter-end, impacted by capex and Usiminas share acquisition.

Outlook and guidance

• Adjusted EBITDA is expected to increase in Q2 2026, supported by higher shipments and improved margins, especially in Mexico and Argentina.

• Revenue per ton anticipated to rise in Mexico and Brazil, though higher costs per ton may partially offset margin gains.

• Mexican commercial market shipments to continue growing as demand normalizes and infrastructure projects progress.

• Usiminas shipments in Brazil expected to improve as trade measures take effect and inventories normalize.

• CapEx is projected to decrease in coming years, with 2027 CapEx estimated at $1–1.2 billion.