Ternium SA Earnings Overview
Ternium SA, a prominent steel producer in the Americas, has released its financial results for the third quarter of 2025. Despite harsh market conditions and external pressures, the company has shown resilience, as reflected in its financial performance. Here we provide an analysis of Ternium's earnings, revenue distribution across key segments, significant business developments, and future stock projections.
Ternium SA Results
The third-quarter results for Ternium SA revealed notable insights into its financial performance:
| Metric | Q3 2025 Actual | Q3 2025 Guidance | Q2 2025 | Q3 2024 |
|---|---|---|---|---|
| Net Income (in million $) | -270 | N/A | N/A | N/A |
| Earnings per Share (EPS) | 0.10 | N/A | N/A | N/A |
Earnings Performance
Ternium SA reported a net income loss of $270 million in the third quarter of 2025. This was predominantly due to a substantial $405 million non-cash charge related to the write-down of deferred tax assets at Usiminas. Additionally, a $32 million loss was incurred from the quarterly valuation of litigation provision concerning Usiminas' acquisition.
Revenue Breakdown by Segment
Here is the revenue breakdown by the company's major segments:
| Segment | Q3 2025 (in million $) | Q3 2024 (in million $) | % Change YoY |
|---|---|---|---|
| Steel Segment | Stable | Declined | -13% |
| Mining Segment | Decreased by 5% | Increased Slightly | N/A |
In-Depth Analysis of Segment Performance
Steel Segment : The Steel Segment's performance witnessed stable net sales on a quarterly basis but a 13% year-over-year decline. Sales volumes fell by 9% due to decreased shipments primarily in Mexico and Brazil. The slump in realized steel prices, notably in the Southern Region and Other Markets, contributed to the decline.
Mining Segment : For the Mining Segment, there was a 5% sequential decrease in net sales mainly due to lower sales volumes and lower realized iron ore prices. However, sales volume increases slightly offset these pressures when compared year-over-year.
Key Developments
Despite the financial setbacks, Ternium SA made significant operational advancements: - The company is progressing with its major industrial expansion in Pesquería, Mexico. - Efforts to enhance margin performance by optimizing cost structures and reducing raw material, slab, and energy costs have shown a positive impact.
Comments from Company Officers
Company executives emphasized the improvement in Adjusted EBITDA margin attributed to efficient cost management and reduced steel production costs. They highlighted strategic measures undertaken to counterbalance market adversities, maintaining an optimistic outlook for the upcoming quarters.
Dividends and Share Repurchases
Ternium's board approved an interim dividend of $0.90 per American Depositary Share (ADS), amounting to a total of $177 million. For 2025, the total dividends are projected to sum up to $2.70 per ADS, which translates to a dividend yield of approximately 7%, based on prevailing market prices.
Ternium SA Stock Forecast
Looking ahead, Ternium foresees a slight decrease in Adjusted EBITDA in the fourth quarter, driven by expected seasonal declines in shipments. However, maintained margin strategies and cost-effective methods are anticipated to alleviate some of the impact.
Stock Price Projections
Based on the analysis of Ternium's financial performance, ongoing projects, and external market factors, the stock price forecasts are as follows: - High Projection : $1.20 per share if Ternium successfully mitigates market challenges and achieves projected operational efficiencies. - Low Projection : $0.90 per share if external market pressures intensify or internal operational challenges arise.
Ternium SA stands as a robust entity in the steel production industry, striving to overcome challenges through strategic management and operational efficiencies. As it navigates the complexities of the global steel market, Ternium's adaptability and focus on cost-effective practices contribute to a cautiously optimistic future outlook.
