GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST NINE MONTHS OF 2026.

Third-quarter gross margin fell to 21%, compared with 25% in the preceding quarter and 23% a year earlier.

Rhea-AI Summary

Grupo Simec (SIM) reported controlling-interest net income of Ps. 4,028 million for the first nine months of 2026. That was up 428% from Ps. 763 million a year earlier. Sales rose 10% to Ps. 24,569 million, with shipments up 14% and average selling prices down 4%. Gross profit rose 9% to Ps. 5,933 million, while operating profit was Ps. 3,800 million versus Ps. 3,784 million; operating margin fell to 15% from 17%. EBITDA, earnings before interest, taxes, depreciation and amortization, increased 3% to Ps. 4,724 million.

Nine-month financial results swung to income of Ps. 923 million from an expense of Ps. 2,229 million. Third-quarter controlling-interest profit reached Ps. 1,710 million, versus Ps. 459 million a year earlier. Quarterly sales rose 12% year over year to Ps. 8,383 million, but operating profit fell 10% to Ps. 1,038 million and EBITDA declined 4% to Ps. 1,370 million.

16 points · 0 major

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0 major · 17 points

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Positive

• Moderate pointNine-month controlling-interest net income rose 428% to Ps. 4,028 million from Ps. 763 million a year earlier.
• Moderate pointNine-month sales increased 10% to Ps. 24,569 million from Ps. 22,320 million in 2025.
• Moderate pointNine-month steel shipments increased 14% to 1,597 thousand tons from 1,400 thousand tons a year earlier.
• Moderate pointNine-month gross profit rose 9% to Ps. 5,933 million; gross margin remained 24%.
• Moderate pointNine-month EBITDA increased 3% to Ps. 4,724 million from Ps. 4,594 million a year earlier.
• Moderate pointNine-month exchange results shifted to a Ps. 280 million profit from a Ps. 3,050 million loss.
• Moderate pointThird-quarter controlling-interest profit reached Ps. 1,710 million, up 180% sequentially and 273% year over year.
• Moderate pointThird-quarter sales reached Ps. 8,383 million, up 3% sequentially and 12% year over year.
• Moderate pointThird-quarter shipments reached 551 thousand tons, up 7% sequentially and 10% year over year.
• Moderate pointThird-quarter exchange profit was Ps. 645 million, versus losses of Ps. 579 million sequentially and Ps. 718 million a year earlier.

6 minor points

• Minor pointNine-month sales outside Mexico increased 9% to Ps. 10,588 million year over year.
• Minor pointNine-month Mexico sales increased 11% to Ps. 13,981 million year over year.
• Minor pointNine-month cost per ton declined 3% to Ps. 11,669 from Ps. 12,066 a year earlier.
• Minor pointNine-month tax expense declined to Ps. 697 million from Ps. 793 million a year earlier.
• Minor pointThird-quarter sales outside Mexico reached Ps. 3,863 million, up 16% sequentially and 22% year over year.
• Minor pointThird-quarter tax expense fell to Ps. 198 million, versus Ps. 428 million sequentially and Ps. 317 million a year earlier.

Negative

• Moderate pointNine-month operating margin fell to 15% from 17%; operating profit was Ps. 3,800 million versus Ps. 3,784 million.
• Moderate pointNine-month average selling prices declined 4% compared with the first nine months of 2025.
• Moderate pointThird-quarter operating profit fell to Ps. 1,038 million, down 20% sequentially and 10% year over year.
• Moderate pointThird-quarter operating margin fell to 12%, versus 16% sequentially and 15% a year earlier.
• Moderate pointThird-quarter EBITDA declined to Ps. 1,370 million, down 14% sequentially and 4% year over year.
• Moderate pointThird-quarter gross profit fell 14% sequentially to Ps. 1,761 million, remaining essentially unchanged year over year.
• Moderate pointThird-quarter gross margin fell to 21%, versus 25% sequentially and 23% a year earlier.

10 minor points

• Minor pointNine-month cost of sales rose 10% to Ps. 18,636 million, remaining 76% of sales.
• Minor pointNine-month selling, general and administrative expenses rose 9% to Ps. 2,219 million, remaining 9% of sales.
• Minor pointNine-month other net income declined 78% to Ps. 86 million from Ps. 393 million a year earlier.
• Minor pointThird-quarter cost of sales reached Ps. 6,622 million, up 8% sequentially and 16% year over year.
• Minor pointThird-quarter cost per ton reached Ps. 12,018, up 1% sequentially and 5% year over year.
• Minor pointThird-quarter selling, general and administrative expenses reached Ps. 773 million, up 5% sequentially and 6% year over year.
• Minor pointThird-quarter Mexico sales fell 6% sequentially to Ps. 4,520 million, but increased 5% year over year.
• Minor pointThird-quarter selling prices fell 4% sequentially, but increased 1% year over year.
• Minor pointThird-quarter other net income fell to Ps. 50 million from Ps. 128 million a year earlier; second-quarter net expense was Ps. 3 million.
• Minor pointAccrued note interest reached U.S. $891 thousand at September 30, 2026, versus U.S. $863 thousand a year earlier.

News Explained

Nine-month profit growth chiefly reflected exchange gains, while third-quarter operating income and EBITDA declined from the prior quarter despite higher sales.

In its results for the nine months ended September 30, 2026, Grupo Simec reported controlling-interest profit of 4,028 million pesos versus 763 million pesos, while operating income was 3,800 million pesos versus 3,784 million pesos; the profit rise came alongside little change in operating income.

The company said the profit increase was mainly explained by net exchange results shifting from a 3,050 million pesos loss in 2025 to a 280 million pesos gain in 2026.

From the second to the third quarter, sales rose from 8,154 million pesos to 8,383 million pesos, while operating income fell from 1,298 million pesos to 1,038 million pesos and EBITDA fell from 1,600 million pesos to 1,370 million pesos.

Net income nevertheless rose from 611 million pesos to 1,710 million pesos; Simec mainly attributed this to net exchange results moving from a 579 million pesos loss to a 645 million pesos gain.

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GUADALAJARA, Mexico, Oct. 28, 2026 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) (NYSE-MKT: SIM) (BMV: SIMEC-B) ("Simec") announced today its results of operations for the nine-month period ended September 30, 2026.

First nine months of 2026 vs. first nine months of 2025.

Net Sales 
Net sales increased 10% because of the combination of 14% increase shipments of finished steel products and a 4% lower average sales price compared to the same period of 2025. Sales increased from Ps. 22,320 million in the first nine months of 2025 to Ps. 24,569 million in the same period of 2026. Shipments of finished steel products increased to 1 million 597 thousand tons in the first nine months of 2026 compared to 1 million 400 thousand tons in the same period of 2025. Total sales outside Mexico in the first nine months of 2026 increased 9% to Ps. 10,588 million compared with Ps. 9,751 million in the same period of 2025. Total sales in Mexico increased 11% from Ps. 12,569 million in the first nine months of 2025 to Ps. 13,981 million in the same period of 2026.

Cost of Sales 
Cost of sales increased 10% from Ps. 16,893 million in the first nine months of 2025 to Ps. 18,636 million in the same period of 2026. Cost of sales as a percentage of net sales represented 76% in both periods. The cost of sales increased, due to a higher volume of products shipped.

Gross Profit   
Gross profit of the Company in the first nine months of 2026 was of Ps. 5,933 million compared to Ps. 5,427 million in the same period of 2025. Gross profit as a percentage of net sales represented 24% in both periods.

Selling, General and Administrative Expenses 
Selling, general and administrative expenses increased 9% from Ps. 2,036 million in the first nine months of 2025 to Ps. 2,219 million in the same period of 2026. Selling, general and administrative expenses as a percentage of net sales represented 9% in both periods.

Other Expenses (Income) net   
The company recorded other net income of Ps. 393 million in the first nine months of 2025 compared to other net income of Ps. 86 million in the same period of 2026.

Operating Profit 
Operating income increased from Ps. 3,784 million in the first nine months of 2025 to Ps. 3,800 million in the same period of 2026. Operating profit as a percentage of net sales represented 15% and 17% for the 2026 and 2025 periods respectively.

EBITDA   
EBITDA of the Company increased 3% from Ps. 4,594 million in the nine-month period ended September 30, 2025, (result of net income of Ps. 763, less minority stake of Ps. 2 million, plus income taxes of Ps. 793 million, plus comprehensive financial cost of Ps. 2,229 million, plus depreciation of Ps. 811 million), compared to an EBITDA of Ps. 4,724 million in the same period of 2026 (result of net income of Ps. 4,028 million, less minority stake of Ps. 2 million, plus income taxes of Ps. 697 million, less comprehensive financial income of Ps. 923 million, plus depreciation of 924 million).

Consolidated Million
		First nine-month period ended September 30th,
		2026				2025
Net income controlling interest			4,028				763
Income (loss) attributable to noncontrolling interests			(2)				(2)
Net income (loss)			4,026				761
Depreciation and Amortization			924				811
Income taxes			697				793
Financial results (income) loss			(923)				2,229
EBITDA			4,724				4,594

Comprehensive Financial Income (Cost) 
Comprehensive financial income in the first nine months of 2026 represented a net income of Ps. 923 million compared with a net expense of Ps. 2,229 million in the same period of 2025. We registered a net exchange profit of Ps. 280 million in the first nine months of 2026 compared with a net exchange loss of Ps. 3,050 million in the same period of 2025, net other financial income was recorded for Ps. 21 million for the first nine months of 2026.

Income Taxes   
The Company recorded a net tax expense of Ps. 697 million in the first nine months of 2026 (including the income of deferred tax of Ps. 19 million) compared with a net tax expense of Ps. 793 million in the same period of 2025 (including a deferred tax expense of Ps. 71 million).

Net Income (loss)   
As a result of the foregoing, net income increased by 428% from Ps. 763 million in the first nine months of 2025 to Ps. 4,028 million in the same period of 2026, mainly explained because of the net exchange loss of Ps. 3,050 million recorded in the first nine months of 2025 became a net exchange profit of Ps. 280 million in the first nine months of 2026.

Liquidity and Capital Resources   
As of September 30, 2026, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 5.5 million (accrued interest on September 30, 2026 was U.S. $ 891 thousand dollars or Ps. 16.1 million).  As of September 30, 2025, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 5.5 million (accrued interest on September 30, 2025 was U.S. $ 863 thousand dollars or Ps. 15.8 million).

Third quarter 2026 vs second quarter 2026

Net Sales     
Net sales increased from Ps. 8,154 million in the second quarter of 2026 to Ps. 8,383 million in the third quarter of 2026. Sales in tons increased 7% from 516 thousand ton in the second quarter of 2026 to 551 thousand tons in the third quarter of the same year. Total sales outside of Mexico for the third quarter of 2026 increased 16% from Ps. 3,340 million in the second quarter to Ps. 3,863 million in the third quarter of 2026. Sales in Mexico decreased 6% to Ps. 4,520 million in the third quarter of 2026 compared Ps. 4,814 million in the second quarter of 2026. Prices of finished products sold in the third quarter of 2026 decreased 4% compared with the second quarter of the same year.

Cost of Sales
Cost of sales increased to Ps. 6,622 million in the third quarter of 2026 compared to Ps. 6,117 million for the second quarter of 2026. With respect to sales, in the third quarter of 2026, the cost of sales represented 79%, compared to 75% in the second quarter of the same period. The average cost of sales by ton increased by 1% in the third quarter of 2026 versus the second quarter of 2026.

Gross Profit
Gross profit of the Company for the third quarter of 2026 decreased 14% to Ps. 1,761 million compared to Ps. 2,037 million in the second quarter of 2026. The gross profit as a percentage of net sales for the third quarter of 2026 was of 21% compared to 25% in the second quarter of the same year.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 5% to Ps. 773 million in the third quarter of 2026 compared to Ps. 736 million for the second quarter of 2026. Selling, general and administrative expenses as a percentage of net sales represented 9% in both periods of 2026.

Other Expenses (Income) net 
The company recorded other net income of Ps. 50 million in the third quarter of 2026 compared to other net expenses of Ps. 3 million for the second quarter of 2026.

Operating Profit   
Operating income was of Ps. 1,038 million in the third quarter of 2026 compared to an operating profit of Ps. 1,298 million in the second quarter of 2026. The operating profit as a percentage of net sales represented 12% and 16% for the third quarter and second quarter of 2026 respectively.

EBITDA 
EBITDA was Ps. 1,600 million in the second quarter of 2026 (result of net income of Ps. 611 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 428 million, plus comprehensive financial cost of Ps. 259 million, plus depreciation of Ps. 303 million), compared to an EBITDA of Ps. 1,370 million for the third quarter of 2026, (result of net income of Ps. 1,710 million, plus income taxes of Ps. 198 million, less comprehensive financial income of Ps. 870 million, plus depreciation of Ps. 332 million).

Consolidated  Million
		Third quarter 2026 vs Second quarter 2026
		3Q 2026				2Q 2026
Net income controlling interest			1,710				611
Income (loss) attributable to noncontrolling interests			0				(1)
Net income (loss)			1,710				610
Depreciation and Amortization			332				303
Income taxes			198				428
Financial results (income) loss			(870)				259
EBITDA			1,370				1,600

Comprehensive Financial Income (Cost) 
Comprehensive financial income for the third quarter for 2026 was a net income of Ps. 870 million compared with a net expense of Ps. 259 million for the second quarter of 2026. At the same time, we registered a net exchange loss of Ps. 579 million in the second quarter of 2026 compared with a net exchange profit of Ps. 645 million in the third quarter of 2026. Net other financial income was recorded for Ps. 21 million in the second quarter of 2026.

Income Taxes   
Income Taxes for the second quarter of 2026 was a net tax expense of Ps. 428 million (including the income of deferred tax for Ps. 7 million) compared with a net tax expense of Ps. 198 million for the third quarter of 2026, (including the income of deferred tax of Ps. 5 million).

Net Income (loss) 
As a result of the foregoing, the Company recorded a net income of Ps. 1,710 million in the third quarter of 2026 compared to Ps. 611 million of net income in the second quarter of 2026, mainly explained because of the net exchange loss of Ps. 579 million recorded in the second quarter of 2026 became a net exchange profit of Ps. 645 million in the third quarter of 2026.

Third quarter 2026 vs third quarter 2025

Net Sales 
Net sales increased 12% from Ps. 7,485 million for the third quarter of 2025 to Ps. 8,383 million for the third quarter of 2026. Sales in tons of finished steel products in the third quarter of 2025 were 499 thousand tons versus to 551 thousand tons in the third quarter of 2026. Total sales outside of Mexico increased 22% from Ps. 3,178 million for the third quarter of 2025 to Ps. 3,863 million in the third quarter of 2026. Sales in Mexico increased 5% from Ps. 4,307 million in the third quarter of 2025 to Ps. 4,520 million in the third quarter of 2026. The increase in net sales is explained by a 10% higher volume of steel products shipped and a 1% increase in the average sales price.

Cost of Sales 
Cost of sales increased 16% from Ps. 5,726 million in the third quarter of 2025 to Ps. 6,622 million in the third quarter of 2026. With respect to sales, the cost of sales represented 79% during the third quarter of 2026 and 77% during the third quarter of 2025. The average cost of steel products increased 5% in the third quarter of 2026 versus the third quarter of 2025.

Gross Profit   
Gross profit for the third quarter of 2026 remained constant comparing both periods: from Ps. 1,759 million in the third quarter of 2025 to Ps. 1,761 million in the third quarter of 2026. The gross profit as a percentage of net sales represented 23% in the third quarter of 2025 compared to 21% in the third quarter of 2026.

Selling, General and Administrative Expenses 
Selling, general and administrative expenses increased 6% from Ps. 728 million in the third quarter of 2025 to Ps. 773 million in the third quarter of 2026. Selling, general and administrative expenses as a percentage of net sales for the third quarter of 2025 was of 10% compared to 9% in the third quarter 2026.

Other Expenses (Income) net   
The company recorded other income net of Ps. 128 million in the third quarter of 2025 compared with other income net of Ps. 50 million in the third quarter of 2026.

Operating Profit   
Operating income was of Ps. 1,038 million in the third quarter of 2026 compared to an operating profit of Ps. 1,159 million in the third quarter of 2025. The operating profit as a percentage of net sales in the third quarter of 2026 was 12%, compared to 15% in the third quarter of 2025.

EBITDA   
EBITDA was Ps. 1,428 million in the third quarter of 2025 (result of net income of Ps. 459 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 317 million, plus comprehensive financial cost of Ps. 384 million, plus depreciation of Ps. 269 million), compared to an EBITDA of Ps 1,370 million in the third quarter of 2026 (result of net income of Ps. 1,710 million, plus income taxes of Ps. 198 million, less comprehensive financial income of Ps. 870 million, plus depreciation of Ps. 332 million).

Consolidated  Million
		Third quarter 2026 vs Third quarter 2025
		3Q 2026				3Q 2025
Net income controlling interest			1,710				459
Income (loss) attributable to noncontrolling interests			0				(1)
Net income (loss)			1,710				458
Depreciation and Amortization			332				269
Income taxes			198				317
Financial results (income) loss			(870)				384
EBITDA			1,370				1,428

Comprehensive Financial Income (Cost) 
Comprehensive financial income for the third quarter of 2026 was a net income of Ps. 870 million compared with a net loss of Ps 384 million in the third quarter of 2025. At the same time, we registered a net exchange profit of Ps. 645 million in the third quarter of 2026 compared with a net exchange loss of Ps. 718 million in the third quarter of 2025.

Income Taxes 
The Company recorded a net tax expense in the third quarter of 2026 of Ps. 198 million (including the income of deferred tax of Ps. 5 million), compared to a net tax expense of Ps. 317 million for the third quarter of 2025, (including the income of deferred tax of Ps. 22 million).

Net Income (loss) 
As a result of the foregoing, the Company recorded a net profit of Ps. 1,710 million in the third quarter of 2026 compared to Ps. 459 million of net profit in the third quarter of 2025, mainly explained because of the net exchange loss of Ps. 718 million recorded in the third quarter of 2025 became a net exchange profit of Ps. 645 million in the third quarter of 2026.

 

Nine Months
(million of pesos)	Jan - Sep '26		Jan - Sep '25				Year 26 vs  '25
Sales	24,569		22,320				10 %
Cost of Sales	18,636		16,893				10 %
Gross Profit	5,933		5,427				9 %
Selling, General and Administrative Expense	2,219		2,036				9 %
Other Income (Expenses), net	86		393				(78 %)
Operating Profit	3,800		3,784				0 %
EBITDA	4,724		4,594				3 %
Net income Controlling interest	4,028		763				428 %
Sales Outside Mexico	10,588		9,751				9 %
Sales in Mexico	13,981		12,569				11 %
Total Sales (Tons Thousands)	1,597		1,400				14 %
Cost per ton (Pesos)	11,669		12,066				(3 %)

 

Quarter
(million of pesos)	3Q'26	2Q '26	3Q '25	3Q´26vs 2Q´26	3Q´26 vs 3Q '25
Sales	8,383	8,154	7,485	3 %	12 %
Cost of Sales	6,622	6,117	5,726	8 %	16 %
Gross Profit	1,761	2,037	1,759	(14 %)	0 %
Selling, General and Adm. Expenses	773	736	728	5 %	6 %
Other Income (Expenses), net	50	(3)	128	N/C	(61 %)
Operating Profit	1,038	1,298	1,159	(20 %)	(10 %)
EBITDA	1,370	1,600	1,428	(14 %)	(4 %)
Net Income Controlling interest	1,710	611	459	180 %	273 %
Sales Outside Mexico	3,863	3,340	3,178	16 %	22 %
Sales in Mexico	4,520	4,814	4,307	(6 %)	5 %
Total Sales (Tons Thousands)	551	516	499	7 %	10 %
Cost per Ton (pesos)	12,018	11,855	11,475	1 %	5 %

 

Product	Thousands of Tons Jan-Sep 2026	Millions of Pesos Jan-Sep 2026	Average Price per Ton  Jan-Sep 2026	Thousands of Tons  Jan–Sep 2025	Millions of Pesos  Jan-Sep 2025	Average Price per Ton  Jan-Sep 2025
Special Bar Quality SBQ	385	7,150	18,571	378	7,724	20,434
Commercial Long Steel	1,212	17,419	14,372	1,022	14,596	14,282
Total	1,597	24,569	15,384	1,400	22,320	15,943

 

 

 

Product	Thousands of Tons Jul-Sep 2026	Millions of Pesos Jul-Sep 2026	Average Price per Ton  Jul-Sep 2026	Thousands of Tons  Apr-Jun 2026	Millions of Pesos  Apr-Jun 2026	Average Price per Ton  Apr-Jun 2026	Thousands of Tons Jul-Sep 2025	Millions of Pesos Jul-Sep 2025	Average Price per Ton Jul-Sep 2025
Special Bar Quality SBQ	128	2,376	18,563	132	2,459	18,629	118	2,392	20,271
Commercial Long Steel	423	6,007	14,201	384	5,695	14,831	381	5,093	13,367
Total	551	8,383	15,214	516	8,154	15,802	499	7,485	15,000

 

Any forward-looking information contained herein is inherently subject to various risks, uncertainties and assumptions which, if incorrect, may cause actual results to vary materially from those anticipated, expected or estimated. The company assumes no obligation to update any forward-looking information contained herein.

 

Contact: José Luis Tinajero

Mario Moreno Cortez

Grupo Simec, S.A.B. de C.V.

Calzada Lázaro Cárdenas 601

44440 Guadalajara, Jalisco, México

52 55 1165 1028

52 33 3770 6734

 

View original content:https://www.prnewswire.com/news-releases/grupo-simec-announces-results-of-operations-for-the-first-nine-months-of-2026-302922538.html

SOURCE Grupo Simec, S.A.B. de C.V.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Grupo Simec's sales and profit for the first nine months of 2026?

Grupo Simec reported sales of Ps. 24,569 million and controlling-interest net income of Ps. 4,028 million for the nine months ended September 30, 2026. Sales increased 10% and controlling-interest net income increased 428% compared with the same period of 2025.

How did Grupo Simec perform in the third quarter of 2026?

Third-quarter sales increased 12% year over year to Ps. 8,383 million, while controlling-interest net income rose to Ps. 1,710 million from Ps. 459 million. Operating profit declined 10% to Ps. 1,038 million, and EBITDA declined 4% to Ps. 1,370 million.

How much debt did Grupo Simec report at September 30, 2026?

Total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes due 1998, reported as Ps. 5.5 million. Accrued interest at September 30, 2026 was U.S. $891 thousand, or Ps. 16.1 million.