GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST QUARTER OF 2026, ENDED MARCH 31, 2026.

Rhea-AI Summary

Grupo Simec (NYSE: SIM) reported first-quarter 2026 results for the three months ended March 31, 2026. Net sales rose 3% to Ps. 8,032 million; shipments increased 11% to 530 thousand tons. Net income rose 31% year-over-year to Ps. 1,706 million. Comprehensive financial income was Ps. 312 million versus Ps. 57 million a year earlier.

Cost of sales was Ps. 5,897 million (73% of sales); gross profit was Ps. 2,135 million (27%). SG&A increased 12% to Ps. 709 million. Debt shown includes U.S.$302,000 in medium-term notes.

Positive

• Shipments +11% to 530 thousand tons year-over-year
• Net income +31% to Ps. 1,706 million year-over-year
• Net income vs prior quarter +133% (Ps. 1,706m vs Ps. 733m)
• Comprehensive financial income improved to Ps. 312 million from Ps. 57 million year-over-year

Negative

• Selling, general & administrative expenses +12% year-over-year to Ps. 709 million
• Other net income declined 37% year-over-year (Ps. 62m to Ps. 39m)
• Sales prices down 7% year-over-year despite higher shipment volumes

Market Context

This announcement highlights modest operational improvement for Q1 2026, with net sales climbing to ...

Analysis

This announcement highlights modest operational improvement for Q1 2026, with net sales climbing to Ps. 8,032 million, EBITDA increasing to Ps. 1,754 million, and net income rising to Ps. 1,706 million. Shipments grew to 530 thousand tons while cost per ton fell to Ps. 11,126, improving margins. Compared with 2025’s FX-driven earnings volatility, the quarter also benefited from Ps. 312 million in comprehensive financial income. Investors may track future quarters for demand trends, pricing, and currency effects.

Key Figures

Net sales: Ps. 8,032 million Shipments: 530 thousand tons Net income: Ps. 1,706 million +5 more

8 metrics

Net sales Ps. 8,032 million Q1 2026 vs Ps. 7,783 million in Q1 2025 (3% increase)

Shipments 530 thousand tons Q1 2026 vs 476 thousand tons in Q1 2025 (11% increase)

Net income Ps. 1,706 million Q1 2026 vs Ps. 1,305 million in Q1 2025 (31% increase)

EBITDA Ps. 1,754 million Q1 2026 vs Ps. 1,692 million in Q1 2025 (4% increase)

Cost per ton Ps. 11,126 Q1 2026 vs Ps. 12,155 in Q1 2025 (8% decrease)

Comprehensive financial income Ps. 312 million Net income from financial items in Q1 2026 vs Ps. 57 million in Q1 2025

Sales outside Mexico Ps. 3,385 million Q1 2026 vs Ps. 3,469 million in Q1 2025 (2% decrease)

Medium-term notes U.S. $302,000 and Ps. 5.5 million Total consolidated debt outstanding as of March 31, 2026

Historical Context

1 past event · Latest: Feb 19 (Negative)

Pattern 1 events

Date	Event	Sentiment	24h Move	Catalyst
Feb 19	Full-year results	Negative	+4.8%	Full-year 2025 results with sharp net income decline on FX losses.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Limited history shows the stock previously rising on weaker full-year results, suggesting price moves can diverge from headline fundamentals.

Recent Company History

In the prior update on Feb 19, 2026, Grupo Simec reported full-year 2025 results with net sales down 10% to Ps. 30,291 million and net income down 85% to Ps. 1,533 million, largely due to a Ps. 3,602 million exchange loss. Despite the weaker earnings, the stock rose about 4.77% over the next day. Against that backdrop, today’s Q1 2026 report shows modest growth in sales, EBITDA, and net income, yet the share price moved lower.

Key Terms

ebitda, medium-term notes, net exchange profit, comprehensive financial income

4 terms

ebitda financial

"The EBITDA of the Company increased 4% from Ps. 1,692 million..."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

medium-term notes financial

"Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes..."

Medium-term notes are debt securities issued by companies, banks or governments that promise to pay interest and return principal at a set date a few years out—typically longer than short-term bills but shorter than long-term bonds. For investors they act like staggered IOUs that provide predictable income and help diversify holdings, but they carry credit and interest-rate risk and can affect a portfolio’s cash flow and stability depending on the issuer’s creditworthiness and the note’s term.

net exchange profit financial

"We registered a net exchange profit of Ps. 213 million in the three-month period ended March 31, 2026..."

Net exchange profit is the money a company gains after adding up all its currency conversion gains and losses and subtracting related fees and costs. It matters to investors because swings in exchange rates can boost or reduce reported earnings and cash flow, much like how changing prices at a gas pump affect a travel budget; understanding this helps assess true operating performance and the risk from doing business across different currencies.

comprehensive financial income financial

"Comprehensive financial income in the three-month period ended March 31, 2026 represented a net income of Ps. 312 million..."

Comprehensive financial income measures the total change in a company’s value from its regular profit or loss plus other gains and losses that don’t flow through the main profit-and-loss line, such as unrealized gains on investments, currency translation effects, or pension adjustments. Investors care because it shows the full picture of how a company’s net worth shifts over a period—like checking both cash in your wallet and the changing value of your investments—so it can reveal hidden volatility or strength that net income alone misses.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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GUADALAJARA, Mexico, April 30, 2026 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today its results of operations for the three-month period ended March 31, 2026

First quarter of 2026 vs first quarter of 2025.

Net Sales
Net sales increased 3% because of the combination of 11% increase in shipments of finished steel products and a 7% lower average sales prices compared to the same period of 2025, the sales increased from Ps. 7,783 million in the three-month period ended March 31, 2025 to Ps. 8,032 million in the same period of 2026. Shipments of finished steel products increased to 530 thousand tons in the three-month period ended March 31, 2026 compared to 476 thousand tons in the same period of 2025. Total sales outside of Mexico on the three-month period ended March 31, 2026 decreased 2% to Ps. 3,385 million compared with Ps. 3,469 million in the same period of 2025. Total sales in Mexico increased 8% from Ps. 4,314 million in the three-month period ended March 31, 2025 to Ps. 4,647 million in the same period of 2026.

Cost of Sales
Cost of sales increased 2% from Ps. 5,786 million in the three-month period ended March 31, 2025 to Ps. 5,897 million in the same period of 2026. Cost of sales as a percentage of net sales represented 73% and 74% respectively, for the periods 2026 and 2025. The average cost of finished steel produced in the three-month period ended March 31, 2026 compared to the same period of 2025 decreased 8%.

Gross Profit
Gross profit of the Company in the three-month period ended March 31, 2026 was of Ps. 2,135 million compared to Ps. 1,997 million in the same period of 2025. Gross profit as a percentage of net sales represented 27% and 26% respectively, for the periods 2026 and 2025.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 12% from Ps. 633 million in the three-month period ended March 31, 2025 to Ps. 709 million in the same period of 2026. Selling, general and administrative expenses as a percentage of net sales represented 8% during the three-month period ended March 31, 2025 and 9% in the same period of 2026.

Other Expenses (Income) net 
The company recorded other net income of Ps. 62 million in the three-month period ended March 31, 2025 compared to other net income of Ps. 39 million in the same period of 2026.

Operating Profit
Operating income increased 3% from Ps. 1,426 million for the three-month period ended March 31, 2025 to Ps. 1,465 million in the same period of 2026. Operating profit as a percentage of net sales represented 18% for both the periods 2026 and 2025.

EBITDA
The EBITDA of the Company increased 4% from Ps. 1,692 million in the three-month period ended March 31, of 2025, (result of net income of Ps. 1,305, less minority stake of Ps. 1 million, plus income taxes of Ps. 179 million, less comprehensive financial income of Ps. 57 million, plus depreciation of Ps. 266 million), to an EBITDA of Ps. 1,754 million in the same period of 2026 (result of net income of Ps. 1,706 million, plus income taxes of Ps. 71 million, less comprehensive financial income of Ps. 312 million, plus depreciation of 289 million).

Consolidated
Million		Three-month period ended March 31,
		2026				2025
Net income (loss) controlling interest			1,706				1,305
Income (loss) attributable to noncontrolling interests			0				(1)
Net income (loss)			1,706				1,304
Depreciation and amortization			289				266
Income taxes			71				179
Financial results (income) loss			(312)				(57)
EBITDA			1,754				1,692

Comprehensive Financial Income (Cost)
Comprehensive financial income in the three-month period ended March 31, 2026 represented a net income of Ps. 312 million compared with a net income of Ps. 57 million in the same period of 2025. The net interest was an income of Ps. 99 million in 2026 compared with a net interest income of Ps. 213 million in the three-month period ended March 31, 2025. We registered a net exchange profit of Ps. 213 million in the three-month period ended March 31, 2026 compared with an exchange net loss of Ps. 156 million in the same period of 2025.

Income Taxes
The Company recorded an expense net tax of Ps. 71 million in the three-month period ended March 31, 2026 (including the income of deferred tax of Ps. 7 million) compared with a net expense tax of Ps. 179 million in the same period of 2025 (including the income of deferred tax of Ps. 7 million).

Net Income (loss)
As a result of the foregoing, net income increased by 31% from Ps. 1,305 million in the three-month period ended March 31, 2025 to Ps. 1,706 million in the same period of 2026.

Liquidity and Capital Resources
As of March 31, 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 March 31, 2026 was U.S. $877,188 or Ps. 15.9 million).  As of March 31,2025, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 6.2 million (accrued interest on March 31, 2025 was U.S. $848,615, or Ps. 17.3 million).

First quarter of 2026 vs fourth quarter of 2025

Net Sales
Net sales increased 1% from Ps. 7,972 million for the fourth quarter of 2025 to Ps. 8,032 million for the first quarter of 2026. Sales in tons of finished steel products in the fourth quarter of 2025 were 532 thousand tons versus to 530 thousand tons in the first quarter of 2026. Total sales outside of Mexico decreased 3% from Ps. 3,484 million for the fourth quarter of 2025 to Ps. 3,385 million in the first quarter of 2026. Sales in Mexico increased 4% from Ps. 4,488 million in the fourth quarter of 2025 to Ps. 4,647 million in the first quarter of 2026. The average sales prices of finished products sold in the first quarter of 2026 increased 1%, compared to the same period of 2025.

Cost of Sales
Cost of sales increased Ps.7 million from Ps. 5,890 million in the fourth quarter of 2025 to Ps. 5,897 million for the first quarter of 2026. With respect to sales, in the first quarter of 2026, the cost of sales represented 73%, compared to 74% in the fourth quarter of 2025. The cost of sales by ton remained similar in the first quarter of 2026 versus the fourth quarter of 2025.

Gross Profit
Gross profit for the first quarter of 2026 increased 3% from Ps. 2,082 million in the fourth quarter of 2025 to Ps. 2,135 million in the first quarter of 2026. The gross profit as a percentage of net sales represented 26% in the fourth quarter of 2025 compared to 27% in the first quarter of 2026.

Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased 11% from Ps. 794 million in the fourth quarter of 2025 to Ps. 709 million in the first quarter of 2026. Selling, general and administrative expenses as a percentage of net sales for the fourth quarter of 2025 was of 10% compared to 9% in the first quarter 2026.

Other Expenses (Income) net 
The company recorded other income net of Ps. 134 million in the fourth quarter of 2025 compared with other income net of Ps. 39 million in the first quarter of 2026.

Operating Profit
Operating income was of Ps. 1,465 million in the first quarter of 2026 compared to an operating profit of Ps. 1,422 million in the fourth quarter of 2025. The operating profit as a percentage of net sales represented 18% in both the first quarter of 2026 and in the fourth quarter 2025.

EBITDA
The EBITDA was Ps. 1,694 million in the fourth quarter of 2025 (result of net income of Ps. 733 million, plus minority stake of Ps. 1 million, plus income taxes of Ps. 419 million, plus comprehensive financial cost of Ps. 269 million, plus depreciation of Ps. 272 million), compared to an EBITDA of Ps 1,754 million in the first quarter of 2026 (result of net income of Ps. 1,706 million, plus income taxes of Ps. 71 million, less comprehensive financial income of Ps. 312 million, plus depreciation of Ps. 289 million).

Consolidated
Million		First quarter 2026 vs Fourth quarter 2025
		1Q 2026				4Q 2025
Net income (loss) controlling interest			1,706				733
Income (loss) attributable to noncontrolling interests			0				1
Net income (loss)			1,706				734
Depreciation and Amortization			289				272
Income taxes			71				419
Financial results (income) loss			(312)				269
EBITDA			1,754				1,694

Comprehensive Financial Income (Cost)
Comprehensive financial income for the first quarter of 2026 was a net income of Ps. 312 million compared with a net cost of Ps 269 million in the fourth quarter of 2025. Net interest income was of Ps. 99 million in the first quarter of 2026 compared with a net interest income of Ps. 238 million in the fourth quarter of 2025. At the same time, we registered a net exchange profit of Ps. 213 million in the first quarter of 2026 compared with an exchange loss of Ps. 556 million in the fourth quarter of 2025. Net other financial income was recorded for Ps. 49 million in the fourth quarter of 2025.

Income Taxes
The Company recorded a net tax expense, for the first quarter of 2026, of Ps. 71 million (including the income of deferred tax of Ps. 7 million), compared to a net tax expense of Ps. 419 million for the fourth quarter of 2025, (including the income of deferred tax of Ps. 123 million).

Net Income (loss)
As a result of the foregoing, the Company recorded a net profit of Ps. 1,706 million in the first quarter of 2026 compared to Ps. 733 million of net profit in the fourth quarter of 2025.

(million of pesos)	1Q'26	1Q '25	4Q '25	1Q´26vs 1Q´25	1Q´26 vs 4Q '25
Sales	8,032	7,783	7,972	3 %	1 %
Cost of Sales	5,897	5,786	5,890	2 %	0 %
Gross Profit	2,135	1,997	2,082	7 %	3 %
Selling, General and Adm. Expenses	709	633	794	12 %	(11 %)
Other Income (Expenses), net	39	62	134	(37 %)	(71 %)
Operating Profit	1,465	1,426	1,422	3 %	3 %
EBITDA	1,754	1,692	1,694	4 %	4 %
Net Income Controlling interest	1,706	1,305	733	31 %	133 %
Sales Outside Mexico	3,385	3,469	3,484	(2 %)	(3 %)
Sales in Mexico	4,647	4,314	4,488	8 %	4 %
Total Sales (Tons Thousands)	530	476	532	11 %	0 %
Cost per Ton (pesos)	11,126	12,155	11,071	(8 %)	0 %

 

Product	Thousands of Tons Jan-Mar 2026	Millions of Pesos Jan-Mar 2026	Average Price per Ton Jan-Mar 2026	Thousands of Tons Jan-Mar 2025	Millions of Pesos Jan-Mar 2025	Average Price per Ton Jan-Mar 2025	Thousands of Tons Oct-Dec 2025	Millions of Pesos Oct-Dec 2025	Average Price per Ton          Oct-Dec 2025
Special Bar Quality SBQ	126	2,315	18,373	116	2,409	20,767	122	2,317	18,992
Commercial Long Steel	404	5,717	14,151	360	5,374	14,928	410	5,655	13,793
Total	530	8,032	15,155	476	7,783	16,351	532	7,972	14,985

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-quarter-of-2026-ended-march-31-2026-302759574.html

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

FAQ

What were Grupo Simec's net sales and net income for Q1 2026 (SIM)?

Net sales for Q1 2026 were Ps. 8,032 million and net income was Ps. 1,706 million. According to the company, sales rose 3% year-over-year while net income increased 31% versus Q1 2025.

How did Grupo Simec's shipments perform in Q1 2026 compared to Q1 2025 (SIM)?

Shipments increased to 530 thousand tons in Q1 2026 from 476 thousand tons in Q1 2025. According to the company, that represents an 11% year-over-year rise in finished steel product volumes.

Why did Grupo Simec's comprehensive financial income improve in Q1 2026 (SIM)?

Comprehensive financial income was Ps. 312 million in Q1 2026 versus Ps. 57 million in Q1 2025. According to the company, a Ps. 213 million net foreign exchange gain and other financial items drove the improvement.

What changed in Grupo Simec's costs and margins in Q1 2026 (SIM)?

Cost of sales was Ps. 5,897 million, representing 73% of sales; gross margin was 27% in Q1 2026. According to the company, average finished-steel production cost per ton declined versus the prior year.

What are the notable expense trends for Grupo Simec in Q1 2026 (SIM)?

SG&A increased 12% year-over-year to Ps. 709 million, while other net income fell 37% to Ps. 39 million. According to the company, these items affected operating leverage despite higher sales volumes.