GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST SIXTH-MONTH PERIOD ENDED JUNE 30TH, 2026.

Rhea-AI Summary

Grupo Simec (NYSE: SIM) reported first six-month 2026 net sales of Ps. 16,186 million, up 9% from 2025, driven by a 16% increase in finished steel shipments to 1,046 thousand tons and a 6% lower average sales price. According to Grupo Simec, sales in Mexico rose 15% to Ps. 9,461 million, while sales outside Mexico grew 2% to Ps. 6,725 million.

Cost of sales increased 8% to Ps. 12,014 million, keeping gross margin at 26% versus 25% a year earlier. EBITDA grew 6% to Ps. 3,354 million. Net income attributable to controlling interest jumped 662% to Ps. 2,317 million, mainly due to a much lower net exchange loss (Ps. 365 million versus Ps. 2,332 million in 2025) and a swing in comprehensive financial result from a Ps. 1,845 million expense to Ps. 53 million income.

Positive

• Net sales +9% to Ps. 16,186 million for first six months 2026
• Shipment volumes +16% to 1,046 thousand tons Jan–Jun 2026
• EBITDA +6% to Ps. 3,354 million in first half 2026
• Net income +662% to Ps. 2,317 million Jan–Jun 2026
• Cost per ton -7% to Ps. 11,486 in first six months 2026
• Exchange loss sharply reduced to Ps. 365 million from Ps. 2,332 million

Negative

• Operating margin slightly lower: 17% vs 18% in first half 2025
• Other income down 86% to Ps. 36 million in first half 2026
• 2Q 2026 vs 1Q 2026 EBITDA -9% to Ps. 1,600 million
• 2Q 2026 net income down to Ps. 611 million from Ps. 1,706 million in 1Q 2026
• 2Q 2026 gross margin lower QoQ: 25% vs 27% in 1Q 2026
• 2Q 2026 comprehensive financial result a Ps. 259 million expense vs Ps. 312 million income in 1Q 2026

News Explained

Six-month earnings improved, but second-quarter profit and EBITDA fell from the first quarter; debt reported at June 30 included notes and accrued interest.

On July 28, 2026, Grupo Simec announced its results for the six-month period ended June 30, 2026.

For the company, the disclosure updates operating performance and reports a consolidated debt position as of June 30, 2026.

Although six-month results improved year over year, the second quarter was weaker than the first: controlling-interest net income fell to Ps. 611 million from Ps. 1,706 million, while EBITDA fell to Ps. 1,600 million from Ps. 1,754 million.

The release says total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes due 1998, plus Ps. 5.3 million; accrued interest was U.S. $884 thousand, or Ps. 15.5 million.

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

First sixth-month period ended June 30th, 2026 compared to first sixth-month period ended June 30th, 2025.

Net Sales
Net sales increased 9% because of the combination of 16% increase shipments of finished steel products and a 6% lower average sales price compared to the same period of 2025, the sales increased from Ps. 14,835 million in the first sixth-month period ended June 30th, 2025 to Ps. 16,186 million in the same period of 2026. Shipments of finished steel products increased to 1 million 46 thousand tons in the first sixth-month period ended June 30th, 2026 compared to 901 thousand tons in the same period of 2025. Total sales outside of Mexico on the first sixth-month period ended June 30th, 2026 increased 2% to Ps. 6,725 million compared with Ps. 6,573 million in the same period of 2025. Total sales in Mexico increased 15% from Ps. 8,262 million in the First sixth-month period ended June 30th, 2025 to Ps. 9,461 million in the same period of 2026.

Cost of Sales
Cost of sales increased 8% from Ps. 11,167 million in the first sixth-month period ended June 30th, 2025 to Ps. 12,014 million in the same period of 2026. Cost of sales as a percentage of net sales represented 74% and 75%, respectively, for the periods 2026 and 2025. The cost of sales increased, due to a higher volume of products shipped.

Gross Profit
Gross profit of the Company in the first sixth-month period ended June 30th, 2026 was of Ps. 4,172 million compared to Ps. 3,668 million in the same period of 2025. Gross profit as a percentage of net sales represented 26% and 25% respectively, for the periods 2026 and 2025.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 11% from Ps. 1,307 million in the first sixth-month period ended June 30th, 2025 to Ps. 1,445 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. 263 million in the first sixth-month period ended June 30th, 2025 compared to other net income of Ps. 36 million in the same period of 2026.

Operating Profit
Operating income increased 5% from Ps. 2,624 million for the first sixth-month period ended June 30th, 2025 to Ps. 2,763 million in the same period of 2026. Operating profit as a percentage of net sales represented 17% and 18% for the 2026 and 2025 periods respectively.

EBITDA
The EBITDA of the Company increased 6% from Ps. 3,165 million in the sixth-month period ended June 30, of 2025, (result of net income of Ps. 304, less minority stake of Ps. 1 million, plus income taxes of Ps. 476 million, plus comprehensive financial cost of Ps. 1,845 million, plus depreciation of Ps. 541 million), to an EBITDA of Ps. 3,354 million in the same period of 2026 (result of net income of Ps. 2,317 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 499 million, less comprehensive financial income of Ps. 53 million, plus depreciation of 592 million).

 

Consolidated
Million		First sixth-month period ended June 30th,
		2026				2025
Net income (loss) controlling interest			2,317				304
Income (loss) attributable to noncontrolling interests			(1)				(1)
Net income (loss)			2,316				303
Depreciation and amortization			592				541
Income taxes			499				476
Financial results (income) loss			(53)				1,845
EBITDA			3,354				3,165

 

Comprehensive Financial Income (Cost)
Comprehensive financial income in the first sixth-month period ended June 30th, 2026 represented a net income of Ps. 53 million compared with a net expense of Ps. 1,845 million in the same period of 2025. The net interest was an income of Ps. 397 million in 2026 compared with a net interest income of Ps. 487 million in the first sixth-month period ended June 30th, 2025. We registered a net exchange loss of Ps. 365 million in the first sixth-month period ended June 30th, 2026 compared with an exchange net loss of Ps. 2,332 million in the same period of 2025, net other financial income was recorded for Ps. 21 million for the period 2026.

Income Taxes
The Company recorded a net tax expense of Ps. 499 million in the first sixth-month period ended June 30th, 2026 (including the income of deferred tax of Ps. 14 million) compared with a net tax expense of Ps. 476 million in the same period of 2025 (including a deferred tax expense of Ps. 93 million).

Net Income (loss)
As a result of the foregoing, net income increased by 662% from Ps. 304 million in the first sixth-month period ended June 30th, 2025 to Ps. 2,317 million in the same period of 2026. mainly because of the net exchange loss of Ps. 2,332 million recorded in the first sixth-month period ended June 30th, 2025 became a net exchange loss of Ps. 365 million in the first sixth-month period ended June 30th, 2026.

Liquidity and Capital Resources
As of June 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. 5.3 million (accrued interest on June 30, 2026 was U.S. $ 884 thousand dollars or Ps. 15.5 million).  As of June 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. 5.7 million (accrued interest on June 30, 2025 was U.S. $ 856 thousand dollars or Ps. 16.1 million).

Second quarter 2026 vs first quarter 2026

Net Sales
Net sales increased from Ps. 8,032 million in the first quarter of 2026 to Ps. 8,154 million for the second quarter of 2026. Sales in tons decreased 3% from 530 thousand ton in the first quarter of 2026 to 516 thousand tons in the second quarter of the same year. Total sales outside of Mexico for the second quarter of 2026 decreased 1% from Ps. 3,385 million in the first quarter to Ps. 3,340 million in the second quarter of 2026. Sales in Mexico increased 4% to Ps. 4,814 million in the second quarter of 2026 compared Ps. 4,647 million in the first quarter of 2026. Prices of finished products sold in the second quarter of 2026 increased 4% compared with the first quarter of the same year.

Cost of Sales
Cost of sales increased to Ps. 6,117 million in the second quarter of 2026 compared to Ps. 5,897 million for the first quarter of 2026. With respect to sales, in the second quarter of 2026, the cost of sales represented 75%, compared to 73% in the first quarter of the same period. The average cost of sales by ton increased by 7% in the second quarter of 2026 versus the first quarter of 2026.

Gross Profit
Gross profit of the Company for the second quarter of 2026 decreased 5% to Ps. 2,037 million compared to Ps. 2,135 million in the first quarter of 2026. The gross profit as a percentage of net sales for the first and second quarter of 2026 was of 27% and 25% respectively.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 4% to Ps. 736 million in the second quarter of 2026 compared to Ps. 709 million for the first 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 expenses of Ps. 3 million in the second quarter of 2026 compared to other net income of Ps. 39 million for the first quarter of 2026.

Operating Profit
Operating income was of Ps. 1,298 million in the second quarter of 2026 compared to an operating profit of Ps. 1,465 million in the first quarter of 2026. The operating profit as a percentage of net sales represented 16% and 18% for the second quarter and first quarter of 2026 respectively.

EBITDA
EBITDA was 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), compared to an EBITDA of Ps. 1,600 million for 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).

Consolidated
Million		Second quarter 2026 vs First quarter 2026
		2Q 2026				1Q 2026
Net income (loss) controlling interest			611				1,706
Income (loss) attributable to noncontrolling interests			(1)				0
Net income (loss)			610				1,706
Depreciation and Amortization			303				289
Income taxes			428				71
Financial results (income) loss			259				(312)
EBITDA			1,600				1,754

 

Comprehensive Financial Income (Cost)
Comprehensive financial income for the second quarter for 2026 was a net expense of Ps. 259 million compared with a net income of Ps. 312 million for the first quarter of 2026. The net interest income for the second quarter was Ps. 299 million compared with a net interest income of Ps. 99 million in the first quarter of 2026. At the same time, we registered an exchange net income of Ps. 213 million in the first quarter of 2026 compared with an exchange net loss of Ps. 579 million in the second 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 first quarter of 2026 was a net expense of Ps. 71 million (including an income of deferred tax for Ps. 7 million) compared to an expense of Ps. 428 million for the second quarter of 2026, (including the income of deferred tax of Ps. 7 million).

Net Income (loss)
As a result of the foregoing, the Company recorded a net income of Ps. 611 million in the second quarter of 2026 compared to Ps. 1,706 million of net income in the first quarter of 2026.

Second quarter 2026 vs second quarter 2025

Net Sales
Net sales increased 16% from Ps. 7,052 million for the second quarter of 2025 to Ps. 8,154 million for the second quarter of 2026. Sales in tons of finished steel products in the second quarter of 2025 were 425 thousand tons versus to 516 thousand tons in the second quarter of 2026. Total sales outside of Mexico increased 8% from Ps. 3,104 million for the second quarter of 2025 to Ps. 3,340 million in the second quarter of 2026. Sales in Mexico increased 22% from Ps. 3,948 million in the second quarter of 2025 to Ps. 4,814 million in the second quarter of 2026. This increase is explained by a 21% higher volume of steel products shipped and a 5% decrease in the average sales price.

Cost of Sales
Cost of sales increased 14% from Ps. 5,381 million in the second quarter of 2025 to Ps. 6,117 million in the second quarter of 2026. With respect to sales, the cost of sales represented 75% during the second quarter of 2026 and 76% during the second quarter of 2025. The average cost of steel products decreased 6% in the second quarter of 2026 versus the second quarter of 2025.

Gross Profit
Gross profit for the second quarter of 2026 increased 22% from Ps. 1,671 million in the second quarter of 2025 to Ps. 2,037 million in the second quarter of 2026. The gross profit as a percentage of net sales represented 24% in the second quarter of 2025 compared to 25% in the second quarter of 2026.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 9% from Ps. 674 million in the second quarter of 2025 to Ps. 736 million in the second quarter of 2026. Selling, general and administrative expenses as a percentage of net sales for the second quarter of 2025 was of 10% compared to 9% in the second quarter 2026.

Other Expenses (Income) net
The company recorded other income net of Ps. 201 million in the second quarter of 2025 compared with other expenses net of Ps. 3 million in the second quarter of 2026.

Operating Profit
Operating income was of Ps. 1,298 million in the second quarter of 2026 compared to an operating profit of Ps. 1,198 million in the second quarter of 2025. The operating profit as a percentage of net sales in the second quarter of 2026 was 16%, compared to 17% in the second quarter of 2025.

EBITDA
EBITDA was Ps. 1,473 million in the second quarter of 2025 (result of net loss of Ps. 1,000 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 297 million, plus comprehensive financial cost of Ps. 1,902 million, plus depreciation of Ps. 275 million), compared to an EBITDA of 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).

 

Consolidated
Million		Second quarter 2026 vs Second quarter 2025
		2Q 2026				2Q 2025
Net income (loss) controlling interest			611				(1,000)
Income (loss) attributable to noncontrolling interests			(1)				(1)
Net income (loss)			610				(1,001)
Depreciation and Amortization			303				275
Income taxes			428				297
Financial results (income) loss			259				1,902
EBITDA			1,600				1,473

 

Comprehensive Financial Income (Cost)
Comprehensive financial income for the second quarter of 2026 was a net expense of Ps. 259 million compared with a net loss of Ps 1,902 million in the second quarter of 2025. Net interest income was of Ps. 299 million in the second quarter of 2026 compared with a net interest income of Ps. 274 million in the second quarter of 2025. At the same time, we registered a net exchange loss of Ps. 579 million in the second quarter of 2026 compared with an exchange loss of Ps. 2,176 million in the second quarter of 2025. Net other financial income was recorded for Ps. 21 million in the second quarter of 2026.

Income Taxes
The Company recorded a net tax expense in the second quarter of 2026 of Ps. 428 million (including an income of deferred tax of Ps. 7 million), compared to a net tax expense of Ps. 297 million for the second quarter of 2025, (including a tax deferred expense of Ps. 100 million).

Net Income (loss)
As a result of the foregoing, the Company recorded a net profit of Ps. 611 million in the second quarter of 2026 compared to Ps. 1,000 million of net loss in the second quarter of 2025; mainly explained because the net exchange loss of Ps. 2,176 million recorded in the second quarter of 2025 became a net exchange loss of Ps. 579 million in the second quarter of 2026.

Six-Month
(million of pesos)	Jan - Jun '26		Jan - Jun '25				Year 26 vs   '25
Sales	16,186		14,835				9 %
Cost of Sales	12,014		11,167				8 %
Gross Profit	4,172		3,668				14 %
Selling, General and Administrative Expense	1,445		1,307				11 %
Other Income (Expenses), net	36		263				(86 %)
Operating Profit	2,763		2,624				5 %
EBITDA	3,354		3,165				6 %
Net income Controlling interest	2,317		304				662 %
Sales Outside Mexico	6,725		6,573				2 %
Sales in Mexico	9,461		8,262				15 %
Total Sales (Tons Thousands)	1,046		901				16 %
Cost per ton (Pesos)	11,486		12,394				(7 %)

 

Quarter
(million of pesos)	2Q'26	1Q '26	2Q '25	2Q´26vs 1Q´26	2Q´26 vs 2Q '25
Sales	8,154	8,032	7,052	2 %	16 %
Cost of Sales	6,117	5,897	5,381	4 %	14 %
Gross Profit	2,037	2,135	1,671	(5 %)	22 %
Selling, General and Adm. Expenses	736	709	674	4 %	9 %
Other Income (Expenses), net	(3)	39	201	N/C	N/C
Operating Profit	1,298	1,465	1,198	(11 %)	8 %
EBITDA	1,600	1,754	1,473	(9 %)	9 %
Net Income Controlling interest	611	1,706	(1,000)	(64 %)	N/C
Sales Outside Mexico	3,340	3,385	3,104	(1 %)	8 %
Sales in Mexico	4,814	4,647	3,948	4 %	22 %
Total Sales (Tons Thousands)	516	530	425	(3 %)	21 %
Cost per Ton (pesos)	11,855	11,126	12,661	7 %	(6 %)

 

Product	Thousands of Tons Jan-Jun 2026	Millions of Pesos Jan-Jun 2026	Average Price per Ton Jan-Jun 2026	Thousands of Tons Jan–Jun 2025	Millions of Pesos Jan-Jun 2025	Average Price per Ton  Jan-Jun 2025
Special Bar Quality SBQ	257	4,774	18,576	259	5,332	20,587
Commercial Long Steel	789	11,412	14,464	642	9,503	14,802
Total	1,046	16,186	15,474	901	14,835	16,465

 

Product	Thousands of Tons Apr-Jun 2026	Millions of Pesos Apr-Jun 2026	Average Price per Ton Apr-Jun 2026	Thousands of Tons Jan-Mar 2026	Millions of Pesos Jan-Mar 2026	Average Price per Ton Jan-Mar 2026	Thousands of Tons Apr-Jun 2025	Millions of Pesos Apr-Jun 2025	Average Price per Ton Apr-Jun 2025
Special Bar Quality SBQ	132	2,459	18,629	126	2,315	18,373	106	2,197	20,726
Commercial Long Steel	384	5,695	14,831	404	5,717	14,151	319	4,855	15,219
Total	516	8,154	15,802	530	8,032	15,155	425	7,052	16,593

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-sixth-month-period-ended-june-30th-2026-302836864.html

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

FAQ

How did Grupo Simec (SIM) perform in the first six months of 2026?

Grupo Simec reported higher sales, EBITDA and net income in the first half of 2026. According to Grupo Simec, net sales rose 9% to Ps. 16,186 million, EBITDA increased 6% to Ps. 3,354 million, and net income controlling interest grew 662% to Ps. 2,317 million.

What drove Grupo Simec’s 662% net income increase in H1 2026 (SIM)?

The net income jump was mainly due to a much smaller exchange loss and improved financial results. According to Grupo Simec, net exchange loss fell from Ps. 2,332 million to Ps. 365 million and comprehensive financials swung from a Ps. 1,845 million expense to Ps. 53 million income.

How did Grupo Simec’s revenues and volumes change in H1 2026 versus 2025?

Grupo Simec’s net sales increased 9%, while shipment volumes rose 16% in the first half of 2026. According to Grupo Simec, sales reached Ps. 16,186 million and total finished steel shipments grew to 1,046 thousand tons, despite a 6% decrease in average sales price.

What were Grupo Simec’s EBITDA and margins for the first half of 2026?

Grupo Simec generated EBITDA of Ps. 3,354 million in the first half of 2026, up 6% year over year. According to Grupo Simec, gross margin improved to 26% from 25%, while operating margin was 17%, slightly below 18% in the prior-year period.

How did Grupo Simec’s second quarter 2026 results compare to first quarter 2026?

Second-quarter 2026 sales were slightly higher but profitability was lower than in the first quarter. According to Grupo Simec, net sales rose to Ps. 8,154 million, while EBITDA declined to Ps. 1,600 million and net income decreased from Ps. 1,706 million to Ps. 611 million.

How did Grupo Simec’s second quarter 2026 results compare with second quarter 2025?

Grupo Simec posted higher sales, EBITDA and net income in 2Q 2026 versus 2Q 2025. According to Grupo Simec, net sales grew 16% to Ps. 8,154 million, EBITDA increased to Ps. 1,600 million, and net result turned to a Ps. 611 million profit from a Ps. 1,000 million loss.

What were Grupo Simec’s Mexico and international sales in the first half of 2026?

Grupo Simec saw stronger growth in Mexican sales than in international markets in early 2026. According to Grupo Simec, sales in Mexico rose 15% to Ps. 9,461 million, while sales outside Mexico increased 2% to Ps. 6,725 million for the first six months of 2026.