GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2025.
Rhea-AI Summary
Grupo Simec (NYSE: SIM) reported 2025 results for the twelve months ended December 31, 2025. Net sales fell 10% to Ps. 30,291 million and shipments declined 6% to 1,933 thousand tons. Cost of sales fell 13% to Ps. 22,657 million, supporting gross profit of Ps. 7,634 million. Net income attributable to controlling interest declined 85% to Ps. 1,533 million, driven by a swing from exchange gains to an exchange loss of Ps. 3,602 million. EBITDA was Ps. 6,446 million, a 1% increase versus 2024.
Positive
- Cost of sales decreased by 13% year-over-year to Ps. 22,657 million
- Fourth-quarter gross margin improved to 28% from 16% in 4Q 2024
- EBITDA of Ps. 6,446 million, up 1% versus 2024
Negative
- Net income attributable to controlling interest fell 85% to Ps. 1,533 million
- Net sales decreased 10% to Ps. 30,291 million year-over-year
- Sales outside Mexico declined 14%, to Ps. 13,234 million
- Net exchange moved from a Ps. 5,556 million profit in 2024 to a Ps. 3,602 million loss in 2025
Key Figures
Market Reality Check
Peers on Argus
Momentum scanner only highlighted MTUS moving -9.22% down with no news. Other listed steel peers show modest mixed moves, offering little evidence of a coordinated sector reaction.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 27 | Nine-month results | Negative | -0.7% | Reported lower sales, EBITDA and net income on weaker demand and FX loss. |
| Oct 06 | 20-F amendment | Neutral | -0.9% | Amended 20-F controls and procedures with no changes to financial statements. |
Recent SIM news has often seen mild negative price reactions, even for neutral or routine disclosures.
Over the past few months, Grupo Simec has mainly reported financial updates and regulatory filings. A 2025-10-27 release showed a 10% net sales decline and sharply lower net income for the first nine months of 2025, with a small share-price drop. A 2025-10-06 Form 20‑F amendment focused on controls and procedures with no changes to audited financials, yet the stock still eased. Today’s full‑year 2025 results extend those trends of weaker sales and earnings driven by currency swings.
Market Pulse Summary
This announcement details full‑year 2025 performance, with net sales of Ps. 30,291M and net income of Ps. 1,533M, reflecting weaker volumes and a shift from exchange gains to losses. Yet EBITDA was stable at Ps. 6,446M, and 4Q25 EBITDA improved to Ps. 1,853M on better margins. Recent history shows similar patterns of FX-driven earnings volatility. Investors may watch demand trends, pricing, currency impacts, and operating margins in upcoming quarters.
Key Terms
ebitda financial
medium-term notes financial
deferred tax financial
noncontrolling interests financial
AI-generated analysis. Not financial advice.
Twelve-Month Period Ended December 31, 2025 compared to Twelve-Month Period Ended December 31, 2024, Audited.
Net Sales
Net sales decreased
Cost of Sales
Cost of sales decreased
Gross Profit
Gross profit of the Company in the twelve-month period ended December 31, 2025 was of Ps. 7,634 million compared to Ps. 7,625 million in the same period of 2024. Gross profit as a percentage of net sales represented
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased
Other Expenses (Income) net
The company recorded other net income of Ps. 279 million in the twelve-month period ended December 31, 2024 compared to other net income of Ps. 531 million in the same period of 2025.
Operating Profit
Operating income increased
EBITDA
The EBITDA of the Company increased
Consolidated | |||||||
Million | Twelve-month period ended December 31, | ||||||
2025 | 2024 | ||||||
Net income (loss) controlling interest | 1,533 | 10,488 | |||||
Loss attributable to noncontrolling interests | (1) | (7) | |||||
Net income (loss) | 1,532 | 10,481 | |||||
Depreciation and amortization | 1,081 | 1,066 | |||||
Income taxes | 1,339 | 2,060 | |||||
Financial results (income) loss | 2,494 | (7,240) | |||||
EBITDA | 6,446 | 6,367 | |||||
Comprehensive Financial Income (Cost)
Comprehensive financial cost in the twelve-month period ended December 31, 2025 represented a net expense of Ps. 2,494 million compared with a net income of Ps. 7,240 million in the same period of 2024. The net interest was an income of Ps. 1,059 million in 2025 compared with a net interest income of Ps. 1,616 million in the twelve-month period ended December 31, 2024. We registered a net exchange loss of Ps. 3,602 million in the twelve-month period ended December 31, 2025 compared with an exchange net profit of Ps. 5,556 million in the same period of 2024, net other financial income was recorded for Ps. 49 million for the period 2025 compared to the Ps. 68 million of other financial income for the period 2024.
Income Taxes
The Company recorded an expense net tax of Ps. 1,339 million in the twelve-month period ended December 31, 2025 (including the income of deferred tax of Ps. 50 million) compared with a net expense tax of Ps. 2,060 million in the same period of 2024 (including the income of deferred tax of Ps. 293 million).
Net Income (loss)
As a result of the foregoing, net income decreased by
Liquidity and Capital Resources
As of December 31, 2025, Simec's total consolidated debt consisted of
Comparative fourth quarter 2025 vs third quarter 2025
Net Sales
Net sales increased from Ps. 7,485 million in the third quarter of 2025 to Ps. 7,972 million for the fourth quarter of 2025. Sales in tons increased
Cost of Sales
Cost of sales increased to Ps. 5,764 million in the fourth quarter of 2025 compared to Ps. 5,726 million for the third quarter of 2025. With respect to sales, in the fourth quarter of 2025, the cost of sales represented
Gross Profit
Gross profit of the Company for the fourth quarter of 2025 increased
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased
Other Expenses (Income) net
The company recorded other net income of Ps. 138 million in the fourth quarter of 2025 compared to other net income of Ps. 128 million for the third quarter of 2025.
Operating Profit
Operating income was of Ps. 1,582 million in the fourth quarter of 2025 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 represented
EBITDA
The 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. 1,853 million for the fourth quarter of 2025, (result of net income of Ps. 770 million, plus minority stake of Ps. 1 million, plus income taxes of Ps. 546 million, plus comprehensive financial cost of Ps. 265 million, plus depreciation of Ps. 271 million).
Consolidated | |||||||
Million | Fourth quarter 2025 vs Third quarter 2025 | ||||||
4Q 2025 | 3Q 2025 | ||||||
Net income (loss) controlling interest | 770 | 459 | |||||
Loss attributable to noncontrolling interests | 1 | (1) | |||||
Net income (loss) | 771 | 458 | |||||
Depreciation and Amortization | 271 | 269 | |||||
Income taxes | 546 | 317 | |||||
Financial results (income) loss | 265 | 384 | |||||
EBITDA | 1,853 | 1,428 | |||||
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter for 2025 was a net expense of Ps. 265 million compared with a net expense of Ps. 384 million for the third quarter of 2025. The net interest income for the fourth quarter was Ps. 238 million compared with a net interest income of Ps. 334 million in the third quarter of 2025. At the same time we registered an exchange net loss of Ps. 718 million in the third quarter of 2025 compared with an exchange net loss of Ps. 552 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
Income Taxes for the third quarter of 2025 was a net expense of Ps. 317 million (including an income of deferred tax for Ps. 22 million) compared to an expense of Ps. 546 million for the fourth quarter of 2025, (including the income of deferred tax of Ps. 121 million).
Net Income (loss)
As a result of the foregoing, the Company recorded a net income of Ps. 770 million in the fourth quarter of 2025 compared to Ps. 459 million of net income in the third quarter of 2025.
Comparative fourth quarter 2025 vs fourth quarter 2024
Net Sales
Net sales decreased
Cost of Sales
Cost of sales decreased
Gross Profit
Gross profit for the fourth quarter of 2025 increased
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased
Other Expenses (Income) net
The company recorded other income net of Ps. 207 million in the fourth quarter of 2024 compared with other income net of Ps. 138 million in the fourth quarter of 2025.
Operating Profit
Operating income was of Ps. 1,582 million in the fourth quarter of 2025 compared to an operating profit of Ps. 861 million in the fourth quarter of 2024. The operating profit as a percentage of net sales in the fourth quarter of 2025 was
EBITDA
The EBITDA was Ps. 1,178 million in the fourth quarter of 2024 (result of net income of Ps. 1,901 million, less minority stake of Ps. 5 million, plus income taxes of Ps. 1,298 million, less comprehensive financial income of Ps. 2,333 million, plus depreciation of Ps. 317 million), compared to an EBITDA of Ps 1,853 million in the fourth quarter of 2025 (result of net income of Ps. 770 million, plus minority stake of Ps. 1 million, plus income taxes of Ps. 546 million, plus comprehensive financial cost of Ps. 265 million, plus depreciation of Ps. 271 million).
Consolidated | |||||||
Million | Fourth quarter 2025 vs Fourth quarter 2024 | ||||||
4Q 2025 | 4Q 2024 | ||||||
Net income (loss) controlling interest | 770 | 1,901 | |||||
Loss attributable to noncontrolling interests | 1 | (5) | |||||
Net income (loss) | 771 | 1,896 | |||||
Depreciation and Amortization | 271 | 317 | |||||
Income taxes | 546 | 1,298 | |||||
Financial results (income) loss | 265 | (2,333) | |||||
EBITDA | 1,853 | 1,178 | |||||
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter of 2025 was a net expense of Ps. 265 million compared with a net income of Ps 2,333 million in the fourth quarter of 2024. Net interest income was of Ps. 238 million in the fourth quarter of 2025 compared with a net interest income of Ps. 550 million in the fourth quarter of 2024. At the same time, we registered a net exchange loss of Ps. 552 million in the fourth quarter of 2025 compared with an exchange profit of Ps. 1,757 million in the fourth quarter of 2024. Net other financial income was recorded for Ps. 49 million in the fourth quarter of 2025, compared to the Ps. 26 million for the same period of 2024.
Income Taxes
The Company recorded a net taxes expense for the fourth quarter of 2025 of Ps. 546 million (including an income of deferred tax of Ps. 121 million), compared to a net tax expense of Ps. 1,298 million for the fourth quarter of 2024, (including a tax deferred income of Ps. 205 million).
Net Income (loss)
As a result of the foregoing, the Company recorded a net profit of Ps. 770 million in the fourth quarter of 2025 compared to Ps. 1,901 million of net profit in the fourth quarter of 2024. Mainly explained because the net exchange profit of Ps. 1,757 million recorded in the fourth quarter of 2024 became a net exchange loss of Ps. 552 million in the fourth quarter of 2025.
Twelve-Month | |||||||
(million of pesos) | Jan - Dec '25 | Jan - Dec '24 | Year 25 vs | ||||
Sales | 30,291 | 33,658 | (10 %) | ||||
Cost of Sales | 22,657 | 26,033 | (13 %) | ||||
Gross Profit | 7,634 | 7,625 | 0 % | ||||
Selling, General and Administrative Expense | 2,800 | 2,603 | 8 % | ||||
Other Income (Expenses), net | 531 | 279 | 90 % | ||||
Operating Profit | 5,365 | 5,301 | 1 % | ||||
EBITDA | 6,446 | 6,367 | 1 % | ||||
Net income Controlling interest | 1,533 | 10,488 | (85 %) | ||||
Sales Outside Mexico | 13,234 | 15,388 | (14 %) | ||||
Sales in | 17,057 | 18,270 | (7 %) | ||||
Total Sales (Tons Thousands) | 1,933 | 2,056 | (6 %) | ||||
Cost per ton (Pesos) | 11,721 | 12,662 | (7 %) | ||||
Quarter | |||||
(million of pesos) | 4Q'25 | 3Q '25 | 4Q '24 | 4Q´25vs | 4Q´25 vs |
Sales | 7,972 | 7,485 | 8,830 | 7 % | (10 %) |
Cost of Sales | 5,764 | 5,726 | 7,408 | 1 % | (22 %) |
Gross Profit | 2,208 | 1,759 | 1,422 | 26 % | 55 % |
Selling, General and Adm. Expenses | 764 | 728 | 768 | 5 % | (1 %) |
Other Income (Expenses), net | 138 | 128 | 207 | 8 % | (33 %) |
Operating Profit | 1,582 | 1,159 | 861 | 36 % | 84 % |
EBITDA | 1,853 | 1,428 | 1,178 | 30 % | 57 % |
Net Income Controlling interest | 770 | 459 | 1,901 | 68 % | (59 %) |
Sales Outside Mexico | 3,484 | 3,178 | 4,410 | 10 % | (21 %) |
Sales in | 4,488 | 4,307 | 4,420 | 4 % | 2 % |
Total Sales (Tons Thousands) | 532 | 499 | 520 | 7 % | 2 % |
Cost per Ton (pesos) | 10,835 | 11,475 | 14,246 | (6 %) | (24 %) |
Product | Thousands of Tons Jan-Dec 2025 | Millions of Pesos | Average Price per Ton Jan-Dec 2025 | Thousands of Tons Jan – Dec 2024 | Millions of Pesos | Average Price per Ton Jan-Dec 2024 |
Special Bar Quality SBQ | 500 | 10,041 | 20,082 | 520 | 10,133 | 19,487 |
Commercial Long Steel | 1,433 | 20,250 | 14,131 | 1,536 | 23,525 | 15,316 |
Total | 1,933 | 30,291 | 15,670 | 2,056 | 33,658 | 16,371 |
Product | Thousands of Tons Oct-Dec 2025 | Millions of Pesos Oct-Dec 2025 | Average Price per Ton Oct-Dec 2025 | Thousands of Tons Jul-Sep 2025 | Millions of Pesos Jul-Sep 2025 | Average Price per Ton Jul-Sep 2025 | Thousands of Tons 2024 | Millions of Pesos Oct-Dec 2024 | Average Price per Ton 2024 |
Special Bar Quality SBQ | 122 | 2,317 | 18,992 | 118 | 2,392 | 20,271 | 117 | 2,480 | 21,197 |
Commercial Long Steel | 410 | 5,655 | 13,793 | 381 | 5,093 | 13,367 | 403 | 6,350 | 15,757 |
Total | 532 | 7,972 | 14,985 | 499 | 7,485 | 15,000 | 520 | 8,830 | 16,981 |
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.
PRESS RELEASE | Contact: José Luis Tinajero |
Mario Moreno Cortez | |
Grupo Simec, S.A.B. de C.V. | |
Calzada Lázaro Cárdenas 601 | |
44440 | |
52 55 1165 1025 | |
52 33 3770 6734 |
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SOURCE Grupo Simec, S.A.B. de C.V.