Ternium Stock Price, News & Analysis

Ternium S.A. (NYSE:TX) reported robust financial results for Q4 and FY 2021, highlighting record profitability. The company shipped 12.1 million tons of steel, a 6% increase from 2020, and achieved net sales of $16.1 billion, an 84% rise year-over-year. Operating income reached $5.3 billion, with an EBITDA of $5.9 billion, reflecting a 285% increase. Ternium proposed a $0.26 annual dividend per share, totaling $510.4 million. Despite strong performance, Q4 shipments fell 8% sequentially, attributed to inventory issues and lower market activity in Mexico, leading to cautious expectations for 2022 amidst stabilizing steel prices.

Tul, an e-commerce platform supporting community hardware stores, has raised $181 million in a Series B funding round led by 8VC and Avenir, totaling nearly $210 million in funding to date. The capital will facilitate Tul's expansion into Brazil and other Latin American markets, targeting a total addressable market of $120 billion as locally-owned stores account for 50% of the region's hardware sales. Tul aims to digitize operations and enhance inventory management for underserved hardware stores, vital for self-built homes.

Ternium S.A. (NYSE:TX) announced a $1.0 billion bid to acquire a 28.73% stake in Ternium Mexico S.A. de C.V. from its subsidiary Ternium Argentina S.A. (BYMA: TXAR). This acquisition will streamline the corporate structure, enhancing management efficiency and stakeholder analysis. Currently, Ternium owns 71.27% of Ternium Mexico and 62.49% of Ternium Argentina. The transaction requires 95% approval from Ternium Argentina's shareholders and includes a $900 million dividend. If approved, the deal is expected to finalize in Q1 2022.

Ternium S.A. (NYSE:TX) reported a strong performance for Q3 and the first nine months of 2021, with net sales reaching $4.6 billion, a 115% increase year-over-year, driven by a rise in steel shipments to 3.1 million tons. EBITDA for Q3 stood at $1.9 billion, 432% higher than last year, resulting in an EBITDA margin of 41%. Net income was $1.4 billion, marking a significant recovery. For the first nine months, net sales totaled $11.8 billion, a 91% increase, with free cash flow at $1.1 billion. An interim dividend of $0.08 per share has been declared.

Ternium S.A. (NYSE:TX) has signed a memorandum of understanding with Vale S.A. to explore steelmaking solutions aimed at reducing CO₂ emissions. The partnership will evaluate the feasibility of investments in an iron ore briquetting plant in Brazil and low-carbon product manufacturing using Tecnored, HYL, and other technologies. This initiative supports Vale's goal to cut 15% of net Scope 3 emissions by 2035 and Ternium's target to lower its CO₂ intensity by 20% by 2030. Both companies aim for substantial advancements in environmental sustainability within the steel industry.

Ternium S.A. (NYSE:TX) has been acquitted of all charges in the Notebooks Case involving its Chairman, Paolo Rocca. A first-instance judge ruled that Rocca's involvement does not tarnish his reputation. The decision was uncontested by the prosecutor or the government unit involved. This ruling may strategically strengthen Ternium's position in the market by alleviating potential reputational risks associated with legal challenges.

Ternium S.A. (NYSE:TX) reported strong financial results for Q2 and H1 2021, with net sales reaching $3.92 billion in Q2, up 125% year-on-year, and $7.17 billion for H1, an increase of 78%. Operating income increased significantly to $1.27 billion in Q2 and $2.18 billion for H1. EBITDA was $1.42 billion for Q2 and $2.48 billion for H1, with margins improving to 36% and 35%, respectively. Free cash flow for Q2 was $467 million and $665 million for H1. The net debt position was $0.2 billion, reflecting strong operational performance amid rising steel demand.

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Ternium S.A. (NYSE:TX) held its annual general meeting on May 3, 2021, where all resolutions were unanimously approved. Shareholders endorsed the consolidated financial statements for the year ending December 31, 2020, and a dividend of $0.21 per share, payable on May 11, 2021, to shareholders of record by May 6, 2021. The board of directors was reduced to eight members, all of whom were re-elected. Additionally, PricewaterhouseCoopers was re-appointed as independent auditors for fiscal year 2021.