Ternium Announces First Quarter of 2026 Results
Rhea-AI Summary
Ternium (NYSE:TX) reported first-quarter 2026 results: Adjusted EBITDA $479 million (21% sequential increase) and net income $372 million. First-quarter capex was $406 million; the company completed downstream expansion in Pesquería and acquired 153.1 million Usiminas shares for $315 million. Net cash fell to $327 million from $712 million at year-end 2025. Cash from operations was $217 million after a $233 million working capital increase. Management expects higher Adjusted EBITDA in Q2 2026 driven by shipments and margin improvement.
Positive
- Adjusted EBITDA +21% sequential to $479 million
- Net income of $372 million in Q1 2026
- Completed downstream expansion and start-up of new lines in Pesquería
- Acquisition of 153.1 million Usiminas shares for $315 million
Negative
- Net cash decreased by $385 million to $327 million
- Working capital increase of $233 million reduced operating cash flow
- Provision loss of $48 million for ongoing Usiminas litigation
News Market Reaction – TX
In the May 6 session, TX gained 9.77%, reflecting a notable positive market reaction. Argus tracked a peak move of +8.0% during that session. Our momentum scanner triggered 28 alerts that day, indicating elevated trading interest and price volatility. Trading volume was elevated at 2.3x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 15 | Dividend revision | Negative | -1.2% | Board cut proposed 2025 annual dividend per ADS amid global uncertainty. |
| Mar 31 | Regulatory filing | Neutral | +1.5% | Filing of 2025 Form 20-F and making annual report available to investors. |
| Mar 20 | AGM announcement | Neutral | +2.2% | Announcement of May 12, 2026 AGM and voting procedures for ADS holders. |
| Feb 18 | Earnings release | Positive | +0.9% | Q4 and FY 2025 results with positive net income and higher expected Q1 EBITDA. |
| Feb 10 | Usiminas acquisition | Positive | +2.3% | Completion of $315.2M purchase of 153.1M Usiminas shares from Nippon groups. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news, including earnings, AGM, and regulatory filings, has typically produced modest single-day price moves, with generally positive or neutral events seeing small positive reactions and the dividend cut drawing a mild decline.
Over the last few months, Ternium has reported Q4 2025 and full-year results, filed its 2025 Form 20-F, called the May 12, 2026 AGM, revised its 2025 dividend proposal, and completed the Usiminas share acquisition. The prior earnings release highlighted $395 million Q4 2025 Adjusted EBITDA, $1.5 billion for 2025 and net cash of $712 million, with an outlook for higher Q1 2026 Adjusted EBITDA. Today’s Q1 2026 release builds on that path with higher Adjusted EBITDA and ongoing investment and M&A execution.
Key Terms
ias 34 financial
ifrs financial
adjusted ebitda financial
free cash flow financial
net cash financial
ads financial
non-controlling interest financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
LUXEMBOURG / ACCESS Newswire / May 5, 2026 / Ternium S.A. (NYSE:TX) today announced its results for the first quarter ended March 31, 2026.
The financial information contained in this press release is based on Ternium S.A.'s consolidated condensed interim financial statements prepared in accordance with IAS 34 "Interim financial reporting" (IFRS). Interim financial figures are unaudited. The financial and operational information is presented in U.S. Dollars ($) and metric tons, except otherwise indicated. This press release includes certain non-IFRS alternative performance measures such as Adjusted EBITDA, Cash Operating Income, Free Cash Flow and Net Cash. The reconciliation of these figures to the most directly comparable IFRS measures is included in Exhibit I.
First Quarter of 2026 Highlights
Note: Figures compared to fourth quarter of 2025.
Summary of First Quarter of 2026
Note: Each American Depositary Share, or ADS, represents 10 shares of Ternium's common stock. Results are based on a weighted average number of shares of common stock outstanding (net of treasury shares) of 1,963,076,776.
First Quarter of 2026 Highlights
Ternium's Adjusted EBITDA increased sequentially by
Ternium's net income in the first quarter of 2026 reached
Ternium invested
Cash flow from operating activities amounted to
The company's net cash position stood at
Outlook
Ternium expects Adjusted EBITDA to increase in the second quarter of 2026 compared to the first quarter, driven by higher shipments and improved margins. Shipments are expected to rise primarily in Mexico and Argentina. Higher revenue per ton, especially in Mexico and Brazil, is anticipated to support the increase in Adjusted EBITDA margin, while higher costs per ton across Ternium's markets should partially offset these gains.
In Mexico, the company expects continued growth in commercial market shipments during the second quarter of 2026, as a significant destocking in the value chain throughout 2025 is giving way to a normalization of apparent demand. In addition, several infrastructure projects are beginning to progress and could contribute additional demand in the coming quarters.
In Brazil, steel consumption remains broadly stable, with resilience in the automotive sector offset by weaker demand in agribusiness-related industries. The government has taken initial measures to defend the local industry against unfair trade, including antidumping duties on cold-rolled and coated products. As these measures gain traction and currently elevated inventory levels of imported material normalize, Usiminas' shipments should begin to improve.
In Argentina, after an initial recovery in 2025, demand in 2026 is growing unevenly. Mining, energy, and agriculture continue to perform well, while construction is improving slightly but remains soft. Metal-mechanical and home appliance sectors are lagging, affected by weak domestic consumption and increased competition from imports.
Analysis of First Quarter of 2026 Results
Consolidated Net Sales
Adjusted EBITDA
Adjusted EBITDA in the first quarter of 2026 equals Net Income adjusted to exclude:
Depreciation and amortization;
Income tax results;
Net financial results;
Equity in earnings of non-consolidated companies; and
Provision for ongoing litigation related to the acquisition of a participation in Usiminas.
And adjusted to include the proportional EBITDA in Unigal (
Adjusted EBITDA margin equals adjusted EBITDA divided by net sales.
For more information see Exhibit I - Alternative performance measures - "Adjusted EBITDA".
Steel Segment First Quarter of 2026 Results
The Steel Segment's net sales increased sequentially in the period mainly as a result of better realized steel prices across Ternium's main steel markets.
On a year-over-year basis, net sales were almost unchanged, as higher realized steel prices were offset by a decline in shipments.
In Mexico, steel shipments increased, with a significant level of activity in the commercial market as a result of more effective defenses against unfairly traded imports, balanced inventories in the value chain and a seasonal rebound in activity.
In Brazil, Usiminas has prioritized profitability over shipment volumes, amid a more volatile scenario for energy and transportation costs. Consequently, steel shipments in the first quarter of 2026 recorded a modest sequential decline.
In the Southern Region, demand for steel products has moderated, reflecting slower activity in Argentina's industrial sector. Additionally, steel shipments fell sequentially in the first quarter of 2026 consistent with seasonally weaker activity.
In Other Markets, shipments in the first quarter of 2026 remained relatively unchanged sequentially, while they declined year-over-year mainly reflecting lower sales in the US market.
The Steel Segment's Cash Operating Income increased by
Year-over-year, the Steel Segment's Cash Operating Income increased by
Note: For a reconciliation of the Steel Segment's Cash Operating Income and Cash Operating Income per Ton and Margin to the most directly comparable IFRS measures, see Exhibit I - Alternative performance measures - "Cash Operating Income - Steel Segment".
Mining Segment First Quarter of 2026 Results
Net sales in the Mining Segment declined sequentially in the first quarter of 2026 driven by lower sales volumes, amid unusually intense rains affecting operations in Brazil, partially offset by higher revenue per ton.
On a year-over-year basis, net sales posted a slight increase, as higher revenue per ton was largely offset by reduced shipment volumes.
The Mining Segment's Cash Operating Income increased sequentially and year-over-year in the first quarter of 2026, supported by higher realized iron ore prices. This was partially offset by lower sales volumes and higher unit costs.
Note: For a reconciliation of the Mining Segment's Cash Operating Income and Cash Operating Income per Ton and Margin to the most directly comparable IFRS measures, see Exhibit I - Alternative performance measures - "Cash Operating Income - Mining Segment".
Net Financial Results
Net financial results were a gain of
Income Tax Results
Ternium's subsidiaries use the U.S. dollar as their functional currency; as a result, fluctuations between their local currencies and the U.S. dollar lead to the recognition of deferred tax results.
The company recorded a deferred tax gain of
Net Result
In the first quarter of 2026, Ternium's net income amounted to
Equity Holder's Net Income was
Cash Flow and Liquidity
In the first quarter of 2026, cash from operations amounted to
Capital expenditures totaled
Alongside the development of its capital expenditure program, in the first quarter of 2026 Ternium acquired 153.1 million ordinary shares of Usiminas for a total consideration of
The company's Net Cash position decreased to
Conference Call and Webcast
Ternium will host a conference call on May 6, 2026, at 8:00am ET in which management will discuss first quarter of 2026 results. A webcast link will be available in the Investor Center section of the company's website at www.ternium.com.
Forward Looking Statements
Some of the statements contained in this press release are "forward-looking statements". Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to gross domestic product, related market demand, global production capacity, tariffs, cyclicality in the industries that purchase steel products, and other factors beyond Ternium's control.
About Ternium
Ternium is a leading steel producer in the Americas, providing advanced steel products to a wide range of manufacturing industries and the construction sector. We invest in low carbon emissions steelmaking technologies to support the energy transition and the mobility of the future. We also support the development of our communities, especially through educational programs in Latin America. More information about Ternium is available at www.ternium.com.
Income Statement
$ MILLION | 1Q26 | 4Q25 | 1Q25 | |||||||||
Net sales | 3,934 | 3,775 | 3,933 | |||||||||
Cost of sales | (3,247 | ) | (3,171 | ) | (3,402 | ) | ||||||
Gross profit | 687 | 604 | 531 | |||||||||
Selling, general and administrative expenses | (390 | ) | (406 | ) | (396 | ) | ||||||
Other operating expense, net | (7 | ) | (39 | ) | (3 | ) | ||||||
Operating income | 290 | 159 | 132 | |||||||||
Financial expense | (50 | ) | (50 | ) | (54 | ) | ||||||
Financial income | 64 | 56 | 68 | |||||||||
Other financial income (expense), net | 9 | (29 | ) | 49 | ||||||||
Equity in earnings of non-consolidated companies | 14 | 20 | 16 | |||||||||
Provision for ongoing litigation related to the acquisition of a participation in Usiminas | (48 | ) | (1 | ) | (45 | ) | ||||||
Profit before income tax results | 279 | 155 | 165 | |||||||||
Income tax | 93 | 17 | (23 | ) | ||||||||
Profit for the period | 372 | 171 | 142 | |||||||||
Attributable to: | ||||||||||||
Owners of the parent | 213 | 122 | 67 | |||||||||
Non-controlling interest | 159 | 49 | 75 | |||||||||
Profit for the period | 372 | 171 | 142 | |||||||||
Statement of Financial Position
$ MILLION | MARCH 31, 2026 | DECEMBER 31, 2025 | ||||||
Property, plant and equipment, net |
|
| ||||||
Intangible assets, net | 1,007 | 1,002 | ||||||
Investments in non-consolidated companies | 590 | 563 | ||||||
Other investments | 0 | 0 | ||||||
Deferred tax assets | 1,216 | 1,039 | ||||||
Receivables, net | 778 | 804 | ||||||
Trade receivables, net | 5 | 4 | ||||||
Total non-current assets | 14,306 | 13,819 | ||||||
Receivables, net | 784 | 985 | ||||||
Derivative financial instruments | 25 | 43 | ||||||
Inventories, net | 4,173 | 4,094 | ||||||
Trade receivables, net | 1,804 | 1,536 | ||||||
Other investments | 1,525 | 1,600 | ||||||
Cash and cash equivalents | 1,617 | 1,531 | ||||||
Total current assets | 9,928 | 9,788 | ||||||
Non-current assets classified as held for sale | 8 | 8 | ||||||
Total assets | 24,242 | 23,615 | ||||||
Statement of Financial Position (cont.)
$ MILLION | MARCH 31, 2026 | DECEMBER 31, 2025 | ||||||
Capital and reserves attributable to the owners of the parent |
|
| ||||||
Non-controlling interest | 4,309 | 4,203 | ||||||
Total equity | 16,506 | 16,148 | ||||||
Provisions | 615 | 586 | ||||||
Deferred tax liabilities | 25 | 24 | ||||||
Non current tax liabilities | 15 | 13 | ||||||
Other liabilities | 961 | 956 | ||||||
Trade payables | 1 | 1 | ||||||
Lease liabilities | 146 | 138 | ||||||
Borrowings | 2,199 | 1,815 | ||||||
Total non-current liabilities | 3,963 | 3,533 | ||||||
Provision for ongoing litigation related to the acquisition of a participation in Usiminas | 575 | 528 | ||||||
Current income tax liabilities | 48 | 39 | ||||||
Other liabilities | 403 | 640 | ||||||
Trade payables | 2,078 | 2,073 | ||||||
Derivative financial instruments | 3 | 1 | ||||||
Lease liabilities | 50 | 49 | ||||||
Borrowings | 615 | 604 | ||||||
Total current liabilities | 3,773 | 3,934 | ||||||
Total liabilities | 7,736 | 7,467 | ||||||
Total equity and liabilities | 24,242 | 23,615 | ||||||
Statement of Cash Flows
$ MILLION | 1Q26 | 4Q25 | 1Q25 | |||||||||
Result for the period | 372 | 171 | 142 | |||||||||
Adjustments for: | ||||||||||||
Depreciation and amortization | 181 | 210 | 184 | |||||||||
Income tax accruals less payments | (130 | ) | (42 | ) | (50 | ) | ||||||
Equity in earnings of non-consolidated companies | (14 | ) | (20 | ) | (16 | ) | ||||||
Provision for ongoing litigation related to the acquisition of a participation in Usiminas | 48 | 1 | 45 | |||||||||
Interest accruals less payments / receipts, net | (7 | ) | (8 | ) | 9 | |||||||
Changes in provisions | 1 | (6 | ) | 3 | ||||||||
Changes in working capital | (233 | ) | 135 | (55 | ) | |||||||
Net foreign exchange results and others | 0 | 68 | (56 | ) | ||||||||
Impairment of Las Encinas' mining assets | - | 19 | - | |||||||||
Net cash provided by operating activities | 217 | 528 | 207 | |||||||||
Capital expenditures and advances to suppliers for PP&E | (406 | ) | (463 | ) | (518 | ) | ||||||
Decrease (increase) in other investments | 88 | (48 | ) | 243 | ||||||||
Proceeds from the sale of property, plant & equipment | 1 | 0 | 1 | |||||||||
Dividends received from non-consolidated companies | 1 | 28 | 1 | |||||||||
Recovery of loans from non-consolidated companies | 150 | - | - | |||||||||
Acquisition of additional participation in Usiminas | (315 | ) | - | - | ||||||||
Acquisition of business - purchase consideration | (24 | ) | - | - | ||||||||
Acquisition of business - cash acquired | 4 | - | - | |||||||||
Repayment of additional paid in capital | - | (5 | ) | - | ||||||||
Net cash used in investing activities | (502 | ) | (488 | ) | (273 | ) | ||||||
Dividends paid in cash to company's shareholders | - | (177 | ) | - | ||||||||
Dividends paid in cash to non-controlling interest | (6 | ) | (7 | ) | - | |||||||
Finance lease payments | (14 | ) | (14 | ) | (20 | ) | ||||||
Proceeds from borrowings | 406 | 461 | 573 | |||||||||
Repayments of borrowings | (39 | ) | (78 | ) | (385 | ) | ||||||
Net cash provided by financing activities | 346 | 186 | 167 | |||||||||
Increase in cash and cash equivalents | 61 | 226 | 101 | |||||||||
Exhibit I - Alternative Performance Measures
These non-IFRS measures should not be considered in isolation of, or as a substitute for, measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have a standardized meaning under IFRS and, therefore, may not correspond to similar non-IFRS financial measures reported by other companies.
Adjusted EBITDA
$ MILLION | 1Q26 | 4Q25 | 1Q25 | |||||||||
Net income | 372 | 171 | 142 | |||||||||
Adjusted to exclude: | ||||||||||||
Depreciation and amortization | 181 | 210 | 184 | |||||||||
Income tax | (93 | ) | (17 | ) | 23 | |||||||
Net financial results | (22 | ) | 24 | (63 | ) | |||||||
Equity in earnings of non-consolidated companies | (14 | ) | (20 | ) | (16 | ) | ||||||
Provision for ongoing litigation related to the acquisition of a participation in Usiminas | 48 | 1 | 45 | |||||||||
Impairment of Las Encinas' mining assets | - | 19 | - | |||||||||
Adjusted to include: | ||||||||||||
Proportional EBITDA in Unigal ( | 8 | 7 | 6 | |||||||||
Adjusted EBITDA | 479 | 395 | 322 | |||||||||
Divided by: net sales | 3,934 | 3,775 | 3,933 | |||||||||
Adjusted EBITDA Margin (%) | 12 | % | 10 | % | 8 | % | ||||||
Exhibit I - Alternative Performance Measures (cont.)
Cash Operating Income - Steel Segment
$ MILLION | 1Q26 | 4Q25 | 1Q25 | |||||||||
Operating Income - Management View (Note "Segment Information" to Ternium's Financial Statements as of the corresponding dates) | 272 | 202 | 244 | |||||||||
Plus/minus differences in cost of sales (IFRS) | (18 | ) | (18 | ) | (116 | ) | ||||||
Excluding depreciation and amortization | 148 | 150 | 142 | |||||||||
Including proportional EBITDA in Unigal( | 8 | 7 | 6 | |||||||||
Cash Operating Income | 410 | 342 | 276 | |||||||||
Divided by: steel shipments (thousand tons) | 3,709 | 3,727 | 3,857 | |||||||||
Cash Operating Income per Ton - Steel | 111 | 92 | 72 | |||||||||
Divided by: steel net sales | 3,814 | 3,624 | 3,801 | |||||||||
Cash Operating Income Margin - Steel (%) | 11 | % | 9 | % | 7 | % | ||||||
Cash Operating Income - Mining Segment
$ MILLION | 1Q26 | 4Q25 | 1Q25 | |||||||||
Operating Result - Management View (Note "Segment Information" to Ternium's Financial Statements as of the corresponding dates) |
|
|
| |||||||||
Plus/minus differences in cost of sales (IFRS) | 53 | 35 | 17 | |||||||||
Excluding depreciation and amortization | 33 | 60 | 42 | |||||||||
Impairment of Las Encinas' mining assets | - | 19 | - | |||||||||
Cash Operating Income | 61 | 48 | 57 | |||||||||
Divided by: mining shipments (thousand tons) | 2,826 | 3,361 | 3,059 | |||||||||
Cash Operating Income per Ton - Mining | 22 | 14 | 18 | |||||||||
Divided by: mining net sales | 284 | 309 | 280 | |||||||||
Cash Operating Income Margin - Mining (%) | 22 | % | 16 | % | 20 | % | ||||||
Exhibit I - Alternative Performance Measures (cont.)
Free Cash Flow
$ MILLION | 1Q26 | 4Q25 | 1Q25 | |||||||||
Net cash provided by operating activities | 217 | 528 | 207 | |||||||||
Less: capital expenditures and advances to suppliers for PP&E | (406 | ) | (463 | ) | (518 | ) | ||||||
Free Cash Flow | (189 | ) | 65 | (311 | ) | |||||||
Net Cash
$ BILLION | MARCH 31, | DECEMBER 31, 2025 | MARCH 31, | |||||||||
Cash and cash equivalents | 1.6 | 1.5 | 1.8 | |||||||||
Plus: other investments (current and non-current) | 1.5 | 1.6 | 1.9 | |||||||||
Less: borrowings (current and non-current) | (2.8 | ) | (2.4 | ) | (2.5 | ) | ||||||
Net Cash | 0.3 | 0.7 | 1.3 | |||||||||
Note: Ternium Argentina's consolidated position of cash and cash equivalents and other investments amounted to
Sebastián Martí
Ternium - Investor Relations
+1 (866) 890 0443
+54 (11) 4018 8389
www.ternium.com
SOURCE: Ternium S.A.
View the original press release on ACCESS Newswire