Ternium Announces Fourth Quarter and Full Year 2025 Results

Rhea-AI Summary

Ternium (NYSE:TX) reported Q4 2025 Adjusted EBITDA of $395 million and FY 2025 Adjusted EBITDA of $1.5 billion (10% margin). Net income was $171 million in Q4 and $303 million for 2025. Net cash was $712 million at year-end. Capex totaled $2.5 billion, with major investment in Pesquería. The board proposed an annual dividend of $2.70 per ADS (~6% yield). Management expects higher Adjusted EBITDA and shipments in Q1 2026.

Positive

• Net cash of $712 million at Dec 31, 2025
• Capex $2.5 billion invested, largely for Pesquería expansion
• Operating cash flow of $2.3 billion for 2025
• Annual dividend proposal $2.70 per ADS (~6% yield)

Negative

• Adjusted EBITDA declined to $1.5 billion for 2025
• Write-down at Usiminas of $405 million affecting 2025 results
• Dividends paid of $530 million in 2025 reduced free cash reserves

Key Figures

Q4 2025 Adjusted EBITDA: $395 million Q4 2025 Net Income: $171 million Deferred Tax Gain: $94 million +5 more

8 metrics

Q4 2025 Adjusted EBITDA $395 million Fourth quarter 2025, slight sequential decrease

Q4 2025 Net Income $171 million Fourth quarter 2025, includes $94M deferred tax gain

Deferred Tax Gain $94 million Q4 2025 deferred tax gain

2025 Adjusted EBITDA $1.5 billion Full year 2025, with 10% Adjusted EBITDA margin

2025 Net Income $303 million Full year 2025, impacted by Usiminas-related charges

Usiminas DTA Write-down $405 million 2025 write-down of deferred tax assets at Usiminas

Usiminas Litigation Loss $117 million 2025 provision update for ongoing litigation

Proposed Annual Dividend $2.70 per ADS 2025 annual dividend proposal, ~6% yield on current price

Market Reality Check

Price: $43.25 Vol: Volume 313,465 vs 20-day ...

normal vol

$43.25 Last Close

Volume Volume 313,465 vs 20-day average 286,828 (relative volume 1.09), showing only slightly elevated trading ahead of/around the release. normal

Technical Price $43.25 trades 5.09% below the 52-week high of $45.57 and well above the 200-day MA of $34.78, indicating a pre-news uptrend despite softer 2025 results.

Peers on Argus

TX was down 0.92% while key steel peers were mixed: GGB -0.49%, SIM -2.27%, CLF ...

2 Up 1 Down

TX was down 0.92% while key steel peers were mixed: GGB -0.49%, SIM -2.27%, CLF +3.75%, CMC +0.23%, RS -0.05%. Momentum scanner saw MT and PKX up ~2% and NUE slightly down, suggesting TX’s move was more stock-specific than a broad steel-sector reaction.

Previous Earnings Reports

5 past events · Latest: Oct 28 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 28	Q3 2025 earnings	Negative	+1.1%	Q3 net loss from Usiminas deferred tax write-down and litigation provision.
Jul 29	Q2 2025 earnings	Positive	+3.4%	Adjusted EBITDA up 25% QoQ with stable sales and higher margins.
Apr 29	Q1 2025 earnings	Neutral	-2.3%	Mixed regional trends; higher EBITDA and net income but softer Mexico sales.
Feb 18	FY 2024 earnings	Positive	-4.0%	Q4 net income, strong net cash and a high dividend proposal for 2024.
Jul 30	Q2 2024 earnings	Negative	-2.2%	Large Usiminas litigation provision driving a substantial quarterly net loss.

Pattern Detected

Earnings releases often triggered mixed or counterintuitive reactions, with 3 divergences vs 2 aligned moves over the last five earnings events.

Recent Company History

Over the last five earnings releases since Jul 2024, Ternium has navigated volatile results driven by steel pricing, Usiminas-related charges and the large Pesquería capex program. Periods of strong Adjusted EBITDA and net cash (e.g., Q2 and H1 2025) alternated with sizeable write-downs and provisions. Market reactions were inconsistent, at times selling off on seemingly solid results or rising despite negative one-offs. Today’s full-year 2025 release continues that theme of resilient cash generation but pressured profitability and ongoing Usiminas impacts.

Historical Comparison

-0.8% avg move · In the past five earnings releases, TX saw an average move of -0.81%, with reactions often muted or ...

earnings

-0.8%

Average Historical Move earnings

In the past five earnings releases, TX saw an average move of -0.81%, with reactions often muted or contrary to headline fundamentals, framing expectations for this earnings print.

Earnings since mid-2024 show a cycle of strong cash generation and sizable Usiminas-related charges, alongside heavy Pesquería capex and recurring dividends, with markets responding inconsistently to these mixed signals.

Market Pulse Summary

This announcement details softer 2025 profitability, with Adjusted EBITDA of $1.5 billion (10% margi...

Analysis

This announcement details softer 2025 profitability, with Adjusted EBITDA of $1.5 billion (10% margin) and net income of $303 million, pressured by a $405 million Usiminas deferred tax write-down and a $117 million litigation charge. At the same time, Ternium maintained a $712 million net cash position and proposed a $2.70 per ADS dividend. Investors may watch steel pricing, Usiminas-related items and execution of the large Pesquería capex program as key drivers in upcoming quarters.

Key Terms

adjusted ebitda, free cash flow, net cash, american depositary share, +3 more

7 terms

adjusted ebitda financial

"includes certain non-IFRS alternative performance measures such as Adjusted EBITDA, Cash Operating Income..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"alternative performance measures such as Adjusted EBITDA, Cash Operating Income, Free Cash Flow and Net Cash."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

net cash financial

"alternative performance measures such as Adjusted EBITDA, Cash Operating Income, Free Cash Flow and Net Cash."

Net cash is the amount of money a company has after subtracting any debts or obligations from its total cash holdings. It shows how much cash would remain if the company used its available funds to pay off its debts. For investors, positive net cash indicates financial health and flexibility, while negative net cash may suggest potential difficulties in meeting financial commitments.

american depositary share financial

"Each American Depositary Share, or ADS, represents 10 shares of Ternium's common stock."

An American Depositary Share (ADS) is a U.S.-listed certificate that represents a specified number of shares in a foreign company, held by a custodian bank; it works like a receipt that allows U.S. investors to buy and trade foreign equity on American exchanges without dealing with another country’s markets. Investors care because ADSs make foreign stocks easier to access, improve liquidity and settlement in dollars, and can affect dividend payments, voting rights and regulatory oversight compared with buying the underlying foreign shares directly.

cash operating income financial

"The Steel Segment's Cash Operating Income decreased by $49 million sequentially in the fourth quarter of 2025..."

Cash operating income is the amount of actual cash a company’s core business activities generate over a period, excluding non-cash accounting items like depreciation or one-time accounting gains and losses. For investors it shows how much cash the business really produces to pay bills, invest, reduce debt or return money to shareholders—think of it as the household paycheck you can actually spend, not the number on a paper ledger.

antidumping duties regulatory

"Antidumping duties were applied to imports of cold rolled coils and galvanized steel..."

A government-imposed tariff on imported goods meant to counteract “dumping,” where foreign producers sell products at unusually low prices—often below their cost—to gain market share. For investors, these duties can raise costs for importers, protect domestic producers’ sales and margins, alter supply chains, and change competitive landscapes; think of it as a temporary price floor that reshuffles who wins or loses in a market. Monitoring antidumping measures helps predict revenue, cost pressure, and stock moves for affected companies.

deferred tax assets financial

"a loss of $405 million in connection with the write-down of deferred tax assets at Usiminas..."

An item on a company’s balance sheet showing tax benefits it can use later to reduce future tax bills — think of it as an IOU from the tax system for past losses or timing differences. It matters to investors because it can boost future cash flow and apparent value if the company expects profits ahead, but those benefits vanish if the company cannot generate taxable income and the asset must be reduced.

AI-generated analysis. Not financial advice.

LUXEMBOURG, LU / ACCESS Newswire / February 18, 2026 / Ternium S.A. (NYSE:TX) today announced its results for the fourth quarter and full year ended December 31, 2025.

The financial and operational information contained in this press release is based on Ternium S.A.'s operational data and consolidated condensed financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and presented in U.S. dollars ($) and metric tons. 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.

Fourth Quarter of 2025 Highlights

Dividend figure compared to annual dividend for fiscal year 2024. Other figures compared to third quarter of 2025.

Summary of Fourth Quarter and Full Year 2025 Results

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.

Fourth Quarter and Full Year 2025 Highlights

In the fourth quarter of 2025, Adjusted EBITDA had a slight sequential decrease to $395 million. This was primarily driven by lower realized steel prices in the company's main steel markets, which were mostly offset by lower raw material and purchased slab costs, along with the positive results from the company's initiatives to improve efficiency. Net income in the fourth quarter of 2025 was $171 million, including deferred tax gains amounting to $94 million.

During the period, Ternium paid an interim dividend to shareholders of $177 million and dividends in kind to minority interest totalling $112 million. In addition, Ternium invested $463 million, primarily for the expansion of its industrial center in Pesquería, Mexico. Ternium's Net Cash position stood stable at $712 million at the end of December 2025, underpinned by operating cash flow of $528 million and a $204 million increase in the market value of financial securities.

For the full year 2025, Adjusted EBITDA decreased year-over-year to $1.5 billion, and adjusted EBITDA margin was 10%. This was mainly due to a significant drop in steel prices and lower steel shipments in Mexico. This adverse scenario was countered by the successful implementation of a competitiveness plan to cut costs and increase efficiency at our operations, as well as by lower raw material and purchased slab costs. Sales volumes declined in Mexico due to sluggish construction activity and softer industrial demand, amid the uncertainty caused by ongoing tariff negotiations with the United States. In Other Markets, steel shipments declined primarily reflecting lower sales in the United States, partially offset by increased shipments to other destinations. Conversely, shipments rose in the Southern Region, supported by the recovery of steel demand in Argentina from a low base in 2024.

Net income in 2025 amounted to $303 million, including a loss of $405 million in connection with the write-down of deferred tax assets at Usiminas and a loss of $117 million stemming from the periodical value update of the provision for ongoing litigation related to the acquisition of a participation in Usiminas.

Dividends paid to shareholders in 2025 amounted to $530 million, and dividends paid in kind to minority interest totaled $112 million. Capital expenditures reached $2.5 billion in the year, the peak of the current investment cycle, with the bulk allocated to the continuing expansion of the industrial center in Pesquería. These capital outflows were largely financed through cash generated by operating activities of $2.3 billion and cash on hand.

On February 12, 2026, Usiminas' Board of Directors approved the change of its functional currency from the Brazilian Real to the U.S. dollar, effective in its financial statements as from January 1, 2026. This change is intended to more faithfully reflect the economic substance of Usiminas' activities, taking into account the economic environment in which it operates.

Annual Dividend Proposal

Ternium's board of directors proposed the payment of an annual dividend of $2.70 per ADS ($0.27 per share), or $530 million based on total shares of common stock outstanding, net of treasury shares.

The annual dividend would include the interim dividend of $0.90 per ADS ($0.09 per share), or $177 million, paid in the fourth quarter of 2025. If the board of directors' proposal is approved at the shareholders' meeting to be held on May 12, 2026, a net dividend of $1.80 per ADS ($0.18 per share), or $353 million, will be paid on May 15, 2026, with record date on May 14, 2026.

Based on current market price of Ternium's ADS, the proposed annual dividend is equivalent to a dividend yield of approximately 6%.

Outlook

Ternium anticipates an increase in Adjusted EBITDA in the first quarter of 2026 compared to the fourth quarter of 2025. Shipments are expected to rise, primarily in Mexico. Adjusted EBITDA margin is also expected to improve, driven by an increase in revenue per ton, in both Mexico and Brazil, partially offset by higher costs per ton.

In Mexico, the government recently raised import tariffs on more than fourteen hundred tariff lines for countries without a free trade agreement, covering the majority of steel products. Demand is improving in the commercial market, following a destocking process throughout the steel value chain in 2025 due to market uncertainty related to trade negotiations with the United States. In the industrial market, the automotive industry is undergoing a period of rebalancing, marked by adjustments to electric vehicle production plans and the reshoring of manufacturing capacity from Asia.

In Brazil, the government has recently taken action to address the rise in steel imports from China, which have been entering under unfair trade conditions and harming the local market. Antidumping duties were applied to imports of cold rolled coils and galvanized steel, following the imposition of import duties on nine other steel products. These measures are significant steps toward ensuring fair competition within Brazil's steel industry.

Argentina's steel demand is expected to continue a gradual recovery in 2026, driven by the agricultural, mining, and energy sectors, as well as improvements in construction activity. Still, there is concern that unfairly traded imports could disrupt the steel value chain in the country if not properly addressed. In this context, the new trade agreement between Argentina and the United States holds significant importance, as both countries have committed to cooperating in tackling unfair trade practices originating from other nations.

Analysis of Fourth Quarter and Full Year 2025 Results

Consolidated Net Sales

Adjusted EBITDA

Adjusted EBITDA in the fourth quarter of 2025 equals Net Income adjusted to exclude mainly:

• Depreciation and amortization;

• Income tax results;

• Net financial results;

• Equity in earnings of non-consolidated companies; and

• A $19 million impairment of Las Encinas mining assets.

And adjusted to include the proportional EBITDA in Unigal (70% participation).

Adjusted EBITDA margin equals adjusted EBITDA divided by net sales.

For more information see Exhibit I - Alternative performance measures - "Adjusted EBITDA".

Steel Segment Fourth Quarter of 2025 Results

In the fourth quarter of 2025, the Steel Segment's net sales decreased sequentially and year-over-year mainly as a result of lower realized steel prices, as shipments remained relatively stable. Revenue per ton decreased in the Southern Region, Brazil and Other Markets. In Mexico, revenue per ton declined on a sequential basis, while it remained unchanged on a year-over-year basis.

Ternium's shipments in Mexico posted a slight sequential increase in the fourth quarter of 2025, supported by stronger commercial market demand amid government measures to curb unfair trade practices. However, despite this improvement, shipments declined year-over-year, reflecting uncertainty in connection with tariff negotiations with the United States.

In Brazil, shipments in the fourth quarter of 2025 showed a modest sequential decrease, reflecting seasonally slower activity. On a year-over-year basis, sales volumes remained relatively stable, as the growth in steel consumption in the country in 2025 was offset by a sizable increase in flat steel product imports.

In the Southern Region, shipments remained relatively stable sequentially. Year-over-year, sales volumes increased, reflecting a recovery in the demand for steel in Argentina from depressed levels in 2024.

In Other Markets, shipments in the fourth quarter of 2025 declined on a sequential and year-over-year basis mainly reflecting lower sales in the US market.

The Steel Segment's Cash Operating Income decreased by $49 million sequentially in the fourth quarter of 2025, reflecting slightly lower sales volumes and margins. Cash Operating Income Margin decreased by one percentage point, as a 4% decrease in realized steel prices was largely offset by lower raw material and purchased slab costs, as well as efficiency gains.

Year-over-year, the Steel Segment's Cash Operating Income increased by $145 million in the quarter, primarily as a result of better margins. This reflected the company's efforts to improve efficiency as well as a decrease in raw material and purchased slab costs, partially offset by lower realized steel prices.

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".

Steel Segment Full Year2025 Shipments and Net Sales

The Steel Segment's net sales for the full year 2025 decreased by 13% compared to 2024. Steel revenue per ton declined by 10%, reflecting lower realized steel prices across Ternium's main steel markets.

Steel shipments decreased by 4% year-over-year, as lower sales volumes in Mexico and Other Markets were partially offset by higher shipments in the Southern Region.

Ternium's shipments in Mexico decreased in 2025, as steel demand weakened in the face of the uncertainty caused by U.S. trade negotiations and sluggish infrastructure investment.

In Brazil, shipments remained virtually unchanged in 2025. Although domestic steel consumption increased during the year, imports of flat steel products increased significantly amid unfair trade practices.

In the Southern Region, shipments increased in 2025, reflecting better steel demand in Argentina compared to weak activity levels in the prior year.

In Other Markets, sales volumes decreased in 2025 mainly reflecting declining shipments in the US market, partially offset by higher sales volumes in other destinations.

Mining Segment Fourth Quarter of 2025 Results

The Mining Segment's net sales increased sequentially and year-over-year in the fourth quarter of 2025, reflecting higher sales volumes and realized iron ore prices. The increase in iron ore shipments mainly reflected, on a sequential basis, better volumes from the Mexican operations, and, on a year-over-year basis, better volumes from both the Mexican and Brazilian operations.

The Mining Segment's Cash Operating Income increased sequentially by $10 million in the fourth quarter of 2025, reflecting higher sales volumes and margins. Cash Operating Income Margin increased by 1.4 percentage points, reflecting higher realized iron ore prices partially offset by higher unit costs.

Year-over-year, the Mining Segment's Cash Operating Income decreased by $12 million in the period, reflecting lower margins partially offset by higher shipments. The Cash Operating Income Margin decreased by 8.5 percentage points, reflecting increased unit costs partially offset by higher realized iron ore prices.

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".

Mining Segment Full Year of 2025 Shipments and Net Sales

In 2025, the Mining Segment's net sales increased year-over-year primarily as a result of higher iron ore shipments, reflecting better volumes in both the Brazilian and Mexican operations, partially offset by lower realized iron ore prices.

Net Financial Results

Net financial results were a loss of $24 million for the fourth quarter and a loss of $25 million for the full year 2025.

Foreign exchange results amounted to a loss of $19 million for the fourth quarter and a loss of $57 million for the full year of 2025, primarily reflecting the impact of the Argentine Peso's depreciation against the U.S. dollar on Ternium Argentina's net long local currency position and the impact of the Mexican Peso's appreciation against the U.S. dollar on Ternium Mexico's net short local currency position.

The change in the fair value of financial assets resulted in a gain of $14 million for the fourth quarter and a gain of $68 million for the full year 2025, driven mainly by the positive performance of Ternium Argentina's short-term financial securities holdings.

In addition, net financial results included a charge of $21 million in the fourth quarter of 2025, in connection with the accelerated recognition of the purchase of an additional participation in Usiminas from Nippon Steel Corporation and Mitsubishi Corporation.

$ MILLION			4Q25				3Q25				4Q24				2025				2024
Net interest result			5				3				18				23				102
Net foreign exchange result			(19	)			(34	)			(72	)			(57	)			(104	)
Change in fair value of financial assets			14				8				(3	)			68				(133	)
Other financial expense, net			(25	)			(12	)			(11	)			(60	)			(58	)
Net financial results			(24	)			(35	)			(67	)			(25	)			(194	)

Income Tax Results

Ternium Mexico, Ternium Argentina and Ternium Brasil 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.

Deferred tax results were a gain of $94 million in the fourth quarter of 2025 and a gain of $222 million for the full year 2025, mainly in connection with the appreciation of the Mexican peso during the year.

In addition, income tax results in 2025 included a $405 million charge in connection with the write-down of deferred tax assets at Usiminas in the third quarter, and a $23 million charge in connection with the write-down of deferred tax assets at Las Encinas in the fourth quarter, following the performance of a recoverability assessment of such assets.

$ MILLION			4Q25				3Q25				4Q24				2025				2024
Current income tax expense			(54	)			(13	)			(10	)			(139	)			(323	)
Deferred tax gain (loss)			94				(26	)			(54	)			222				(231	)
Write-down of deferred tax assets at Las Encinas and Usiminas			(23	)			(405	)			-				(428	)			-
Income tax gain (expense)			17				(444	)			(64	)			(345	)			(554	)

Net Result

In the fourth quarter of 2025, Ternium's net income amounted to $171 million, including a deferred tax gain of $94 million. Equity Holder's Net Income was $122 million in the period, or $0.62 per ADS, mainly after accounting for the participation of a 76.7% non-controlling interest in Usiminas and a 37.4% non-controlling interest in Ternium Argentina.

For the full year 2025, net income was $303 million, including a deferred tax gain of $222 million, a loss of $405 million in connection with the write-down of deferred tax assets at Usiminas and a loss of $117 million in connection with the provision for ongoing litigation concerning the acquisition of a participation in Usiminas, on account of interest accruals and the appreciation of the Brazilian Real. Equity Holder's Net Income was $425 million in the year, or $2.17 per ADS.

$ MILLION			4Q25				3Q25				4Q24				2025				2024
Net income (loss)			171				(270	)			333				303				174
Excluding non-controlling interest			49				(290	)			52				(122	)			227
Owners of the parent			122				21				281				425				(54	)
$ per ADS			4Q25				3Q25				4Q24				2025				2024
Earnings (losses) per ADS			0.62				0.10				1.43				2.17				(0.27	)

Cash Flow and Liquidity

In the fourth quarter of 2025, cash from operations amounted to $528 million. Working capital decreased by $135 million primarily as a result of a $258 million decrease in trade and other receivables and a minor decrease in inventories, partially offset by a $127 million decrease in trade payables and other liabilities.

Inventory value remained broadly stable, as lower unit costs were offset by higher volumes. Capital expenditures totaled $463 million in the fourth quarter, primarily reflecting the progress made in the construction of the new facilities at Ternium's industrial center in Pesquería, Mexico.

In the fourth quarter of 2025, alongside the development of its capital expenditure program, Ternium paid an interim dividend to its shareholders totaling $177 million and Ternium Argentina paid a dividend in kind to the minority interest amounting to $112 million.

Despite these significant cash disbursements, Ternium's Net Cash position stood at $712 million as of the end of December 2025, stable compared to the end of September 2025. This was the consequence of a strong cash generated by operating activities, together with a $204 million increase in the market value of financial securities.

In 2025, cash from operations reached $2.3 billion. Capital expenditures amounted to $2.5 billion, the peak of the current investment cycle, with the bulk allocated to the continuing expansion of the industrial center in Pesquería. Dividends paid to the company's shareholders totaled $530 million, and dividends paid in kind to the minority interest amounted to $112 million. Consequently, Ternium's Net Cash position decreased by $932 million in 2025.

Conference Call and Webcast

Ternium will host a conference call on February 18, 2026, at 8:30am ET in which management will discuss fourth quarter and full year 2025 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			4Q25				3Q25				4Q24				2025				2024
Net sales			3,775				3,955				3,876				15,609				17,649
Cost of sales			(3,171	)			(3,346	)			(3,426	)			(13,256	)			(14,760	)
Gross profit			604				608				450				2,353				2,889
Selling, general and administrative expenses			(406	)			(396	)			(373	)			(1,601	)			(1,651	)
Other operating (expense) income, net			(39	)			3				(35	)			(46	)			25
Operating income			159				215				42				705				1,263
Financial expense			(50	)			(53	)			(52	)			(214	)			(196	)
Financial income			56				56				71				238				298
Other financial expense, net			(29	)			(37	)			(86	)			(49	)			(296	)
Equity in earnings of non-consolidated companies			20				25				18				86				69
Provision for ongoing litigation related to the acquisition of a participation in Usiminas			(1	)			(32	)			404				(117	)			(410	)
Profit before income tax results			155				174				397				648				728
Income tax gain (expense)			17				(444	)			(64	)			(345	)			(554	)
Profit (loss) for the period			171				(270	)			333				303				174
Attributable to:
Owners of the parent			122				21				281				425				(54	)
Non-controlling interest			49				(290	)			52				(122	)			227
Profit (loss) for the period			171				(270	)			333				303				174

Statement of Financial Position

$ MILLION		DECEMBER 31, 2025				DECEMBER 31, 2024
Property, plant and equipment, net			10,406				8,381
Intangible assets, net			1,002				1,022
Investments in non-consolidated companies			563				469
Other investments			0				23
Deferred tax assets			1,039				1,194
Receivables, net			804				961
Trade receivables, net			4				-
Total non-current assets			13,819				12,050
Receivables, net			985				902
Derivative financial instruments			43				4
Inventories, net			4,094				4,751
Trade receivables, net			1,536				1,562
Other investments			1,600				2,160
Cash and cash equivalents			1,531				1,691
Total current assets			9,788				11,071
Non-current assets classified as held for sale			8				7
Total assets			23,615				23,129

Statement of Financial Position (cont.)

$ MILLION		DECEMBER 31, 2025				DECEMBER 31, 2024
Capital and reserves attributable to the owners of the parent			11,944				11,968
Non-controlling interest			4,203				4,163
Total equity			16,148				16,132
Provisions			586				553
Deferred tax liabilities			24				89
Non current tax liabilities			13				21
Other liabilities			956				766
Trade payables			1				5
Lease liabilities			138				164
Borrowings			1,815				1,560
Total non-current liabilities			3,533				3,158
Provision for ongoing litigation related to the acquisition of a participation in Usiminas			528				410
Current income tax liabilities			39				107
Other liabilities			640				630
Trade payables			2,073				1,926
Derivative financial instruments			1				50
Lease liabilities			49				46
Borrowings			604				670
Total current liabilities			3,934				3,839
Total liabilities			7,467				6,997
Total equity and liabilities			23,615				23,129

Statement of Cash Flows

$ MILLION			4Q25				3Q25				4Q24				2025				2024
Result for the period			171				(270	)			333				303				174
Adjustments for:
Depreciation and amortization			210				197				189				788				743
Income tax accruals less payments			(42	)			394				23				100				498
Equity in earnings of non-consolidated companies			(20	)			(25	)			(18	)			(86	)			(69	)
Provision for ongoing litigation related to the acquisition of a participation in Usiminas			1				32				(404	)			117				410
Interest accruals less payments / receipts, net			(8	)			(6	)			(7	)			(15	)			(16	)
Changes in provisions			(6	)			1				10				-				(60	)
Changes in working capital			135				174				257				1,035				(16	)
Net foreign exchange results and others			68				38				56				51				211
Impairment of Las Encinas' mining assets			19				-				32				19				32
Net cash provided by operating activities			528				535				472				2,314				1,906
Capital expenditures and advances to suppliers for PP&E			(463	)			(711	)			(561	)			(2,501	)			(1,865	)
(Increase) decrease in other investments			(48	)			(24	)			296				490				462
Proceeds from the sale of property, plant & equipment			0				3				1				4				2
Dividends received from non-consolidated companies			28				2				21				32				26
Repayment of additional paid in capital			(5	)			-				-				(10	)			-
Net cash used in investing activities			(488	)			(729	)			(243	)			(1,985	)			(1,375	)
Dividends paid in cash to company's shareholders			(177	)			-				(177	)			(530	)			(609	)
Dividends paid in cash to non-controlling interest			(7	)			-				(5	)			(9	)			(54	)
Finance lease payments			(14	)			(15	)			(15	)			(65	)			(61	)
Proceeds from borrowings			461				71				272				1,115				1,559
Repayments of borrowings			(78	)			(387	)			(139	)			(1,012	)			(1,323	)
Net cash provided by (used in) financing activities			186				(330	)			(63	)			(501	)			(488	)
Increase (decrease) in cash and cash equivalents			226				(524	)			165				(171	)			42

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			4Q25				3Q25				4Q24				2025				2024
Net income (loss)			171				(270	)			333				303				174
Adjusted to exclude:
Depreciation and amortization			210				197				189				788				743
Income tax results			(17	)			444				64				345				554
Net financial results			24				35				67				25				194
Equity in earnings of non-consolidated companies			(20	)			(25	)			(18	)			(86	)			(69	)
Provision for ongoing litigation related to the acquisition of a participation in Usiminas			1				32				(404	)			117				410
Impairment of Las Encinas' mining assets			19				-				32				19				32
Reversal of contingencies (Usiminas and others)			-				-				-				-				(34	)
Adjusted to include: Proportional EBITDA in Unigal (70% participation)			7				8				6				29				33
Adjusted EBITDA			395				420				270				1,541				2,038
Divided by: net sales			3,775				3,955				3,876				15,609				17,649
Adjusted EBITDA Margin (%)			10.5	%			10.6	%			7.0	%			9.9	%			11.5	%

Exhibit I - Alternative Performance Measures (cont.)

Cash Operating Income - Steel Segment

$ MILLION			4Q25				3Q25				4Q24				2025				2024
Operating Income - Management View (Note "Segment Information" to Ternium's Financial Statements as of the corresponding dates)			202				333				308				968				1,560
Plus/minus differences in cost of sales (IFRS)			(18	)			(96	)			(259	)			(219	)			(330	)
Excluding depreciation and amortization			150				146				142				582				552
Excluding reversal of contingencies (Usiminas and others)			-				-				-				-				(34	)
Including proportional EBITDA in Unigal (70% participation)			7				8				6				29				33
Cash Operating Income			342				391				197				1,359				1,780
Divided by: steel shipments (thousand tons)			3,727				3,757				3,764				15,060				15,622
Cash Operating Income per Ton - Steel			92				104				52				90				114
Divided by: steel net sales			3,624				3,804				3,767				15,041				17,220
Cash Operating Income Margin - Steel (%)			9.4	%			10.3	%			5.2	%			9.0	%			10.3	%

Cash Operating Income - Mining Segment

$ MILLION			4Q25				3Q25				4Q24				2025				2024
Operating Result - Management View (Note "Segment Information" to Ternium's Financial Statements as of the corresponding dates)			(66	)			(35	)			(35	)			(141	)			(166	)
Plus/minus differences in cost of sales (IFRS)			35				23				15				113				194
Excluding depreciation and amortization			60				51				47				206				192
Impairment of Las Encinas' mining assets			19				-				32				19				32
Cash Operating Income			48				38				60				197				252
Divided by: mining shipments (thousand tons)			3,361				3,207				2,995				12,951				11,385
Cash Operating Income per Ton - Mining			14				12				20				15				22
Divided by: mining net sales			309				268				249				1,138				1,059
Cash Operating Income Margin - Mining (%)			15.7	%			14.3	%			24.2	%			17.3	%			23.8	%

Exhibit I - Alternative Performance Measures (cont.)

Free Cash Flow

$ MILLION			4Q25				3Q25				4Q24				2025				2024
Net cash provided by operating activities			528				535				472				2,314				1,906
Less: capital expenditures and advances to suppliers for PP&E			(463	)			(711	)			(561	)			(2,501	)			(1,865	)
Free Cash Flow			65				(175	)			(90	)			(187	)			41

Net Cash

$ BILLION			DECEMBER 31, 2025				SEPTEMBER 30, 2025				DECEMBER 31, 2024
Cash and cash equivalents			1.5				1.3				1.7
Plus: other investments (current and non-current)			1.6				1.4				2.2
Less: borrowings (current and non-current)			(2.4	)			(2.0	)			(2.2	)
Net Cash			0.7				0.7				1.6

Note: Ternium Argentina's consolidated position of cash and cash equivalents and other investments amounted to $0.8 billion and $0.9billion as of December 31 and September 30, 2025, respectively, and $1.3 billion as of December 31, 2024.

CONTACT:

SebastiánMartí
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

FAQ

What were Ternium's (TX) fourth quarter 2025 results on Adjusted EBITDA and net income?

Adjusted EBITDA in Q4 2025 was $395 million and net income was $171 million. According to the company, lower realized steel prices reduced EBITDA, partly offset by cost savings and lower raw material and slab costs.

How much capex did Ternium (TX) invest in 2025 and what was it for?

Ternium invested $2.5 billion in 2025, primarily for the Pesquería industrial center expansion. According to the company, this represents the peak of the current investment cycle and was largely financed by operating cash flow and cash on hand.

What dividend did Ternium (TX) propose for 2025 and when is payment expected?

The board proposed an annual dividend of $2.70 per ADS (about $530 million), including a $0.90 interim ADS payment. According to the company, the net payment of $1.80 per ADS would be paid on May 15, 2026 if approved on May 12, 2026.

What caused the significant charge related to Usiminas in Ternium's 2025 results?

Ternium recorded a $405 million write-down of deferred tax assets at Usiminas in 2025. According to the company, this charge reflected a recoverability assessment and materially reduced net income for the year.

What is Ternium's outlook for Q1 2026 regarding shipments and Adjusted EBITDA (TX)?

Ternium expects Q1 2026 Adjusted EBITDA to increase versus Q4 2025, with shipments rising mainly in Mexico. According to the company, margin improvement should come from higher revenue per ton in Mexico and Brazil, partially offset by higher costs per ton.