Ternium Announces Second Quarter and First Half of 2026 Results
Rhea-AI Summary
Ternium (NYSE:TX) reported second quarter 2026 net sales of $4.34 billion, up from $3.93 billion in 1Q26 and $3.95 billion in 2Q25. Adjusted EBITDA rose 50% sequentially to $717 million, with net income of $465 million and operating income of $528 million. Equity holders’ net income was $344 million, or $1.75 per ADS.
Performance was driven by higher shipments and improved margins in the Steel Segment, especially in Mexico, and higher prices in the Mining Segment. 2Q26 capex reached $431 million, mainly for the new steel shop in Pesquería, Mexico. Cash from operations was $256 million after a $418 million working capital increase. Ternium paid a $255 million dividend to shareholders and ended June 2026 with net debt of $112 million, versus net cash of $327 million at March 2026. For 3Q26, the company expects higher Adjusted EBITDA on increased shipments and improved margins.
Positive
- Adjusted EBITDA $717M in 2Q26, up 50% vs. 1Q26
- Net sales $4.34B in 2Q26, up from $3.93B in 1Q26
- Net income $465M in 2Q26, vs. $372M in 1Q26 and $259M in 2Q25
- Equity holders’ profit $557M in 1H26, vs. $282M in 1H25
- Steel Segment Cash Operating Income +$240M sequentially in 2Q26
- 1H26 net sales $8.27B, up from $7.88B in 1H25
Negative
- Net financial loss $39M in 2Q26, driven by FX losses
- Working capital +$418M in 2Q26, reducing operating cash to $256M
- Net leverage shift to $112M net debt at June 2026 from $327M net cash at March 2026
- Capex $431M in 2Q26, exceeding cash from operations
- Usiminas litigation provisions $72M in 1H26, including $24M in 2Q26
- Mining Segment Cash Operating Income decreased slightly sequentially in 2Q26
News Explained
First-half operating cash exceeded capital spending but fell short of capital spending plus shareholder dividends.
Ternium reported second-quarter and first-half 2026 results for the period ended
The release presents the information as consolidated condensed interim financial statements prepared under IAS 34, making this a midyear, unaudited reporting update rather than an audited annual report.
On the disclosed first-half figures, operating cash exceeded capital expenditures but was lower than capital expenditures plus the shareholder dividend, so the reported cash generation did not fund both uses in full.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 08 | Sustainability report | Neutral | +1.2% | Released 2025 sustainability report with emissions and environmental investment disclosures. |
| May 12 | Annual meeting | Neutral | +0.1% | Shareholders approved financial statements, dividends, board re-elections and auditor appointment. |
| May 05 | First-quarter earnings | Positive | +9.8% | Reported $479 million adjusted EBITDA and $372 million net income. |
| Apr 15 | Dividend revision | Negative | -1.2% | Reduced proposed annual dividend to $2.20 per ADS amid global uncertainty. |
| Mar 31 | Annual filing | Neutral | +1.5% | Filed 2025 Form 20-F annual report with the SEC. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent history showed positive reactions to the first-quarter results and sustainability report, while the dividend reduction drew a negative reaction; no repeated divergence was evident.
Key Terms
adjusted ebitda financial
ias 34 financial
ifrs financial
non-ifrs financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
LUXEMBOURG, LU / ACCESS Newswire / August 4, 2026 / Ternium S.A. (NYSE:TX) today announced its results for the second quarter and first half ended June 30, 2026.
The financial information contained in this press release is based on Ternium S.A.'s consolidated condensed interim financial statements prepared in accordance with IAS 34 "Interim financial reporting" (IFRS). Interim financial figures are unaudited. The financial and operational information is presented in U.S. Dollars ($) 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, Net Debt and Net Cash. The reconciliation of these figures to the most directly comparable IFRS measures is included in Exhibit I.
Second Quarter of 2026Highlights
Note: Figures compared to first quarter of 2026.
Summary of Second 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.
Second Quarter of 2026Highlights
Ternium delivered a robust performance in the second quarter of 2026. Adjusted EBITDA rose sequentially by
Capital expenditures amounted to
Outlook
Ternium expects Adjusted EBITDA to increase in the third quarter of 2026 compared to the second quarter, driven by higher shipments and an improved Adjusted EBITDA margin. The margin expansion should reflect higher revenue per ton, partially offset by an increase in cost per ton.
In Mexico, the company expects shipments to continue recovering in the third quarter of 2026, as the commercial market keeps its momentum. New pipeline projects and the substitution of Asian imported steel at several OEMs are starting to generate additional volumes, while public infrastructure works should provide further support beyond the quarter.
In Brazil, steel demand remains uneven, with resilience in the automotive industry and in infrastructure equipment offset by weaker demand from agricultural machinery. High imports of steel and of manufactured goods with steel content continue to weigh on the market. Trade defense is nevertheless gaining ground, as the steel quota system was renewed until June 2027 and a final decision on the antidumping case on hot rolled coils from China is expected in the coming months.
In Argentina, energy, mining and agriculture are expected to remain strong, with construction recovering gradually from still low levels. Manufacturing activity remains weaker, held back by soft domestic demand and strong competition from imports.
Analysis of Second Quarter of 2026 Results
Consolidated Net Sales
Adjusted EBITDA
Adjusted EBITDA in the second 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;
Provision for ongoing litigation related to the acquisition of a participation in Usiminas; and
Reversal of contingencies (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 Second Quarter of 2026 Results
The Steel Segment's net sales increased both sequentially and year-over-year in the second quarter of 2026, driven by higher shipments and revenue per ton. Sequentially, shipment volumes increased in Mexico and the Southern Region, while realized steel prices rose mainly in Mexico and Brazil. Compared to the same period of 2025, the growth in sales volumes was driven by the strength of the Mexican market, which more than offset a decrease in shipments across all other markets. Meanwhile, realized steel prices increased year-over-year in Mexico, Brazil and Other Markets.
In Mexico, shipments to the commercial market continued to strengthen, posting significant year-over-year growth in the second quarter of 2026. Sales volumes to industrial customers were broadly stable sequentially, remaining below those in the same period of 2025.
In Brazil, sales volumes were largely unchanged sequentially, with Usiminas continuing to prioritize margin over volume. Flat steel imports declined in the second quarter, following the implementation of government measures aimed at curbing import surges and supporting more balanced competitive conditions.
In the Southern Region, steel shipments increased sequentially in the second quarter consistent with a seasonal rebound in activity, as underlying demand for steel products remained relatively stable.
In Other Markets, shipments in the second quarter of 2026 were broadly stable sequentially. On a year-over-year basis, sales volumes declined primarily due to decreased shipments in the US market.
The Steel Segment's Cash Operating Income rose 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 Second Quarter of 2026 Results
Net sales in the Mining Segment increased both sequentially and year-over-year in the second quarter of 2026. Sequential growth was primarily driven by the Brazilian operations' seasonal rebound, partially offset by lower realized iron ore prices. Compared with the same period in 2025, the rise in net sales in the second quarter of 2026 was mainly the result of higher realized iron ore prices.
The Mining Segment's Cash Operating Income decreased slightly sequentially in the second quarter of 2026, primarily driven by lower realized iron ore prices partially offset by higher sales volumes. On a year-over-year basis, Cash Operating Income rose slightly supported by higher realized iron ore prices, largely offset by increased 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 loss 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. In the second quarter of 2026, the company recorded a deferred tax gain of
Net Income
In the second quarter of 2026, Ternium's net income amounted to
Equity Holder's Net Income was
Cash Flow and Liquidity
In the second quarter of 2026, cash from operations amounted to
Capital expenditures totaled
Alongside the development of its capital expenditure program, in the second quarter of 2026 Ternium paid a dividend to shareholders of
Ternium recorded a Net Debt position of
Conference Call and Webcast
Ternium will host a conference call on August 5, 2026, at 8:00am ET in which management will discuss second 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 | 2Q26 | 1Q26 | 2Q25 | 1H26 | 1H25 | |||||||||||||||
Net sales | 4,340 | 3,934 | 3,947 | 8,274 | 7,880 | |||||||||||||||
Cost of sales | (3,399 | ) | (3,247 | ) | (3,337 | ) | (6,646 | ) | (6,739 | ) | ||||||||||
Gross profit | 941 | 687 | 610 | 1,628 | 1,141 | |||||||||||||||
Selling, general and administrative expenses | (428 | ) | (390 | ) | (403 | ) | (818 | ) | (799 | ) | ||||||||||
Other operating income (expense), net | 15 | (7 | ) | (8 | ) | 9 | (11 | ) | ||||||||||||
Operating income | 528 | 290 | 199 | 818 | 331 | |||||||||||||||
Financial expense | (50 | ) | (50 | ) | (56 | ) | (101 | ) | (111 | ) | ||||||||||
Financial income | 45 | 64 | 57 | 109 | 126 | |||||||||||||||
Other financial (expense) income, net | (34 | ) | 9 | (31 | ) | (25 | ) | 18 | ||||||||||||
Equity in earnings of non-consolidated companies | 22 | 14 | 25 | 37 | 41 | |||||||||||||||
Provision for ongoing litigation related to the acquisition of a participation in Usiminas | (24 | ) | (48 | ) | (40 | ) | (72 | ) | (85 | ) | ||||||||||
Profit before income tax result | 487 | 279 | 155 | 767 | 320 | |||||||||||||||
Income tax | (23 | ) | 93 | 104 | 70 | 82 | ||||||||||||||
Profit for the period | 465 | 372 | 259 | 837 | 402 | |||||||||||||||
Attributable to: | ||||||||||||||||||||
Owners of the parent | 344 | 213 | 215 | 557 | 282 | |||||||||||||||
Non-controlling interest | 121 | 159 | 44 | 280 | 119 | |||||||||||||||
Profit for the period | 465 | 372 | 259 | 837 | 402 | |||||||||||||||
Statement of Financial Position
$ MILLION | JUNE 30, 2026 | DECEMBER 31, 2025 | ||||||
Property, plant and equipment, net | 10,973 | 10,406 | ||||||
Intangible assets, net | 1,037 | 1,002 | ||||||
Investments in non-consolidated companies | 614 | 563 | ||||||
Other investments | 0 | 0 | ||||||
Deferred tax assets | 1,283 | 1,039 | ||||||
Receivables, net | 764 | 804 | ||||||
Trade receivables, net | 5 | 4 | ||||||
Total non-current assets | 14,676 | 13,819 | ||||||
Receivables, net | 707 | 985 | ||||||
Derivative financial instruments | 26 | 43 | ||||||
Inventories, net | 4,395 | 4,094 | ||||||
Trade receivables, net | 2,007 | 1,536 | ||||||
Other investments | 1,301 | 1,600 | ||||||
Cash and cash equivalents | 1,431 | 1,531 | ||||||
Total current assets | 9,867 | 9,788 | ||||||
Non-current assets classified as held for sale | 9 | 8 | ||||||
Total assets | 24,552 | 23,615 | ||||||
Statement of Financial Position (cont.)
$ MILLION | JUNE 30, 2026 | DECEMBER 31, 2025 | ||||||
Capital and reserves attributable to the owners of the parent | 12,300 | 11,944 | ||||||
Non-controlling interest | 4,439 | 4,203 | ||||||
Total equity | 16,739 | 16,148 | ||||||
Provisions | 597 | 586 | ||||||
Deferred tax liabilities | 23 | 24 | ||||||
Non current tax liabilities | 5 | 13 | ||||||
Other liabilities | 998 | 956 | ||||||
Trade payables | 1 | 1 | ||||||
Lease liabilities | 160 | 138 | ||||||
Borrowings | 2,206 | 1,815 | ||||||
Total non-current liabilities | 3,989 | 3,533 | ||||||
Provision for ongoing litigation related to the acquisition of a participation in Usiminas | 599 | 528 | ||||||
Current income tax liabilities | 64 | 39 | ||||||
Other liabilities | 440 | 640 | ||||||
Trade payables | 2,036 | 2,073 | ||||||
Derivative financial instruments | - | 1 | ||||||
Lease liabilities | 47 | 49 | ||||||
Borrowings | 638 | 604 | ||||||
Total current liabilities | 3,823 | 3,934 | ||||||
Total liabilities | 7,813 | 7,467 | ||||||
Total equity and liabilities | 24,552 | 23,615 | ||||||
Statement of Cash Flows
$ MILLION | 2Q26 | 1Q26 | 2Q25 | 1H26 | 1H25 | |||||||||||||||
Result for the period | 465 | 372 | 259 | 837 | 402 | |||||||||||||||
Adjustments for: | ||||||||||||||||||||
Depreciation and amortization | 194 | 181 | 197 | 374 | 381 | |||||||||||||||
Income tax accruals less payments | 3 | (130 | ) | (202 | ) | (127 | ) | (252 | ) | |||||||||||
Equity in earnings of non-consolidated companies | (22 | ) | (14 | ) | (25 | ) | (37 | ) | (41 | ) | ||||||||||
Provision for ongoing litigation related to the acquisition of a participation in Usiminas | 24 | 48 | 40 | 72 | 85 | |||||||||||||||
Interest accruals less payments / receipts, net | (4 | ) | (7 | ) | (9 | ) | (10 | ) | - | |||||||||||
Changes in provisions | (10 | ) | 1 | 1 | (9 | ) | 4 | |||||||||||||
Changes in working capital | (418 | ) | (233 | ) | 781 | (651 | ) | 727 | ||||||||||||
Net foreign exchange results and others | 24 | - | - | 24 | (55 | ) | ||||||||||||||
Net cash provided by operating activities | 256 | 217 | 1,044 | 473 | 1,251 | |||||||||||||||
Capital expenditures and advances to suppliers for PP&E | (431 | ) | (406 | ) | (810 | ) | (837 | ) | (1,327 | ) | ||||||||||
Decrease in other investments | 288 | 88 | 319 | 376 | 562 | |||||||||||||||
Proceeds from the sale of property, plant & equipment | 0 | 1 | 0 | 1 | 1 | |||||||||||||||
Dividends received from non-consolidated companies | 1 | 1 | 1 | 2 | 2 | |||||||||||||||
Recovery of loans from non-consolidated companies | - | 150 | - | 150 | - | |||||||||||||||
Acquisition of additional participation in Usiminas | - | (315 | ) | - | (315 | ) | - | |||||||||||||
Acquisition of business - purchase consideration | - | (24 | ) | - | (24 | ) | - | |||||||||||||
Acquisition of business - cash acquired | - | 4 | - | 4 | - | |||||||||||||||
Repayment of additional paid in capital | - | - | (5 | ) | - | (5 | ) | |||||||||||||
Net cash used in investing activities | (142 | ) | (502 | ) | (495 | ) | (644 | ) | (768 | ) | ||||||||||
Dividends paid in cash to company's shareholders | (255 | ) | - | (353 | ) | (255 | ) | (353 | ) | |||||||||||
Dividends paid in cash to non-controlling interest | (36 | ) | (6 | ) | (2 | ) | (43 | ) | (2 | ) | ||||||||||
Finance lease payments | (18 | ) | (14 | ) | (15 | ) | (32 | ) | (35 | ) | ||||||||||
Proceeds from borrowings | 29 | 406 | 9 | 435 | 582 | |||||||||||||||
Repayments of borrowings | (19 | ) | (39 | ) | (162 | ) | (58 | ) | (547 | ) | ||||||||||
Net cash (used in) provided by financing activities | (300 | ) | 346 | (523 | ) | 46 | (356 | ) | ||||||||||||
(Decrease) increase in cash and cash equivalents | (186 | ) | 61 | 26 | (125 | ) | 127 | |||||||||||||
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 | 2Q26 | 1Q26 | 2Q25 | 1H26 | 1H25 | |||||||||||||||
Net income | 465 | 372 | 259 | 837 | 402 | |||||||||||||||
Adjusted to exclude: | ||||||||||||||||||||
Depreciation and amortization | 194 | 181 | 197 | 374 | 381 | |||||||||||||||
Income tax results | 23 | (93 | ) | (104 | ) | (70 | ) | (82 | ) | |||||||||||
Net financial results | 39 | (22 | ) | 30 | 17 | (33 | ) | |||||||||||||
Equity in earnings of non-consolidated companies | (22 | ) | (14 | ) | (25 | ) | (37 | ) | (41 | ) | ||||||||||
Provision for ongoing litigation related to the acquisition of a participation in Usiminas | 24 | 48 | 40 | 72 | 85 | |||||||||||||||
Reversal of contingencies (Usiminas) | (12 | ) | - | - | (12 | ) | - | |||||||||||||
Adjusted to include: | ||||||||||||||||||||
Proportional EBITDA in Unigal ( | 7 | 8 | 7 | 15 | 13 | |||||||||||||||
Adjusted EBITDA | 717 | 479 | 403 | 1,195 | 725 | |||||||||||||||
Divided by: net sales | 4,340 | 3,934 | 3,947 | 8,274 | 7,880 | |||||||||||||||
Adjusted EBITDA Margin (%) | 17 | % | 12 | % | 10 | % | 14 | % | 9 | % | ||||||||||
Exhibit I - Alternative Performance Measures (cont.)
Cash Operating Income - Steel Segment
$ MILLION | 2Q26 | 1Q26 | 2Q25 | 1H26 | 1H25 | |||||||||||||||
Operating Income - Management View (Note "Segment Information" to Ternium's Financial Statements as of the corresponding dates) | 410 | 272 | 190 | 682 | 433 | |||||||||||||||
Plus/minus differences in cost of sales (IFRS) | 88 | (18 | ) | 10 | 70 | (106 | ) | |||||||||||||
Excluding depreciation and amortization | 158 | 148 | 144 | 306 | 286 | |||||||||||||||
Excluding reversal of contingencies (Usiminas) | (12 | ) | - | - | (12 | ) | - | |||||||||||||
Including proportional EBITDA in Unigal ( | 7 | 8 | 7 | 15 | 13 | |||||||||||||||
Cash Operating Income | 650 | 410 | 350 | 1,060 | 626 | |||||||||||||||
Divided by: steel shipments (thousand tons) | 3,858 | 3,709 | 3,719 | 7,567 | 7,577 | |||||||||||||||
Cash Operating Income per Ton - Steel | 169 | 111 | 94 | 140 | 83 | |||||||||||||||
Divided by: steel net sales | 4,192 | 3,814 | 3,812 | 8,007 | 7,613 | |||||||||||||||
Cash Operating Income Margin - Steel (%) | 16 | % | 11 | % | 9 | % | 13 | % | 8 | % | ||||||||||
Cash Operating Income - Mining Segment
$ MILLION | 2Q26 | 1Q26 | 2Q25 | 1H26 | 1H25 | |||||||||||||||
Operating Result - Management View (Note "Segment Information" to Ternium's Financial Statements as of the corresponding dates) | (33 | ) | (25 | ) | (38 | ) | (58 | ) | (40 | ) | ||||||||||
Plus/minus differences in cost of sales (IFRS) | 55 | 53 | 38 | 108 | 55 | |||||||||||||||
Excluding depreciation and amortization | 36 | 33 | 53 | 69 | 95 | |||||||||||||||
Cash Operating Income | 58 | 61 | 54 | 119 | 110 | |||||||||||||||
Divided by: mining shipments (thousand tons) | 3,347 | 2,826 | 3,323 | 6,173 | 6,382 | |||||||||||||||
Cash Operating Income per Ton - Mining | 17 | 22 | 16 | 19 | 17 | |||||||||||||||
Divided by: mining net sales | 316 | 284 | 281 | 600 | 561 | |||||||||||||||
Cash Operating Income Margin - Mining (%) | 18 | % | 22 | % | 19 | % | 20 | % | 20 | % | ||||||||||
Exhibit I - Alternative Performance Measures (cont.)
Free Cash Flow
$ MILLION | 2Q26 | 1Q26 | 2Q25 | 1H26 | 1H25 | |||||||||||||||
Net cash provided by operating activities | 256 | 217 | 1,044 | 473 | 1,251 | |||||||||||||||
Less: capital expenditures and advances to suppliers for PP&E | (431 | ) | (406 | ) | (810 | ) | (837 | ) | (1,327 | ) | ||||||||||
Free Cash Flow | (175 | ) | (189 | ) | 234 | (364 | ) | (77 | ) | |||||||||||
Net Debt
$ BILLION | JUNE 30, 2026 | MARCH 31, 2026 | JUNE 30, 2025 | |||||||||
Borrowings (current and non-current) | 2.8 | 2.8 | 2.4 | |||||||||
Less: cash and cash equivalents | (1.4 | ) | (1.6 | ) | (1.9 | ) | ||||||
Less: other investments (current and non-current) | (1.3 | ) | (1.5 | ) | (1.5 | ) | ||||||
Net Debt (Cash) | 0.1 | (0.3 | ) | (1.0 | ) | |||||||
Note: Ternium Argentina's consolidated position of cash and cash equivalents and other investments amounted to
Contact:
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