Ternium S.A.: Ternium Announces Third Quarter and First Nine Months of 2026 Results

LUXEMBOURG, LU / ACCESS Newswire / November 3, 2026 / Ternium S.A. (NYSE:TX) today announced its results for the third quarter and first nine months ended September 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.

Third Quarter of 2026 Highlights

Summary of Third Quarter of 2026

Third Quarter of 2026 Highlights

Ternium reported solid earnings in the third quarter of 2026, with adjusted EBITDA increasing sequentially by 10% to $785 million, on higher steel sales volumes and margins.

In Mexico, shipments to the commercial market continued their upward trend in the third quarter, accompanied by higher sales volumes to industrial customers. Steel shipments also increased sequentially in Brazil and the Southern Region, while remaining relatively stable in Other Markets.

The company's net income in the third quarter of 2026 reached $368 million, after deferred tax losses of $116 million mainly in connection with the effect of the depreciation of the Mexican Peso against the
U.S. dollar on Ternium's Mexican subsidiaries.

Capital expenditures amounted to $398 million during the third quarter, with the construction of Ternium's new slab mill in Pesquería, Mexico, continuing to advance according to plan. Cash from operating activities amounted to $613 million, after a $148 million increase in working capital driven mainly by higher realized steel prices and sales volumes, as well as higher raw material and purchased slab costs. Net Cash position at the end of September 2026 was $22 million, compared to Net Debt position of $112 million at the end of June 2026.

Interim Dividend Payment

Ternium's board of directors approved the payment of an interim dividend of $0.90 per ADS ($0.09 per share), or $177 million based on total shares of common stock outstanding, net of treasury shares.

The interim dividend payment date will be November 17, 2026, with record date on November 16, 2026.

Outlook

Ternium anticipates Adjusted EBITDA in the fourth quarter of 2026 to remain broadly in line with the third quarter, as a modest seasonal decrease in steel shipments should be offset by a slightly higher margin per ton. Consolidated revenue per ton is expected to increase, more than offsetting higher cost per ton driven by raw material and slab costs.

In Mexico, revenue per ton should continue to increase, in line with steel price trends in North America. Ternium is gaining market share by replacing imported steel in both the commercial and industrial markets. In addition, investments in data centers and gas pipeline infrastructure are expected to add to steel demand.

In Brazil, Ternium expects a decline in shipments and a less favorable sales mix, leading to lower revenue per ton, while cost per ton should remain elevated, mainly reflecting raw material and energy costs. Iron ore sales volumes are also anticipated to decrease, reflecting the temporary idling of part of the mining operations of Mineração Usiminas (MUSA) in response to current international prices and freight rates.

In the Southern Region, shipments are expected to remain relatively stable. Market conditions in Argentina are broadly unchanged from the previous quarter: oil and gas, mining and agriculture continue to be dynamic, while home appliances and automotive are still affected by weak domestic demand and unfairly traded imports, and construction has yet to recover.

Analysis of Third Quarter of 2026 Results

Consolidated Net Sales

Adjusted EBITDA

Adjusted EBITDA in the third 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 (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 Third Quarter of 2026 Results

The Steel Segment's net sales increased both sequentially and year over year in the third quarter of 2026, driven by higher shipments and revenue per ton. Compared with the previous quarter, sales volumes increased in Mexico, Brazil and the Southern Region, while realized steel prices rose primarily in Mexico and Other Markets. Compared to the same period in 2025, shipment volumes grew mainly in Mexico, while realized steel prices increased across most regions.

In the third quarter of 2026, Ternium continued gaining market share in Mexico. Commercial market shipments maintained their upward trend during the period, posting significant year-over-year growth. In addition, sales volumes to industrial customers increased both sequentially and year over year.

In Brazil and the Southern Region, sales volumes increased sequentially in the third quarter, but remained relatively stable on a year-over-year basis.

In Other Markets, shipments in the third quarter of 2026 were broadly stable sequentially, while decreasing slightly on a year-over-year basis.

In the third quarter of 2026, the Steel Segment's Cash Operating Income rose by $104 million on a sequential basis and by $363 million on a year-over-year basis, driven by higher realized steel prices and sales volumes, partially offset by higher unit costs.

The increase in cost per ton was mainly the result of higher raw material and purchased slab prices, partially offset by the company's ongoing initiatives to improve efficiency.

Mining Segment Third Quarter of 2026 Results

Net sales in the Mining Segment decreased by 18% sequentially in the third quarter of 2026, reflecting lower sales volumes and a slight decline in realized iron ore prices. Year-over-year, net sales decreased slightly in the third quarter, as the decline in sales volumes was mostly offset by higher realized iron ore prices. Sales volumes in the third quarter were affected by the temporary suspension of certain operations at Mineração Usiminas, following a deterioration in iron ore export profitability.

The Mining Segment's Cash Operating Income decreased sequentially in the third quarter of 2026, primarily driven by a decline in sales volumes and lower realized iron ore prices. On a year-over-year basis, Cash Operating Income rose slightly reflecting higher realized iron ore prices, which were largely offset by lower shipments and increased costs.

Net Financial Results

Net financial results were a gain of $6 million for the third quarter of 2026. Foreign exchange results were a gain of $12 million, mainly reflecting the positive effect of the depreciation of the Mexican Peso against the U.S. dollar on a net short local currency position at Ternium's subsidiaries in this country.

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 third quarter of 2026, the company recorded a deferred tax loss of $116 million mainly driven by the negative effect of the depreciation of the Mexican Peso against the U.S. dollar.

Net Income

In the third quarter of 2026, Ternium's net income amounted to $368 million after deferred tax losses of $116 million.

Equity Holder's Net Income was $279 million in the period, or $1.42 per ADS, mainly after accounting for the participation of a 62.5% non-controlling interest in Usiminas and a 37.4% non-controlling interest in Ternium Argentina.

Cash Flow and Liquidity

In the third quarter of 2026, cash from operations amounted to $613 million after a $148 million increase in working capital. Trade and other receivables rose by a net $99 million in the period, largely driven by higher realized steel prices and sales volumes. Likewise, inventories rose by $88 million, reflecting higher unit costs, partially offset by lower steel volumes. These working capital additions were mitigated by a $39 million net increase in trade payables and other liabilities.

Capital expenditures totaled $398 million in the period, primarily reflecting the progress made in the construction of the new slab mill at Ternium's industrial center in Pesquería, Mexico.

Ternium recorded a Net Cash position of $22 million as of the end of September 2026, compared to Net Debt position of $112 million as of the end of June 2026.

Ternium's Net Cash position as of the end of September included Ternium Argentina's consolidated position of cash and cash equivalents and other investments of $725 million. During the third quarter of 2026, Ternium recognized a $74 million decline in the fair value of Argentine securities.

Conference Call and Webcast

Ternium will host a conference call on November 4, 2026, at 8:00am ET in which management will discuss third 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		3Q26				2Q26				3Q25				9M26				9M25
Net sales			4,644				4,340				3,955				12,919				11,834
Cost of sales			(3,608	)			(3,399	)			(3,346	)			(10,254	)			(10,085	)
Gross profit			1,037				941				608				2,664				1,749
Selling, general and administrative expenses			(448	)			(428	)			(396	)			(1,266	)			(1,195	)
Other operating income (expense), net			(11	)			15				3				(2	)			(8	)
Operating income			578				528				215				1,396				546
Financial expense			(53	)			(50	)			(53	)			(153	)			(164	)
Financial income			45				45				56				154				182
Other financial income (expense), net			14				(34	)			(37	)			(12	)			(19	)
Equity in earnings of non-consolidated companies			19				22				25				56				65
Provision for ongoing litigation related to the acquisition of a participation in Usiminas			(20	)			(24	)			(32	)			(92	)			(117	)
Profit before income tax result			583				487				174				1,350				494
Income tax			(215	)			(23	)			(444	)			(145	)			(362	)
Profit (loss) for the period			368				465				(270	)			1,205				132
Attributable to:
Owners of the parent			279				344				21				836				303
Non-controlling interest			88				121				(290	)			369				(171	)
Profit (loss) for the period			368				465				(270	)			1,205				132

Statement of Financial Position

$ MILLION		SEPTEMBER 30, 2026				DECEMBER 31, 2025
Property, plant and equipment, net			11,194				10,406
Intangible assets, net			1,049				1,002
Investments in non-consolidated companies			626				563
Other investments			0				0
Deferred tax assets			1,215				1,039
Receivables, net			721				804
Trade receivables, net			5				4
Total non-current assets			14,812				13,819
Receivables, net			710				985
Derivative financial instruments			7				43
Inventories, net			4,483				4,094
Trade receivables, net			2,107				1,536
Other investments			1,760				1,600
Cash and cash equivalents			1,355				1,531
Total current assets			10,423				9,788
Non-current assets classified as held for sale			8				8
Total assets			25,243				23,615

Statement of Financial Position (cont.)

$ MILLION		SEPTEMBER 30, 2026				DECEMBER 31, 2025
Capital and reserves attributable to the owners of the parent			12,541				11,944
Non-controlling interest			4,517				4,203
Total equity			17,058				16,148
Provisions			594				586
Deferred tax liabilities			31				24
Non current tax liabilities			6				13
Other liabilities			989				956
Trade payables			1				1
Lease liabilities			176				138
Borrowings			2,306				1,815
Total non-current liabilities			4,104				3,533
Provision for ongoing litigation related to the acquisition of a participation in Usiminas			619				528
Current income tax liabilities			126				39
Other liabilities			486				640
Trade payables			2,013				2,073
Derivative financial instruments			0				1
Lease liabilities			49				49
Borrowings			787				604
Total current liabilities			4,081				3,934
Total liabilities			8,185				7,467
Total equity and liabilities			25,243				23,615

Statement of Cash Flows

$ MILLION		3Q26				2Q26				3Q25				9M26				9M25
Result for the period			368				465				(270	)			1,205				132
Adjustments for:
Depreciation and amortization			198				194				197				572				578
Income tax accruals less payments			169				3				394				42				142
Equity in earnings of non-consolidated companies			(19	)			(22	)			(25	)			(56	)			(65	)
Provision for ongoing litigation related to the acquisition of a participation in Usiminas			20				24				32				92				117
Interest accruals less payments / receipts, net			(17	)			(4	)			(6	)			(27	)			(6	)
Changes in provisions			4				(10	)			1				(5	)			5
Changes in working capital			(148	)			(418	)			174				(798	)			901
Net foreign exchange results and others			38				24				38				62				(17	)
Net cash provided by operating activities			613				256				535				1,086				1,786
Capital expenditures and advances to suppliers for PP&E			(398	)			(431	)			(711	)			(1,235	)			(2,038	)
(Increase) decrease in other investments			(529	)			288				(24	)			(153	)			538
Proceeds from the sale of property, plant & equipment			1				0				3				2				4
Dividends received from non-consolidated companies			1				1				2				3				4
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			(925	)			(142	)			(729	)			(1,568	)			(1,497	)
Dividends paid in cash to company's shareholders			-				(255	)			-				(255	)			(353	)
Dividends paid in cash to non-controlling interest			-				(36	)			-				(43	)			(2	)
Finance lease payments			(15	)			(18	)			(15	)			(48	)			(50	)
Proceeds from borrowings			334				29				71				768				653
Repayments of borrowings			(77	)			(19	)			(387	)			(135	)			(934	)
Net cash provided by (used in) financing activities			242				(300	)			(330	)			288				(686	)
Decrease in cash and cash equivalents			(70	)			(186	)			(524	)			(195	)			(397	)

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		3Q26				2Q26				3Q25				9M26				9M25
Net income			368				465				(270	)			1,205				132
Adjusted to exclude:
Depreciation and amortization			198				194				197				572				578
Income tax results			215				23				444				145				362
Net financial results			(6	)			39				35				11				2
Equity in earnings of non-consolidated companies			(19	)			(22	)			(25	)			(56	)			(65	)
Provision for ongoing litigation related to the acquisition of a participation in Usiminas			20				24				32				92				117
Reversal of contingencies (Usiminas)			-				(12	)			-				(12	)			-
Adjusted to include:
Proportional EBITDA in Unigal (70% participation)			9				7				8				24				21
Adjusted EBITDA			785				717				420				1,981				1,146
Divided by: net sales			4,644				4,340				3,955				12,919				11,834
Adjusted EBITDA Margin (%)			17	%			17	%			11	%			15	%			10	%

Exhibit I - Alternative Performance Measures (cont.)

Cash Operating Income - Steel Segment

$ MILLION		3Q26				2Q26				3Q25				9M26				9M25
Operating Income - Management View (Note "Segment Information" to Ternium's Financial Statements as of the corresponding dates)			504				410				333				1,185				766
Plus/minus differences in cost of sales (IFRS)			77				88				(96	)			148				(202	)
Excluding depreciation and amortization			163				158				146				469				432
Excluding reversal of contingencies (Usiminas)			-				(12	)			-				(12	)			-
Including proportional EBITDA in Unigal (70% participation)			9				7				8				24				21
Cash Operating Income			754				650				391				1,814				1,018
Divided by: steel shipments (thousand tons)			4,044				3,858				3,757				11,610				11,333
Cash Operating Income per Ton - Steel			186				169				104				156				90
Divided by: steel net sales			4,529				4,192				3,804				12,535				11,417
Cash Operating Income Margin - Steel (%)			17	%			16	%			10	%			14	%			9	%

Cash Operating Income - Mining Segment

$ MILLION		3Q26				2Q26				3Q25				9M26				9M25
Operating Result - Management View (Note "Segment Information" to Ternium's Financial Statements as of the corresponding dates)			(54	)			(33	)			(35	)			(112	)			(75	)
Plus/minus differences in cost of sales (IFRS)			59				55				23				168				77
Excluding depreciation and amortization			35				36				51				104				146
Cash Operating Income			40				58				38				160				148
Divided by: mining shipments (thousand tons)			2,832				3,347				3,207				9,005				9,589
Cash Operating Income per Ton - Mining			14				17				12				18				15
Divided by: mining net sales			259				316				268				859				829
Cash Operating Income Margin - Mining (%)			16	%			18	%			14	%			19	%			18	%

Exhibit I - Alternative Performance Measures (cont.)

Free Cash Flow

$ MILLION		3Q26				2Q26				3Q25				9M26				9M25
Net cash provided by operating activities			613				256				535				1,086				1,786
Less: capital expenditures and advances to suppliers for PP&E			(398	)			(431	)			(711	)			(1,235	)			(2,038	)
Free Cash Flow			215				(175	)			(175	)			(149	)			(252	)

Net (Cash) Debt

$ MILLION		SEPTEMBER 30, 2026				JUNE 30, 2026				SEPTEMBER 30, 2025
Borrowings (current and non-current)			3,094				2,844				2,046
Less: Cash and cash equivalents			(1,355	)			(1,431	)			(1,323	)
Less: Other investments (current and non-current)			(1,760	)			(1,301	)			(1,438	)
Net (Cash) Debt			(22	)			112				(715	)

Note: Ternium Argentina's consolidated position of cash and cash equivalents and other investments amounted to $0.7 billion as of September 30 and June 30, 2026, and $0.9 billion as of September 30, 2025.

Sebastián Martí
Ternium -Investor Relations
[phone]
[phone]
www.ternium.com

SOURCE: Ternium S.A.

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