Ternium S.A. (NYSE:TX) reported third-quarter and first nine months of 2026 results for the periods ended September 30, 2026. The company posted adjusted EBITDA of $785 million in the third quarter, while net income reached $368 million after a deferred tax loss of $116 million.
The interim financial figures were unaudited and prepared from consolidated condensed interim financial statements under IAS 34, “Interim financial reporting” (IFRS). Ternium presents its financial and operating information in U.S. dollars and metric tons unless otherwise indicated.
#Adjusted EBITDA and steel operations
Adjusted EBITDA rose sequentially by 10% to $785 million. Ternium attributed the increase to stronger steel sales volumes and margins.
Steel shipments increased sequentially in Mexico, Brazil and the Southern Region, while volumes in Other Markets were relatively stable. In Mexico, shipments to commercial customers continued to increase, and sales to industrial customers also advanced.
The Steel Segment recorded higher net sales both sequentially and year over year, supported by increased shipments and revenue per ton. Cash Operating Income increased by $104 million from the previous quarter and by $363 million compared with the same period in 2025. Higher realised steel prices and sales volumes were partly offset by increased unit costs, mainly reflecting raw material and purchased slab prices.
#Mining Segment performance
Mining Segment net sales fell by 18% sequentially in the third quarter. The decline reflected lower sales volumes and a slight decrease in realised iron ore prices.
Sales volumes were affected by the temporary suspension of certain operations at Mineração Usiminas after a deterioration in iron ore export profitability. Mining Segment Cash Operating Income also decreased sequentially, mainly because of lower volumes and realised iron ore prices.
#Net income and tax effects
Ternium recorded net income of $368 million in the quarter after a deferred tax loss of $116 million. The company said the tax impact was mainly connected to the depreciation of the Mexican Peso against the U.S. dollar on its Mexican subsidiaries.
Equity Holder’s Net Income was $279 million, or $1.42 per ADS. The result included the effect of a 62.5% non-controlling interest in Usiminas and a 37.4% non-controlling interest in Ternium Argentina.
#Cash flow, spending and balance sheet
Cash from operating activities amounted to $613 million after a $148 million increase in working capital. Trade and other receivables rose by a net $99 million, while inventories increased by $88 million. These increases were partly mitigated by a $39 million net rise in trade payables and other liabilities.
Capital expenditures totalled $398 million. Ternium said spending primarily reflected continued construction of its new slab mill at the industrial centre in Pesquería, Mexico.
The company reported a Net Cash position of $22 million at the end of September 2026, compared with a Net Debt position of $112 million at the end of June 2026. The September position included Ternium Argentina’s consolidated cash and cash equivalents and other investments of $725 million. Ternium also recognised a $74 million decline in the fair value of Argentine securities during the quarter.
#Interim dividend
Ternium’s board approved an interim dividend of $0.90 per ADS ($0.09 per share), equal to $177 million based on total common shares outstanding, net of treasury shares. The record date is November 16, 2026, and the payment date is November 17, 2026.
#Fourth-quarter expectations
Ternium anticipates that adjusted EBITDA in the fourth quarter of 2026 will remain broadly in line with the third quarter. The company expects a modest seasonal reduction in steel shipments to be offset by a slightly higher margin per ton.
Ternium expects revenue per ton to increase, more than offsetting higher cost per ton driven by raw material and slab costs. In Mexico, the company expects revenue per ton to continue increasing in line with steel price trends in North America. It also said investments in data centres and gas pipeline infrastructure are expected to add to steel demand.
For Brazil, Ternium expects shipments to decline, with a less favourable sales mix and elevated cost per ton, mainly because of raw material and energy costs. Iron ore sales volumes are also anticipated to decrease as part of Mineração Usiminas’ mining operations remains temporarily idle in response to current international prices and freight rates. Shipments in the Southern Region are expected to remain relatively stable.
These expectations are forward-looking statements based on management’s current views and assumptions. Ternium said actual results, performance or events could differ materially because of risks including market demand, global production capacity, tariffs, steel-consuming industry cycles and other factors beyond its control.
#Key Takeaways
- Third-quarter adjusted EBITDA increased sequentially by 10% to $785 million.
- Net income was $368 million after a deferred tax loss of $116 million.
- Cash from operating activities amounted to $613 million, while capital expenditures totalled $398 million.
- Ternium reported a Net Cash position of $22 million at the end of September 2026.
- The board approved an interim dividend of $0.90 per ADS ($0.09 per share), with payment scheduled for November 17, 2026.
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