Ternium S.A. has unveiled its financial results for the second quarter and first half of 2026, showcasing robust performance amid evolving market conditions. The company recorded a net income of $465 million for Q2 2026, significantly boosted by a 50% rise in Adjusted EBITDA, reaching $717 million.
The increased Adjusted EBITDA was primarily attributed to higher sales volumes and improved profit margins. Market dynamics in Mexico were particularly favorable due to ongoing government measures aimed at curbing unfair competition in steel imports, which helped normalize inventory levels across the value chain. Additionally, Brazil's supportive policies were noted to foster a better business environment for the domestic steel sector.
Ternium's capital expenditures for the second quarter stood at $431 million, largely reflecting progress on the construction of a new steel shop at the company’s industrial center in Pesquería, Mexico. The quarter also saw the company distributing a dividend of $255 million to shareholders.
However, the company experienced a net financial loss of $39 million, mainly due to foreign exchange losses attributable to the fluctuating values of local currencies against the U.S. dollar.
Ternium anticipates a continued increase in Adjusted EBITDA for the upcoming third quarter of 2026, driven by higher shipments, although this growth may be tempered by an increase in costs. The company expects robust shipping recovery in Mexico as demand remains strong, particularly in public infrastructure and various manufacturing sectors.
In Brazil, demand remains inconsistent, showing stability in the automotive sector but facing challenges in agriculture. The ongoing high levels of steel imports also pose a risk, despite some government support measures being implemented.
While Ternium has reported solid financial performance, the company must navigate various market challenges and fluctuations in demand as it progresses through the year.
Ternium S.A. reported an adjusted EBITDA of $717 million for the second quarter of 2026, which represented a 50% sequential increase. The company's net income for the same period was $465 million.
In the Steel Segment, Ternium's net sales and cash operating income both increased year-over-year, driven by higher shipments and revenue per ton, especially in the Mexican market where realized steel prices rose.
Ternium recorded a net financial loss of $39 million in the second quarter of 2026, primarily due to a $34 million loss in foreign exchange results, which was influenced by the appreciation of the Mexican Peso and Brazilian Real against the US Dollar.
Ternium's capital expenditures for the second quarter of 2026 amounted to $431 million, mainly reflecting progress in the construction of a new steel shop at its industrial center in Pesquería, Mexico.
As of June 30, 2026, Ternium S.A. reported a net debt position of $112 million, a decrease from a net cash position of $327 million at the end of March 2026.
In May 2026, Ternium paid a dividend of $255 million to shareholders, corresponding to the balance of the total dividend declared for the year 2025.
Ternium's operations in Brazil face challenges such as uneven steel demand, with resilience noted in the automotive industry but weaker demand from agricultural machinery, compounded by high steel imports impacting the market.
Ternium anticipates an increase in adjusted EBITDA for the third quarter of 2026 compared to the second quarter, driven by higher shipments and improved adjusted EBITDA margins, although this may be partially offset by an increase in costs per ton.