Grupo Simec (SIM) Q2 2025 earnings summary

Executive summary

• H1 2025 net sales fell 9% YoY to Ps. 14,835 million as shipments declined 11%; net income fell 94% to Ps. 304 million amid a sharp swing to foreign-exchange losses.

• Q2 sales fell 16% YoY to Ps. 7,052 million, and the period recorded a Ps. 1,000 million net loss versus Ps. 3,979 million profit in Q2 2024.

Financial highlights

• H1 gross profit was Ps. 3,668 million, down 9% YoY; gross margin held at 25%.

• H1 operating profit fell 10% to Ps. 2,624 million; EBITDA declined 7% to Ps. 3,165 million.

• H1 comprehensive financial results swung to a Ps. 1,845 million cost from Ps. 2,809 million income; exchange loss was Ps. 2,332 million versus Ps. 2,030 million exchange income.

• Q2 operating profit was Ps. 1,198 million, down 20% YoY; EBITDA was Ps. 1,473 million, down 16%.

• Q2 comprehensive financial cost was Ps. 1,902 million versus Ps. 2,662 million income a year earlier, including a Ps. 2,176 million exchange loss versus Ps. 2,133 million exchange income.

Segment performance

• H1 Mexico sales declined 8% YoY to Ps. 8,262 million; sales outside Mexico fell 10% to Ps. 6,573 million.

• H1 finished-steel shipments were 901 thousand tons, down from 1,015 thousand; sales comprised commercial long steel, SBQ and special profiles.

• Q2 domestic sales declined 18% YoY to Ps. 3,948 million; sales outside Mexico fell 14% to Ps. 3,104 million.