Ternium (TX) Investor presentation summary

Business profile and operations

• Net sales reached $15.6 billion in 2025, with consolidated steel shipments of 15.1 million tons and over 21,000 employees.

• Broad presence across the Americas, with industrial plants in nine countries and a strong focus on Mexico and Brazil.

• End markets include construction, automotive, appliances, capital goods, containers, food, and energy.

• Significant growth potential in the USMCA region, leveraging nearshoring trends and increased steel consumption in Mexico.

• Ongoing investments in state-of-the-art facilities, including new EAF-based mills and downstream projects in Mexico.

Financial performance and capital allocation

• Adjusted EBITDA margin remained in double digits for 2025, supported by cost-saving initiatives.

• Net income for 4Q25 was $171 million, rebounding from a non-cash deferred tax asset write-down in 3Q25.

• Cash generation held steady in 4Q25, with neutral free cash flow as dividend payments were offset by financial securities gains.

• Capex peaked in 2025 and is expected to decrease in 2026 as major projects conclude.

• Annual dividend proposal of $2.70 per ADS, totaling $530 million.

Segment performance

• Steel segment saw slightly lower realized prices and margins in 4Q25, partially offset by lower raw material costs and efficiency gains.

• Mining segment benefited from higher iron ore prices and shipments, driving improved cash operating income.

• Mexico accounted for 51% of steel shipments in 2025, followed by Brazil at 26%.