Ternium (TX) Investor presentation summary

Business overview and growth strategy

• Net sales reached $15.6B in 2025, with steel shipments of 15.1 million tons and finished steel production capacity of 15.4 million tons consolidated, plus 6.9 million tons from Usiminas.

• Operations span 9 countries in the Americas, with a strong presence in Mexico, Brazil, Argentina, and the US, and a diversified end-market focus including construction, automotive, appliances, and energy.

• Growth opportunities are driven by increasing steel demand in Mexico and the USMCA region, nearshoring trends, and the integration of Usiminas.

• Major investments include new EAF-based steelmaking and DRI modules in Mexico, targeting lower emissions and compliance with USMCA requirements.

• Innovation is supported by Ternium Lab, focusing on advanced steel products and customer-centric development, especially for the automotive sector.

Regional performance and operations

• Mexico remains the largest market, accounting for 53% of steel segment shipments in 1Q26, with a focus on high-end, value-added products and a robust distribution network.

• Brazil operations include a 5 million ton slab facility and Usiminas, a leading flat steel supplier to the automotive industry, with significant mining assets.

• Argentina is the third largest market in Latin America, with over half of shipments to the industrial sector and a focus on value-added services.

• Steel segment shipments were stable in 1Q26, with gains in Mexico offset by lower volumes in Brazil and the Southern Region.

Financial performance

• Adjusted EBITDA for 1Q26 was $479M, up 21% from 4Q25, driven by improved steel prices, though partially offset by higher raw material costs.

• Net income in 1Q26 rose to $372M, benefiting from strong operating performance and deferred tax gains.

• Cash from operations softened in 1Q26 due to working capital build, while CAPEX remained high, reflecting ongoing expansion in Pesquería.

• Net cash position declined, impacted by the $315M acquisition of Usiminas shares, partially offset by loan collections.

• For full year 2025, adjusted EBITDA margin remained in double digits, with significant cash generation and a proposed annual dividend of $2.20 per ADS.