Ternium (TX) Q2 2026 earnings summary

Executive summary

• Adjusted EBITDA rose 50% sequentially to $717 million in Q2 2026, with margin reaching 17%, driven by improved market fundamentals and higher sales in Mexico and Brazil.

• Net income for Q2 2026 was $465 million, up from $171 million in Q1 2026, supported by strong operating performance.

• Shipments increased 4% sequentially and year-over-year, led by Mexico and seasonal recovery in Argentina and the Southern Region.

• Balance sheet ended June 2026 with net debt of $112 million, compared to net cash of $327 million at March end.

• Strategic projects in Mexico and Brazil progressing, with new capacity ramping up and Pesquería steel shop construction on schedule.

Financial highlights

• Adjusted EBITDA margin expanded to 17% in Q2 2026, up from 12% in Q1 2026.

• Net income reached $465 million in Q2; first half net income was $837 million.

• Net sales grew 10% sequentially and year-over-year to $4.34 billion in Q2 2026.

• Cash from operations in Q2 2026 was $256 million, impacted by higher working capital needs.

• Capital expenditure in Q2 2026 was $431 million, mainly for Pesquería expansion.

Outlook and guidance

• Adjusted EBITDA expected to increase sequentially in Q3 2026, driven by higher shipments and improved margins.

• Revenue per ton and margins anticipated to continue improving in Q3.

• CapEx projected at $1.6 billion for 2026, moderating to $1.2 billion in 2027.

• Performance in Q3 to be supported by recovery in Mexico, balanced trade in Brazil, and strategic project progress.

• Mexico shipments expected to recover further, supported by new projects and infrastructure demand.