Ternium Announces First Quarter of 2026 Results

Ternium S.A. (NYSE:TX) today announced its results for the first quarter ended March 31, 2026.

The financial information contained in this press release is based on Ternium S.A.'s consolidated condensed interim financial statements prepared in accordance with IAS 34 "Interim financial reporting" (IFRS). Interim financial figures are unaudited. The financial and operational information is presented in U.S. Dollars ($) and metric tons, except otherwise indicated. This press release includes certain non-IFRS alternative performance measures such as Adjusted EBITDA, Cash Operating Income, Free Cash Flow and Net Cash. The reconciliation of these figures to the most directly comparable IFRS measures is included in Exhibit I.

First Quarter of 2026 Highlights

Note: Figures compared to fourth quarter of 2025.

Summary of First Quarter of 2026

Note: Each American Depositary Share, or ADS, represents 10 shares of Ternium's common stock. Results are based on a weighted average number of shares of common stock outstanding (net of treasury shares) of 1,963,076,776.

The company's net cash position stood at $327 million at the end of March 2026, compared to $712 million at the end of December 2025.

Outlook

Ternium expects Adjusted EBITDA to increase in the second quarter of 2026 compared to the first quarter, driven by higher shipments and improved margins. Shipments are expected to rise primarily in Mexico and Argentina. Higher revenue per ton, especially in Mexico and Brazil, is anticipated to support the increase in Adjusted EBITDA margin, while higher costs per ton across Ternium's markets should partially offset these gains.

In Mexico, the company expects continued growth in commercial market shipments during the second quarter of 2026, as a significant destocking in the value chain throughout 2025 is giving way to a normalization of apparent demand. In addition, several infrastructure projects are beginning to progress and could contribute additional demand in the coming quarters.

In Brazil, steel consumption remains broadly stable, with resilience in the automotive sector offset by weaker demand in agribusiness-related industries. The government has taken initial measures to defend the local industry against unfair trade, including antidumping duties on cold-rolled and coated products. As these measures gain traction and currently elevated inventory levels of imported material normalize, Usiminas' shipments should begin to improve.

In Argentina, after an initial recovery in 2025, demand in 2026 is growing unevenly. Mining, energy, and agriculture continue to perform well, while construction is improving slightly but remains soft. Metal-mechanical and home appliance sectors are lagging, affected by weak domestic consumption and increased competition from imports.

Analysis of First Quarter of 2026 Results

Consolidated Net Sales

Adjusted EBITDA

Adjusted EBITDA in the first quarter of 2026 equals Net Income adjusted to exclude:

• Depreciation and amortization;

• Income tax results;

• Net financial results;

• Equity in earnings of non-consolidated companies; and

• Provision for ongoing litigation related to the acquisition of a participation in Usiminas.

And adjusted to include the proportional EBITDA in Unigal (70% participation).

Adjusted EBITDA margin equals adjusted EBITDA divided by net sales.

For more information see Exhibit I - Alternative performance measures - "Adjusted EBITDA".

The Steel Segment's net sales increased sequentially in the period mainly as a result of better realized steel prices across Ternium's main steel markets.

On a year-over-year basis, net sales were almost unchanged, as higher realized steel prices were offset by a decline in shipments.

In Mexico, steel shipments increased, with a significant level of activity in the commercial market as a result of more effective defenses against unfairly traded imports, balanced inventories in the value chain and a seasonal rebound in activity.

In Brazil, Usiminas has prioritized profitability over shipment volumes, amid a more volatile scenario for energy and transportation costs. Consequently, steel shipments in the first quarter of 2026 recorded a modest sequential decline.

In the Southern Region, demand for steel products has moderated, reflecting slower activity in Argentina's industrial sector. Additionally, steel shipments fell sequentially in the first quarter of 2026 consistent with seasonally weaker activity.

In Other Markets, shipments in the first quarter of 2026 remained relatively unchanged sequentially, while they declined year-over-year mainly reflecting lower sales in the US market.

The Steel Segment's Cash Operating Income increased by $68 million sequentially in the first quarter of 2026, mainly reflecting an increase in realized steel prices that was partially offset by higher raw material and purchased slab costs.

Year-over-year, the Steel Segment's Cash Operating Income increased by $134 million in the quarter, as higher margins were partially offset by lower shipments. The margin expansion was supported by higher realized steel prices and lower unit costs. The year-over-year cost reduction reflected both lower raw material and purchased slab prices, as well as the positive impact of the company's continuous efforts to improve efficiency.

Net sales in the Mining Segment declined sequentially in the first quarter of 2026 driven by lower sales volumes, amid unusually intense rains affecting operations in Brazil, partially offset by higher revenue per ton.

On a year-over-year basis, net sales posted a slight increase, as higher revenue per ton was largely offset by reduced shipment volumes.

The Mining Segment's Cash Operating Income increased sequentially and year-over-year in the first quarter of 2026, supported by higher realized iron ore prices. This was partially offset by lower sales volumes and higher unit costs.

Note: For a reconciliation of the Mining Segment's Cash Operating Income and Cash Operating Income per Ton and Margin to the most directly comparable IFRS measures, see Exhibit I - Alternative performance measures - "Cash Operating Income - Mining Segment".

Net Financial Results

Net financial results were a gain of $22 million for the first quarter of 2026, primarily driven by the positive performance of Ternium's financial investments and foreign exchange results. Foreign exchange gains were mainly related to the positive effect of the appreciation of the Brazilian Real and the Mexican Peso against the US Dollar on net long local currency positions at Ternium Brasil and Ternium Mexico, respectively.

Income Tax Results

Ternium's subsidiaries use the U.S. dollar as their functional currency; as a result, fluctuations between their local currencies and the U.S. dollar lead to the recognition of deferred tax results.

The company recorded a deferred tax gain of $132 million in the first quarter of 2026. This was mainly driven by a reduction in the deferred tax position of Ternium Argentina, reflecting the impact of high local inflation and the appreciation of the Argentine Peso against the US Dollar, as well as a decrease in the deferred tax position of Usiminas, primarily due to the appreciation of the Brazilian Real against the US Dollar.

Net Result

In the first quarter of 2026, Ternium's net income amounted to $372 million, including a deferred tax gain of $132 million and a loss of $48 million in connection with the provision for ongoing litigation concerning the acquisition of a participation in Usiminas, on account of interest accruals and the appreciation of the Brazilian Real.

Equity Holder's Net Income was $213 million in the period, or $1.09 per ADS, mainly after accounting for the participation of a 62.5% non-controlling interest in Usiminas and a 37.4% non-controlling interest in Ternium Argentina.

In the first quarter of 2026, cash from operations amounted to $217 million. Working capital increased by $233 million reflecting a $174 million net increase in trade and other receivables and a $70 million increase in inventories, partially offset by a $11 million net increase in trade payables and other liabilities.

Capital expenditures totaled $406 million, primarily reflecting the progress made in the construction of the new facilities at Ternium's industrial center in Pesquería, Mexico. The company completed the facilities' downstream expansion, with start-up of a new cold rolling mill and a new galvanizing facility, and advanced the construction of a new steel shop.

Alongside the development of its capital expenditure program, in the first quarter of 2026 Ternium acquired 153.1 million ordinary shares of Usiminas for a total consideration of $315 million. In addition, the company received $150 million from Techgen in connection with the full repayment and cancellation of its loan. Techgen is a joint venture company in which Ternium participates together with its affiliates Tenaris and Tecpetrol. It supplies electricity to the company's facilities through a 900-megawatt power plant located in Pesquería, Mexico.

The company's Net Cash position decreased to $327 million at the end of March 2026, compared to Net Cash position of $712 million as of the end of December 2025.

Conference Call and Webcast

Ternium will host a conference call on May 6, 2026, at 8:00am ET in which management will discuss first quarter of 2026 results. A webcast link will be available in the Investor Center section of the company's website at www.ternium.com.

Forward Looking Statements

Some of the statements contained in this press release are "forward-looking statements". Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to gross domestic product, related market demand, global production capacity, tariffs, cyclicality in the industries that purchase steel products, and other factors beyond Ternium's control.

About Ternium

Ternium is a leading steel producer in the Americas, providing advanced steel products to a wide range of manufacturing industries and the construction sector. We invest in low carbon emissions steelmaking technologies to support the energy transition and the mobility of the future. We also support the development of our communities, especially through educational programs in Latin America. More information about Ternium is available at www.ternium.com.

Income Statement

Statement of Financial Position

Statement of Financial Position (cont.)

Statement of Cash Flows

Exhibit I - Alternative Performance Measures

These non-IFRS measures should not be considered in isolation of, or as a substitute for, measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have a standardized meaning under IFRS and, therefore, may not correspond to similar non-IFRS financial measures reported by other companies.

Adjusted EBITDA

Exhibit I - Alternative Performance Measures (cont.)

Cash Operating Income - Steel Segment

Cash Operating Income - Mining Segment

Exhibit I - Alternative Performance Measures (cont.)

Free Cash Flow

Net Cash

Note: Ternium Argentina's consolidated position of cash and cash equivalents and other investments amounted to $0.8 billion as of March 31, 2026, $0.8 billion as of December 31, 2025, and $1.1 billion as of March 31, 2025.

Sebastián Martí
Ternium - Investor Relations
+1 (866) 890 0443
+54 (11) 4018 8389
www.ternium.com

SOURCE: Ternium S.A.