Financial Data and Key Metrics Changes - Ternium's EBITDA margin reached 10% in 2025, supported by a cost reduction program that generated $250 million in savings compared to 2024 [4] - Net income for the fourth quarter totaled $171 million, impacted by one-time charges related to an impairment in one of its mining operations [13][14] - Cash generated by operations reached $2.3 billion in 2025, allowing the company to finance capital expenditures [18] Business Line Data and Key Metrics Changes - The steel segment experienced a decline in shipments due to weaker volumes in the US and Brazil, but higher volumes in Mexico partially offset this decline [15] - Mining cash operating income increased sequentially, driven by stronger shipments and higher realized iron ore prices [16] Market Data and Key Metrics Changes - Apparent consumption of steel in Mexico decreased by 10% in 2025, with flat products consumption down 14% compared to 2024 [23] - The Mexican government raised import tariffs on steel from 25% to 35%, aiming to protect local producers [5][9] Company Strategy and Development Direction - Ternium is focusing on enhancing operational efficiency and reducing costs while expanding its footprint in Mexico with new facilities [8][11] - The company is optimistic about profitability improvements in 2026, driven by cost reductions and favorable trade policies [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of ongoing trade negotiations in North America and expressed confidence in reaching a mutually beneficial agreement [10][11] - The company is cautious about the timing of the USMCA renewal, projecting it may not significantly impact 2026 but could be more relevant in 2027 [24][25] Other Important Information - Ternium secured a $1.25 billion loan through a green financing facility to support its new projects, which received several awards for sustainability [8][9] - The company proposed an annual dividend of $2.7 per ADS for fiscal year 2025, maintaining the same level as 2024, reflecting confidence in future prospects [18] Q&A Session Summary Question: Outlook for the Mexican market and demand recovery - Management noted that demand in Mexico was significantly low in 2025, with expectations for a 4% market growth in 2026, driven by local steel mills gaining market share [23][24] Question: Impact of anti-dumping measures in Brazil - Management indicated that the impact of anti-dumping measures would be gradual, with expectations for a moderate increase in domestic prices [22][26] Question: Ternium's plan if USMCA is not renewed - Management stated that they operated in 2025 without a renewed USMCA and would continue to adapt to the environment, focusing on market share gains [30][34] Question: Volume expectations for 2026 - Management expects volume increases in Mexico, with a recovery in Argentina anticipated in the second half of the year, while Brazil is expected to maintain healthy volume levels [35][36] Question: Margin potential without USMCA changes - Management expressed that they expect to enhance margins in 2026, aiming for a return to the 15%-20% range, but acknowledged that this would depend on market conditions [40][44] Question: Capital allocation priorities - Management confirmed that both increasing dividends and exploring growth opportunities in key markets are priorities, with no immediate plans for share buybacks [87]

Financial Data and Key Metrics Changes - Ternium reported a net income of $171 million for the fourth quarter of 2025, with adjusted EBITDA slightly declining sequentially, in line with expectations [13][14] - The EBITDA margin reached 10% for the year, supported by a cost reduction program that generated $250 million in savings [4][18] - Cash generated by operations in 2025 was strong at $2.3 billion, allowing the company to finance capital expenditures [18] Business Line Data and Key Metrics Changes - The steel segment experienced a decline in shipments due to weaker volumes in the U.S. and Brazil, although higher volumes were noted in Mexico [15][16] - Mining cash operating income increased sequentially, driven by stronger shipments and higher realized iron ore prices [16] Market Data and Key Metrics Changes - Apparent consumption of steel in Mexico decreased by 10% in 2025, with flat products consumption down 14% compared to 2024 [23] - The U.S. implemented significant trade measures against unfair practices from China, impacting the global steel market [5][9] Company Strategy and Development Direction - Ternium is focusing on enhancing operational efficiency and reducing costs while expanding its footprint in Mexico with new facilities [8][11] - The company is optimistic about profitability improvements in 2026, driven by cost reductions and favorable trade policies [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a fatal accident at Ternium Mexico and emphasized the importance of safety [4] - The outlook for the Mexican market is cautiously optimistic, with expectations of a 4% growth in 2026 despite current low demand levels [23][24] Other Important Information - Ternium secured a $1.25 billion loan through a green financing facility to support its new projects, which received several awards [8][9] - The company proposed an annual dividend of $2.7 per ADS for fiscal year 2025, maintaining the same level as 2024 [18] Q&A Session Summary Question: Outlook for the Mexican market and recovery path - Management noted that demand in Mexico was significantly low in 2025, with expectations of a 4% market growth in 2026, aiming to gain market share against imports [23][24] Question: Impact of anti-dumping measures in Brazil - Management indicated that the impact of anti-dumping measures would be gradual, with expectations of a moderate increase in domestic prices [22][25] Question: Ternium's plan if USMCA is not renewed - Management stated that they operated in 2025 under the assumption of no renewal and would continue to adapt to the environment [30][34] Question: Volume expectations for 2026 - Management expects volumes to increase in Mexico, while the southern region may see recovery in the second half of the year [35][36] Question: Margin potential without USMCA changes - Management expressed that margins could improve, but the full impact of USMCA negotiations would likely be seen in 2027 [40][79] Question: Capital allocation priorities - Management confirmed that both increasing dividends and exploring growth opportunities in key markets are priorities [86]

Financial Data and Key Metrics Changes - Ternium reported a net income of $171 million for Q4 2025, with a slight sequential decline in adjusted EBITDA, which remained stable [13][14] - The EBITDA margin reached 10% for the year, with a cash generation from operations of $2.3 billion, allowing the company to finance capital expenditures [4][18] - The company achieved $250 million in savings through cost reduction and efficiency programs in 2025 compared to 2024 [4] Business Line Data and Key Metrics Changes - The steel segment saw a decline in shipments primarily due to weaker volumes in the U.S. and Brazil, although higher volumes were recorded in Mexico [14][15] - Mining cash operating income increased sequentially due to stronger shipments and higher realized iron ore prices, partially offset by higher unit costs [15] Market Data and Key Metrics Changes - In Mexico, apparent consumption of steel decreased by 10% in 2025, with flat products consumption down 14% compared to 2024 [23] - The U.S. implemented significant trade measures against unfair practices from China, impacting the global steel market [5][9] - Brazil's recent anti-dumping measures and increased import taxes on steel products represent a significant shift in the market environment [9] Company Strategy and Development Direction - Ternium is focusing on enhancing regional integration and has expanded its footprint in Mexico, investing in technology to offer high-value products [6][11] - The company has started production in new facilities, including a cold rolling mill and a galvanized line, aimed at producing high-quality automotive steel [7][8] - Ternium aims to improve profitability in 2026, driven by cost reductions and operational efficiency [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Ternium's outlook for the coming years, expecting profitability to improve in 2026 despite ongoing trade issues [10][11] - The company is actively participating in discussions regarding trade frameworks to ensure fair competition and support local producers [5][6] Other Important Information - Ternium's board proposed an annual dividend of $2.7 per ADS for fiscal year 2025, maintaining the same level as 2024, reflecting confidence in the company's prospects [18] - The company secured a $1.25 billion loan through a green financing facility to support its projects, receiving multiple awards for this initiative [8] Q&A Session Summary Question: Outlook for the Mexican market and demand recovery - Management noted that demand in Mexico was significantly low in 2025, with expectations of a 4% market growth in 2026, driven by local steel mills gaining market share against imports [21][23][24] Question: Impact of anti-dumping measures in Brazil - Management indicated that the impact on pricing dynamics would be gradual, with expectations for a moderate increase in domestic prices [22][26] Question: Ternium's plan if USMCA is not renewed - Management stated that they operated in 2025 under the assumption of no renewal and would continue to adapt to the environment, focusing on market share growth [31][34] Question: Expectations for Ternium's volumes in 2026 - Management expects volumes to increase in Mexico, while the southern region may see recovery in the second half of the year [36][37] Question: Margin potential without USMCA changes - Management believes there is potential for margins to improve, aiming for a return to the 15%-20% range, but acknowledges that this may take time [41][46][86] Question: Capital allocation priorities - Management emphasized that both increasing dividends and pursuing growth opportunities in key markets are priorities [88][89]

Forward-Looking Statements and Non-IFRS Alternative Performance Measures This presentation contains certain forward-looking statements and information relating to Ternium S.A. and its subsidiaries (collectively, "Ternium") that are based on the current beliefs of its management as well as assumptions made by and information currently available to Ternium. Such statements reflect the current views of Ternium with respect to future events and are subject to certain risks, uncertainties and assumptions. Many f ...

LUXEMBOURG, LU / ACCESS Newswire / February 18, 2026 / Ternium S.A. (NYSE:TX) today announced its results for the fourth quarter and full year ended December 31, 2025. ...

Core Viewpoint - Ternium S.A. has successfully completed the acquisition of 153.1 million ordinary shares of Usiminas from Nippon Steel Corporation and Mitsubishi Corporation for approximately $315.2 million in cash, enhancing its control over Usiminas [1] Company Summary - Ternium S.A. is a leading steel producer in the Americas, focusing on advanced steel products for various manufacturing industries and the construction sector [1] - The company is committed to investing in low carbon emissions steelmaking technologies to support energy transition and future mobility [1] - Ternium also emphasizes community development, particularly through educational programs in Latin America [1]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits through trending stocks [1] Group 1: Momentum Investing Characteristics - Fast-moving stocks can lose momentum if their growth potential does not justify high valuations, leading to limited upside or potential downside for investors [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, with tools like the Zacks Momentum Style Score aiding in identifying such stocks [3] Group 2: Ternium S.A. (TX) Analysis - Ternium S.A. (TX) has shown a four-week price change of 4.8%, indicating growing investor interest [4] - Over the past 12 weeks, TX has gained 14.3%, with a beta of 1.36, suggesting it moves 36% more than the market [5] - TX has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings and Valuation - TX has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.51, indicating it is undervalued at 51 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides TX, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [9]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Sonoco Products Co (NYSE:SON) - Dividend yield is 4.65% [6] - Analyst George Staphos from B of A Securities upgraded the stock from Neutral to Buy, raising the price target from $56 to $60 [6] - Analyst Gabe Hajde from Wells Fargo maintained an Overweight rating and increased the price target from $50 to $52 [6] - Recent news includes the completion of the sale of ThermoSafe unit to Arsenal Capital Partners on Nov. 3 [6] Group 2: Eastman Chemical Co (NYSE:EMN) - Dividend yield is 5.19% [6] - Analyst Michael Sison from Wells Fargo downgraded the stock from Overweight to Equal-Weight with a price target of $70 [6] - Analyst Patrick Cunningham from Citigroup maintained a Buy rating and raised the price target from $70 to $72 [6] - Recent news indicates that Eastman Chemical posted downbeat quarterly results on Nov. 3 [6] Group 3: Ternium SA (NYSE:TX) - Dividend yield is 6.94% [6] - Analyst Alfonso Salazar from Scotiabank maintained a Sector Outperform rating but cut the price target from $41 to $40 [6] - Analyst Timna Tanners from Wells Fargo initiated coverage with an Underweight rating and a price target of $30 [6] - Recent news shows that Ternium posted mixed quarterly results on Oct. 28 [6]

Core Viewpoint - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends to shareholders [1] Group 1: Sonoco Products Co (NYSE:SON) - Dividend yield is 4.65% [6] - Analyst George Staphos from B of A Securities upgraded the stock from Neutral to Buy, raising the price target from $56 to $60 [6] - Analyst Gabe Hajde from Wells Fargo maintained an Overweight rating and increased the price target from $50 to $52 [6] - Recent news includes the completion of the sale of ThermoSafe unit to Arsenal Capital Partners on Nov. 3 [6] Group 2: Eastman Chemical Co (NYSE:EMN) - Dividend yield is 5.19% [6] - Analyst Michael Sison from Wells Fargo downgraded the stock from Overweight to Equal-Weight with a price target of $70 [6] - Analyst Patrick Cunningham from Citigroup maintained a Buy rating and raised the price target from $70 to $72 [6] - Recent news indicates that Eastman Chemical posted downbeat quarterly results on Nov. 3 [6] Group 3: Ternium SA (NYSE:TX) - Dividend yield is 6.94% [6] - Analyst Alfonso Salazar from Scotiabank maintained a Sector Outperform rating but cut the price target from $41 to $40 [6] - Analyst Timna Tanners from Wells Fargo initiated coverage with an Underweight rating and a price target of $30 [6] - Recent news shows that Ternium posted mixed quarterly results on Oct. 28 [6]

Core Insights - Ternium, a prominent Mexican steel producer, has faced significant challenges over the past year due to trade-related issues in Mexico and Brazil, which is a key secondary market for the company [1] Group 1: Company Performance - The company has been adversely affected by trade disputes, impacting its operational performance and market position [1] Group 2: Market Context - The trade-related issues in both its home country and Brazil have created a difficult environment for Ternium, highlighting the vulnerabilities in the steel industry [1]