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- **EBITDA Growth**: Sequential increase in Q3 due to cost reductions and margin improvements.
- **Dividend Stability**: $0.90 interim dividend maintained, yielding 7%.
- **Trade Policy Focus**: Advocating for Fortress North America to counter Asian imports.
- **Argentina Reforms**: Post-election optimism for steel industry growth.
- **Project Progress**: Pesqueria DRI/EAF on track for Q4 2026 start-up.
- **Brazil Challenges**: 33% steel import surge highlights need for trade defense mechanisms.

**【Management Opening Remarks】**
- Sebastian Martí provided an overview of Q3 2025 results, emphasizing Ternium's operational improvements and the challenging global trade environment.
- The company declared an interim dividend of $0.90 per ADS, maintaining the same level as last year.

**【CEO Summary Section】**
- Q3 EBITDA increased due to cost reductions and improved margins, despite a 10% decline in Mexico's apparent steel consumption.
- Ternium supports U.S.-Mexico trade policies promoting regional integration and fair competition.
- Argentina's post-election reforms may drive steel industry growth, while Brazil faces challenges from unfair imports.
- The company received a sustainability award for its renewable energy project in Argentina.

**【CFO Financial Commentary】**
- Adjusted EBITDA rose sequentially, driven by margin improvements and cost reductions.
- Net loss of $270M included non-cash deferred tax write-downs and litigation provisions.
- Operating cash flow remained strong, with CapEx peaking at $711M in Q3.
- Interim dividend of $0.90 per ADS was approved, maintaining a 7% yield.

**【Q&A Key Highlights】**
- **Argentina Strategy**: CEO and CFO discussed potential ownership structure simplification post-election reforms.
- **U.S.-Mexico Trade**: Ternium supports Fortress North America to reduce reliance on Asian imports.
- **Mexico Demand**: 2026 outlook includes 4% growth driven by infrastructure recovery and USMCA reforms.
- **Pesqueria Project**: DRI/EAF start-up in Q4 2026, with $2.7B budget on track.
- **Brazil Imports**: Antidumping duties could address 33% steel import surge, supporting domestic industry.


Ternium S.A. (TX) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TX

TX fundamentals

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