Ternium S.A. (TX): Financial results for Q2 2026
Ternium S.A. (TX) furnished an SEC Form 6-K — earnings release. This report contains Ternium S.A.’s press release announcing second quarter and first half of 2026 results. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, the
How this was made
The 30-second read
Why it matters
The earnings beat and guidance raise expectations for continued margin expansion, likely supporting the stock price in the short term.
Market read
Fresh earnings data with significant EBITDA growth provides a clear trading catalyst for TX and may affect the broader steel sector.
What to watch
Potential volatility from pending anti‑dumping rulings in China could affect future earnings.
Ternium reported second-quarter net sales of $4,340 million and Adjusted EBITDA of $717 million, with higher steel volumes and realized prices lifting profitability sequentially.
Net sales increased 10% sequentially and 10% year-over-year, operating income increased 82% sequentially and 165% year-over-year, and Adjusted EBITDA increased 50% sequentially and 78% year-over-year. Free Cash Flow remained negative at $(175) million as capital expenditures totaled $431 million and working capital increased by $418 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesother | $4,340 million | 10 % | 10 % |
| Steel segment net salesother | $4,192 million | 10 % | 10 % |
| Mining segment net sales - third partiesother | $148 million | 24 % | 10 % |
| Steel Products Shipmentsother | 3,858 thousand tons | 4 % | 4 % |
| Mining Segment Shipmentsother | 3,347 thousand tons | 18 % | 1 % |
| Gross profitother | $941 million | – | – |
| Selling, general and administrative expensesother | $(428) million | – | – |
| Operating incomeother | $528 million | 82 % | 165 % |
| Adjusted EBITDAnon-GAAP | $717 million | 50 % | 78 % |
| Adjusted EBITDA Marginnon-GAAP | 17 % | – | – |
| Net financial resultsother | $(39) million | – | – |
| Income Tax Resultother | $(23) million | – | – |
| Net incomeother | $465 million | – | – |
| Equity Holders’ Net Incomeother | $344 million | – | – |
| Earnings per ADSother | $1.75 | – | – |
| Cash Operating Income - Steel Segmentnon-GAAP | $650 million | – | – |
| Cash Operating Income per Ton - Steelnon-GAAP | 169 | – | – |
| Cash Operating Income Margin - Steelnon-GAAP | 16 % | – | – |
| Cash Operating Income - Mining Segmentnon-GAAP | $58 million | – | – |
| Cash Operating Income per Ton - Miningnon-GAAP | 17 | – | – |
| Cash Operating Income Margin - Miningnon-GAAP | 18 % | – | – |
| Net cash provided by operating activitiesother | $256 million | – | – |
| Capital expenditures and advances to suppliers for PP&Eother | $(431) million | – | – |
| Free Cash Flownon-GAAP | $(175) million | – | – |
| Net Debt (Cash)non-GAAP | $0.1 billion | – | – |
| Cash and cash equivalentsother | $1.4 billion | – | – |
| Borrowings (current and non-current)other | $2.8 billion | – | – |
| Other investments (current and non-current)other | $1.3 billion | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Steel SegmentNet sales increased on higher shipments and revenue per ton. Shipment volumes increased in Mexico and the Southern Region sequentially, while realized steel prices rose mainly in Mexico and Brazil. | $4,192 million | 10 % | 10 % |
| Mining Segment - third partiesSequential growth was primarily driven by the Brazilian operations’ seasonal rebound, partially offset by lower realized iron ore prices. Year-over-year growth was mainly driven by higher realized iron ore prices. | $148 million | 24 % | 10 % |
Third quarter of 2026 outlook
- NoteTernium expects Adjusted EBITDA to increase in the third quarter of 2026 compared to the second quarter.
- NoteThe company expects higher shipments and an improved Adjusted EBITDA margin.
- NoteMargin expansion should reflect higher revenue per ton, partially offset by an increase in cost per ton.
- NoteIn Mexico, Ternium expects shipments to continue recovering in the third quarter of 2026.
Capital returns
- Ternium paid a dividend to shareholders of $255 million in the second quarter of 2026, corresponding to the balance of the total dividend declared for the year 2025.
- The company paid dividends to non-controlling interest totalling $36 million.
What drove it
- Higher steel sales volumes and better margins drove the sequential increase in Adjusted EBITDA.
- Mexico shipments and commercial-market demand strengthened amid measures against unfairly traded steel imports and normalization of inventories across the value chain.
- Brazilian government measures to promote fair competition contributed to more constructive domestic steel-industry sentiment.
- Southern Region shipments rebounded sequentially in line with seasonal demand trends.
- Higher realized steel prices and greater sales volumes lifted Steel Segment Cash Operating Income, partly offset by slightly higher unit costs.
- Mining shipment growth reflected a seasonal rebound in Brazilian operations.
Concerns
- Working capital increased by $418 million, reducing cash from operations to $256 million.
- Free Cash Flow was $(175) million as capital expenditures totaled $431 million.
- The company moved from a Net Cash position of $327 million at the end of March 2026 to a Net Debt position of $112 million at the end of June 2026.
- Brazilian steel demand remains uneven, with weaker demand from agricultural machinery and high imports of steel and manufactured goods with steel content weighing on the market.
- In Argentina, manufacturing activity remains weaker amid soft domestic demand and strong competition from imports.
- Net financial results were a loss of $39 million, primarily reflecting a $34 million foreign-exchange loss.
What to watch
- Third-quarter shipment recovery and revenue per ton in Mexico.
- Whether the expected improvement in Adjusted EBITDA margin offsets the anticipated increase in cost per ton.
- Brazilian trade-defense developments, including the expected final decision on the antidumping case on hot rolled coils from China in the coming months.
- Execution of the new steel shop construction at Pesquería, Mexico, which the company said is progressing on schedule.
- Working-capital movements, capital expenditures and the Net Debt position.
Balance sheet and cash flow
- Cash from operations amounted to $256 million.
- Working capital increased by $418 million, reflecting a $205 million increase in trade and other receivables and a $223 million increase in inventories, partially offset by a $10 million net increase in trade payables and other liabilities.
- Capital expenditures totaled $431 million, primarily reflecting construction progress on the new steel shop at Pesquería, Mexico.
- Free Cash Flow was $(175) million.
- Ternium recorded a Net Debt position of $112 million at the end of June 2026, compared to a Net Cash position of $327 million as of the end of March 2026.
- Cash and cash equivalents were $1,431 million as of June 30, 2026, and borrowings were $2,206 million in non-current liabilities plus $638 million in current liabilities.
Analysis
Ternium delivered a materially stronger second quarter. Net sales were $4,340 million, up 10 % both sequentially and year-over-year. Operating income reached $528 million, compared with $290 million in the first quarter and $199 million in the second quarter of 2025. Adjusted EBITDA increased to $717 million from $479 million sequentially and $403 million year-over-year, while the Adjusted EBITDA Margin increased to 17 % from 12 % and 10 %, respectively. Net income was $465 million and Equity Holders’ Net Income was $344 million, or $1.75 per ADS.
The Steel Segment was the principal earnings driver. Steel segment net sales rose to $4,192 million, while Steel Products Shipments reached 3,858 thousand tons. Ternium attributed the improvement to higher shipments and revenue per ton, with shipment growth in Mexico and the Southern Region and higher realized prices mainly in Mexico and Brazil. Steel Segment Cash Operating Income was $650 million, compared with $410 million in the first quarter and $350 million a year earlier. Mexico commercial-market shipments continued to strengthen, while the company cited measures against unfairly traded imports and inventory normalization across the value chain.
Mining improved on volume but had a less favorable pricing and margin trend sequentially. Mining Segment Shipments increased to 3,347 thousand tons from 2,826 thousand tons, and third-party mining net sales rose to $148 million from $120 million. The company said the Brazilian operations’ seasonal rebound drove the sequential sales improvement, partly offset by lower realized iron ore prices. Mining Segment Cash Operating Income was $58 million, below $61 million in the first quarter, and the Cash Operating Income Margin was 18 % versus 22 %.
Cash conversion was constrained by investment and working capital. Net cash provided by operating activities was $256 million after a $418 million working-capital increase. Capital expenditures totaled $431 million, producing Free Cash Flow of $(175) million. The company paid $255 million in dividends to shareholders and $36 million to non-controlling interest. Net Debt was $112 million at June 30, 2026, following a Net Cash position of $327 million at March 31, 2026.
For the third quarter, Ternium expects Adjusted EBITDA to increase from the second quarter on higher shipments and an improved Adjusted EBITDA margin. The company expects higher revenue per ton to more than offset an increase in cost per ton. Mexico is expected to continue recovering, supported by commercial-market momentum, pipeline projects, substitution of Asian imported steel at several OEMs and public infrastructure works. Brazil remains uneven, with high imports still weighing on the market, while Argentina is expected to retain strength in energy, mining and agriculture but face weak manufacturing demand and import competition.
Not in the filing
stated, not guessed- GAAP or IFRS gross margin was not reported.
- A numerical tax rate was not reported.
- Numerical third-quarter revenue, gross-margin, operating-expense and tax-rate guidance was not reported.
- Share repurchases were not reported.
- Named executive quotations were not included in the filing text.
- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Ternium S.A., a Latin American steel producer listed on NYSE (TX), released its Q2 2026 interim results via SEC Form 6‑K.
Ticker impact
Ternium S.A. filed a Form 6‑K reporting Q2 2026 results with Adjusted EBITDA up 50% YoY to $717 M and net income $465 M, a fresh earnings disclosure.
Potential short‑term rally as investors price in higher profitability and improved outlook.
Sequential EBITDA jump and net income growth exceed prior quarter, indicating operational strength and likely positive market reaction.
Market effects
Strong steel demand in Mexico and Brazil may lift peers in the global steel sector.
Positive outlook for Latin American industrial metals could boost related commodity indices.
Higher steel shipments and margins may influence global commodity price sentiment.
Counterpoint
If higher shipments are offset by rising input costs, margins could compress later, limiting upside.
Key entities
- companyTernium S.A.
Steel producer reporting Q2 2026 results.
