Group 1 - The history of Ternium (TX) shows signs of recovery, and the market is beginning to notice this trend, although it has not yet recognized its full price potential [1] Group 2 - The investment approach focuses on value companies with solid long-term potential, indicating a strategy that may align with Ternium's recovery narrative [2]

Ternium (TX) Q2 2025 Earnings Call July 30, 2025 08:30 AM ET Company ParticipantsSebastián Martí - Global IR and Compliance Senior DirectorMáximo Vedoya - CEOPablo Brizzio - CFOCaio Greiner - Equity Research DirectorConference Call ParticipantsCarlos de Alba - Equity Research AnalystEmerson Vieira - Equity AnalystRafael Barcellos - Head of LatAm Metals & Mining, Pulp & Paper and Cement - Senior Equity Research AnalystOperatorHello, and welcome to Ternium Second Quarter twenty twenty five Results Conference ...

Ternium (TX) Q2 2025 Earnings Call July 30, 2025 08:30 AM ET Speaker0Hello, and welcome to Ternium Second Quarter twenty twenty five Results Conference Call. Please note that this call is being recorded. I would now like to hand the call over to Sebastien Marquis. Please go ahead, sir.Speaker1Good morning, and thank you for joining us. My name is Sebastian Markey and I'm Ternium's Global IR and Compliance Senior Director. Yesterday, we announced our financial results for the second quarter and the 2025. Thi ...

July 30, 2025 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 factors could cause the actual results, performance or achie ...

Equity Research Analyst at DM Martins Research.The best opportunities often don’t scream for attention. I cover stocks that are often undercovered, focusing primarily on Brazil and Latin America — but I also occasionally write about global large caps. My work can also be found on TipRanks, where I contribute regularly, and on TheStreet, where I was a frequent contributor in the past.- Disclaimer: All views expressed here are my own and do not necessarily reflect the views or official positions of DM Martins ...

Core Insights - The article emphasizes the importance of identifying high-quality and mispriced investment opportunities, suggesting that great investment ideas should be intuitive and involve purchasing strong companies at favorable prices [1]. Group 1 - The focus is on the role of an investment analyst in uncovering valuable investment ideas that are not immediately apparent [1]. - The article highlights the belief that successful investments stem from a combination of quality companies and attractive pricing [1].

Group 1 - Ternium is a significant player in the Latin American industrial sector, not just a steel producer, with nearly twenty years of operational history [1] - The company has successfully integrated the entire steel production process, a feat that few in the sector have achieved [1]

Group 1 - Moretus Research provides high-quality equity research focused on U.S. public markets, aiming to deliver clarity, conviction, and alpha for serious investors [1] - The research framework identifies companies with durable business models, mispriced cash flow potential, and intelligent capital allocation, emphasizing a structured and repeatable approach [1] - Valuation methods are based on sector-relevant multiples tailored to each company's business model and capital structure, prioritizing comparability, simplicity, and relevance [1] Group 2 - Research coverage focuses on underappreciated companies experiencing structural changes or temporary dislocations, where disciplined analysis can yield asymmetric returns [1] - Moretus Research aims to elevate the standard for independent investment research by providing professional-grade insights and actionable valuation [1]

First Quarter of 2025 Adjusted EBITDA April 30, 2025 First Quarter of 2025 Earnings Conference Call and Webcast 1 / 25 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 ...

Financial Performance - Net sales for the three-month period ended March 31, 2025, were $3,932,808 thousand, a decrease of 17.7% compared to $4,778,297 thousand in the same period of 2024[10] - Gross profit for the same period was $530,950 thousand, down 51.9% from $1,103,553 thousand year-over-year[10] - Operating income decreased to $131,826 thousand, a decline of 80.5% compared to $674,856 thousand in the prior year[10] - Profit for the period was $142,331 thousand, representing a 72.6% decrease from $491,431 thousand in the previous year[10] - Basic and diluted earnings per share for profit attributable to equity holders of the company were $0.03, down from $0.18 in the same period of 2024[10] - Total comprehensive income for the period was $405,027 thousand, a decrease of 45.6% compared to $744,542 thousand in the prior year[11] - Net cash provided by operating activities was $207.0 million, down from $475.5 million in the previous year[23] - Capital expenditures for the period were $517.8 million, compared to $449.2 million in the same quarter of 2024[23] - The company reported a net foreign exchange loss of $30,695 thousand in Q1 2025, compared to a gain of $41,008 thousand in Q1 2024[59] - For the three-month period ended March 31, 2025, revenues amounted to $462 million, a decrease of 11.8% compared to $524 million for the same period in 2024[91] - Net profit from continuing operations was $36 million, down 86.3% from $263 million in the prior year[91] Assets and Equity - Total assets as of March 31, 2025, were $23,715,575 thousand, an increase from $23,128,547 thousand at the end of 2024[12] - Total equity increased to $16,536,596 thousand from $16,131,569 thousand at the end of 2024[12] - As of March 31, 2025, total equity stood at $16.5 billion, an increase from $16.1 billion at the beginning of the year[14] - Property, plant and equipment increased to $8,803,071 thousand as of March 31, 2025, from $7,855,930 thousand at the end of Q1 2024, an increase of approximately 12%[60] - Total assets as of March 31, 2025, were $5,668 million, a slight decrease from $5,726 million as of December 31, 2024[91] - Total liabilities decreased to $689 million from $790 million as of December 31, 2024, reflecting a reduction of 12.8%[91] Usiminas Acquisition - The company reported a provision for ongoing litigation related to the acquisition of a participation in Usiminas amounting to $45,300 thousand for the current period[10] - The company increased its participation in Usiminas Control Group, indicating a strategic move towards market expansion[9] - As of June 30, 2023, Ternium owned 242.6 million ordinary shares of Usiminas, representing 34.4% of Usiminas' ordinary shares and 20.4% of its total share capital[32] - On July 3, 2023, Ternium completed the acquisition of 57.7 million ordinary shares of Usiminas for $118.7 million, increasing its participation in the Usiminas control group to 51.5%[35] - The fair value of net assets acquired from Usiminas amounted to $3,593.3 million, with significant assets including inventories valued at $1,707.3 million and property, plant, and equipment at $904.8 million[41] - Ternium recognized a loss of $441.4 million related to the remeasurement of its previously held interest in Usiminas, alongside a bargain purchase gain of $270.4 million, resulting in a net loss effect of $171.0 million[39] - The Usiminas control group, post-acquisition, holds 61.3% of the voting rights, with Ternium and NSC each nominating three members to the board of directors[36] - Ternium recognized non-controlling interests in Usiminas at $2,575.9 million, based on the proportionate share of the acquired net identifiable assets[45] - Provisions for contingencies recognized as part of the business combination totaled $856.2 million, including tax-related contingencies of $432.5 million[47] - Ternium has established a "put" and "call" option mechanism with the NSC group regarding their remaining shares in Usiminas, allowing for future transactions at specified prices[42] - The total purchase consideration for the acquisition was $118.7 million, with a significant portion allocated to the remeasurement of previously held interests[41] - Ternium began fully consolidating Usiminas' balance sheet and results of operations in its financial statements starting July 2023[37] Segment Performance - The Steel segment reported net sales of $3,801,118 thousand for the three-month period ended March 31, 2025, a decrease from $4,690,004 thousand in the same period of 2024, reflecting a decline of approximately 19%[54] - The Mining segment generated net sales of $131,690 thousand in Q1 2025, compared to $88,293 thousand in Q1 2024, indicating an increase of about 49%[54] - Operating income for the Steel segment in Q1 2025 was $243,546 thousand, significantly lower than $593,211 thousand in Q1 2024, a decline of about 59%[54] - The cost of sales for the three-month period ended March 31, 2025, was $3,401,858 thousand, down from $3,674,744 thousand in the same period of 2024, reflecting a decrease of approximately 7%[57] - Selling, general and administrative expenses decreased to $396,200 thousand in Q1 2025 from $431,166 thousand in Q1 2024, a reduction of about 8%[58] Legal and Tax Matters - Retained earnings included in the financial statements may not be wholly distributable due to Luxembourg law[16] - The estimated current tax expense related to OECD Pillar Two for the three-month period ended March 31, 2025, is $3.8 million, with a total provision of $25.3 million[68] - The potential indemnification amount related to the Usiminas acquisition could reach approximately $336.4 million, based on the latest court decisions[73] - Ternium Brasil has a commitment of approximately $106.2 million under a supply agreement with Petrobras S.A. due to terminate in February 2026[76] - The company recognized provisions for tax contingencies of $432,488 thousand as part of the business combination, up from $329,141 thousand previously[48] - Labor lawsuits related to the Cubatão Plant amounted to $57,343 thousand as of March 31, 2025, down from $34,459 thousand at the acquisition date[48] Shareholder Information - The company proposed an annual dividend of $0.27 per share, totaling approximately $530 million, which includes an interim dividend of $0.09 per share already paid[66] - As of March 31, 2025, Techint Holdings S.à r.l. indirectly owned 65.03% of the company's share capital, while Tenaris Investments S.à r.l. held 11.46%[79] Economic and Regulatory Environment - The company has significant foreign exchange restrictions in Argentina, impacting its operations and financial transactions[86] - Ternium Argentina's financial position in ARS included $341 million in monetary assets and $202 million in monetary liabilities as of March 31, 2025[94] - On February 1, 2025, the U.S. government announced tariffs on all products imported from Mexico, Canada, and China, with specific exemptions for USMCA-compliant products[96] - A 25% tariff was imposed on virtually all imports of steel and certain steel derivatives starting March 12, 2025, revoking previous exemptions[96] - Reciprocal tariffs with a minimum of 10% were announced on April 2, 2025, but Mexico and Canada were exempt from these tariffs[96] - A 25% tariff under Section 232 on all imported automobiles produced outside the U.S. was confirmed on April 2, 2025, affecting only non-U.S. specific content[96] - Other countries have announced retaliatory tariffs against U.S. exports, creating uncertainties for Ternium[97] - Ternium is currently unable to predict the impact of the new tariffs on its business or financial condition due to these uncertainties[97]