Second Quarter 2025 Performance - Adjusted EBITDA increased by 25% sequentially in 2Q25, driven mainly by higher realized steel prices in Mexico, with a slight offset from higher steel costs[10] - Net income in 2Q25 includes a provision adjustment charge of $40 million accounting for interest accrual and the appreciation of the BRL vs the US dollar in connection with the ongoing litigation related to the acquisition of a participation in Usiminas in 2012[14] - Steel segment shipments decreased sequentially in 2Q25, but higher realized steel prices, mainly in Mexico, contributed to financial performance[20] - Steel Cash Operating Income increased to $350 million in 2Q25, compared to $276 million in 1Q25[22] - Steel Cash Operating Income per Ton increased to $94/ton in 2Q25, with a margin of 9%[25] - Mining shipments increased sequentially, driven mainly by higher iron ore production, but international iron ore prices decreased[29] - Mining Cash Operating Income decreased to $54 million in 2Q25, compared to $57 million in 1Q25[32] - Mining Cash Operating Income per Ton decreased to $16/ton in 2Q25, with a margin of 19%[30] Cash Flow and Balance Sheet - Cash from operations reached $1044 million in 2Q25, a significant increase compared to $207 million in 1Q25[34] - Net cash position declined in 2Q25 to $1 billion, after a $353 million dividend payment and a significant increase in CAPEX[36]

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a - 16 or 15d - 16 of the Securities Exchange Act of 1934 FORM 6 - K As of 07/29/2025 Ternium S.A. (Translation of Registrant's name into English) 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, thereunto duly authorized. TERNIUM S.A. Ternium S.A. 26 Boulevard Royal – 4th floor L-2449 Luxem ...

Group 1 - The analyst focuses on undercovered stocks primarily in Brazil and Latin America, with occasional insights on global large caps [1] - Contributions are made to platforms like TipRanks and TheStreet, indicating a broad reach in financial analysis [1] Group 2 - There are no disclosed positions in any mentioned companies, suggesting an unbiased perspective in the analysis [2] - The article expresses personal opinions and is not influenced by compensation from companies mentioned [2]

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]

Financial Performance - Adjusted EBITDA increased, driven by enhanced margins and increased shipments of steel and iron ore[8] - In Q1 2025, net income includes a $45 million loss due to an adjustment for interest accrual and currency fluctuation related to the Usiminas acquisition litigation[15] - Mining net sales increased 13% sequentially, mainly driven by higher iron ore realized prices[28] Steel Segment - Steel shipments in Q1 2025 were 1.911 million tons, with Mexico accounting for 49.5%, Brazil 26.1%, Southern Region 12.7%, USA 6%, and other markets 11.7%[20, 21] - Steel shipments rose in Q1 2025, driven by increases in Brazil and the US markets, partially offset by a decrease in Mexico[24] - Steel revenue per ton decreased sequentially in most of Ternium's markets in Q1 2025[24] - Steel cash operating income per ton was $72/ton in Q1 2025 with a margin of 7%[23] Mining Segment - Mining shipments rose slightly sequentially to 3.059 million tons in Q1 2025, driven by higher production in Mexico and Brazil[26, 28] - Mining cash operating income per ton was $18/ton in Q1 2025 with a margin of 20%[26] - Margins declined in the 1Q25 due to higher production costs, partially offset by an increase in realized iron ore prices[27] Cash Flow and Balance Sheet - Net cash position decreased primarily due to cash outflows related to Ternium's capital expenditure program[33] - Capex in Q1 2025 was $518 million, mainly reflecting progress on the expansion projects at Ternium's Pesquería Industrial Center[32, 36]

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]

Financial Data and Key Metrics Changes - Ternium reported a sequential increase in EBITDA driven by improved margins and slightly higher shipments [6] - Net income for Q1 2025 stood at $142 million, including a $45 million provision adjustment charge related to ongoing litigation [18] - Adjusted net income, excluding the major charge, was $188 million, marking a significant improvement over the prior quarter [19] Business Line Data and Key Metrics Changes - The steel segment saw higher shipments in Brazil and other markets, partially offset by lower sales volumes in Mexico [19] - Mining segment shipments increased slightly quarter over quarter and rose 14% year over year, driven by higher production levels in Mexico and Brazil [22] Market Data and Key Metrics Changes - In Mexico, apparent consumption of steel decreased almost 5% in 2024, affecting demand [30] - Brazilian trade authorities reported a significant year-over-year increase in imports during Q1 2025, with ongoing anti-dumping investigations on imports from China [9] Company Strategy and Development Direction - The company aims to enhance competitiveness by increasing operational efficiency and reducing costs amid a challenging trade environment [10] - Ternium's expansion project in Mexico has a revised total CapEx of $4 billion, representing a 16% increase compared to previous estimates [12] - The company expects to achieve a double-digit EBITDA margin in Q2 2025, supported by increased realized prices and cost reduction initiatives [11] Management's Comments on Operating Environment and Future Outlook - Management noted that trade tensions and uncertainty are impacting global economic growth, but there is optimism regarding the Plan Mexico initiative to enhance industrialization [6][8] - The outlook for the steel sector in Argentina is improving, with expectations of a 20% increase in shipments in the upcoming quarters [56] Other Important Information - The company maintains a strong balance sheet with a net cash position of $1.3 billion as of March 2025 [23] - Ternium's CapEx for 2025 is projected to be around $2.5 billion, with significant investments in ongoing projects [23] Q&A Session Summary Question: Situation in Mexico and GDP impact - Management acknowledged the challenging environment in Mexico, with expectations for demand to improve in the following quarters, particularly in the commercial market [30][31] Question: Margins and profitability outlook - Management indicated that margins are expected to improve in Q2 2025, with a potential return to more reasonable levels compared to previous quarters [37][38] Question: Cost reduction and volume growth opportunities - Management confirmed ongoing cost reduction programs and highlighted the potential for volume growth in Mexico due to decreased imports [41][45] Question: Cash returns and dividend payments - Management expressed confidence in sustaining dividend payments despite ongoing CapEx plans, citing a solid financial position [54] Question: Argentina's steel sector outlook - Management noted improvements in Argentina's steel sector, with expectations for increased shipments and no immediate plans for capacity expansion [56] Question: CapEx increase reasons and timeline - Management explained that the CapEx increase was due to higher construction costs and inflation, with the additional costs expected to be distributed over the project timeline [64]

Financial Data and Key Metrics Changes - Ternium reported a net income of $142 million for Q1 2025, which includes a $45 million provision adjustment charge related to ongoing litigation [16] - Adjusted net income, excluding the major charge, was $188 million, marking a significant improvement over the prior quarter [16] - The company anticipates achieving a double-digit EBITDA margin in Q2 2025, supported by increased realized prices in Mexico and cost reduction initiatives [9][10] Business Line Data and Key Metrics Changes - The steel segment saw higher shipments in Brazil and other markets, partially offset by lower sales volumes in Mexico [17] - Mining segment shipments increased slightly quarter-over-quarter and rose 14% year-over-year, driven by higher production levels in Mexico and Brazil [20] Market Data and Key Metrics Changes - In Mexico, apparent consumption of steel decreased almost 5% in 2024, with ongoing challenges in the construction sector affecting demand [30] - Brazil's local market is showing resilient steel demand, but there has been a significant year-over-year increase in imports [7] - Argentina's macroeconomic situation is improving, which is expected to support increased shipments in the upcoming quarters [8] Company Strategy and Development Direction - Ternium aims to enhance competitiveness by increasing operational efficiency and reducing costs amid a challenging trade environment [8] - The company is focusing on a significant expansion project in Mexico, with a revised total CapEx of $4 billion, representing a 16% increase from previous estimates [11] - The expansion will integrate advanced technology to improve operational efficiency and product quality, enabling Ternium to meet growing demand in the USMCA region [11][12] Management's Comments on Operating Environment and Future Outlook - Management highlighted that trade tensions and uncertainty are impacting global economic growth, but there is optimism regarding the reduction of reliance on Asian suppliers in North America [5][6] - The implementation of Plan Mexico is expected to enhance industrialization and strengthen the North American supply chain [6][13] - Management expressed confidence that the USMCA will become stronger and better prepared for future growth [14] Other Important Information - The company continues to maintain a strong balance sheet with a net cash position of $1.3 billion as of March 2025 [22] - Ternium's total CapEx for 2025 is projected to be around $2.5 billion, with significant investments in ongoing projects [22] Q&A Session Summary Question: Regarding the situation in Mexico and industrial customers - Management acknowledged the challenges in the Mexican market but expects demand to improve in the following quarters, particularly in the commercial sector [30][31] Question: On margins and profitability levels - Management noted that while margins have decreased, they expect a gradual improvement moving forward, with better margins anticipated in Q2 2025 [35][36] Question: On cost reductions and future volume growth - Management confirmed ongoing cost reduction initiatives and the potential for volume growth in Mexico, with a significant decrease in imports creating opportunities [41][42] Question: On cash returns and dividend payments - Management stated that despite uncertainties, they aim to sustain dividend payments due to a solid financial position [50] Question: On the outlook for Argentina's steel sector - Management expressed optimism about the improving outlook for the steel sector in Argentina, with expectations for increased shipments in the coming quarters [52] Question: On CapEx increase and project timelines - Management explained that the CapEx increase is due to higher construction costs and inflation, with the revised budget impacting the timeline of the expansion project [59][60] Question: On the U.S.-Mexico relationship and steel pricing - Management emphasized the need for a reasonable negotiation between the U.S. and Mexico regarding steel tariffs, expressing confidence in a favorable outcome [72][75] Question: On FX controls in Argentina and dividend payments - Management indicated that recent changes in FX controls are positive, allowing for more flexibility in dividend payments from Ternium Argentina [78][80]