Ternium(US:TX)2025-07-30 10:59Financial Performance - Net sales for the six-month period ended June 30, 2025, were $7,879,747, a decrease of 15.0% compared to $9,292,449 in the same period of 2024[10] - Gross profit for the six-month period ended June 30, 2025, was $1,141,026, down 38.7% from $1,860,149 in 2024[10] - Operating income for the six-month period ended June 30, 2025, was $331,053, a decline of 68.3% compared to $1,045,377 in 2024[10] - Profit for the period for the six-month ended June 30, 2025, was $401,646, compared to a loss of $251,695 in 2024[10] - Total comprehensive income for the six-month period ended June 30, 2025, was $809,271, compared to a loss of $224,496 in 2024[11] - The company reported a profit of $401,646 for the six-month period ended June 30, 2025, compared to a loss of $251,695 in the same period of 2024[23] - Cash flows from operating activities increased to $1,250,672 in the first half of 2025, up from $1,131,963 in the prior year[23] - The company reported an operating income of $385,760 thousand under the management view for the six-month period ended June 30, 2025, compared to $812,430 thousand in 2024, reflecting a decrease of approximately 52.5%[55] - Financial income for the six-month period ended June 30, 2025, was $125,949 thousand, down from $155,930 thousand in 2024, a decrease of about 19.3%[60] - Net profit from continuing operations for the six-month period ended June 30, 2025, was $61 million, down from $116 million in the prior year, indicating a decrease of about 47.4%[95] Assets and Equity - Total assets as of June 30, 2025, were $23,919,225, an increase from $23,128,547 as of December 31, 2024[12] - Total equity as of June 30, 2025, was $16,582,341, up from $16,131,569 as of December 31, 2024[12] - The company’s retained earnings as of June 30, 2025, stood at $12,004,234, an increase from $11,968,186 at the beginning of the year[14] - Non-current assets totaled $10,510,755 thousand as of June 30, 2025, an increase from $8,960,856 thousand in 2024, representing a growth of approximately 17.3%[57] - Total assets as of June 30, 2025, amounted to $5,455 million, a decrease from $5,726 million as of December 31, 2024, reflecting a decline of approximately 4.7%[95] Cash and Investments - Cash and cash equivalents as of June 30, 2025, were $1,857,696, compared to $1,691,263 as of December 31, 2024[12] - The company reported a net cash used in investing activities of $767,923 for the first half of 2025, compared to $525,857 in 2024[23] - Ternium Argentina's cash and cash equivalents and other investments totaled $1,000 million, with $859 million in U.S. dollar-denominated instruments[96] - As of June 30, 2025, Ternium Argentina's financial position included $294 million in monetary assets and $139 million in monetary liabilities, with all ARS-denominated assets and liabilities valued at the official exchange rate[98] Strategic Moves and Acquisitions - The company increased its participation in Usiminas Control Group, indicating a strategic move towards enhancing governance and operational control[9] - On July 3, 2023, Ternium completed the acquisition of an additional 57.7 million ordinary shares of Usiminas for $118.7 million, increasing its participation in the Usiminas control group to 51.5%[36] - Ternium began fully consolidating Usiminas' balance sheet and results of operations in its financial statements starting July 2023[38] - The acquisition of Usiminas included a "put" and "call" option mechanism, allowing for future transactions between Ternium and the NSC group[43] Segment Performance - The Steel segment reported net sales of $7,613,034 thousand for the six-month period ended June 30, 2025, a decrease from $9,084,805 thousand in the same period of 2024, reflecting a decline of approximately 16.2%[55] - The Mining segment generated net sales of $266,713 thousand for the six-month period ended June 30, 2025, compared to $207,644 thousand in 2024, indicating an increase of about 28.5%[55] - Total cost of sales for the six-month period ended June 30, 2025, was $6,738,721 thousand, down from $7,432,300 thousand in 2024, representing a reduction of approximately 9.3%[58] - Selling, general and administrative expenses decreased to $799,100 thousand in the first half of 2025 from $865,745 thousand in 2024, a decline of about 7.7%[59] Dividends and Financial Obligations - The company paid dividends of $353,354 in cash to shareholders during the first half of 2025, down from $431,877 in the same period of 2024[23] - The company plans to repay a total of $63 million in additional paid-in capital over the next three years, starting in June 2025[16] - On July 23, 2025, Ternium Mexico entered into a $1,250 million syndicated loan agreement to finance capital and operational expenditures, with proceeds expected to be disbursed over the next twelve months[102] - The loan bears interest at SOFR plus 125 basis points and must be repaid in six equal semi-annual installments starting 30 months after the effective date[103] Legal and Regulatory Matters - The company faced pending labor lawsuits with a total claim amount of $57,343 thousand as of June 30, 2025, down from $34,393 thousand at the acquisition date[49] - The company continues to believe that the claims made by CSN regarding the Usiminas acquisition are unsupported and without merit[75] - The estimated current tax expense related to OECD Pillar Two for the six-month period ended June 30, 2025, is $8.5 million, with a total provision of $29.9 million[69] Market and Operational Insights - The company continues to monitor the impact of foreign exchange restrictions in Argentina, which remain in place as of the reporting date[92] - Ternium is unable to predict the impact of recently announced tariffs on imports in the United States, which may affect its business and financial condition[101] - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion in Q3 2023[104] - User base expanded by 10 million active users, totaling 150 million users globally[104] - The company projects a revenue growth of 20% for the next quarter, aiming for $1.44 billion[104] - New product line expected to contribute an additional $200 million in revenue by Q4 2023[104] - Research and development expenses increased by 25%, totaling $150 million, focusing on innovative technologies[104] - Market expansion efforts led to a 30% increase in sales in the Asia-Pacific region[104] - The company completed a strategic acquisition valued at $500 million to enhance its product offerings[104] - Gross margin improved to 45%, up from 42% in the previous quarter[104] - Customer retention rate reached 85%, indicating strong user satisfaction[104] - The company plans to invest $100 million in marketing to support new product launches[104]