Grupo Simec(US:SIM) Prnewswire·2026-02-20 00:50Core Insights - Grupo Simec reported a significant decrease in net income by 85% from Ps. 10,488 million in 2024 to Ps. 1,533 million in 2025, primarily due to a shift from a net exchange profit of Ps. 5,556 million in 2024 to a net exchange loss of Ps. 3,602 million in 2025 [1][3] Financial Performance Overview - Net Sales: Net sales decreased by 10% from Ps. 33,658 million in 2024 to Ps. 30,291 million in 2025, attributed to a 6% reduction in shipments of finished steel products and a 4% decline in average sales price [1][3] - Cost of Sales: Cost of sales fell by 13% from Ps. 26,033 million in 2024 to Ps. 22,657 million in 2025, with cost of sales as a percentage of net sales at 75% in 2025 compared to 77% in 2024 [1][3] - Gross Profit: Gross profit remained relatively stable, increasing slightly from Ps. 7,625 million in 2024 to Ps. 7,634 million in 2025, with gross profit as a percentage of net sales rising from 23% to 25% [1][3] - Operating Profit: Operating income increased by 1% from Ps. 5,301 million in 2024 to Ps. 5,365 million in 2025, with operating profit as a percentage of net sales improving from 16% to 18% [1][3] - EBITDA: EBITDA rose by 1% from Ps. 6,367 million in 2024 to Ps. 6,446 million in 2025 [1][3] Quarterly Performance Analysis - Fourth Quarter 2025 vs. Third Quarter 2025: Net sales increased by 7% from Ps. 7,485 million to Ps. 7,972 million, with sales in tons rising by 7% from 499 thousand tons to 532 thousand tons [2][3] - Gross Profit: Gross profit for the fourth quarter of 2025 increased by 26% to Ps. 2,208 million compared to Ps. 1,759 million in the third quarter [2][3] - Operating Profit: Operating income for the fourth quarter was Ps. 1,582 million, up from Ps. 1,159 million in the third quarter, with operating profit as a percentage of net sales increasing from 15% to 20% [2][3] Year-over-Year Comparison - Fourth Quarter 2025 vs. Fourth Quarter 2024: Net sales decreased by 10% from Ps. 8,830 million in 2024 to Ps. 7,972 million in 2025, while gross profit increased by 55% from Ps. 1,422 million to Ps. 2,208 million [2][3] - Cost of Sales: Cost of sales decreased by 22% from Ps. 7,408 million in 2024 to Ps. 5,764 million in 2025, with the cost of sales as a percentage of net sales improving from 84% to 72% [2][3] - Net Income: Net income for the fourth quarter of 2025 was Ps. 770 million, down from Ps. 1,901 million in the fourth quarter of 2024, largely due to a shift from a net exchange profit to a net exchange loss [2][3]