Core Insights - Grupo Simec reported a significant decline in net income, down 91% from Ps. 8,587 million in the first nine months of 2024 to Ps. 763 million in the same period of 2025, primarily due to a shift from net exchange income to net exchange loss [13][36]. Financial Performance Overview - **Net Sales**: Net sales decreased by 10% to Ps. 22,320 million in the first nine months of 2025 from Ps. 24,828 million in the same period of 2024, driven by a 9% reduction in shipments of finished steel products and a 1% decline in average sales price [2][36]. - **Cost of Sales**: Cost of sales fell by 9% to Ps. 16,893 million in the first nine months of 2025, representing 76% of net sales compared to 75% in 2024 [3][36]. - **Gross Profit**: Gross profit decreased by 13% to Ps. 5,427 million, with gross profit as a percentage of net sales dropping from 25% in 2024 to 24% in 2025 [4][36]. - **Operating Profit**: Operating profit declined by 15% to Ps. 3,784 million, with operating income as a percentage of net sales at 17% in 2025 compared to 18% in 2024 [7][36]. - **EBITDA**: EBITDA decreased by 11% to Ps. 4,594 million in the first nine months of 2025 [8][36]. - **Selling, General and Administrative Expenses**: These expenses increased by 11% to Ps. 2,036 million, representing 9% of net sales in 2025 compared to 7% in 2024 [5][36]. Quarterly Performance Analysis - **Third Quarter Net Sales**: Net sales increased by 6% from Ps. 7,052 million in the second quarter of 2025 to Ps. 7,485 million in the third quarter, but decreased by 12% compared to Ps. 8,549 million in the third quarter of 2024 [15][26]. - **Cost of Sales**: Cost of sales rose to Ps. 5,726 million in the third quarter of 2025 from Ps. 5,381 million in the second quarter, representing 77% of net sales [16][37]. - **Gross Profit**: Gross profit increased by 5% to Ps. 1,759 million in the third quarter of 2025, but decreased by 18% compared to Ps. 2,156 million in the third quarter of 2024 [17][28]. - **Operating Profit**: Operating profit decreased to Ps. 1,159 million in the third quarter of 2025 from Ps. 1,198 million in the second quarter, and down from Ps. 1,524 million in the third quarter of 2024 [20][31]. - **Net Income**: The company recorded a net income of Ps. 459 million in the third quarter of 2025, a recovery from a net loss of Ps. 1,000 million in the second quarter, but a significant drop from Ps. 3,152 million in the third quarter of 2024 [25][35]. Comprehensive Financial Costs - **Comprehensive Financial Cost**: The company faced a net loss of Ps. 2,229 million in the first nine months of 2025, a stark contrast to a net income of Ps. 4,907 million in the same period of 2024, primarily due to a net exchange loss of Ps. 3,050 million [11][36].