Ternium earnings more than double in Q1, Pesquería ramp-up continues

Ternium SA

First quarter ended March 31	2026	2025	% Change
Net sales	$3,934	$3,933	0.0%
Net earnings (loss)	$372	$142	162%
Per diluted share	$1.09	$0.34	221%

(in millions of dollars except per share)

Ternium SA’s profits more than doubled in the first quarter as work continues to advance at its industrial center in Pesquería, Mexico.

The Latin American steelmaker reported net income of $372 million in Q1’26 vs. $142 million a year earlier. Net sales remained flat at $3.93 billion in the same comparison, according to earnings results released on Tuesday.

The company shipped 3.7 million metric tons (mt) of steel products in Q1’26, down 4% year over year.

For Ternium’s Other Markets unit of its Steel Segment, which includes the US, net sales were $355 million, down 24% year over year. And steel shipments declined 29% to 320,000 mt in the same comparison. The company attributed this drop to lower sales in the US market.

Pesqueria

Ternium said it invested $406 million in the first quarter of 2026. This was primarily for the expansion of its industrial center in Pesquería.

The company finished the downstream expansion of the facility and advanced as previously planned with the ramp-up of a new cold-rolling mill and a new galvanizing line. It also progressed with its upstream expansion program.

Ternium anticipates beginning operations in the new steel shop by the end of the year.

Also, the company finalized the previously announced acquisition of 153.1 million ordinary shares of Brazil-based Usinas Siderúrgicas de Minas Gerais SA (Usiminas) from Japan’s Nippon Steel Corp. and Mitsubishi Corp. for a total of $315 million.

Ternium completed its buyout in February of Nippon’s and Mitsubishi’s shares in flat-rolled steelmaker Usiminas. Its participation in the Usiminas control group increased from 51.5% to 83.1%.

Outlook

The company expects Adjusted EBITDA to rise in Q2’26 vs. the first quarter, driven by higher shipments and improved margins.

“Shipments are expected to rise primarily in Mexico and Argentina,” Ternium said in a statement.

For Mexico, Ternium’s main market, the company anticipates continued growth in commercial market shipments during Q2’26, “as a significant destocking in the value chain throughout 2025 is giving way to a normalization of apparent demand.”

Also, several infrastructure projects are beginning to gain steam and could contribute more demand in upcoming quarters.

In Brazil, Ternium said steel consumption remains broadly stable, “with resilience in the automotive sector offset by weaker demand in agribusiness-related industries.”

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.