TXNYSESteel Works, Blast Furnaces & Rolling Mills (Coke Ovens)US GAAP · USD

Ternium S.A.

Ternium S.A. is a U.S.-listed steel producer organized around flat and long steel manufacturing and distribution businesses in the Americas. Through its operating subsidiaries, it supplies steel products to industrial customers and the construction sector, with major activity concentrated in Latin America.

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Revenue15.6bn USD
−11.6 %y/y
Operating profit (EBIT)863m USD
−6.7 %y/y
EBIT margin5.5%
+0.3 ppy/y
Net income425m USD
+892.3 %y/y
Free cash flow-187m USD
−559.6 %y/y

Fiscal year 2025 · change from previous year

Development 2022–2025

05101520bn USD2022: 16.4 bn USD2022: EBIT 2.7 bn USD20222023: 17.6 bn USD2023: EBIT 1.4 bn USD20232024: 17.6 bn USD2024: EBIT 0.92 bn USD20242025: 15.6 bn USD2025: EBIT 0.86 bn USD202515.60.86
RevenueOperating profit (EBIT)

Business

Share of revenue
Flat steel products45 %

Rolled and coated steel products used in manufacturing and construction.

Long steel products25 %

Bars, shapes and other long products used mainly in construction and infrastructure.

Semi-finished steel10 %

Slabs and other intermediate steel outputs used internally or sold externally.

Downstream processing and coatings20 %

Value-added finishing, coating and processing for end-use applications.

Customers

Ternium sells primarily to manufacturers, distributors and construction-related customers that need steel inputs for industrial production or building projects. Its products also serve auto-related, appliance and other fabrication chains that require specified steel grades and surface treatments.

Construction and infrastructure

Buys long steel and structural products for buildings, civil works and projects.

Manufacturing and fabrication

Buys flat steel used as input for industrial production and finished goods.

Distributors and service centers

Buys steel for inventory, processing and resale to smaller end users.

Appliance and automotive supply chains

Buys higher-spec flat steel and coated products for downstream manufacturing.

Strategy

Ternium’s strategy centers on operating an integrated steel platform with downstream capacity in key Latin American markets. The company also emphasizes industrial center expansion, product upgrading and lower-carbon steelmaking technologies to strengthen its competitive position and serve higher-value applications.

Downstream capacity expansionMedium term

Adds finishing and coating capability closer to end customers, improving product mix and service levels.

Supply security for raw materials and energyShort term

Steel production depends on stable iron ore and natural gas inputs, especially in Argentina.

Product upgrading and value-added mixMedium term

Higher-spec steel grades and coated products help defend margins and customer relationships.

Lower-carbon steelmakingLong term

Supports customer requirements, regulatory expectations and long-term competitiveness.

Geography

Ternium’s operations are centered in the Americas, with a particularly important footprint in Mexico and Argentina and additional activity in Brazil and other regional markets. The company’s reported commitments also show heavy reliance on imported iron ore inputs and long-dated gas transportation arrangements in Argentina, underscoring how geography shapes both supply chain and energy exposure.

Risks

Ternium is exposed to cyclical steel demand, pricing volatility and shifts in the industries that buy steel, which can quickly affect volumes and product mix. The company also faces supply-chain and energy risks in Argentina, plus foreign exchange and country-specific exposure across Latin America.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Cyclical steel demand1Energy and transportation dependence in Argentina2Raw material supply commitments3Foreign exchange volatility4Trade and tariff risk5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Cyclical steel demandImpact: HighLikelihood: High

    Steel purchases track construction and manufacturing activity, so downturns reduce order volumes and pricing power.

    Exposure: Flat and long steel sales

  2. Energy and transportation dependence in ArgentinaImpact: HighLikelihood: Medium

    Natural gas supply and transport are essential inputs and rely partly on related-party infrastructure.

    Exposure: Argentinian operations

  3. Raw material supply commitmentsImpact: MediumLikelihood: High

    Long-term iron ore and pellet contracts can create penalties or cost pressure if volumes shift.

    Exposure: Ternium Argentina procurement

  4. Foreign exchange volatilityImpact: MediumLikelihood: High

    Local-currency positions and operating currencies can move earnings and cash flows versus the US dollar.

    Exposure: Brazil and Mexico

  5. Trade and tariff riskImpact: MediumLikelihood: Medium

    Steel markets are sensitive to protectionism, import restrictions and global excess capacity.

    Exposure: Americas steel markets

Accounting

Judgemental items
Contingencies and commitments

Iron ore and gas contracts create future payment obligations and possible penalties if volumes are not met.

Impact: Can affect liquidity analysis and footnote obligations

Fair value of financial instruments

Investments and derivatives are measured at fair value, creating period-to-period volatility.

Impact: Can move other financial results and OCI

Related-party transactions

Gas and transport contracts include related companies, requiring careful disclosure and pricing scrutiny.

Impact: Affects comparability and governance assessment

Depreciation and capital projects

Large industrial expansions add significant assets that later affect depreciation expense.

Impact: Influences reported operating costs over time

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Last updated: 28/09/2026