Q1 2025 Ternium SA Earnings Call Transcript
Key Points
- Ternium SA (TX) reported a sequential increase in EBITDA driven by improved margins and slightly higher shipments.
- The company anticipates achieving a double-digit EBITDA margin in the second quarter, supported by increased realized prices in Mexico and cost-reduction initiatives.
- The expansion project in Mexico is progressing, with the pickling and finishing lines already operational and other facilities scheduled to begin by the end of December.
- Ternium SA (TX) has a strong balance sheet with a net cash position of $1.3 billion at the end of March 2025.
- The company is focusing on enhancing competitiveness by increasing operational efficiency and reducing costs, which has already yielded positive results.
- Trade tensions and uncertainty are affecting business confidence and posing risks to global economic growth.
- The operating environment in Mexico is challenging, with uncertainty impacting investment and consumption.
- The expansion project in Mexico has experienced a slight delay, with the total CapEx revised to $4 billion, representing a 16% increase from previous estimates.
- The Brazilian market faces issues with unfair trade practices, with significant increases in imports and no immediate imposition of anti-dumping tariffs.
- The macroeconomic situation in Argentina, while showing signs of improvement, still presents risks such as high inflation.
Hello everyone and welcome to Ternium first quarter 2025 results call. (Operator Instructions)
Thank you. I'd now like to hand the call over to Sebastian Marti. Please go ahead.
Good morning and thank you for joining us. My name is Sebastian Marti, and I am Chinese. I am senior director. Yesterday, Turning released its financial results for the first quarter of 2025.
This call is meant to provide additional context to that presentation. I'm joined today by Máximo Vedoya, Ternium's Chief Executive Officer, and Pablo Brizzio, Ternium's Chief Financial Officer, who will discuss the company's business environment and performance.
After our prepared remark, we will open up the floor to your questions. Before we begin, I would like to remind you that this conference call contains forward-looking information and that actual results may vary from those expressed or implied.
Factors that could affect results are contained in our filings with the Security
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