Q2 2025 Ternium SA Earnings Call Transcript
Key Points
- Ternium SA (TX) reported a 25% increase in adjusted EBITDA for the second quarter, driven by stronger steel prices in Mexico.
- The company anticipates a sequential improvement in EBITDA for the third quarter, supported by cost efficiency measures and operational improvements.
- Ternium SA (TX) is benefiting from Mexican government measures to reduce unfair steel imports, which is expected to support higher shipments in Mexico.
- The company is making progress on its expansion project in Pescaria, Mexico, which is on schedule and expected to enhance capacity and efficiency.
- Ternium SA (TX) has a strong cash position, totaling $1 billion at the end of June, despite high CapEx and dividend distributions.
- The operating environment remains uncertain and volatile, with challenges in key markets such as Brazil due to unfair steel imports.
- Shipments declined in the second quarter, primarily in Mexico and the US, partially offset by higher volumes in southern regions.
- The Brazilian steel market faces significant challenges from a surge of unfair imported steel, impacting local competitiveness.
- The construction sector in Argentina is not improving significantly, affecting certain market segments like home appliances and packaging.
- Net cash position decreased in the second quarter due to elevated CapEx levels and dividend distributions.
Hello, and welcome to Ternium Second Quarter 2025 results conference call. Please note that this call is being recorded. I would now like to hand the call over to Sebastian Martin.
Please go ahead, sir.
Good morning and thank you for joining us. My name is Sebastian Martin and I'm Ternium Global IR and Compliance Director. Yesterday we announced our financial results for the second quarter and the First half of 2025.
This call is meant to provide additional context to that presentation. I'm joined today by Maximo Bedoya, Ternium's Chief Executive Officer, and Paulo Riccio, the company's Chief Financial Officer. We discuss Ternium's business environment and performance.
After our prepared remarks, 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
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