Grupo Simec Sales Down 10% to Ps.30.3B, Net Income Falls 86%
SIM•Net sales decreased 10% to Ps.30,291 million for year ended Dec.31,2025, driven by a 6% drop in finished steel shipments to 1.933 million tons and a 4% lower average selling price. Net income plunged 86% to Ps.1,496 million as a Ps.3,607 million exchange loss reversed prior-year gains.
1. Net Sales and Volume Trends
Net sales decreased by 10% to Ps.30,291 million for year ended Dec.31,2025, as finished steel shipments fell 6% to 1.933 million tons and average selling prices dipped 4%. International sales dropped 14% to Ps.13,234 million while domestic sales fell 7% to Ps.17,057 million.
2. Profit Margins and Expenses
Gross profit reached Ps.7,508 million, representing a 25% margin compared with 23% a year earlier. Selling, general and administrative expenses rose 9% to Ps.2,829 million, increasing the SG&A ratio to 9% of net sales, and EBITDA edged down 1% to Ps.6,287 million.
3. Net Income Plunge from Exchange Loss
Net income plunged 86% to Ps.1,496 million due to a Ps.3,607 million net exchange loss that flipped prior-year exchange gains into a financial cost. Operating profit dipped 2% to Ps.5,205 million as comprehensive financial costs rose to Ps.2,498 million.
4. Debt Profile and Liquidity
Consolidated debt remains at U.S.$302,000 of 8.875% medium-term notes due 1998, with accrued interest of Ps.15.6 million as of Dec.31,2025 versus Ps.17.3 million a year earlier. Lower scrap costs helped reduce the average cost of sales by 7%, supporting liquidity.
