Grupo Simec tumbles as 2025 profit collapses on FX swing and weaker sales
Grupo Simec shares are sliding after the company disclosed sharply weaker full-year 2025 results, with net income down 85% as a prior-year FX gain flipped to a large FX loss. The selloff is being amplified by the stock’s typically thin U.S. ADR liquidity, which can exaggerate single-session moves.
1. What’s moving SIM today
Grupo Simec (SIM) is dropping sharply as investors digest the company’s latest disclosed financial picture showing a major earnings reset. Full-year 2025 net income fell 85% to Ps. 1,533 million, driven primarily by a swing to a net exchange loss of Ps. 3,602 million versus a net exchange profit of Ps. 5,556 million in 2024, alongside softer net sales. (prnewswire.com)
2. The numbers behind the selloff
Revenue pressure added to the negative tone: 2025 net sales declined 10% to Ps. 30,291 million, reflecting 6% lower finished steel shipments and a 4% lower average sales price, with sales outside Mexico down 14%. While operating income and EBITDA held roughly flat year over year, the FX swing overwhelmed results at the bottom line and is a key reason investors are repricing the stock today. (prnewswire.com)
3. Why the drop looks outsized
SIM’s U.S.-listed shares are an ADR and often trade with relatively low daily volume, which can make the price more sensitive to large orders and headline-driven repositioning. That structure can intensify one-day percentage moves, especially when the market is reacting to a large year-over-year change in reported net income.