Grupo Simec’s Net Income Plummets 85% as Sales Fall 10% in 2025
Net sales declined 10% to Ps.30,291 million in 2025 as shipments fell to 1.933 million tons and average prices dropped 4%. Net income plunged 85% to Ps.1,533 million, driven by a Ps.3,602 million exchange loss despite 1% EBITDA growth to Ps.6,446 million.
1. Net Sales and Shipments Slide
Grupo Simec’s net sales fell 10% from Ps.33,658 million to Ps.30,291 million in 2025, reflecting a 6% drop in finished steel shipments to 1.933 million tons and a 4% lower average sales price. International sales decreased 14% to Ps.13,234 million while domestic revenue declined 7% to Ps.17,057 million.
2. Cost, Gross Margin and EBITDA
Cost of sales decreased 13% to Ps.22,657 million, improving gross margin to 25% from 23% year-over-year and producing gross profit of Ps.7,634 million. Selling, general and administrative expenses rose 8% to Ps.2,800 million, yet operating income increased 1% to Ps.5,365 million and EBITDA edged up 1% to Ps.6,446 million.
3. Net Income Collapse Driven by Exchange Losses
Net income collapsed 85% to Ps.1,533 million from Ps.10,488 million as a Ps.5,556 million exchange gain in 2024 turned into a Ps.3,602 million exchange loss in 2025. Comprehensive financial cost totaled Ps.2,494 million versus prior-year income of Ps.7,240 million.
4. Debt and Liquidity Position
As of December 31, 2025, consolidated debt comprised U.S.$302,000 of 8⅞% medium-term notes due 1998 and Ps.5.4 million of accrued interest, largely unchanged from the prior year, leaving capital structure and liquidity stable.