Ternium Cuts 2025 Dividend to $2.20 Per ADS, Proposes Net $1.30 Payout
Ternium’s board cut its 2025 dividend to $2.20 per ADS from $2.70, reducing payout to $432 million and setting $1.30 per ADS ($255 million) if approved on May 12. It still forecasts adjusted EBITDA gains in 2026 but trimmed the dividend to bolster its balance sheet due to global uncertainties.
1. Dividend Cut and Payout Proposal
Ternium’s Board lowered the proposed 2025 dividend from $2.70 to $2.20 per ADS, trimming the total annual payout to $432 million. If approved on May 12, shareholders will receive a net dividend of $1.30 per ADS ($255 million) on May 15, with record date on May 14, 2026.
2. Balance Sheet Reinforcement
The Board cited the need to bolster liquidity and maintain financial flexibility due to ongoing global economic uncertainties. The reduction follows an interim dividend of $0.90 per ADS paid in Q4 2025, bringing the total interim component to $177 million.
3. 2026 Financial Outlook
Management maintains expectations for sequential adjusted EBITDA growth in Q1 2026 and further improvement in Q2, underpinned by demand recovery and operational efficiencies despite geopolitical tensions.