Ternium Q1 EBITDA Jumps 21% to $479M as Net Income Hits $372M
Ternium's Adjusted EBITDA rose 21% sequentially in Q1 to $479 million, while net income reached $372 million despite a $48 million litigation provision loss. It invested $406 million in its Pesquería expansion, acquired 153.1 million Usiminas shares for $315 million and held $327 million net cash at quarter end.
1. First Quarter Financial Performance
Ternium reported a 21% sequential increase in Adjusted EBITDA to $479 million in the first quarter of 2026, driven by higher realized steel prices across its main markets. Net income reached $372 million, which included deferred tax gains of $132 million and a $48 million loss from updating a litigation provision related to the Usiminas acquisition.
2. Expansion and Acquisition Activities
During the quarter, Ternium invested $406 million in expanding its Pesquería industrial center, completing downstream capacity additions and advancing a cold-rolling mill and galvanizing line. The company also finalized the $315 million acquisition of 153.1 million ordinary Usiminas shares, strengthening its position in the Brazilian steel market.
3. Cash Flow and Balance Sheet Position
Operating cash flow amounted to $217 million after a $233 million working capital increase, primarily from higher trade receivables. Ternium received $150 million following the repayment of its Techgen loan and ended March with a net cash position of $327 million, down from $712 million at year-end 2025.
4. Second Quarter Outlook
Ternium expects Q2 Adjusted EBITDA to rise on higher shipments in Mexico and Argentina and improved margins, supported by infrastructure project progress and trade measures in Brazil. The company anticipates higher revenue per ton in Mexico and Brazil, partially offset by increased raw material costs across its markets.