Luxembourg-based Ternium (NYSE:TX) reported a resilient fourth-quarter performance to close out a year of record-high investment, as the steelmaker positions its North American operations to capitalize on "nearshoring" trends in the automotive and industrial sectors.
The company posted fourth-quarter adjusted EBITDA of $395 million, a slight sequential decrease from the third quarter.
Management attributed the dip to lower realized steel prices across its primary markets, though the impact was significantly mitigated by lower raw material costs and ongoing efficiency gains.
For the full year 2025, Ternium generated adjusted EBITDA of $1.5 billion, maintaining a 10 percent margin despite a volatile pricing environment.
Net income for the fourth quarter stood at $171 million, bringing the full-year total to $303 million.
The annual result was notably impacted by non-cash charges, including a $405 million write-down related to deferred tax assets at its Brazilian subsidiary, Usiminas, and $117 million in provisions for ongoing litigation.
A central theme of the 2025 fiscal year was Ternium’s aggressive expansion strategy.
The company reached a record capital expenditure of $2.5 billion, with the lion’s share directed toward the third phase of its industrial center in Pesquería, Mexico.
The project, which includes a new electric arc furnace and a direct reduced iron plant, is on track to begin production in mid-2026, aimed at meeting the USMCA’s "melted and poured" requirements for the automotive industry.
Despite the heavy investment cycle, Ternium maintained a solid balance sheet, ending the year with a net cash position of $712 million.
Reflecting this stability, the board of directors proposed an annual dividend of $2.70 per American Depositary Share (ADS), representing a robust dividend yield of approximately 6 percent.
Looking ahead to the first quarter of 2026, management issued an optimistic outlook.
Ternium expects a sequential increase in both steel shipments and adjusted EBITDA.