John Brandt

John Brandt asked for CapEx guidance beyond 2026, seeking normalized figures for 2027 and 2028, and the implications for free cash flow and capital allocation, including the net cash position. He also inquired about the possibility of Ternium taking out minority shareholders in Usiminas following the Nippon Steel acquisition, and later asked if CSN's steel assets in Brazil represent a potential growth opportunity.

Answer

Máximo Vedoya (CEO, Ternium) provided CapEx guidance: around $2 billion for 2026, $1.2 billion for 2027, and approximately $800 million for 2028 (normalized). Pablo Brizzio (CFO, Ternium) added that 2026 will involve cash usage, moving to a net debt position, with potential cash recovery in 2027. Mr. Vedoya stated there are no current plans to acquire Usiminas minority shares but emphasized Brazil's importance and continuous search for opportunities. He later clarified that Ternium is not currently analyzing anything with CSN regarding their steel assets, but remains open to opportunities in Brazil.

John Brandt followed up on growth opportunities, specifically asking if CSN's stated interest in finding a partner for its steel assets in Brazil represents a potential opportunity for Ternium to grow, or if Ternium can rule out any potential tie-up with them.

Answer

Máximo Vedoya (CEO, Ternium) acknowledged CSN's actions but stated that Ternium is not currently analyzing anything with CSN regarding its steel assets. However, he reiterated that Brazil is an important market for Ternium, and they remain open to analyzing different opportunities if they arise.