Question · Q4 2025
Kyle Graeter asked about Ternium's margin potential without the removal or lowering of USMCA Section 232, seeking an estimate for EBITDA margin rise in the next couple of quarters. He also inquired about management's long-term priorities post-2027, including corporate simplification, Usiminas minority stake, M&A, organic projects in Mexico, dividend policy, and share buybacks, and later sought clarification on whether margin recovery estimates included USMCA impacts and the balance between growth and shareholder returns.
Answer
Pablo Brizzio (CFO, Ternium) stated that USMCA impact is likely for 2027+, but expects margin enhancement in Q1 2026 without it, aiming for 15% by year-end. Máximo Vedoya (CEO, Ternium) confirmed corporate simplification remains a goal and returning to shareholders is a priority. He sees further growth opportunities in Brazil and Mexico, but it's too early to detail specific projects. Mr. Vedoya clarified that both increasing dividends and pursuing growth opportunities in core markets are priorities, but a share buyback program is not currently considered.
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