Ternium Reports Full Year 2025 Profitability Turnaround, Proposes $530M Dividend Amidst Major Usiminas Litigation
Summary
Ternium reported a strong return to profitability for full year 2025 and proposed a significant annual dividend, while also confirming a strategic Usiminas acquisition and disclosing a material legal liability exceeding $500 million.
Key Events
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Full Year 2025 Profitability Rebound
The company reported a net profit attributable to owners of the parent of $425.2 million for the year ended December 31, 2025, a significant improvement from a net loss of $53.7 million in 2024.
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Proposed Annual Dividend
The Board of Directors intends to propose an annual dividend of $0.27 per share ($2.70 per ADS), totaling approximately $530 million, with a remaining payment of $0.18 per share ($353 million) to be distributed in May 2026.
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Usiminas Acquisition Completed
Ternium Investments completed the acquisition of Nippon Steel Corporation and Mitsubishi Corporation's remaining participation in Usiminas' control group for $315.2 million, increasing Ternium's control group stake to 83.1%.
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Usiminas Functional Currency Change
Usiminas changed its functional currency from local currency to the U.S. dollar, effective January 1, 2026, to reduce volatility from foreign exchange movements.
Analysis
Ternium S.A. reported a significant financial turnaround for the full year ended December 31, 2025, moving from a net loss in 2024 to a substantial net profit attributable to owners of the parent. This positive performance underpins the board's proposal for a considerable annual dividend. Concurrently, the company confirmed the completion of a strategic acquisition, increasing its control in Usiminas, and announced a key accounting change for Usiminas to mitigate foreign exchange volatility. However, a major legal contingency related to the 2012 Usiminas acquisition poses a significant financial risk, with an extraordinary appeal denied, increasing the likelihood of a substantial indemnification payment.
At the time of this filing, TX was trading at $43.25 on NYSE in the Manufacturing sector, with a market capitalization of approximately $8.5B. The 52-week trading range was $24.00 to $45.57. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.