Ternium Reports Full Year 2025 Profitability Turnaround, Proposes $530M Dividend Amidst Major Usiminas Litigation
TX sits 80% above its 52-week low of $24.
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 · Earnings and Guidance · TX
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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 · TX · Manufacturing
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.