Ternium (TX) Investor presentation summary

Strategic positioning and growth

• Operates integrated steel and mining facilities across nine countries in the Americas, with a strong presence in Mexico, Brazil, and Argentina.

• Focuses on value-added products, innovation, and customer-centric solutions, especially for automotive and industrial sectors.

• Significant investments in new facilities, including a state-of-the-art EAF-based mill in Mexico to support nearshoring and USMCA compliance.

• Broad downstream and service center network enables nationwide and regional coverage.

• Pursues strategic growth opportunities, particularly in the USMCA region and through Usiminas in Brazil.

Financial performance

• Adjusted EBITDA for 1H26 rose year-over-year, with margin expanding to 14% on higher realized steel prices and lower costs per ton.

• Net income more than doubled year-over-year, driven by stronger operating income and higher steel margins.

• Strong cash generation in 2Q26, though net debt position increased due to high capex, dividend payments, and working capital build.

• Steel segment shipments and revenue per ton increased, with profitability improving to a 16% margin in 2Q26.

• Mining segment saw shipment rebound and stable margins, though cash operating income eased on lower iron ore prices.

Operational highlights

• Mexico remains the largest market, accounting for 54% of steel shipments in 2Q26, followed by Brazil and the Southern Region.

• New downstream and upstream projects in Mexico enhance product portfolio and production integration.

• Innovation driven by Ternium Lab, with over 100 steel products designed for industrial applications since launch.

• Usiminas in Brazil operates major slab and mining facilities, serving the automotive sector and supporting R&D leadership.

• Argentina focuses on value-added services, just-in-time delivery, and joint product development, with construction and industry as key sectors.