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Dec 31, 2024
Ternium Q4 2024 Earnings Report
Ternium reported a decline in revenue and profitability due to lower steel prices and weaker demand across key markets.
Key Takeaways
Ternium's Q4 2024 results showed a 21.4% YoY revenue decline to $3.88B, with net income at $333M, including a $404M provision reversal. Adjusted EPS was -$0.42 per ADS, reflecting a challenging steel market. The company expects a slight EBITDA improvement in Q1 2025 due to lower costs and stable shipments.
Revenue declined 21.4% YoY to $3.88B due to lower steel prices and weaker demand.
Net income was $333M, but adjusted net loss was $71M, excluding a $404M provision reversal.
Adjusted EPS was -$0.42 per ADS, reflecting margin pressures.
Ternium expects a slight sequential EBITDA improvement in Q1 2025 driven by cost reductions.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Ternium expects a slight sequential increase in adjusted EBITDA for Q1 2025, supported by cost reductions and stable shipments in key markets. However, uncertainty around US trade policies may impact Mexico’s steel demand.
Positive Outlook
- Expected improvement in EBITDA due to lower input costs.
- Stable shipments anticipated in Mexico and Argentina.
- Volume recovery expected in Brazil.
- Pesquería industrial center expansion progressing as planned.
- New wind farm in Argentina fully operational, reducing electricity costs.
Challenges Ahead
- Continued pressure from lower steel prices.
- US trade policy uncertainty affecting Mexico’s demand outlook.
- Seasonal fluctuations may impact shipments.
- High-cost inventory still affecting margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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