Ternium EBITDA Surges 50% on Mexico Demand Despite Expansion Delay

Key Facts

1Ternium's adjusted EBITDA surged 50% to $717 million in the second quarter.

2Mexican shipments rose 5% quarter-over-quarter, with revenue per ton increasing by 6%.

3The start of the Pasqueria expansion has been delayed to early 2027, introducing cash flow risks.

Amid a recovery in the steel sector driven by the USMCA automotive industry, Ternium S.A. demonstrated strong operational momentum in its core Mexican market. According to reports, the company's adjusted EBITDA surged by 50% to reach $717 million in the second quarter. This performance was primarily underpinned by a 5% quarter-over-quarter increase in Mexican shipments, complemented by a 6% rise in revenue per ton.

Despite the robust top-line growth, the company faces execution risks regarding its capital projects, as the start of the Pasqueria plant expansion has been delayed until early 2027. This delay, coupled with high capital expenditure requirements, introduces potential risks to the company's cash flow. Per market data, Ternium's outlook remains balanced between its strong Mexican performance and headwinds in other regional markets such as Brazil and Argentina.

Based on market data, TX stock stood at $58.09 at close on September 17, 2026, after trading between a day low of $57.28 and a high of $58.12. Investors are closely watching the company's ability to manage expansion costs following recent inflation data from Brazil and the US in mid-September, which may impact industrial demand and production overheads moving forward.