Ternium's recent gross margin expansion to 21.7% in 2026Q2 from an 11.6% trough in 2024Q4, coupled with a conservative D/E of 0.18, suggests improving fundamentals despite cyclical steel price volatility. Revenue rebounded 10% sequentially to $4.3B, and operat...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue grew 10% sequentially to $4.3B in 2026Q2, with gross margin expanding to 21.7% from 17.5% in 2026Q1, while operating income surged 82% to $528.4M, though net income remains volatile as seen in the $727.6M loss in 2024Q2.
Ternium reported Q1 revenue of US$3.9 billion, setting a clear earnings reference point for investors.
Ternium maintains guidance for sequential adjusted EBITDA improvement into the first and second quarters of 2026.
The Board cut the proposed dividend to retain more cash and reinforce the balance sheet, citing uncertainty.
Trailing total returns as of 10/3/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 4, 2026 | $1.75+43.4% vs $1.22 | $4.3B-1.6% vs $4.4B |
Q2 2026 May 5, 2026 | $1.09+26.7% vs $0.86 | $3.9B+0.2% vs $3.9B |
Q1 2026 Feb 18, 2026 | $0.62-19.5% vs $0.77 | $3.8B+0.4% vs $3.8B |
Q4 2025 Oct 28, 2025 | $0.10-87.2% vs $0.78 | $4.0B-1.3% vs $4.0B |
Ternium is rated a buy, supported by a 14.5% upside to a $65.52 fair value using DCF analysis. Completion of the $4B Pesqueria project will boost TX's steel capacity, cost competitiveness, and EBITDA by 5–10% from 2028 to 2030. CapEx is set to decline, driving free cash flow yield above 15% and enabling a sustainable 6–7% dividend yield.
Ternium offers compelling upside, driven by robust Mexico steel demand and the transformative Pasqueria expansion targeting USMCA automotive clients. Q2 showcased strong operational momentum: Mexican shipments rose 5% QoQ, revenue per ton increased 6%, and adjusted EBITDA surged 50% to $717 million. Pasqueria's delayed start to early 2027 and ongoing high capex introduce execution and cash flow risks; Brazil and Argentina remain demand headwinds.
Unlock your portfolio value by investing in high earnings yield stocks like Ternium, Halozyme, POSCO and Talos Energy.
Ternium (TX) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
Benchmark TX against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Ternium S.A. (TX)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $55.30 | $10.86B | 25.14 | -11.56% | 2.72% | 2.63% | 4.88% | |
| $64.56 | $49.14B | 15.71 | -1.74% | 2.88% | 3.19% | — | |
| $226.17 | $32.62B | 28.31 | 3.63% | 7.83% | 17.66% | — | |
| $235.98 | $53.74B | 31.38 | 5.73% | 7.99% | 12.84% | — | |
| $11.47 | $6.54B | -3.82 | -3% | -4.56% | -14.68% | — | |
| $393.04 | $20.07B | 28.11 | 3.32% | 5.66% | 12.33% | — |
Ternium S.A. (TX) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Ternium S.A. (TX) stock FAQ — growth, dividends, profitability & financials explained
Ternium S.A. (TX) reported $15.97B in revenue for fiscal year 2025. This represents a 899% increase from $1.60B in 2004.
Ternium S.A. (TX) saw revenue decline by 11.6% over the past year.
Yes, Ternium S.A. (TX) is profitable, generating $698.5M in net income for fiscal year 2025 (2.7% net margin).
Yes, Ternium S.A. (TX) pays a dividend with a yield of 4.88%. This makes it attractive for income-focused investors.
Ternium S.A. (TX) has a return on equity (ROE) of 2.6%. This is below average, suggesting room for improvement.
Ternium S.A. (TX) had negative free cash flow of $473.7M in fiscal year 2025, likely due to heavy capital investments.
