Revenue growth has stagnated at 0.0% as of 2026Q1, while operating margins remain compressed at 7.4% due to persistent sensitivity to volatile slab-to-HRC spreads.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 15.58B | 15.61B | 17.65B | 17.61B | 16.41B | 16.09B | 8.74B | 10.19B | 11.45B | 9.7B | 7.22B | 7.88B | 8.73B | 8.53B | 8.61B | 9.16B | 7.38B | 4.96B | 8.46B | 8.18B | 6.57B | 4.45B | 1.6B |
| Revenue Growth % | -7.29% | -11.56% | 0.22% | 7.28% | 2.01% | 84.2% | -14.3% | -11.02% | 18.09% | 34.28% | -8.3% | -9.72% | 2.3% | -0.91% | -6% | 24.05% | 48.86% | -41.42% | 3.43% | 24.59% | 47.69% | 178.17% | - |
| Cost of Goods Sold | 13.13B | 13.26B | 14.76B | 12.35B | 12.49B | 9.9B | 7.1B | 8.45B | 8.48B | 7.4B | 5.38B | 6.48B | 6.93B | 6.6B | 6.87B | 7.09B | 5.67B | 4.11B | 6.13B | 5.8B | 4.3B | 2.47B | 965M |
| COGS % of Revenue | - | 84.92% | 83.63% | 70.15% | 76.07% | 61.5% | 81.28% | 82.93% | 74.06% | 76.32% | 74.53% | 82.23% | 79.36% | 77.38% | 79.82% | 77.47% | 76.74% | 82.89% | 72.39% | 70.82% | 65.48% | 55.55% | 60.35% |
| Gross Profit | 2.44B | 2.34B | 2.89B | 5.26B | 3.93B | 6.2B | 1.64B | 1.74B | 2.97B | 2.3B | 1.84B | 1.4B | 1.8B | 1.93B | 1.74B | 2.06B | 1.72B | 848.61M | 2.34B | 2.39B | 2.27B | 1.98B | 633.92M |
| Gross Margin % | 15.69% | 15% | 16.37% | 29.85% | 23.93% | 38.5% | 18.72% | 17.07% | 25.94% | 23.68% | 25.47% | 17.77% | 20.64% | 22.62% | 20.18% | 22.53% | 23.26% | 17.11% | 27.61% | 29.18% | 34.52% | 44.45% | 39.65% |
| Gross Profit Growth % | - | -18.97% | -45.04% | 33.84% | -36.61% | 278.82% | -6.03% | -41.43% | 29.35% | 24.88% | 31.38% | -22.25% | -6.68% | 11.1% | -15.8% | 20.17% | 102.3% | -63.69% | -2.16% | 5.33% | 14.71% | 211.84% | - |
| Operating Expenses | 1.58B | 1.64B | 1.63B | 3.06B | 1.23B | 924.54M | 556.04M | 875.81M | 863.11M | 840.49M | 697.8M | 760.84M | 744.73M | 820.3M | 821.06M | 793.56M | 662.81M | 552.23M | 679.52M | 801.93M | 631.02M | 584.67M | 119.75M |
| OpEx % of Revenue | - | 10.48% | 9.21% | 17.37% | 7.48% | 5.75% | 6.37% | 8.59% | 7.53% | 8.66% | 9.66% | 9.66% | 8.53% | 9.62% | 9.54% | 8.67% | 8.98% | 11.14% | 8.03% | 9.8% | 9.61% | 13.15% | 7.49% |
| Selling, General & Admin | 1.47B | 1.35B | 1.42B | 1.12B | 924.62M | 729.02M | 572.05M | 654.49M | 667.56M | 629.13M | 542.38M | 586.05M | 627.08M | 641.21M | 634.1M | 572.07M | 665.31M | 531.53M | 669.47M | 825.81M | 554.02M | 513.13M | 97.02M |
| SG&A % of Revenue | - | 8.68% | 8.03% | 6.37% | 5.63% | 4.53% | 6.55% | 6.42% | 5.83% | 6.49% | 7.51% | 7.44% | 7.19% | 7.52% | 7.37% | 6.25% | 9.01% | 10.72% | 7.91% | 10.09% | 8.43% | 11.54% | 6.07% |
| Research & Development | 21.8M | 21.8M | 0 | 0 | 0 | 0 | 0 | 0 | 8.9M | 9.72M | 9.11M | 6.15M | 8M | 7.6M | 8.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0.14% | - | - | - | - | - | - | 0.08% | 0.1% | 0.13% | 0.08% | 0.09% | 0.09% | 0.1% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 259.17M | 209.02M | 1.94B | 303.05M | 195.52M | -16.01M | 221.32M | 195.54M | 211.36M | 155.49M | 174.78M | 117.65M | 179.09M | 186.96M | 221.48M | -2.49M | -6.32M | 10.05M | -23.87M | 77M | 71.55M | 22.73M |
| Operating Income | 865.23M | 705.42M | 1.26B | 2.2B | 2.7B | 5.27B | 1.08B | 864.57M | 2.11B | 1.46B | 1.14B | 639.34M | 1.06B | 1.11B | 915.9M | 1.27B | 1.05B | 296.38M | 1.68B | 1.59B | 1.64B | 1.39B | 514.17M |
| Operating Margin % | 5.55% | 4.52% | 7.16% | 12.48% | 16.45% | 32.76% | 12.36% | 8.48% | 18.41% | 15.02% | 15.8% | 8.12% | 12.1% | 13.01% | 10.64% | 13.82% | 14.28% | 5.98% | 19.8% | 19.38% | 24.91% | 31.3% | 32.16% |
| Operating Income Growth % | - | -44.16% | -42.52% | -18.58% | -48.79% | 388.31% | 24.86% | -58.99% | 44.73% | 27.6% | 78.58% | -39.47% | -4.8% | 21.13% | -27.61% | 20.05% | 255.6% | -82.32% | 5.65% | -3.06% | 17.56% | 170.76% | - |
| EBITDA | 1.65B | 1.4B | 2.01B | 2.86B | 3.32B | 5.86B | 1.71B | 1.53B | 2.72B | 1.93B | 1.54B | 1.07B | 1.47B | 1.49B | 1.29B | 1.67B | 1.44B | 681.49M | 2.09B | 2.15B | 2.06B | 1.71B | 613.36M |
| EBITDA Margin % | 10.58% | 8.98% | 11.37% | 16.22% | 20.2% | 36.44% | 19.58% | 14.97% | 23.73% | 19.87% | 21.38% | 13.62% | 16.86% | 17.43% | 14.95% | 18.25% | 19.47% | 13.74% | 24.69% | 26.3% | 31.38% | 38.41% | 38.36% |
| EBITDA Growth % | 12.78% | -30.15% | -29.73% | -13.88% | -43.44% | 242.76% | 12.12% | -43.88% | 41.07% | 24.74% | 43.95% | -27.05% | -1.05% | 15.52% | -23% | 16.27% | 110.9% | -67.39% | -2.91% | 4.42% | 20.63% | 178.56% | - |
| D&A (Non-Cash Add-back) | 783.11M | 696.16M | 743.28M | 657.69M | 616.49M | 591.79M | 631.05M | 661.11M | 609.99M | 470.19M | 403.05M | 433.79M | 414.8M | 377.1M | 370.86M | 405.84M | 383.3M | 385.11M | 413.54M | 565.85M | 424.5M | 316.4M | 99.19M |
| EBIT | 835.5M | 723.72M | 924.18M | 1.5B | 2.71B | 5.79B | 1.21B | 914.85M | 2.16B | 1.47B | 1.18B | 356.59M | 352.79M | 1.06B | 596.64M | 1.07B | 1.26B | 536.23M | 1.02B | 840.33M | 1.64B | 1.39B | 514.17M |
| Net Interest Income | 22.5M | 23.14M | 101.64M | 90.44M | 28.6M | 35.77M | 2.77M | -59.92M | -113.8M | -94.35M | -75.13M | -80.87M | -113.89M | -123.46M | -130.41M | -72.29M | 4.28M | 51.28M | -103.93M | -91.5M | 0 | 0 | 0 |
| Interest Income | 232.31M | 238.14M | 297.25M | 275.55M | 75.66M | 62.66M | 49.29M | 29.42M | 21.98M | 19.24M | 14M | 7.92M | 7.68M | 13.9M | 19.14M | 40.08M | 88.36M | 157.09M | 32.18M | 41.62M | 0 | 0 | 0 |
| Interest Expense | 209.81M | 214.94M | 195.6M | 185.11M | 47.06M | 26.89M | 46.52M | 89.33M | 135.78M | 113.59M | 89.12M | 88.79M | 114.47M | 120.3M | 149.55M | 100.71M | 72.97M | 105.81M | 136.11M | 133.11M | 0 | 0 | 0 |
| Other Income/Expense | -103.91M | -57.18M | -535.31M | -877.23M | -33.02M | 493.19M | 79.89M | -38M | -76.8M | -96.97M | -23.26M | -372.24M | -821.24M | -167.08M | -468.46M | -299.85M | 132.19M | 134.03M | -795.27M | -433.42M | -378.25M | -100.86M | 411.49M |
| Pretax Income | 761.32M | 648.24M | 728M | 1.32B | 2.67B | 5.76B | 1.16B | 826.56M | 2.03B | 1.36B | 1.12B | 267.1M | 952.49M | 942.3M | 451.72M | 965.88M | 1.19B | 430.42M | 880.77M | 1.15B | 1.26B | 1.29B | 925.66M |
| Pretax Margin % | 4.89% | 4.15% | 4.12% | 7.5% | 16.24% | 35.82% | 13.27% | 8.11% | 17.74% | 14.02% | 15.48% | 3.39% | 10.92% | 11.05% | 5.25% | 10.55% | 16.07% | 8.68% | 10.41% | 14.09% | 19.16% | 29.03% | 57.89% |
| Income Tax | 229.6M | 346.03M | 554.22M | 334.41M | 573.73M | 1.4B | 291.49M | 196.52M | 369.44M | 336.88M | 411.5M | 207.32M | 363.71M | 349.4M | 264.57M | 315.97M | 406.66M | 91.31M | 162.7M | 162.64M | 262.36M | 218.49M | 177.49M |
| Effective Tax Rate % | 30.16% | 53.38% | 76.13% | 25.32% | 21.52% | 24.24% | 25.14% | 23.78% | 18.18% | 24.77% | 36.79% | 77.62% | 38.18% | 37.08% | 58.57% | 32.71% | 34.28% | 21.22% | 18.47% | 14.11% | 20.85% | 16.92% | 19.17% |
| Net Income | 570.25M | 425.23M | -53.67M | 676.04M | 1.77B | 3.83B | 778.47M | 564.27M | 1.51B | 886.22M | 595.6M | 8.13M | 452.4M | 455.4M | 139.24M | 513.54M | 622.08M | 717.4M | 715.42M | 784.49M | 795.42M | 704.41M | 457.34M |
| Net Margin % | 3.66% | 2.72% | -0.3% | 3.84% | 10.77% | 23.77% | 8.91% | 5.54% | 13.15% | 9.14% | 8.24% | 0.1% | 5.18% | 5.34% | 1.62% | 5.61% | 8.43% | 14.47% | 8.45% | 9.59% | 12.11% | 15.84% | 28.6% |
| Net Income Growth % | 263.8% | 892.28% | -107.94% | -61.75% | -53.79% | 391.36% | 37.96% | -62.55% | 70.01% | 48.79% | 7228.66% | -98.2% | -0.66% | 227.07% | -72.89% | -17.45% | -13.29% | 0.28% | -8.8% | -1.37% | 12.92% | 54.02% | - |
| Net Income (Continuing) | 531.71M | 303.1M | 173.78M | 986.37M | 2.09B | 4.37B | 867.87M | 630.04M | 1.66B | 1.02B | 706.93M | 59.78M | 589.79M | 592.91M | 190.92M | 652.81M | 779.47M | 339.1M | 718.07M | 415.87M | 994.93M | 1.07B | 747.87M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -199.51M | -368.19M | -290.53M |
| Minority Interest | 4.31B | 4.2B | 4.16B | 4.39B | 1.92B | 1.7B | 1.16B | 1.1B | 1.09B | 842.35M | 775.3M | 769.85M | 973.52M | 998M | 1.07B | 1.08B | 1.14B | 964.9M | 964.09M | 1.91B | 1.73B | 1.73B | 745.13M |
| EPS (Diluted) | 2.90 | 2.20 | -0.27 | 3.40 | 9.07 | 19.41 | 3.96 | 2.91 | 7.67 | 4.50 | 3.03 | 0.04 | 2.30 | 2.32 | 0.70 | 2.60 | 3.10 | 3.60 | 3.60 | 3.90 | 4.10 | 5.40 | 3.90 |
| EPS Growth % | 264.97% | 914.81% | -107.94% | -62.51% | -53.27% | 390.15% | 36.08% | -62.06% | 70.44% | 48.51% | 7218.84% | -98.2% | -0.86% | 231.43% | -73.08% | -16.13% | -13.89% | 0% | -7.69% | -4.88% | -24.07% | 38.46% | - |
| EPS (Basic) | - | 2.20 | -0.27 | 3.40 | 9.07 | 19.41 | 3.96 | 2.91 | 7.67 | 4.50 | 3.03 | 0.04 | 2.30 | 2.32 | 0.70 | 2.60 | 3.10 | 3.60 | 3.60 | 3.90 | 4.10 | 5.80 | 3.90 |
| Diluted Shares Outstanding | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.83M | 200.47M | 200.47M | 200.47M | 200.47M | 193.68M | 156.61M | 116.89M |
| Basic Shares Outstanding | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.31M | 196.83M | 200.47M | 200.47M | 200.47M | 200.47M | 193.68M | 120.95M | 116.89M |
| Dividend Payout Ratio | - | 124.65% | - | 84.21% | 29.99% | 14.88% | - | 41.75% | 14.33% | 22.15% | 29.66% | 2173.95% | 32.54% | 42.28% | 116.61% | 56.04% | 22.27% | - | 14.01% | 12.78% | - | 33.87% | 17.68% |
Cyclical Margin Compression
As reported in recent financial filings, Ternium's revenue growth has trended downward, culminating in a 0.0% growth rate in 2026Q1 compared to the significant double-digit declines observed throughout 2025, reflecting a broader softening in global steel pricing and persistent industrial demand uncertainty across its core markets.
The transition from double-digit growth in 2023 to stagnation suggests that the company is struggling to maintain volume in a lower-price environment. Investors should monitor whether this stabilization represents a bottoming of the cycle or merely a pause before further contraction as industrial production in Mexico faces macroeconomic headwinds.
Based on the provided income statement data, Ternium's gross margin has fluctuated significantly, reaching a low of 11.6% in 2024Q4 before recovering to 17.5% in 2026Q1, highlighting the company's sensitivity to the volatile slab-to-HRC spread and the impact of inflationary pressures on its primary input costs.
The inability to consistently maintain margins above 15% suggests that the company lacks sufficient pricing power to fully offset rising raw material and energy costs. This volatility implies that profitability remains highly dependent on external commodity price movements rather than internal operational efficiencies.
According to the quarterly income statements, operating margins have remained compressed, falling from a peak of 14.1% in 2024Q1 to 7.4% in 2026Q1, which indicates that the company is struggling to achieve meaningful operating leverage despite its significant investments in downstream finishing capacity and industrial infrastructure.
The divergence between gross profit and operating income suggests that SG&A expenses are not scaling efficiently, potentially due to the fixed-cost nature of the company's extensive service center network. This lack of operating leverage warrants investigation into whether management can rationalize overhead during periods of cyclical revenue decline.
As evidenced by the extreme volatility in net income, including a net loss of $727.6 million in 2024Q2, the company's bottom-line results appear heavily influenced by non-operating items, likely stemming from hyperinflationary accounting adjustments and currency fluctuations within its significant Argentine operations.
The disconnect between operating income and net income suggests that reported EPS may not accurately reflect the underlying cash-generating capability of the core steel business. Investors should exercise caution when interpreting net margin figures, as they appear distorted by accounting conventions that do not necessarily correlate with operational health.
While the company maintains a fortress-like balance sheet, the persistent weakness in net margins, which dipped to 0.5% in 2025Q3, suggests that the current business model may be vulnerable to sustained margin compression if the slab-to-HRC spread remains unfavorable for an extended period.
Short-term observers may focus on the company's inability to convert revenue into consistent net income, questioning the long-term efficacy of its capital-intensive expansion strategy. The reliance on third-party slab imports remains a critical vulnerability that could continue to weigh on profitability until the new upstream capacity is fully operational.
Quick answers to the most common questions about buying TX stock.
For fiscal year 2025, Ternium S.A. (TX) reported total revenue of $15.61B. This represents a 876.2% increase compared to $1.60B in 2004.
Ternium S.A. (TX) is profitable, generating $425.2M in net income for the fiscal year ending 2025 with a net profit margin of 2.7%.
Ternium S.A. (TX) reported an operating income of $705.4M, resulting in an operating profit margin of 4.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Ternium S.A. (TX) generated $2.34B in gross profit for the year, representing a gross profit margin of 15.0%. This demonstrates the company's core pricing power and production efficiency.