Ternium Reports Q3 2024 Earnings and Strategic Progress

Ternium ( (TX) ) has released its Q3 earnings. Here is a breakdown of the information Ternium presented to its investors.

Ternium S.A. is a leading steel producer in the Americas, operating in the steel production industry and known for its focus on low carbon emissions technologies and community development initiatives, particularly through educational programs in Latin America.

In its latest earnings report, Ternium announced its financial results for the third quarter and first nine months of 2024, noting a strong level of shipments but a decline in profitability due to lower steel prices in its core markets. The company highlighted the progress of its expansion projects in Mexico and the development of a new wind farm in Argentina.

Key highlights from the report include steel product shipments of 4.1 million tons and mining product shipments of 1.8 million tons in the third quarter. Ternium’s adjusted EBITDA stood at $368 million, reflecting an 8% margin, while net income was reported at $93 million. The company also announced an interim dividend of $0.90 per American Depositary Share (ADS).

Ternium’s financial performance showed a slight decrease in net sales compared to previous periods, driven by lower realized steel prices despite increased shipment volumes, particularly in Mexico and Brazil. The company maintained a strong cash flow, with $303 million provided by operating activities, although its net cash position decreased to $1.7 billion.

Looking forward, Ternium anticipates a marginal increase in adjusted EBITDA in the fourth quarter of 2024, with expectations of improved margins tempered by a reduction in shipments due to seasonal demand fluctuations. The company remains committed to its strategic initiatives, including the ramp-up of new production lines and the operational launch of its wind farm, aimed at enhancing its renewable energy capabilities.