Ternium S.A.
- Open
- 55.40
- Day high
- 55.41
- Day low
- 54.59
- Prev close
- 54.84
- Volume
- 268K
- Mkt cap
- $10.8B
- P/E (TTM)
- 15.1
- EPS (TTM)
- $3.62
- P/B
- 0.9
- P/S
- 0.7
- Yield
- 2.37%
- Per share
- $1.30
Ternium S.A. (TX) is a Basic Materials company listed on NYSE. The stock is up 65% over the past year. Drillr has 1 published research article covering TX.
Ternium S.A. (TX) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TX earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $1.22 | $1.75 | +43.4% | $4.3B | -1.6% |
| May 6, 2026 | $0.86 | $1.09 | +26.7% | $3.9B | +0.2% |
| Feb 18, 2026 | $0.77 | $0.62 | -19.5% | $3.7B | -10.4% |
| Jul 29, 2025 | $0.66 | $1.28 | +93.9% | $3.9B | -10.2% |
| Feb 18, 2025 | $0.97 | $-0.42 | -143.3% | $3.9B | -10.8% |
| Apr 24, 2024 | $1.30 | $1.84 | +41.5% | $4.7B | +0.1% |
| Feb 20, 2024 | $1.32 | $2.11 | +59.8% | $4.9B | +0.6% |
| Aug 1, 2023 | $1.96 | $3.19 | +62.8% | $3.9B | +0.7% |
| Feb 14, 2023 | $0.18 | $0.20 | +11.1% | $3.5B | -4.5% |
| Nov 3, 2022 | $1.70 | $0.78 | -54.1% | $4.1B | +3.6% |
| Aug 2, 2022 | $3.66 | $4.07 | +11.2% | $4.4B | -2.1% |
| Feb 15, 2022 | $4.94 | $5.08 | +2.8% | $4.3B | -6.3% |
Ternium S.A. company profile
Overview
Ternium S.A. (NYSE:TX) is a Luxembourg-based steel manufacturing company that was founded in 1961 and went public in 2006. The company is a subsidiary of Techint Holdings S.à r.l. and operates as one of Latin America's leading steel producers. Ternium has established itself as a major player in the regional steel market, serving customers across Mexico, Argentina, Brazil, and other Latin American countries, with operations extending to parts of Central America and the United States.
Business
Ternium operates in the steel manufacturing industry, which involves the production of steel products from raw materials like iron ore and scrap metal. Steel is a fundamental material used in construction, automotive manufacturing, appliances, and numerous other industrial applications. The company transforms iron ore and other raw materials into various steel products through complex metallurgical processes involving high-temperature furnaces and rolling mills. The company operates through two primary business segments: 1. Steel Segment (approximately 90-95% of revenue): This is Ternium's core business, producing a comprehensive range of steel products including slabs (large flat steel pieces used as input for further processing), billets and round bars (semi-finished steel products), hot rolled flat products (steel sheets processed at high temperatures), merchant bars, reinforcing bars used in construction, tin plate and galvanized products (steel coated with protective layers), tubes, beams, insulated panels, roofing materials, and pre-engineered metal building systems. The segment also sells energy as a byproduct of its operations. 2. Mining Segment (approximately 5-10% of revenue): This segment focuses on extracting and selling iron ore and pellets, which are essential raw materials for steel production. Iron ore pellets are processed forms of iron ore that are easier to use in steel furnaces and provide better efficiency in the steelmaking process. The company also provides various ancillary services including medical and social services for employees and communities, scrap metal handling, engineering services, and operates distribution companies to deliver products to customers.
Revenue model
Ternium generates revenue primarily through product sales of steel and mining products to industrial customers. The steel segment sells finished and semi-finished steel products to companies in construction, automotive, home appliances, agriculture, packaging, transportation, and energy industries. The mining segment sells iron ore and pellets both to external customers and internally to support Ternium's own steel production operations. The company's customers include large industrial companies, small and medium businesses, construction companies, automotive manufacturers, and appliance producers. Revenue is generated through direct sales contracts, with pricing typically following global commodity market trends for steel and iron ore. Several factors significantly impact Ternium's margins and profitability. Raw material costs, particularly iron ore, coking coal, and scrap metal prices, directly affect production costs and margins. Energy costs are substantial given the energy-intensive nature of steel production. Global steel prices and demand cycles heavily influence revenue and profitability, with steel being a cyclical commodity. Trade policies and tariffs significantly impact the business, as steel is subject to various international trade restrictions and anti-dumping measures. The company has benefited from USMCA (United States-Mexico-Canada Agreement) provisions that favor regional steel production. Currency fluctuations affect operations across multiple countries with different currencies. Competition from imports, particularly from Chinese steel producers, can pressure domestic pricing and market share. Economic cycles in key markets like Mexico, Brazil, and Argentina directly impact steel demand from construction and manufacturing sectors.
Competitive moat
Ternium's competitive moat is moderately strong but not insurmountable. The company benefits from several defensive characteristics typical of integrated steel producers. Its geographic positioning in Latin America provides natural protection from distant competitors due to transportation costs and trade barriers, particularly benefiting from USMCA provisions that favor regional steel production over imports from Asia. The company has built integrated operations spanning from iron ore mining to finished steel products, providing some cost advantages and supply chain control. Its scale and established customer relationships in key markets like Mexico and Argentina create switching costs for customers who rely on consistent supply and technical support. However, the moat faces significant challenges. Steel is fundamentally a commodity business with limited differentiation potential, making the company vulnerable to price competition and import pressure. Chinese steel exports continue to disrupt global markets with lower-priced products, despite trade barriers. The business is highly capital intensive with cyclical demand, making it difficult to maintain consistent returns. Technological disruption poses a long-term threat, as electric vehicle adoption could reduce automotive steel demand, and alternative materials in construction could erode market share. The company's expansion into higher value-added products like galvanized steel and specialized automotive grades helps somewhat, but these markets are also competitive. The regulatory environment provides some protection through trade policies, but these can change with political shifts. Overall, Ternium has a reasonable defensive position in its regional markets, but lacks the strong economic moats found in businesses with network effects, switching costs, or unique intellectual property.
Risks & safety
Ternium demonstrates a solid financial position with reasonable margin of safety, though cyclical earnings create some uncertainty. • Liquidity and Solvency: Strong current ratio of 3.0x and quick ratio of 1.8x indicate good short-term liquidity. Cash and short-term investments of $1.8 billion provide substantial financial flexibility. Debt-to-equity ratio of 0.22x shows conservative leverage. • Valuation Metrics: Trading at P/E of 23x based on recent earnings, which appears reasonable given cyclical nature. Price-to-book ratio of 0.51x suggests trading below book value. EV/EBITDA of 38x appears elevated, reflecting current cyclical trough. • Cash Flow Concerns: Free cash flow turned negative at -$311 million in Q1 2025 due to heavy capital expenditure program ($4 billion Mexico expansion project). Operating cash flow remains positive at $207 million. • Other Considerations: Large ongoing capital investment program creates near-term cash burn but should enhance long-term competitiveness. Dividend yield provides income support. Cyclical nature of steel business creates earnings volatility risk.
Recent development
Over the past few years, Ternium has embarked on a major strategic expansion and modernization program centered around its $4 billion Pesquería facility expansion in Mexico. This project represents the company's largest capital investment and aims to enhance its position in the North American market under USMCA trade agreements. The Mexico expansion project includes multiple phases: downstream facilities like pickling lines and finishing centers are already operational, while cold rolling and galvanizing lines are scheduled for completion by end of 2025. The most significant component is an upstream steel slab mill and direct reduction iron (DRI) facility with 2.6 million tons annual capacity, expected to be operational by Q4 2026. This will reduce Ternium's dependence on imported slabs and ensure USMCA compliance. The company has also focused on sustainability initiatives, including construction of a 72 MW wind farm in Argentina to reduce energy costs and carbon emissions. Ternium has updated its decarbonization targets, aiming for a 15% reduction in emissions intensity by 2030, and has begun including Scope 3 emissions in its reporting. Strategic positioning has evolved to capitalize on nearshoring trends, particularly as North American manufacturers seek to reduce dependence on Asian supply chains. The company has increased its stake in Brazilian steelmaker Usiminas, taking a more active management role to improve operational efficiency and combat unfair import competition. Recent quarters have seen management focus on operational efficiency and cost reduction initiatives while navigating challenging market conditions including trade tensions, import pressure from Chinese steel, and cyclical demand patterns across its key markets.
TX company profile · for informational purposes only — not investment advice.
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