Ternium Q1 2025: Steel Margins Improve Amid Lower Costs, Nearshoring Supports Outlook

Ternium's steel segment recorded a stronger Q1 2025 performance, with EBITDA per ton improving to $72/ton, up from $52/ton in Q4 2024. This rise in profitability was driven primarily by a drop in raw material and purchased slab costs, which offset the decline in realized steel prices. The EBITDA margin for steel climbed to 7%, from 5% in the previous quarter.

Steel shipments rose across Brazil and the U.S., though volumes in Mexico dipped slightly. Revenue per ton decreased to $3,719, reflecting pricing pressure in most regional markets. Despite that, margins expanded due to cost efficiencies.

Looking ahead, Ternium is positioned to benefit from strong regional steel demand, particularly in the USMCA region. Its $2.4 billion upstream investment in a DRI-EAF facility in Mexico aligns with nearshoring trends and the “melted and poured” requirement. The steel demand outlook remains robust, supported by automotive and industrial activity across Mexico and Brazil.