Ternium S.A. (NYSE: TX)

Ternium S. A. is a leading steel producer in the Americas, providing advanced steel products to a broad range of manufacturing industries and the construction sector. The company operates integrated steelmaking facilities across Mexico, Brazil, Argentina, Colombia, and Central America, producing a wide portfolio of finished and semi-finished steel products including slabs, billets, round bars, plates, hot-rolled and cold-rolled coils, coated sheets, tubular products, and value-added processed goods. Ternium also extracts and processes iron ore through its mining operations in Mexico and Brazil, supplying raw materials to its steelmaking facilities and third parties. The company emphasizes operational efficiency, technological innovation, and sustainability in its production processes, aiming to reduce emissions intensity and enhance product quality to meet evolving customer demands across key industrial sectors.

Ternium generates revenue primarily from the sale of steel products and mining products. The Steel segment derives income from selling slabs, hot and cold rolled products, coated products, roll-formed and tubular products, billets, bars, and other steel goods to end users in construction, automotive, home appliances, capital goods, and energy-related industries. The Mining segment generates revenue from the sale of iron ore lumps, concentrates (sinter feed and pellet feed fines), and pellets, sourced from wholly owned and joint venture mining operations in Mexico and Brazil, with shipments directed to both internal steelmaking facilities and external customers including Chinese and Brazilian steel producers. In addition, Ternium earns revenue from electricity sales generated at its facilities in Mexico and Brazil, which are sold to local power grids when not consumed internally.

The company operates through the following segments: Steel and Mining.

• The Steel segment includes the sales of steel products by Ternium S. A.’s subsidiaries, which comprises mainly slabs, hot and cold rolled products, coated products, roll-formed and tubular products, billets, bars and other products.

• The Mining segment includes the sales of mining products by Ternium S. A.’s subsidiaries, which comprises iron ore lumps, concentrates (sinter feed and pellet feed fines) and pellets, and encompasses the mining activities of Mineração Usiminas, Las Encinas and 50% of Peña Colorada.

Ternium holds a leading position as a steel producer in Latin America and a strong competitor across the Americas, benefiting from its vertically integrated operations and strategically located manufacturing facilities. The company differentiates itself through its focus on sophisticated value-added products, advanced production technologies such as the Pesquería Industrial Center in Mexico, and a commitment to operational excellence, environmental performance, and safety. Ternium competes with regional and global steel producers, leveraging its industrial system integration, distribution network, and service capabilities to meet customer demands for customized steel solutions, just-in-time delivery, and inventory management, while pursuing import substitution in key markets like Mexico through localized, high-end production capacity.

Ternium serves a diverse customer base across multiple industries and regions. Its steel products are sold to construction companies, industrial customers in the automotive, packaging, electric motors, and service center sectors, home appliance manufacturers, energy-related firms, capital goods producers, and agricultural equipment manufacturers. In Mexico, customers include independent dealers, distributors, and industrial clients requiring high-specification steel for automotive and construction applications. In Brazil, the customer base consists of independent small and medium-sized enterprises, distributors, and large industrial users in automotive, construction, and home appliances sectors. In the Southern Region (Argentina, Bolivia, Chile, Paraguay, Uruguay), sales are primarily directed to customers in Argentina, focusing on construction, agriculture, automotive, packaging, and tube and pipe industries. In other markets, including the United States, Colombia, and Central America, Ternium serves customers in construction and energy-related sectors through its facilities and service centers in those regions.