Slides
Page 1
1 / 25 October 29, 2025 Third Quarter of 2025 Earnings Conference Call and Webcast
Page 2
This presentation contains certain forward-looking statements and information relating to Ternium S.A. and its subsidiaries (collectively, “Ternium”) that are based on the current beliefs of its management as well as assumptions made by and information currently available to Ternium. Such statements reflect the current views of Ternium with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of Ternium to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic, political conditions in the countries in which Ternium does business or other countries which have an impact on Ternium’s business activities and investments, changes in interest rates, changes in inflation rates, changes in exchange rates, the degree of growth and the number of consumers in the markets in which Ternium operates and sells its products, changes in steel demand and prices, changes in raw material and energy prices or difficulties in acquiring raw materials or energy supply cut-offs, changes in business strategy and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or targeted. Ternium does not intend, and does not assume any obligation, to update these forward-looking statements. This presentation includes certain non-IFRS alternative performance measures such as Adjusted Net Result, Adjusted Equity Holders’ Net Result, Adjusted Earnings per ADS, Adjusted EBITDA, Cash Operating Income, Net Cash and Free Cash Flow. The reconciliation of these figures to the most directly comparable IFRS measures is included in Ternium’s applicable quarterly results Press Release in Exhibit I. These non-IFRS measures should not be considered in isolation of, or as a substitute for, measures of performance prepared in accordance with IFRS. These non- IFRS measures do not have a standardized meaning under IFRS and, therefore, may not correspond to similar non-IFRS financial measures reported by other companies. Forward-Looking Statements and Non-IFRS Alternative Performance Measures 2
Page 3
368 270 322 403 4208% 7% 8% 10% 11% 0% 2% 4% 6% 8% 10% 3Q24 4Q24 1Q25 2Q25 3Q25 (43) (15) (8) 403 420 804 MINING SEGMENT 3Q252Q25 STEEL SEGMENT VOLUME PRICE/ MIX COST/ OTHERS INTERSEGMENT ELIMINATIONS ADJUSTED EBITDA ($ MILLION) AND ADJUSTED EBITDA MARGIN (%) ADJUSTED EBITDA QUARTERLY CHANGE ($ MILLION) Adjusted EBITDA increased sequentially in the 3Q25, supported by improved margins. Key factors behind the improvement were a decrease in raw material and purchased slab costs, along with efficiency gains. Third Quarter of 2025 Adjusted EBITDA 3
Page 4
93 333 142 259 (270) 3Q24 4Q24 1Q25 2Q25 3Q25 NET INCOME (LOSS) ($ MILLION) NET INCOME QUARTERLY CHANGE ($ MILLION) Non-cash $405 million write-down of deferred tax assets at Usiminas. Sequential $143 million decrease in deferred tax results in the 3Q25 after a significant gain in the 2Q25. Third Quarter of 2025 Net Income NET FIN. RESULTS USIMINAS LITIGATION INCOME TAX NET INCOME 2Q25 NET INCOME 3Q25 299 (143) (270) Net result in the 3Q25 included a non-cash $405 million write- down at Usiminas and a $32 million loss resulting from the quarterly update of a provision for ongoing litigation related to the acquisition of a participation in Usiminas. 4 8(5)16 (405) 259 OPERATING INCOME DEFERRED TAX WRITEDOWN
Page 5
USA 3% Other 2% Brazil 26.4% Colombia 4% Other Markets 9.5% Mexico 49.2% Southern Region 14.8% GEOGRAFICAL INFORMATION (THOUSAND TONS) REGIONAL DISTRIBUTION Third Quarter of 2025 Steel Segment Shipments 5 2,167 1,970 1,911 1,784 1,849 1,076 965 1,005 980 994 515 496 489 566 557 365 333 452 390 357 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 Mexico Brazil Southern Region Other Markets
Page 6
CASH OPERATING INCOME ($ MILLION) Third Quarter of 2025 Steel Segment Performance STEEL SHIPMENTS (MILLION TONS) AND REVENUE PER TON ($ PER TON) STEEL CASH OPERATING INCOME PER TON AND MARGIN Cash Operating Income rose 10% in the 3Q25, mainly reflecting an improved margin. Margin improved mainly due to lower unit costs from a decrease in raw material, purchased slab and energy costs, as well as efficiency gains. 0 500 1000 1500 2000 0.0 3Q24 4Q24 1Q25 2Q25 3Q25 Usiminas Revenue per Ton (right hand axis) 3.93.8 3.8 4.1 3.7 75 52 72 94 104 7% 5% 7% 9% 10% 0% 3Q24 4Q24 1Q25 2Q25 3Q25 Steel Cash Operating Income per Ton ($/ton) Steel Cash Operating Income Margin (%) 309 197 276 350 391 3Q24 4Q24 1Q25 2Q25 3Q25 6 Modestly higher volume in 3Q25 partially offset by slightly lower realized steel prices.
Page 7
Third Quarter of 2025 Mining Segment Performance MINING CASH OPERATING INCOME PER TON AND MARGIN Sequential decrease in mining shipments, as a result of lower production in Mexican operations. Cash operating income decrease resulting from lower margin and volume. Margin declined primarily as a result of increased unit costs. 3.0 3.0 3.1 3.3 3.2 0 50 100 150 200 0.0 3Q24 4Q24 1Q25 2Q25 3Q25 Usiminas Revenue per Ton (right hand axis) 17 20 18 16 12 20% 24% 20% 19% 14% 0% 3Q24 4Q24 1Q25 2Q25 3Q25 Mining Cash Operating Income per Ton ($/ton) Mining Cash Operating Income Margin (%) 7 52 60 57 54 38 3Q24 4Q24 1Q25 2Q25 3Q25 CASH OPERATING INCOME ($ MILLION)MINING SHIPMENTS (MILLION TONS) AND REVENUE PER TON ($ PER TON)
Page 8
303 472 207 1,044 535 (176) 257 (55) 781 174 3Q24 4Q24 1Q25 2Q25 3Q25 Cash from operations (Incr.) decr. in working capital 1.7 1.6 1.3 1.0 0.7 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 CASH FROM OPERATIONS AND CHANGES IN WORKING CAPITAL ($ MILLION) Third Quarter of 2025 Cash Flow and Balance Sheet CAPEX ($ MILLION) NET CASH POSITION ($ BILLION) Strong cash generation supported by a further decrease in working capital. CAPEX peaked in the 2Q25 and stayed high in the 3Q25, as Ternium progresses on its projects at the Pesquería industrial center. Net cash position decreased in the 3Q25, reflecting high CAPEX outflows and a lower fair value of Argentine securities. 3Q24 4Q24 1Q25 2Q25 3Q25 Usiminas 446 561 518 810 711 8
Page 9
First Nine Months of 2025 Performance Summary ADJUSTED EBITDA ($ MILLION) AND ADJUSTED EBITDA MARGIN (%) CAPEX ($ MILLION) • Decrease in adjusted EBITDA mainly driven by lower realized steel prices and shipments, partially offset by lower steel costs. • Interim dividend payment of $0.90 per ADS to be paid on November 11, 2025. 3,415 2,740 2,038 1,768 1,146 21% 16% 12% 13% 10% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 0 500 1000 1500 2000 2500 3000 2022 2023 2024 9M 2024 9M 2025 CASH FROM OPERATIONS ($ MILLION) 2,753 2,501 1,906 1,435 1,786 2022 2023 2024 9M2024 9M2025 9 581 1,461 1,865 1,304 2,038 2022 2023 2024 9M2024 9M2025 2.60 2.70 3.30 2021 2022 2023 2024 2025 1.80 0.900.901.100.90 1.80 2.20 2.70 0.80 1.80 ANNUAL DIVIDEND ($ PER ADS)
Page 10
Find us on: www.ternium.com