Latin America · Companies
Key Facts
—Dividend revision. Ternium’s board cut the fiscal year 2025 dividend proposal from $2.70 to $2.20 per ADS in April 2026.
—Final payment. The remaining net dividend of $1.30 per ADS was paid to shareholders on May 15, 2026.
—2025 earnings. Full-year 2025 net income reached $303 million, weighed down by a $405 million deferred tax asset write-down at its Brazilian unit Usiminas.
—Q4 performance. Fourth-quarter 2025 revenue slipped approximately 3% year-over-year to $3.78 billion, with earnings per share of $0.62 missing analyst estimates.
—2026 outlook. The company expects higher shipments and improved EBITDA margins in Mexico and Brazil during the first quarter of 2026.
Luxembourg-based Latin American steelmaker Ternium has completed its Ternium dividend 2025 payout cycle with a reduced figure, finalizing a $2.20 per American Depositary Share (ADS) distribution after a board-level revision in April 2026. For foreign investors tracking the New York Stock Exchange-listed company (NYSE: TX), the adjustment reflects a cautious approach following a fiscal year marked by a major deferred tax write-down, even as the company signals a brighter operational outlook for its core Mexican and Brazilian markets.
Dividend Breakdown: What Was Paid
Ternium’s board of directors initially proposed a fiscal year 2025 dividend of $2.70 per ADS. However, on April 15, 2026, the company revised that proposal downward to $2.20 per ADS, equivalent to $0.22 per share.
The final net portion of this distribution, $1.30 per ADS ($0.13 per share), was paid out on May 15, 2026, effectively closing the book on the 2025 dividend cycle. No new dividend announcements for 2026 have been made as of mid-July.
At the time of the revision, Ternium‘s share price hovered around $43.27, giving the reduced $2.20 annual dividend a yield of approximately 5.1%. While earlier drafts based on the original $2.70 proposal had suggested a yield closer to 6%, the final figure remains notable for income-focused investors. The stock was trading near $43.57 during intraday activity on February 18, 2026, though updated share prices for July 2026 are not available in recent disclosures.
2025 Earnings: The Write-Down That Shaped the Payout
The dividend revision cannot be separated from Ternium’s full-year 2025 financial performance, reported on February 18, 2026. The company posted a net income of $303 million for the year, a figure deeply impacted by a $405 million write-down of deferred tax assets at Usiminas, its Brazilian steelmaking affiliate, and a $222 million deferred tax gain.
This non-cash accounting charge significantly eroded bottom-line results, prompting a more conservative capital-return strategy.
In the fourth quarter alone, Ternium generated $171 million in net income, which included a $94 million gain from deferred taxes. Quarterly revenue reached $3.78 billion, representing an approximately 3% decline compared to the same period in 2024.
Earnings per ADS came in at $0.62, missing analyst consensus estimates by $0.15. The mixed results underscored the challenges in a global steel market still navigating uneven demand and pricing pressures.
2026 Outlook: Mexico and Brazil Drive Optimism
Despite the cautious dividend action, Ternium’s forward guidance strikes a more optimistic tone. The company expects Adjusted EBITDA to increase in the first quarter of 2026 compared to the fourth quarter of 2025.
This anticipated improvement is pinned on higher shipment volumes, primarily in Mexico, and better Adjusted EBITDA margins in both Mexico and Brazil. Management attributes the margin recovery to rising revenue per ton, though it notes this will be partially offset by higher costs per ton.
For the full year 2026, analysts project earnings per ADS of $6.05. If Ternium maintains an expected annual dividend of $1.80 per ADS, the implied payout ratio would sit at a comfortable 29.8%, suggesting ample room for the company to fund its distribution from profits.
The strategic focus on Mexico and Brazil as operational drivers is clear, though the company’s public disclosures do not provide detailed mid-2026 data on market conditions in Argentina. Our reporting has shown that concerns about cheap Chinese imports across the value chain and a complex global tariff context continue to threaten prices everywhere, a dynamic Ternium’s Argentine unit has previously flagged as a risk to local recovery.
What Foreign Investors Should Watch
For expats, tourists-turned-investors, and global market watchers following Latin America, Ternium offers a window into the region’s industrial health. The company’s ADR structure makes it easily accessible on the NYSE, but its fortunes are tied to construction, automotive, and infrastructure cycles in Mexico and Brazil – two of the area’s largest economies. The 5.1% dividend yield, based on the revised $2.20 payout, remains competitive in a global context, but it comes with the volatility typical of commodity-linked equities.
Key signposts for the months ahead include any updates on Usiminas’ tax-asset recovery, quarterly shipment data out of Mexico, and broader trade policy shifts that could affect steel flows into the Americas. While the 2025 dividend chapter is closed, the 2026 story will hinge on whether Ternium can convert its guided margin improvements into the earnings growth that analysts are penciling in.
Frequently Asked Questions
What was Ternium’s final 2025 dividend per ADS?
Ternium’s board revised the 2025 dividend to $2.20 per ADS, down from an initial $2.70 proposal. The final net payment of $1.30 per ADS was distributed on May 15, 2026.
Why did Ternium cut its 2025 dividend?
The reduction followed full-year 2025 net income of $303 million, which was heavily impacted by a $405 million write-down of deferred tax assets at its Brazilian unit Usiminas, prompting a more conservative payout.
What is Ternium’s business outlook for 2026?
Ternium expects higher shipments and improved EBITDA margins in Mexico and Brazil during Q1 2026. Analysts forecast full-year 2026 earnings of $6.05 per ADS, which would comfortably cover an expected $1.80 annual dividend.
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