Ternium S.A. Sponsored ADR (TX)
Ternium: Reducing CapEx And Increasing FCF Support 7% Dividend Yield Projections
Ternium is rated a buy, supported by a 14.5% upside to a $65.52 fair value using DCF analysis. Completion of the $4B Pesqueria project will boost TX's steel capacity, cost competitiveness, and EBITDA by 5–10% from 2028 to 2030. CapEx is set to decline, driving free cash flow yield above 15% and enabling a sustainable 6–7% dividend yield.
Ternium: Mexico Recovery Has Upside, But Cash Flow Still Matters
Ternium offers compelling upside, driven by robust Mexico steel demand and the transformative Pasqueria expansion targeting USMCA automotive clients. Q2 showcased strong operational momentum: Mexican shipments rose 5% QoQ, revenue per ton increased 6%, and adjusted EBITDA surged 50% to $717 million. Pasqueria's delayed start to early 2027 and ongoing high capex introduce execution and cash flow risks; Brazil and Argentina remain demand headwinds.
What Makes Ternium (TX) a New Strong Buy Stock
Ternium (TX) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
Is Ternium (TX) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Ternium Q2 Earnings Call Highlights
Ternium NYSE: TX reported a sequential recovery in second-quarter profitability, supported by higher steel shipments, improved realized prices and stronger market conditions in Mexico and Brazil. The company said adjusted EBITDA increased 50% from the first quarter, while its adjusted EBITDA margin expanded to 16.5% from 12.2%.
Ternium Q2 Earnings Call Focuses on Mexico Recovery and Q3 Growth
TX expects Q3 EBITDA to rise as Mexico???s steel recovery, higher shipments and firmer pricing offset rising costs and trade uncertainty.
Ternium S.A. (TX) Q2 2026 Earnings Call Transcript
Ternium S.A. (TX) Q2 2026 Earnings Call Transcript
Compared to Estimates, Ternium (TX) Q2 Earnings: A Look at Key Metrics
While the top- and bottom-line numbers for Ternium (TX) give a sense of how the business performed in the quarter ended June 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Ternium to Report Q2 Earnings: What's in the Cards for the Stock?
TX heads into Q2 earnings with stronger margins, higher steel prices and demand recovery in Mexico likely to aid results amid headwinds from cost inflation.
Is Ternium (TX) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Ternium (TX) Is Attractively Priced Despite Fast-paced Momentum
Ternium (TX) could be a great choice for investors looking to buy stocks that have gained strong momentum recently but are still trading at reasonable prices. It is one of the several stocks that made it through our 'Fast-Paced Momentum at a Bargain' screen.
Ternium Looks Like A Bargain Despite Ongoing Economic Uncertainties
Ternium remains disciplined and operationally strong amid trade policy uncertainties and regional demand challenges, generating respectable unit margins despite headwinds. Q1 results showed improving pricing and margins, with Mexico outperforming and management maintaining cost discipline; adjusted EBITDA rose 49% year-over-year. TX's long-term thesis hinges on cross-border U.S.-Mexico trade, share gains with autos/machinery customers, and the completion of the Pesqueria expansion project.
