In This Article:
-
Shipments: 16 million tons for 2024.
-
Adjusted EBITDA: ARS 2 billion with a 12% margin.
-
Cash Generation: ARS 2 billion in cash generated in 2024.
-
Net Cash Position: ARS 1.6 billion at the end of December 2024.
-
Capital Expenditures (CapEx): Close to ARS 2 billion in 2024.
-
Dividends Paid: More than ARS 600 million in 2024.
-
Net Income (Q4 2024): ARS 333 million.
-
Net Sales Decline (Q4 2024): Sequential decline of 14%.
-
Mining Shipments: Stable in Q4 2024, but down 9% year-over-year.
-
Cash Flow from Operations (Q4 2024): Supported by a decrease in working capital.
-
Proposed Annual Dividend: ARS 2.70, with a dividend yield of approximately 9%.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Ternium Argentina SA reported shipments of 16 million tons for 2024 with an Adjusted EBITDA of ARS 2 billion, maintaining a 12% margin despite industry challenges.
-
The company made significant progress on its downstream expansion project in Mexico, with new facilities starting operations and others on track for completion by the end of 2025.
-
A new wind farm in Argentina began generating electricity, expected to deliver substantial economic benefits and support the company's decarbonization goals.
-
Usiminas in Brazil showed operational improvements, with vehicle production growing by 10% and crude steel production reaching high levels.
-
The Roberto Rocca Technical School in Santa Cruz, Brazil, began its first classes, reflecting Ternium's commitment to community development and education.
Negative Points
-
Shipments in Mexico decreased due to a weaker commercial market and uncertainties surrounding trade actions.
-
Argentina experienced a real decline in shipments by approximately 20% due to macroeconomic measures, with steel demand yet to return to historic levels.
-
Imports of flat steel in Brazil exceeded 3 million tons, with China accounting for a significant portion, disrupting the local market.
-
Adjusted EBITDA decreased due to lower prices and reduced shipments, partially offset by increased steel costs per ton.
-
The Brazilian Real's depreciation against the US dollar negatively impacted Usiminas' financial results, affecting Ternium's overall performance.
Q & A Highlights
Q: Can you provide more details on the outlook for the first quarter of 2025 and the ramp-up of the Pesqueria project? A: (Maximo Vedoya, CEO) The finishing lines at Pesqueria are ahead of schedule and should reach full capacity in the next two to three months. The galvanized line is on track to start in December 2025, and the cold rolling line's startup has been advanced to December 2025. The ramp-up for these projects typically takes 9 to 12 months. (Pablo Brizzio, CFO) We expect a slight increase in Adjusted EBITDA for Q1 2025, driven by stable shipment levels, a decline in costs, and a marginal decrease in prices.