Grupo Simec, S.A.B. de C.V. reported its 2025 financial results, showing a 10% drop in net sales to Ps. 30,291 million from Ps. 33,658 million in 2024. The decline was driven by a 6% fall in finished‑steel shipments and a 4% lower average sales price, while sales outside Mexico fell 14%.
Cost of sales fell 13% to Ps. 22,657 million, largely due to lower scrap costs. Gross profit remained flat at Ps. 7,634 million, lifting the gross margin to 25% from 23% the previous year. Operating profit increased 1% to Ps. 5,365 million, and operating margin expanded to 18% from 16%. EBITDA rose 1% to Ps. 6,446 million, reflecting the company’s ability to preserve profitability despite top‑line pressure.
Net income, however, plunged 85% to Ps. 1,533 million, a sharp decline from Ps. 10,488 million in 2024. The drop was largely attributable to a Ps. 3,602 million foreign‑exchange loss, compared with a Ps. 5,556 million exchange gain in 2024. The company’s debt remained minimal at U.S. $302,000 in medium‑term notes, and its liquidity position was strong, with a current ratio of 6.1×.
The results illustrate Grupo Simec’s operational resilience: margin expansion was driven by effective cost control and lower scrap costs, offsetting the impact of lower sales volumes and prices. The sharp decline in net income underscores the company’s exposure to foreign‑exchange volatility, a risk that management will need to manage in future periods.
Overall, the company’s core operating performance remained stable, with margin improvements suggesting disciplined cost management. However, the FX loss highlights a vulnerability that could affect profitability if currency swings persist. Investors should monitor the company’s hedging strategy and the outlook for steel demand and pricing as the business moves forward.
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