Grupo Simec, S.A.B. de C.V. reported first‑quarter 2026 results that showed net sales of Ps. 8,032 million, up 3% year‑over‑year and 1% from the Ps. 7,972 million recorded in Q4 2025. Shipments of finished steel products rose to 530 thousand tons, an 11% increase from 476 thousand tons in the prior year and 1% higher than the 520 thousand tons shipped in Q4 2025. Sales in Mexico grew 8% to Ps. 4,647 million, while sales outside Mexico fell 2% to Ps. 3,385 million.
The cost of sales increased 2% to Ps. 5,897 million, but the average cost per ton fell 8% due to lower scrap costs. Gross profit climbed to Ps. 2,135 million, a 7% rise from Ps. 1,997 million in Q1 2025, lifting the gross margin to 27% from 26%. Operating income rose 3% to Ps. 1,465 million, keeping the operating margin steady at 18% year‑over‑year.
Net income reached Ps. 1,706 million, a 31% increase from Ps. 1,305 million in Q1 2025. The jump was largely driven by a net exchange profit of Ps. 213 million, compared with a Ps. 156 million loss in the prior year. Grupo Simec’s balance sheet remained strong, with medium‑term notes debt of only U.S. $302,000 as of March 31 2026.
The results reflect a combination of volume expansion, cost discipline, and favorable financial conditions. The 11% rise in shipments helped offset a 7% decline in average selling prices, while lower scrap costs reduced the cost base. The significant foreign‑exchange gain provided a tailwind that amplified net income growth, demonstrating the company’s ability to manage currency risk in a volatile environment.
Investors reacted positively to the earnings, citing the company’s margin improvement, volume growth, and the sizable exchange‑gain contribution as key drivers of the strong financial performance.
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