GUADALAJARA, Mexico, Oct. 27, 2025 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) (BMV: SIMEC-B) ("Simec") announced today its results of operations for the nine-month period ended September 30, 2025.
Comparative first nine months of 2025 vs. first nine months of 2024
Net Sales
Net sales decreased 10% because of the combination of 9% less shipments of finished steel products and a 1% lower average sales price compared to the same period of 2024, the sales decreased to Ps. 22,320 million in the first nine months of 2025 from Ps. 24,828 million in the first nine months of 2024. Shipments of finished steel products decreased to 1 million 400 thousand tons in the first nine months of 2025 compared to 1 million 536 thousand tons in the first nine months of 2024. Total sales outside of Mexico in the first nine months of 2025 decreased 11% to Ps. 9,751 million compared with Ps. 10,979 million in the same period of 2024. Total sales in Mexico decreased 9% from Ps. 13,849 million in the first nine months of 2024 to Ps. 12,569 million in the same period of 2025.
Cost of Sales
Cost of sales decreased 9% from Ps. 18,625 million in the first nine months of 2024, to Ps. 16,893 million in the first nine months of 2025. Cost of sales as a percentage of net sales represented 76% for the first nine months of 2025 compared to 75% from the same period of the year 2024, The decrease in the cost of sales is mainly due to lower volume of steel products shipped.
Gross Profit
The Gross profit of the Company decreased 13% from Ps. 6,203 million in the first nine months of 2024 to Ps. 5,427 million in the same period of 2025. Gross profit as a percentage of net sales in the first nine months of 2025 and 2024 represented 24% and 25% respectively. The decrease in gross profit was caused by a lower volume of tons shipped in the first nine months of 2025 compared with same period of 2024, and lower average sales price per ton of steel finished goods.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 11%, to Ps. 2,036 million in the first nine months of 2025 from Ps. 1,834 million in the same period of 2024. Selling, general and administrative expenses as a percentage of net sales represented 9% in the first nine months of 2025 and 7% in the first nine months of 2024.
Other Income (Expenses,) net
The Company recorded other income net for Ps. 393 million in the first nine months of 2025 compared to other income net of Ps. 71 million in the same period of 2024.
Operating Profit
Operating Profit decreased 15% to Ps. 3,784 million for the first nine months of 2025 compared to Ps. 4,440 million in the first nine months of 2024. Operating income as percentage of net sales was 17% in the first nine months of 2025 and 18% in the same period of 2024. The decrease in operating profit was mainly due to a lower shipment of finished steel products.
Ebitda
The Ebitda of the Company decreased 11%, from Ps. 5,189 million in the first nine months of 2024 (result of net income of Ps. 8,587 million, less minority stake of Ps. 2 million, plus income taxes of Ps. 762 million, less comprehensive financial income of Ps. 4,907 million, plus depreciation of Ps. 749 million), compared to an Ebitda of Ps 4,594 million in the same period of 2025 (result of net income of Ps. 763 million, less minority stake of Ps. 2 million, plus income taxes of Ps. 793 million, plus comprehensive financial cost of Ps. 2,229 million, plus depreciation of Ps. 811 million).
Consolidated
First nine months of 2025 vs first nine
Million months of 2024,
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2025 2024
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Net income (loss) 763 8,587
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Loss attributable to
noncontrolling
interests (2) (2)
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Net income (loss) 761 8,585
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Depreciation and
amortization 811 749
Income taxes 793 762
Financial results
(income) loss 2,229 (4,907)
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EBITDA 4,594 5,189
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Comprehensive Financial Cost
Comprehensive financial cost for the first nine months of 2025 represented a net loss of Ps. 2,229 million compared with of net income of Ps. 4,907 million in the first nine months of 2024. The Company recorded a net exchange loss of Ps. 3,050 million in the first nine months of 2025 compared with a net exchange income of Ps. 3,799 million in the first nine months of 2024, net other financial income was recorded for Ps 42 million for the first nine months of 2024.
Income Taxes
The Company recorded a net tax expense of Ps.793 million during the first nine months of 2025, (comprised of a current tax of Ps. 722 million and expense for deferred tax of Ps. 71 million) compared with a net tax expense of Ps. 762 million to the first nine months of 2024 (comprised of a current tax expense of Ps. 850 and income for deferred tax of Ps. 88 million).
Net Income
As a result of the foregoing, the Company recorded a decrease in net income of 91% from of Ps. 8,587 million in the first nine months of 2024 to Ps. 763 million in the same periods of 2025, mainly because the net exchange income of Ps. 3,799 million recorded in the first nine months of 2024 became a net exchange loss of Ps. 3,050 million in the first nine months of 2025.
Liquidity and Capital Resources
At September 30, 2025, Simec's total consolidated debt consisted of U.S. $ 302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, or Ps. 5.5 million (accrued interest on September 30, 2025 was U.S. $ 863,000, or Ps. 15.8 million). At September 30, 2024, Simec's total consolidated debt consisted of U.S. $ 302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, or Ps. 5.9 million (accrued interest on September 30, 2024 was U.S. $ 985,000, or Ps. 16.4 million).
Comparative third quarter of 2025 vs. second quarter of 2025
Net Sales
Net sales of the Company increased 6% from of Ps. 7,052 million during the second quarter of 2025 to Ps. 7,485 million in the third quarter of 2025. Shipments of finished steel products increased to 499 thousand tons in the third quarter of 2025 from 425 thousand tons in the second quarter of the same year. Total sales outside of Mexico in the third quarter of 2025 increased 2% to Ps. 3,178 million compared to Ps. 3,104 million of the second quarter of the same year. Domestic sales in the third quarter of 2025 increased to Ps. 4,307 million compared to Ps. 3,948 million in the second quarter of the same year. The average selling price decreased 10% in the third quarter of 2025 compared to the second quarter of the same year.
Cost of Sales
Cost of sales increased to Ps. 5,726 million in the third quarter of 2025 from Ps.5,381 million in the second quarter of 2025. Cost of sales as a percentage of net sales represented 77% in the third quarter of 2025 and 76% in the second quarter of the same year. The increase in the cost of sales is mainly due to a higher volumen of steel products shipped in the third quarter of 2025 compared to the second quarter of the same year.
Gross Profit
Gross profit of the Company for the third quarter of 2025 increased 5% to from Ps. 1,671 million in the second quarter of 2025 to Ps. 1,759 million in the third quarter of same year. Gross profit as a percentage of net sales in the third quarter of 2025 was of 23% compared to 24% in the second quarter of the same year.
Selling, General and Administrative Expenses
Selling, general and administrative expense increased 8% to of Ps. 728 million in the third quarter of 2025 from Ps. 674 million the second quarter of the same year, and as percentage of net sales represented 10% for the third quarter of 2025 and for the second quarter of the same year.
Other (Expenses) Income, net
The Company recorded other income net for Ps. 128 million during the third quarter of 2025 compared to other income net for Ps. 201 million in the second quarter of 2025.
Operating Profit
Operating profit decreased to Ps. 1,159 million in the third quarter of 2025 compared to an operating profit of Ps. 1,198 million in the second quarter of the same year. Operating profit as percentage of net sales represented 15% for the third quarter of 2025 compared to 17% in the second quarter of 2025.
Ebitda
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October 27, 2025 19:59 ET (23:59 GMT)
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