Ternium cuts 2025 dividend proposal to $2.20 per ADS amid uncertainty

Ternium S.A. (NYSE: TX) announced its board of directors revised the dividend proposal for fiscal year 2025, reducing the recommended payout to $2.20 per American Depositary Share from the previously announced $2.70 per ADS.

The steel producer said the annual dividend totals $432 million and includes an interim dividend of $0.90 per ADS paid in the fourth quarter of 2025. The company cited ongoing uncertainties regarding the potential impact of the Middle East conflict on the global economy as a factor in the decision.

The board determined that implementing measures to reinforce the company's balance sheet represents a prudent course of action in the current environment, according to the press release. Ternium maintains its outlook for a sequential increase in adjusted EBITDA in the first quarter of 2026 and expects further improvements in the second quarter.

If shareholders approve the proposal at the meeting scheduled for May 12, 2026, a net dividend of $1.30 per ADS will be paid on May 15, 2026, with a record date of May 14, 2026. The net dividend payment totals $255 million.

Ternium operates as a steel producer in the Americas, providing steel products to manufacturing industries and the construction sector. The company has operations across Latin America and invests in low carbon emissions steelmaking technologies.

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