Grupo Simec Reports Strong Operational Results for First Half of 2026

Grupo Simec, S.A.B. de C.V. has recently disclosed its operational results for the first half of 2026, reflecting a robust performance and significant advancements compared to the same period in 2025. This Mexico-based company, listed on both NYSE and BMV, has achieved notable growth in net sales, gross profit, and overall operational efficiency during this period, driven primarily by increased market demand for steel products.

Sales Performance

In the first half of 2026, Grupo Simec recorded net sales amounting to Ps. 16,186 million, representing a 9% increase from the previous year's Ps. 14,835 million. This growth can be attributed to a 16% rise in steel shipments, which totaled 1,046 thousand tons compared to 901 thousand tons in 2025. Notably, while the average sales price saw a 6% dip, the overall sales figures reflect a healthy increase, further supported by a 15% improvement in domestic sales, bringing them to Ps. 9,461 million.

Cost and Profit Analysis

The cost of sales also saw an uptick, increasing 8% to Ps. 12,014 million from Ps. 11,167 million last year. As a result, the gross profit for the period reached Ps. 4,172 million, marking a 14% increase from the previous year's Ps. 3,668 million, which now constitutes 26% of net sales. Selling, general and administrative expenses rose by 11% to Rs. 1,445 million, in line with the company’s expansion efforts.

Operating and Net Income Performance

Grupo Simec's operating profit demonstrated stability, rising 5% to Ps. 2,763 million. The operating profit margin slightly decreased to 17% from 18%. However, the company reported substantial growth in net income, which skyrocketed by 662% to Ps. 2,317 million from Ps. 304 million in the same period last year, largely due to a significant reduction in net exchange losses.

EBITDA Improvements

The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a favorable increase of 6% from Ps. 3,165 million to Ps. 3,354 million. This positive trend reflects the overall growth trajectory of Grupo Simec amidst shifts in market dynamics.

Quarterly Performance Comparison: Q2 2026 vs. Q1 2026

In the second quarter of 2026, net sales rose by 2% to Ps. 8,154 million compared to the preceding quarter. However, sales in tons declined slightly, from 530 thousand tons to 516 thousand tons. The cost of sales for the second quarter increased to Ps. 6,117 million, leading to a gross profit of Ps. 2,037 million—down 5% from Q1 2026. Operating profit also witnessed a decline, coming in at Ps. 1,298 million.

Conclusion

Grupo Simec's first half of 2026 results showcase resilience and growth, establishing a solid foundation for future performance. While challenges exist, particularly concerning operational costs and fluctuating external factors, the company appears well-positioned to navigate these dynamics effectively and continue its success in the steel industry. Stakeholders and investors are encouraged to monitor these developments as Grupo Simec continues to solidify its market presence and operational efficiencies.