#Mexico #Guadalajara #Steel Production #Grupo Simec #Simec financials

Grupo Simec's Financial Performance in 2026

Grupo Simec, S.A.B. de C.V. (NYSE: SIM) has disclosed its operational results for the first nine months of 2026, revealing a prosperous financial status despite market fluctuations and challenges in the sector. The newly published data demonstrates a commendable performance, with net sales rising to Ps. 24,569 million, marking a 10% increase over the previous year.

Sales Increase

Net sales grew primarily due to a 14% surge in the shipment of finished steel products, equating to approximately 1.597 million tons for the current period compared to 1.4 million tons the previous year. Sales outside of Mexico also saw a notable increase of about 9%, contributing Ps. 10,588 million compared to Ps. 9,751 million in 2025. Domestic sales reflected an 11% increase, climbing from Ps. 12,569 million to Ps. 13,981 million.

Cost of Sales

Despite the increase in sales, the cost of sales monitored a parallel trajectory, rising 10% to Ps. 18,636 million from Ps. 16,893 million last year. This maintained a consistent cost of sales ratio at 76% of net sales. Grupo Simec attributes this rise to the higher volume of products shipped which contributed directly to the adjusted cost figures.

Gross and Operating Profit

The gross profit for the first nine months exceeded expectations, reported at Ps. 5,933 million, an increase from Ps. 5,427 million in 2025. The gross margin percentage held steady at 24% for both periods. In terms of operational performance, the operating profit saw a marginal increase from Ps. 3,784 million to Ps. 3,800 million, representing an operating margin of 15% versus the previous year's 17%.

Administrative Expenses

Expenses related to selling, general, and administrative overheads climbed 9% to Ps. 2,219 million from Ps. 2,036 million, maintaining a stable representation of 9% of net sales.

EBITDA and Net Income

A crucial highlight of the report is the substantial increase in net income, jumping 428% to Ps. 4,028 million from Ps. 763 million the previous year. This remarkable turnaround is primarily attributed to a net exchange loss of Ps. 3,050 million last year that transformed into a net exchange profit of Ps. 280 million in 2026. The EBITDA also escalated by 3%, showcasing robust operational efficiency with Ps. 4,724 million reported.

Liquidity and Capital Resources

As of September 30, 2026, Grupo Simec's total consolidated debt remained steady at USD 302,000 in medium-term notes, with accrued interest rising due to financial market adjustments. The organization stays committed to maintaining its liquidity ratios while navigating through debt management effectively.

Quarterly Performance

In a quarter-over-quarter analysis, net sales increased by 3% from Ps. 8,154 million in Q2 2026 to Ps. 8,383 million in Q3 2026, with sales in tons witnessing a jump of 7%. However, a slight decrease in domestic prices and an uptick in the cost of sales influenced gross profits, with a recorded decline of 14%. The net profit for Q3 surged to Ps. 1,710 million compared to Ps. 611 million in Q2, indicating improving performance despite lower margins.

Conclusion

Grupo Simec has showcased resilience and growth in its operations during the first nine months of 2026, affirming its solid position within the steel manufacturing industry. The figures indicate improvements across various aspects of the business, providing optimism for future quarters. Stakeholders can look forward to further updates as the company continues to report its performance every quarter, intending to enhance its market standing further.