#Mexico #Guadalajara #Net Sales #Grupo Simec #SIMEC

Grupo Simec Reports First Quarter Results for 2026

Grupo Simec, S.A.B. de C.V., traded under NYSE as SIM, has announced its financial performance for the first quarter of 2026. Ending March 31, 2026, the results indicate a promising growth trajectory for the company compared to the previous year.

Key Highlights

1. Net Sales Growth
- The net sales for Q1 2026 reached Ps. 8,032 million, marking an increase of 3% from Ps. 7,783 million during the same period last year.
- This growth is attributed to an 11% increase in finished steel shipments, rising to 530,000 tons, despite an average sales price decline of 7%.
- Notably, sales within Mexico surged by 8%, from Ps. 4,314 million in Q1 2025 to Ps. 4,647 million in Q1 2026. However, international sales dipped by 2%.

2. Cost of Sales
- Cost of sales escalated by 2%, increasing from Ps. 5,786 million in Q1 2025 to Ps. 5,897 million. As a result, the cost of sales represented 73% of net sales for Q1 2026. Interestingly, the average production cost of finished steel products has decreased by 8%.

3. Profitability Metrics
- Grupo Simec recorded a gross profit of Ps. 2,135 million (27% of net sales) in Q1 2026, up from Ps. 1,997 million (26% of net sales) in Q1 2025.
- Operating profit saw a minor increase of 3%, from Ps. 1,426 million in Q1 2025 to Ps. 1,465 million in Q1 2026, maintaining an operating profit percentage of 18%.
- The EBITDA also rose by 4%, showing favorable growth from Ps. 1,692 million in Q1 2025 to Ps. 1,754 million in Q1 2026.

4. Net Income
- The company reported a remarkable 31% increase in net income, advancing from Ps. 1,305 million in Q1 2025 to Ps. 1,706 million in Q1 2026.
- This positive trend underscores the resilience and growing efficiency of Grupo Simec in navigating market challenges.

Expense Analysis

The operating expenses, which include selling, general, and administrative expenditures, elevated by 12% from the previous year, totaling Ps. 709 million in Q1 2026 compared to Ps. 633 million. This increase contributed 9% to net sales for the period. Additionally, other income decreased from Ps. 62 million to Ps. 39 million.

Future Outlook

As Grupo Simec continues to strengthen its market position, the management remains optimistic about sustaining growth through innovative practices and efficient operations. The decrease in international sales highlights areas for potential improvement, and it will be essential to focus on expanding global reach while bolstering domestic sales.

Conclusion

Grupo Simec's quarterly report emphasizes a solid performance with improved profitability metrics, reflecting the company's commitment to operational excellence and adapting to market dynamics. The data reveals an encouraging outlook for the subsequent quarters, positioning them for sustained growth in the competitive steel industry.