GUADALAJARA, Mexico, Oct. 27, 2025 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE:SIM) (BMV:SIMEC) ("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
Million	First nine months of 2025 vs first nine months of 2024,
	2025		2024
Net income (loss)		763		8,587
Loss attributable to noncontrolling interests		(2)		(2)
Net income (loss)		761		8,585
Depreciation and amortization		811		749
Income taxes		793		762
Financial results (income) loss		2,229		(4,907)
EBITDA		4,594		5,189

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

The Ebitda decreased from Ps 1,473 million in the second quarter of 2025 (result of net loss of Ps. 1,000 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 297 million, plus comprehensive financial cost of Ps. 1,902 million, plus depreciation of Ps. 275 million), to an Ebitda of Ps. 1,428 million in the third quarter of the same year (result of net income of Ps. 459 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 317 million, plus comprehensive financial cost of Ps. 384 million, plus depreciation of Ps. 269 million).

Consolidated
Million	Third quarter of 2025 vs second quarter of 2025,
	Third quarter 2025		Second quarter 2025
Net income (loss)		459		(1.000)
Loss attributable to noncontrolling interests		(1)		(1)
Net income (loss)		458		(1,001)
Depreciation and amortization		269		275
Income taxes		317		297
Financial results (income) loss		384		1,902
EBITDA		1,428		1,473

Comprehensive Financial Cost

Comprehensive financial cost of the Company in the third quarter of 2025 represented a net loss of Ps. 384 million compared with a net loss of Ps. 1,902 million in the second quarter of 2025. Likewise, the Company recorded a net exchange loss of Ps. 718 million in the third quarter of 2025 compared a net exchange loss of Ps. 2,176 million in the second quarter of the same year.

Income Taxes

The Company recorded of Ps. 317 million of expense tax during the third quarter of 2025, (comprised of an expense of current tax of Ps. 339 million and an income for deferred tax of Ps. 22 million) compared with the Ps. 297 million of expense in the second quarter of the same year, (comprised of an expense of current tax of Ps. 197 million and an expense for deferred tax of Ps. 100 million).

Net Income

As a result of the foregoing, the Company recorded a increase in net income to Ps. 459 million in the third quarter of 2025 compared to a net loss of Ps. 1,000 million in the second quarter of 2025.

Comparative third quarter of 2025 vs. third quarter of 2024

Net Sales

The net sales of the Company decreased 12% from Ps. 8,549 million during the third quarter of 2024 to Ps. 7,485 million in the third quarter of 2025. Sales in tons of finished steel products decreased 4% to 499 thousand tons in the third quarter of 2025 compared with 521 thousand tons in the third quarter of 2024. Sales outside of Mexico decreased 14% from Ps. 3,691 million in the third quarter of 2024 to Ps. 3,178 million in the third quarter of 2025. Domestic sales decreased 11% from Ps. 4,858 million in the third quarter of 2024 to Ps. 4,307 million in the third quarter of 2025. The decrease in sales in the third quarter of 2025 compared to the third quarter of 2024 is due to a decrease in the average sales price of 9% and a decrease in the volume of shipments approximately of 22 thousand of tons that represents a 4% decrease.

Cost of Sales

Cost of sales decreased 10% in the third quarter of 2025 compared to the third quarter of 2024 from Ps. 6,393 million in the third quarter of 2024 to Ps. 5,726 million in the third quarter of 2025. With respect to sales, the cost of sales of the third quarter of 2024 represented 75% compared to 77% for the third quarter of 2025. The average cost of sales per ton of steel products decreased 6% in the third quarter of 2025 versus the third quarter of 2024, due to the decrease in costs of certain raw materials mainly scrap.

Gross (Loss) Profit

Gross profit of the Company for the third quarter of 2025 decreased 18% from Ps. 2,156 million in the third quarter of 2024 to Ps. 1,759 million in the third quarter of 2025. The gross profit as a percentage of net sales represented 25% for the third quarter of 2024 compared to 23% of the third quarter of 2025.

Selling, General and Administrative Expenses

The selling, general and administrative expenses increased 11% in the third quarter of 2025 to Ps. 728 million in the third quarter of 2025 from Ps. 658 million in the third quarter of 2024. Selling, general and administrative expense as a percentage of net sales represented 10% in the third quarter of 2025 compared to 8% in the third quarter of 2024.

Other Income (Expenses), net

The company recorded other income net of Ps. 128 million in the third quarter of 2025 compared with other income net of Ps. 26 million for the third quarter of 2024.

Operating Profit

Operating profit decreased from Ps. 1,524 million in the third quarter of 2024 compared to Ps. 1,159 million in the third quarter of 2025, this represents 24% of decrease between both quarters. The operating income as a percentage of net sales was 18% for the third quarter of 2024 and 15% for the third quarter of 2025. The decrease in operating profit was mainly due to at lower average selling price.

Ebitda

The Ebitda was Ps 1,776 million in the third quarter of 2024 (result of net income of Ps. 3,152 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 471 million, less comprehensive financial income of Ps. 2,098 million, plus depreciation of Ps. 252 million), compared to Ebitda of Ps. 1,428 million of the same period of 2025, (result of net income of Ps. 459 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 317 million, plus comprehensive financial cost of Ps. 384 million, plus depreciation of Ps. 269 million).

Consolidated
Million	Third quarter of 2025 vs third quarter of 2024,
	Third quarter 2025		Third quarter 2024
Net income (loss)		459		3,152
Loss attributable to noncontrolling interests		(1)		(1)
Net income (loss)		458		3,151
Depreciation, and amortization		269		252
Income taxes		317		471
Financial results (income) loss		384		(2,098)
EBITDA		1,428		1,776

Comprehensive Financial Cost

Comprehensive financial cost of the Company for the third quarter of 2025 represented a net loss of Ps. 384 million compared with an income of Ps. 2,098 million for the third quarter of 2024. Also we recorded an exchange income of Ps. 1,769 million in the third quarter of 2024 and an exchange loss of Ps. 718 million in the third quarter of 2025.

Income Taxes

The company recorded a net taxes expense for the third quarter of 2025 of Ps. 317 million (including an income of deferred tax of Ps. 22 million) compared to a net tax expense of Ps. 471 million for the third quarter of 2024, (including a tax deferred expense of Ps. 33 million).

Net Income (Loss)

As a result of the foregoing, the Company recorded a decrease a net profit of Ps. 459 million in the third quarter of 2025 compared to Ps. 3,152 million of net profit in third quarter of 2024; mainly because the net exchange income of Ps. 1,769 million recorded in the third quarter of 2024 became a net exchange loss of Ps. 718 million in the third quarter of 2025.

Nine months
(millions of pesos)	Jan - Sep '25	Jan - Sep '24	Year 25 vs '24
Sales	22,320	24,828	(10 %)
Cost of Sales	16,893	18,625	(9 %)
Gross Profit	5,427	6,203	(13 %)
Selling, General and Administrative Expense	2,036	1,834	11 %
Other Income (Expenses), net	393	71	454 %
Operating Profit	3,784	4,440	(15 %)
EBITDA	4,594	5,189	(11 %)
Net income	763	8,587	(91 %)
Sales Outside Mexico	9,751	10,979	(11 %)
Sales in Mexico	12,569	13,849	(9 %)
Total Sales (Tons thousands)	1,400	1,536	(9 %)
Cost per ton (Pesos)	12,066	12,126	0 %

Quarter
(millions of pesos)	3Q'25	2Q '25	3Q '24	3Q´25vs 2Q´25	3Q´25 vs 3Q '24
Sales	7,485	7,052	8,549	6 %	(12 %)
Cost of Sales	5,726	5,381	6,393	6 %	(10 %)
Gross Profit	1,759	1,671	2,156	5 %	(18 %)
Selling, General and Adm. Expenses	728	674	658	8 %	11 %
Other Income (Expenses), net	128	201	26	(36 %)	392 %
Operating Profit	1,159	1,198	1,524	(3 %)	(24 %)
EBITDA	1,428	1,473	1,776	(3 %)	(20 %)
Net Income	459	(1,000)	3,152	N/C	(85 %)
Sales Outside Mexico	3,178	3,104	3,691	2 %	(14 %)
Sales in Mexico	4,307	3,948	4,858	9 %	(11 %)
Total Sales (Tons thousands)	499	425	521	17 %	(4 %)
Cost per Ton (Pesos)	11,475	12,661	12,271	(9 %)	(6 %)

Product	Thousands of Tons Jan-Sep 2025	Millions of Pesos Jan-Sep 2025	Average Price per Ton JanSep 2025	Thousands of Tons Jan – Sep 2024	Millions of Pesos Jan- Sep 2024	Average Price per Ton Jan-Sep 2024
Special Bar Quality (SBQ)	378	7,724	20,434	403	7,653	18,990
Commercial Long Steel	1,022	14,596	14,282	1,133	17,175	15,159
Total	1,400	22,320	15,943	1,536	24,828	16,164

Product	Thousands of Tons Jul-Sep 2025	Millions of Pesos Jul-Sep 2025	Average Price per Ton Jul-Sep 2025	Thousands of Tons Apr-Jun 2025	Millions of Pesos Apr-Jun 2025	Average Price per Ton Apr-Jun 2025	Thousands of Tons Jul-Sep 2024	Millions of Pesos Jul-Sep 2024	Average Price per Ton Jul-Sep 2024
Special Bar Quality (SBQ)	118	2,392	20,271	106	2,197	20,726	153	2,939	19,209
Commercial Long Steel	381	5,093	13,367	319	4,855	15,219	368	5,610	15,245

Total	499	7,485	15,000	425	7,052	16,593	521	8,549	16,409

Any forward-looking information contained herein is inherently subject to various risks, uncertainties and assumptions which, if incorrect, may cause actual results to vary materially from those anticipated, expected or estimated. The company assumes no obligation to update any forward-looking information contained herein.

Contact: José Luis Tinajero

Mario Moreno Cortez

Grupo Simec, S.A.B. de C.V.

Calzada Lázaro Cárdenas 601

44440 Guadalajara, Jalisco, México

52 55 1165 1025

52 33 3770 6734

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SOURCE Grupo Simec, S.A.B. de C.V.

GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST NINE MONTHS OF 2025