GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST SIXTH-MONTH PERIOD ENDED JUNE 30TH, 2026.

GUADALAJARA, Mexico, July 28, 2026 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) (BMV: SIMEC-B) ("Simec") announced today its results of operations for the first sixth-month period ended June 30th, 2026.

First sixth-month period ended June 30th, 2026 compared to first sixth-month period ended June 30th, 2025.

Net Sales
Net sales increased 9% because of the combination of 16% increase shipments of finished steel products and a 6% lower average sales price compared to the same period of 2025, the sales increased from Ps. 14,835 million in the first sixth-month period ended June 30th, 2025 to Ps. 16,186 million in the same period of 2026. Shipments of finished steel products increased to 1 million 46 thousand tons in the first sixth-month period ended June 30th, 2026 compared to 901 thousand tons in the same period of 2025. Total sales outside of Mexico on the first sixth-month period ended June 30th, 2026 increased 2% to Ps. 6,725 million compared with Ps. 6,573 million in the same period of 2025. Total sales in Mexico increased 15% from Ps. 8,262 million in the First sixth-month period ended June 30th, 2025 to Ps. 9,461 million in the same period of 2026.

Cost of Sales
Cost of sales increased 8% from Ps. 11,167 million in the first sixth-month period ended June 30th, 2025 to Ps. 12,014 million in the same period of 2026. Cost of sales as a percentage of net sales represented 74% and 75%, respectively, for the periods 2026 and 2025. The cost of sales increased, due to a higher volume of products shipped.

Gross Profit
Gross profit of the Company in the first sixth-month period ended June 30th, 2026 was of Ps. 4,172 million compared to Ps. 3,668 million in the same period of 2025. Gross profit as a percentage of net sales represented 26% and 25% respectively, for the periods 2026 and 2025.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 11% from Ps. 1,307 million in the first sixth-month period ended June 30th, 2025 to Ps. 1,445 million in the same period of 2026. Selling, general and administrative expenses as a percentage of net sales represented 9% in both periods.

Other Expenses (Income) net
The company recorded other net income of Ps. 263 million in the first sixth-month period ended June 30th, 2025 compared to other net income of Ps. 36 million in the same period of 2026.

Operating Profit
Operating income increased 5% from Ps. 2,624 million for the first sixth-month period ended June 30th, 2025 to Ps. 2,763 million in the same period of 2026. Operating profit as a percentage of net sales represented 17% and 18% for the 2026 and 2025 periods respectively.

EBITDA
The EBITDA of the Company increased 6% from Ps. 3,165 million in the sixth-month period ended June 30, of 2025, (result of net income of Ps. 304, less minority stake of Ps. 1 million, plus income taxes of Ps. 476 million, plus comprehensive financial cost of Ps. 1,845 million, plus depreciation of Ps. 541 million), to an EBITDA of Ps. 3,354 million in the same period of 2026 (result of net income of Ps. 2,317 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 499 million, less comprehensive financial income of Ps. 53 million, plus depreciation of 592 million).

Comprehensive Financial Income (Cost)
Comprehensive financial income in the first sixth-month period ended June 30th, 2026 represented a net income of Ps. 53 million compared with a net expense of Ps. 1,845 million in the same period of 2025. The net interest was an income of Ps. 397 million in 2026 compared with a net interest income of Ps. 487 million in the first sixth-month period ended June 30th, 2025. We registered a net exchange loss of Ps. 365 million in the first sixth-month period ended June 30th, 2026 compared with an exchange net loss of Ps. 2,332 million in the same period of 2025, net other financial income was recorded for Ps. 21 million for the period 2026.

Income Taxes
The Company recorded a net tax expense of Ps. 499 million in the first sixth-month period ended June 30th, 2026 (including the income of deferred tax of Ps. 14 million) compared with a net tax expense of Ps. 476 million in the same period of 2025 (including a deferred tax expense of Ps. 93 million).

Net Income (loss)
As a result of the foregoing, net income increased by 662% from Ps. 304 million in the first sixth-month period ended June 30th, 2025 to Ps. 2,317 million in the same period of 2026. mainly because of the net exchange loss of Ps. 2,332 million recorded in the first sixth-month period ended June 30th, 2025 became a net exchange loss of Ps. 365 million in the first sixth-month period ended June 30th, 2026.

Liquidity and Capital Resources
As of June 30, 2026, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 5.3 million (accrued interest on June 30, 2026 was U.S. $ 884 thousand dollars or Ps. 15.5 million).  As of June 30, 2025, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 5.7 million (accrued interest on June 30, 2025 was U.S. $ 856 thousand dollars or Ps. 16.1 million).

Second quarter 2026 vs first quarter 2026

Net Sales
Net sales increased from Ps. 8,032 million in the first quarter of 2026 to Ps. 8,154 million for the second quarter of 2026. Sales in tons decreased 3% from 530 thousand ton in the first quarter of 2026 to 516 thousand tons in the second quarter of the same year. Total sales outside of Mexico for the second quarter of 2026 decreased 1% from Ps. 3,385 million in the first quarter to Ps. 3,340 million in the second quarter of 2026. Sales in Mexico increased 4% to Ps. 4,814 million in the second quarter of 2026 compared Ps. 4,647 million in the first quarter of 2026. Prices of finished products sold in the second quarter of 2026 increased 4% compared with the first quarter of the same year.

Cost of Sales
Cost of sales increased to Ps. 6,117 million in the second quarter of 2026 compared to Ps. 5,897 million for the first quarter of 2026. With respect to sales, in the second quarter of 2026, the cost of sales represented 75%, compared to 73% in the first quarter of the same period. The average cost of sales by ton increased by 7% in the second quarter of 2026 versus the first quarter of 2026.

Gross Profit
Gross profit of the Company for the second quarter of 2026 decreased 5% to Ps. 2,037 million compared to Ps. 2,135 million in the first quarter of 2026. The gross profit as a percentage of net sales for the first and second quarter of 2026 was of 27% and 25% respectively.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 4% to Ps. 736 million in the second quarter of 2026 compared to Ps. 709 million for the first quarter of 2026. Selling, general and administrative expenses as a percentage of net sales represented 9% in both periods of 2026.

Other Expenses (Income) net
The company recorded other net expenses of Ps. 3 million in the second quarter of 2026 compared to other net income of Ps. 39 million for the first quarter of 2026.

Operating Profit
Operating income was of Ps. 1,298 million in the second quarter of 2026 compared to an operating profit of Ps. 1,465 million in the first quarter of 2026. The operating profit as a percentage of net sales represented 16% and 18% for the second quarter and first quarter of 2026 respectively.

EBITDA
EBITDA was Ps. 1,754 million in the first quarter of 2026 (result of net income of Ps. 1,706 million, plus income taxes of Ps. 71 million, less comprehensive financial income of Ps. 312 million, plus depreciation of Ps. 289 million), compared to an EBITDA of Ps. 1,600 million for the second quarter of 2026, (result of net income of Ps. 611 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 428 million, plus comprehensive financial cost of Ps. 259 million, plus depreciation of Ps. 303 million).

Comprehensive Financial Income (Cost)
Comprehensive financial income for the second quarter for 2026 was a net expense of Ps. 259 million compared with a net income of Ps. 312 million for the first quarter of 2026. The net interest income for the second quarter was Ps. 299 million compared with a net interest income of Ps. 99 million in the first quarter of 2026. At the same time, we registered an exchange net income of Ps. 213 million in the first quarter of 2026 compared with an exchange net loss of Ps. 579 million in the second quarter of 2026. Net other financial income was recorded for Ps. 21 million in the second quarter of 2026.

Income Taxes
Income Taxes for the first quarter of 2026 was a net expense of Ps. 71 million (including an income of deferred tax for Ps. 7 million) compared to an expense of Ps. 428 million for the second quarter of 2026, (including the income of deferred tax of Ps. 7 million).

Net Income (loss)
As a result of the foregoing, the Company recorded a net income of Ps. 611 million in the second quarter of 2026 compared to Ps. 1,706 million of net income in the first quarter of 2026.

Second quarter 2026 vs second quarter 2025

Net Sales
Net sales increased 16% from Ps. 7,052 million for the second quarter of 2025 to Ps. 8,154 million for the second quarter of 2026. Sales in tons of finished steel products in the second quarter of 2025 were 425 thousand tons versus to 516 thousand tons in the second quarter of 2026. Total sales outside of Mexico increased 8% from Ps. 3,104 million for the second quarter of 2025 to Ps. 3,340 million in the second quarter of 2026. Sales in Mexico increased 22% from Ps. 3,948 million in the second quarter of 2025 to Ps. 4,814 million in the second quarter of 2026. This increase is explained by a 21% higher volume of steel products shipped and a 5% decrease in the average sales price.

Cost of Sales
Cost of sales increased 14% from Ps. 5,381 million in the second quarter of 2025 to Ps. 6,117 million in the second quarter of 2026. With respect to sales, the cost of sales represented 75% during the second quarter of 2026 and 76% during the second quarter of 2025. The average cost of steel products decreased 6% in the second quarter of 2026 versus the second quarter of 2025.

Gross Profit
Gross profit for the second quarter of 2026 increased 22% from Ps. 1,671 million in the second quarter of 2025 to Ps. 2,037 million in the second quarter of 2026. The gross profit as a percentage of net sales represented 24% in the second quarter of 2025 compared to 25% in the second quarter of 2026.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 9% from Ps. 674 million in the second quarter of 2025 to Ps. 736 million in the second quarter of 2026. Selling, general and administrative expenses as a percentage of net sales for the second quarter of 2025 was of 10% compared to 9% in the second quarter 2026.

Other Expenses (Income) net
The company recorded other income net of Ps. 201 million in the second quarter of 2025 compared with other expenses net of Ps. 3 million in the second quarter of 2026.

Operating Profit
Operating income was of Ps. 1,298 million in the second quarter of 2026 compared to an operating profit of Ps. 1,198 million in the second quarter of 2025. The operating profit as a percentage of net sales in the second quarter of 2026 was 16%, compared to 17% in the second quarter of 2025.

EBITDA
EBITDA was 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), compared to an EBITDA of Ps 1,600 million in the second quarter of 2026 (result of net income of Ps. 611 million, less minority stake of Ps. 1 million, plus income taxes of Ps. 428 million, plus comprehensive financial cost of Ps. 259 million, plus depreciation of Ps. 303 million).

Comprehensive Financial Income (Cost)
Comprehensive financial income for the second quarter of 2026 was a net expense of Ps. 259 million compared with a net loss of Ps 1,902 million in the second quarter of 2025. Net interest income was of Ps. 299 million in the second quarter of 2026 compared with a net interest income of Ps. 274 million in the second quarter of 2025. At the same time, we registered a net exchange loss of Ps. 579 million in the second quarter of 2026 compared with an exchange loss of Ps. 2,176 million in the second quarter of 2025. Net other financial income was recorded for Ps. 21 million in the second quarter of 2026.

Income Taxes
The Company recorded a net tax expense in the second quarter of 2026 of Ps. 428 million (including an income of deferred tax of Ps. 7 million), compared to a net tax expense of Ps. 297 million for the second quarter of 2025, (including a tax deferred expense of Ps. 100 million).

Net Income (loss)
As a result of the foregoing, the Company recorded a net profit of Ps. 611 million in the second quarter of 2026 compared to Ps. 1,000 million of net loss in the second quarter of 2025; mainly explained because the net exchange loss of Ps. 2,176 million recorded in the second quarter of 2025 became a net exchange loss of Ps. 579 million in the second quarter of 2026.

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.

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