GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST NINE MONTHS OF 2026.

GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST NINE MONTHS OF 2026.

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

First nine months of 2026 vs. first nine months of 2025.

Net Sales 
Net sales increased 10% because of the combination of 14% increase shipments of finished steel products and a 4% lower average sales price compared to the same period of 2025. Sales increased from Ps. 22,320 million in the first nine months of 2025 to Ps. 24,569 million in the same period of 2026. Shipments of finished steel products increased to 1 million 597 thousand tons in the first nine months of 2026 compared to 1 million 400 thousand tons in the same period of 2025. Total sales outside Mexico in the first nine months of 2026 increased 9% to Ps. 10,588 million compared with Ps. 9,751 million in the same period of 2025. Total sales in Mexico increased 11% from Ps. 12,569 million in the first nine months of 2025 to Ps. 13,981 million in the same period of 2026.

Cost of Sales 
Cost of sales increased 10% from Ps. 16,893 million in the first nine months of 2025 to Ps. 18,636 million in the same period of 2026. Cost of sales as a percentage of net sales represented 76% in both periods. The cost of sales increased, due to a higher volume of products shipped.

Gross Profit   
Gross profit of the Company in the first nine months of 2026 was of Ps. 5,933 million compared to Ps. 5,427 million in the same period of 2025. Gross profit as a percentage of net sales represented 24% in both periods.

Selling, General and Administrative Expenses 
Selling, general and administrative expenses increased 9% from Ps. 2,036 million in the first nine months of 2025 to Ps. 2,219 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. 393 million in the first nine months of 2025 compared to other net income of Ps. 86 million in the same period of 2026.

Operating Profit 
Operating income increased from Ps. 3,784 million in the first nine months of 2025 to Ps. 3,800 million in the same period of 2026. Operating profit as a percentage of net sales represented 15% and 17% for the 2026 and 2025 periods respectively.

EBITDA   
EBITDA of the Company increased 3% from Ps. 4,594 million in the nine-month period ended September 30, 2025, (result of net income of Ps. 763, 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), compared to an EBITDA of Ps. 4,724 million in the same period of 2026 (result of net income of Ps. 4,028 million, less minority stake of Ps. 2 million, plus income taxes of Ps. 697 million, less comprehensive financial income of Ps. 923 million, plus depreciation of 924 million).

Comprehensive Financial Income (Cost) 
Comprehensive financial income in the first nine months of 2026 represented a net income of Ps. 923 million compared with a net expense of Ps. 2,229 million in the same period of 2025. We registered a net exchange profit of Ps. 280 million in the first nine months of 2026 compared with a net exchange loss of Ps. 3,050 million in the same period of 2025, net other financial income was recorded for Ps. 21 million for the first nine months of 2026.

Income Taxes   
The Company recorded a net tax expense of Ps. 697 million in the first nine months of 2026 (including the income of deferred tax of Ps. 19 million) compared with a net tax expense of Ps. 793 million in the same period of 2025 (including a deferred tax expense of Ps. 71 million).

Net Income (loss)   
As a result of the foregoing, net income increased by 428% from Ps. 763 million in the first nine months of 2025 to Ps. 4,028 million in the same period of 2026, mainly explained because of the net exchange loss of Ps. 3,050 million recorded in the first nine months of 2025 became a net exchange profit of Ps. 280 million in the first nine months of 2026.

Liquidity and Capital Resources   
As of September 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. 5.5 million (accrued interest on September 30, 2026 was U.S. $ 891 thousand dollars or Ps. 16.1 million).  As of 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, Ps. 5.5 million (accrued interest on September 30, 2025 was U.S. $ 863 thousand dollars or Ps. 15.8 million).

Third quarter 2026 vs second quarter 2026

Net Sales     
Net sales increased from Ps. 8,154 million in the second quarter of 2026 to Ps. 8,383 million in the third quarter of 2026. Sales in tons increased 7% from 516 thousand ton in the second quarter of 2026 to 551 thousand tons in the third quarter of the same year. Total sales outside of Mexico for the third quarter of 2026 increased 16% from Ps. 3,340 million in the second quarter to Ps. 3,863 million in the third quarter of 2026. Sales in Mexico decreased 6% to Ps. 4,520 million in the third quarter of 2026 compared Ps. 4,814 million in the second quarter of 2026. Prices of finished products sold in the third quarter of 2026 decreased 4% compared with the second quarter of the same year.

Cost of Sales
Cost of sales increased to Ps. 6,622 million in the third quarter of 2026 compared to Ps. 6,117 million for the second quarter of 2026. With respect to sales, in the third quarter of 2026, the cost of sales represented 79%, compared to 75% in the second quarter of the same period. The average cost of sales by ton increased by 1% in the third quarter of 2026 versus the second quarter of 2026.

Gross Profit
Gross profit of the Company for the third quarter of 2026 decreased 14% to Ps. 1,761 million compared to Ps. 2,037 million in the second quarter of 2026. The gross profit as a percentage of net sales for the third quarter of 2026 was of 21% compared to 25% in the second quarter of the same year.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 5% to Ps. 773 million in the third quarter of 2026 compared to Ps. 736 million for the second 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 income of Ps. 50 million in the third quarter of 2026 compared to other net expenses of Ps. 3 million for the second quarter of 2026.

Operating Profit   
Operating income was of Ps. 1,038 million in the third quarter of 2026 compared to an operating profit of Ps. 1,298 million in the second quarter of 2026. The operating profit as a percentage of net sales represented 12% and 16% for the third quarter and second quarter of 2026 respectively.

EBITDA 
EBITDA was 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), compared to an EBITDA of Ps. 1,370 million for the third quarter of 2026, (result of net income of Ps. 1,710 million, plus income taxes of Ps. 198 million, less comprehensive financial income of Ps. 870 million, plus depreciation of Ps. 332 million).

Comprehensive Financial Income (Cost) 
Comprehensive financial income for the third quarter for 2026 was a net income of Ps. 870 million compared with a net expense of Ps. 259 million for the second quarter of 2026. At the same time, we registered a net exchange loss of Ps. 579 million in the second quarter of 2026 compared with a net exchange profit of Ps. 645 million in the third 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 second quarter of 2026 was a net tax expense of Ps. 428 million (including the income of deferred tax for Ps. 7 million) compared with a net tax expense of Ps. 198 million for the third quarter of 2026, (including the income of deferred tax of Ps. 5 million).

Net Income (loss) 
As a result of the foregoing, the Company recorded a net income of Ps. 1,710 million in the third quarter of 2026 compared to Ps. 611 million of net income in the second quarter of 2026, mainly explained because of the net exchange loss of Ps. 579 million recorded in the second quarter of 2026 became a net exchange profit of Ps. 645 million in the third quarter of 2026.

Third quarter 2026 vs third quarter 2025

Net Sales 
Net sales increased 12% from Ps. 7,485 million for the third quarter of 2025 to Ps. 8,383 million for the third quarter of 2026. Sales in tons of finished steel products in the third quarter of 2025 were 499 thousand tons versus to 551 thousand tons in the third quarter of 2026. Total sales outside of Mexico increased 22% from Ps. 3,178 million for the third quarter of 2025 to Ps. 3,863 million in the third quarter of 2026. Sales in Mexico increased 5% from Ps. 4,307 million in the third quarter of 2025 to Ps. 4,520 million in the third quarter of 2026. The increase in net sales is explained by a 10% higher volume of steel products shipped and a 1% increase in the average sales price.

Cost of Sales 
Cost of sales increased 16% from Ps. 5,726 million in the third quarter of 2025 to Ps. 6,622 million in the third quarter of 2026. With respect to sales, the cost of sales represented 79% during the third quarter of 2026 and 77% during the third quarter of 2025. The average cost of steel products increased 5% in the third quarter of 2026 versus the third quarter of 2025.

Gross Profit   
Gross profit for the third quarter of 2026 remained constant comparing both periods: from Ps. 1,759 million in the third quarter of 2025 to Ps. 1,761 million in the third quarter of 2026. The gross profit as a percentage of net sales represented 23% in the third quarter of 2025 compared to 21% in the third quarter of 2026.

Selling, General and Administrative Expenses 
Selling, general and administrative expenses increased 6% from Ps. 728 million in the third quarter of 2025 to Ps. 773 million in the third quarter of 2026. Selling, general and administrative expenses as a percentage of net sales for the third quarter of 2025 was of 10% compared to 9% in the third quarter 2026.

Other Expenses (Income) net   
The company recorded other income net of Ps. 128 million in the third quarter of 2025 compared with other income net of Ps. 50 million in the third quarter of 2026.

Operating Profit   
Operating income was of Ps. 1,038 million in the third quarter of 2026 compared to an operating profit of Ps. 1,159 million in the third quarter of 2025. The operating profit as a percentage of net sales in the third quarter of 2026 was 12%, compared to 15% in the third quarter of 2025.

EBITDA   
EBITDA was Ps. 1,428 million in the third quarter 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), compared to an EBITDA of Ps 1,370 million in the third quarter of 2026 (result of net income of Ps. 1,710 million, plus income taxes of Ps. 198 million, less comprehensive financial income of Ps. 870 million, plus depreciation of Ps. 332 million).

Comprehensive Financial Income (Cost) 
Comprehensive financial income for the third quarter of 2026 was a net income of Ps. 870 million compared with a net loss of Ps 384 million in the third quarter of 2025. At the same time, we registered a net exchange profit of Ps. 645 million in the third quarter of 2026 compared with a net exchange loss of Ps. 718 million in the third quarter of 2025.

Income Taxes 
The Company recorded a net tax expense in the third quarter of 2026 of Ps. 198 million (including the income of deferred tax of Ps. 5 million), compared to a net tax expense of Ps. 317 million for the third quarter of 2025, (including the income of deferred tax of Ps. 22 million).

Net Income (loss) 
As a result of the foregoing, the Company recorded a net profit of Ps. 1,710 million in the third quarter of 2026 compared to Ps. 459 million of net profit in the third quarter of 2025, mainly explained because of the net exchange loss of Ps. 718 million recorded in the third quarter of 2025 became a net exchange profit of Ps. 645 million in the third 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 informationcontained herein.

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