GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST QUARTER OF 2026, ENDED MARCH 31, 2026.

GUADALAJARA, Mexico, April 30, 2026 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today its results of operations for the three-month period ended March 31, 2026

First quarter of 2026 vs first quarter of 2025.

Net Sales
Net sales increased 3% because of the combination of 11% increase in shipments of finished steel products and a 7% lower average sales prices compared to the same period of 2025, the sales increased from Ps. 7,783 million in the three-month period ended March 31, 2025 to Ps. 8,032 million in the same period of 2026. Shipments of finished steel products increased to 530 thousand tons in the three-month period ended March 31, 2026 compared to 476 thousand tons in the same period of 2025. Total sales outside of Mexico on the three-month period ended March 31, 2026 decreased 2% to Ps. 3,385 million compared with Ps. 3,469 million in the same period of 2025. Total sales in Mexico increased 8% from Ps. 4,314 million in the three-month period ended March 31, 2025 to Ps. 4,647 million in the same period of 2026.

Cost of Sales
Cost of sales increased 2% from Ps. 5,786 million in the three-month period ended March 31, 2025 to Ps. 5,897 million in the same period of 2026. Cost of sales as a percentage of net sales represented 73% and 74% respectively, for the periods 2026 and 2025. The average cost of finished steel produced in the three-month period ended March 31, 2026 compared to the same period of 2025 decreased 8%.

Gross Profit
Gross profit of the Company in the three-month period ended March 31, 2026 was of Ps. 2,135 million compared to Ps. 1,997 million in the same period of 2025. Gross profit as a percentage of net sales represented 27% and 26% respectively, for the periods 2026 and 2025.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 12% from Ps. 633 million in the three-month period ended March 31, 2025 to Ps. 709 million in the same period of 2026. Selling, general and administrative expenses as a percentage of net sales represented 8% during the three-month period ended March 31, 2025 and 9% in the same period of 2026.

Other Expenses (Income) net 
The company recorded other net income of Ps. 62 million in the three-month period ended March 31, 2025 compared to other net income of Ps. 39 million in the same period of 2026.

Operating Profit
Operating income increased 3% from Ps. 1,426 million for the three-month period ended March 31, 2025 to Ps. 1,465 million in the same period of 2026. Operating profit as a percentage of net sales represented 18% for both the periods 2026 and 2025.

EBITDA
The EBITDA of the Company increased 4% from Ps. 1,692 million in the three-month period ended March 31, of 2025, (result of net income of Ps. 1,305, less minority stake of Ps. 1 million, plus income taxes of Ps. 179 million, less comprehensive financial income of Ps. 57 million, plus depreciation of Ps. 266 million), to an EBITDA of Ps. 1,754 million in the same period 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 289 million).

Comprehensive Financial Income (Cost)
Comprehensive financial income in the three-month period ended March 31, 2026 represented a net income of Ps. 312 million compared with a net income of Ps. 57 million in the same period of 2025. The net interest was an income of Ps. 99 million in 2026 compared with a net interest income of Ps. 213 million in the three-month period ended March 31, 2025. We registered a net exchange profit of Ps. 213 million in the three-month period ended March 31, 2026 compared with an exchange net loss of Ps. 156 million in the same period of 2025.

Income Taxes
The Company recorded an expense net tax of Ps. 71 million in the three-month period ended March 31, 2026 (including the income of deferred tax of Ps. 7 million) compared with a net expense tax of Ps. 179 million in the same period of 2025 (including the income of deferred tax of Ps. 7 million).

Net Income (loss)
As a result of the foregoing, net income increased by 31% from Ps. 1,305 million in the three-month period ended March 31, 2025 to Ps. 1,706 million in the same period of 2026.

Liquidity and Capital Resources
As of March 31, 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 March 31, 2026 was U.S. $877,188 or Ps. 15.9 million).  As of March 31,2025, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 6.2 million (accrued interest on March 31, 2025 was U.S. $848,615, or Ps. 17.3 million).

First quarter of 2026 vs fourth quarter of 2025

Net Sales
Net sales increased 1% from Ps. 7,972 million for the fourth quarter of 2025 to Ps. 8,032 million for the first quarter of 2026. Sales in tons of finished steel products in the fourth quarter of 2025 were 532 thousand tons versus to 530 thousand tons in the first quarter of 2026. Total sales outside of Mexico decreased 3% from Ps. 3,484 million for the fourth quarter of 2025 to Ps. 3,385 million in the first quarter of 2026. Sales in Mexico increased 4% from Ps. 4,488 million in the fourth quarter of 2025 to Ps. 4,647 million in the first quarter of 2026. The average sales prices of finished products sold in the first quarter of 2026 increased 1%, compared to the same period of 2025.

Cost of Sales
Cost of sales increased Ps.7 million from Ps. 5,890 million in the fourth quarter of 2025 to Ps. 5,897 million for the first quarter of 2026. With respect to sales, in the first quarter of 2026, the cost of sales represented 73%, compared to 74% in the fourth quarter of 2025. The cost of sales by ton remained similar in the first quarter of 2026 versus the fourth quarter of 2025.

Gross Profit
Gross profit for the first quarter of 2026 increased 3% from Ps. 2,082 million in the fourth quarter of 2025 to Ps. 2,135 million in the first quarter of 2026. The gross profit as a percentage of net sales represented 26% in the fourth quarter of 2025 compared to 27% in the first quarter of 2026.

Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased 11% from Ps. 794 million in the fourth quarter of 2025 to Ps. 709 million in the first quarter of 2026. Selling, general and administrative expenses as a percentage of net sales for the fourth quarter of 2025 was of 10% compared to 9% in the first quarter 2026.

Other Expenses (Income) net 
The company recorded other income net of Ps. 134 million in the fourth quarter of 2025 compared with other income net of Ps. 39 million in the first quarter of 2026.

Operating Profit
Operating income was of Ps. 1,465 million in the first quarter of 2026 compared to an operating profit of Ps. 1,422 million in the fourth quarter of 2025. The operating profit as a percentage of net sales represented 18% in both the first quarter of 2026 and in the fourth quarter 2025.

EBITDA
The EBITDA was Ps. 1,694 million in the fourth quarter of 2025 (result of net income of Ps. 733 million, plus minority stake of Ps. 1 million, plus income taxes of Ps. 419 million, plus comprehensive financial cost of Ps. 269 million, plus depreciation of Ps. 272 million), compared to an EBITDA of 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).

Comprehensive Financial Income (Cost)
Comprehensive financial income for the first quarter of 2026 was a net income of Ps. 312 million compared with a net cost of Ps 269 million in the fourth quarter of 2025. Net interest income was of Ps. 99 million in the first quarter of 2026 compared with a net interest income of Ps. 238 million in the fourth quarter of 2025. At the same time, we registered a net exchange profit of Ps. 213 million in the first quarter of 2026 compared with an exchange loss of Ps. 556 million in the fourth quarter of 2025. Net other financial income was recorded for Ps. 49 million in the fourth quarter of 2025.

Income Taxes
The Company recorded a net tax expense, for the first quarter of 2026, of Ps. 71 million (including the income of deferred tax of Ps. 7 million), compared to a net tax expense of Ps. 419 million for the fourth quarter of 2025, (including the income of deferred tax of Ps. 123 million).

Net Income (loss)
As a result of the foregoing, the Company recorded a net profit of Ps. 1,706 million in the first quarter of 2026 compared to Ps. 733 million of net profit in the fourth quarter of 2025.

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 1028
52 33 3770 6734

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