Grupo Simec, a Mexican steelmaker whose shares trade on the New York Stock Exchange, earned 1.71 billion pesos (about US$92 million) in the third quarter of 2026. That is almost four times the 459 million pesos (about US$25 million) it earned a year earlier.
The jump comes mostly from currency, not from steel. For US investors, it is a reminder that a Mexican exporter’s profit can swing with the peso even when its factories run as before.
A retired blast furnace at Parque Fundidora in Monterrey, once a steel works and now a public park. File photo; it is not a Simec site. Photo: Rio Times archive.What Simec Reported
The company published its results on Wednesday 28 October 2026. Net sales for the quarter were 8.38 billion pesos (about US$452 million), up 12% from 7.49 billion pesos (about US$403 million) in the third quarter of 2025.
Shipments grew to 551,000 tonnes from 499,000 tonnes a year earlier, a rise of about 10%. Compared with the second quarter of 2026, net income rose from 611 million pesos (about US$33 million) to 1.71 billion pesos.
Why Profit Jumped but Operations Did Not
Operating income, the profit from making and selling steel before currency effects and interest, fell to 1.04 billion pesos (about US$56 million) from 1.16 billion pesos (about US$62 million). That is a drop of about 10%, even though shipments and sales both grew.
The difference came from currency. Simec booked a net exchange gain of 645 million pesos (about US$35 million), which arises when the peso moves against dollar items on its books, against a loss of 718 million pesos (about US$39 million) a year earlier.
Stacked galvanised steel sheets in a warehouse. File photo; it does not show Simec products. Photo: Rio Times archive.The Nine-Month View
For the first nine months of 2026, net income was 4.03 billion pesos (about US$217 million), against 763 million pesos (about US$41 million) in the same period of 2025. Net sales rose 10% to 24.6 billion pesos (about US$1.32 billion), and shipments rose to 1.6 million tonnes from 1.4 million.
Operating income was nearly flat at 3.80 billion pesos (about US$205 million), against 3.78 billion pesos a year earlier. The swing in net income again comes from currency: a net exchange gain of 280 million pesos (about US$15 million) this year, against a loss of 3.05 billion pesos (about US$164 million) last year.
What It Means for You
If you hold Simec through its New York listing, the headline profit is real but unevenly built. Currency gains can reverse when the peso weakens, so the steel margin matters more than the net figure.
US dollar figures here use 18.56 pesos per dollar, the closing rate from RT, a financial data provider, on 5 November 2026. Our reports on Banorte’s tax outlook and TelevisaUnivision’s third quarter show how other Mexican companies are reporting.
What Is Not Known
The release does not say how much of the exchange gain is a paper revaluation and how much is cash. The figures above do not explain what drove the lower operating margin.
It is not known whether steel prices or US trade rules will squeeze the operating margin further. The 12% operating margin in the third quarter was down from 16% in the second quarter, according to the company’s figures.
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Frequently Asked Questions
What Is Grupo Simec?
Grupo Simec is a Mexican steel producer listed in New York under the ticker SIM and in Mexico City. It reports its results in Mexican pesos.
How Much Did Simec Earn in the Third Quarter of 2026?
Simec reported net income of 1.71 billion pesos (about US$92 million), against 459 million pesos (about US$25 million) a year earlier. Net sales were about US$452 million.
Why Did Simec’s Profit Jump So Much?
A net exchange gain of 645 million pesos (about US$35 million) replaced a loss of 718 million pesos (about US$39 million) from a year earlier. Operating income fell about 10%.
Is Simec’s Steel Business Growing?
Shipments rose about 10% to 551,000 tonnes and net sales rose 12%. Operating profit still fell, so volume growth did not lift margins.
Sources: Grupo Simec, results of operations for the first nine months of 2026, 28 October 2026; RT market data, USD/MXN daily close, 5 November 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI ·