MEXICO CITY--(BUSINESS WIRE)--Industrias Unidas, S.A. de C.V. (\u201cIUSA\u201d or the \u201cCompany\u201d) has announced its unaudited results for the three months ended March 31 of 2026. Figures are unaudited and have been prepared in accordance with Mexican Financial Reporting Standards (\u201cMFRS\u201d), which are different in certain respects from Generally Accepted Accounting Principles in the United States (\u201cU.S. GAAP\u201d). The results from any interim period are not necessarily indicative of the results that may be expected for a full fiscal year. Unless stated otherwise, reference herein to \u201cPesos\u201d, \u201cpesos\u201d, or \u201cPs.\u201d are to pesos, the legal currency of Mexico and references to \u201cU.S. dollars\u201d, \u201cdollars\u201d, \u201cU.S. $\u201d or \u201c$\u201d are to United States dollars, the legal currency of the United States of America. Except as otherwise indicated, all peso amounts are presented herein in pesos with purchasing power as of March 31, 2026, and in pesos with their historical value for other dates cited. The dollar translations provided in this document are calculated solely for the convenience of the reader using an exchange rate of Ps.17.93 per U.S. dollar, the exchange rate published by Banco de Mexico, the country\u2019s central bank, on March 31, 2026.<\/p>
\nThree months ended March 31, 2026, compared to three months ended March 31, 2025.<\/b><\/p>
\nThe following table summarizes our results of operations for the three months ending March 31, 2026, and 2025:<\/p>
| \n | (Figures in Millions of Pesos)<\/b><\/td>\n<\/tr>\n| \n | For the year ended March31,<\/b><\/td>\n<\/tr>\n | \n | \n2025<\/span><\/b><\/p><\/td> \n | \n2026<\/span><\/b><\/p><\/td><\/tr>\n \n8,876.0<\/p><\/td> \n\u00a0<\/p><\/td> \n9,654.0<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n6,922.3<\/p><\/td> \n\u00a0<\/p><\/td> \n7,288.5<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n1,953.7<\/p><\/td> \n\u00a0<\/p><\/td> \n2,365.5<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n805.4<\/p><\/td> \n\u00a0<\/p><\/td> \n853.3<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n1,148.3<\/p><\/td> \n\u00a0<\/p><\/td> \n1,512.2<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n21.8<\/p><\/td> \n\u00a0<\/p><\/td> \n(26.5<\/p><\/td> \n)<\/p><\/td><\/tr>\n \n34.9<\/p><\/td> \n\u00a0<\/p><\/td> \n29.3<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n290.4<\/p><\/td> \n\u00a0<\/p><\/td> \n398.8<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n(2.8<\/p><\/td> \n)<\/p><\/td> \n(1.9<\/p><\/td> \n)<\/p><\/td><\/tr>\n \n911.8<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n1,114.3<\/b><\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n82.2<\/p><\/td> \n\u00a0<\/p><\/td> \n75.3<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n1,230.5<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n1,587.5<\/b><\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n1\/ EBITDA for any period is defined as consolidated net income (loss) excluding i) depreciation and amortization, ii) total net comprehensive financing result (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other Financing costs), iii) other expenses net, iv) income tax and statutory employee profit sharing and v) equity in income (loss) of associated companies. EBITDA should not be considered as an alternate measure of net income or operating income, as determined on a consolidated basis using amounts derived from statements of operations prepared in accordance with MFRS, or as an indicator of operating performance or to cash flows from operating activity as a measure of liquidity. EBITDA is not a recognized term under MFRS or U.S. GAAP and does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activity as a measure of liquidity.<\/p><\/td><\/tr>\n<\/table> \nOur consolidated net income for the three months ending March 31, 2026, was Ps.1,114.3 million (US$62.2 million), compared to a net income of Ps.911.8 million in the same period of 2025. This change is primarily due to an increase in price of copper products, in our product mix in sales.<\/p> \nRevenues<\/b><\/p> \nOur net revenues for the three months of 2026 increased 8.8% to Ps.9,654.0 million (US$538.6 million) from Ps.8,876.0 million in the same period of 2025. This increase was driven mainly by market conditions, and the decrease in copper prices which affect directly our final selling price in our copper products segment.<\/p> \nOur costs and revenues follow copper prices very closely since the market practice is to pass on to the buyer changes in raw material prices.<\/p> \nOur sales are primarily for customers engaged in commercial, industrial and residential construction, and their related maintenance and renovation activities. We also sell to customers engaged in electrical power generation, transmission and distribution and to the sectors of gas, water and air conduction in Heating, Ventilation, Air conditioning and Refrigeration (HVACR).<\/p> \nOur revenues consist mainly of sales of copper-based products (tubing, wire, cable and alloys) and electrical products.<\/p> \nBy country of production, approximately 51.9% of our revenues in the three months ended March 31, 2026, came from products manufactured in Mexico and the remaining 48.1% from products manufactured in the U.S.<\/p> \nIn terms of sales by region during the three months ended March 31, 2026, we derived approximately 42.9% of our revenues from sales to customers in the United States, 53.2% from customers in Mexico and 3.9% from the rest of the world (\u201cROW\u201d).<\/p> \nCost of sales<\/b><\/p> \nOur cost of sales in the three months ended March 31, 2026, increased by 5.3% to Ps.7,288.5 million (US$406.6 million) from Ps.6,922.3 million in the same period of 2025. As a percentage of revenues, the cost of sales was 75.5% and 78.0% respectively.<\/p> \nWe reduce our cost base through several initiatives, including plant scheduling, raw material handling, and overall manufacturing overhead costs. According to our accounting policies, we make an inventory valuation at an average purchase price. In the case of copper cathodes, an aftermath adjustment is required due to the quotation period agreed with the suppliers (M+1). This initiative allows us to hedge purchases for 30 days at no additional cost. The adjustment is recorded to the cost of sales in the month in which it occurs.<\/p> \nGross Profit<\/b><\/p> \nOur gross profit in the three months ended March 31, 2026, increased 21.1% to Ps.2,365.5 million (US$132.0 million) from Ps.1,953.7 million in the same period of 2025. As a percentage of sales, gross profit in 2026 was 24.5% vs 22.0% in 2025.<\/p> \nSelling and Administrative Expenses<\/b><\/p> \nOur sales and administrative expenses in the three months ended March 31, 2026, increased 6.0% to Ps.853.3 million from Ps.805.4 in the same period of 2025.<\/p> \nOperating Income<\/b><\/p> \nOur operating income in the three months ended March 31, 2026, increased 31.7% to Ps.1,512.2 million (U.S. $84.4 million) from an operating income of Ps.1,148.3 in the same period of 2025.<\/p> \nEBITDA<\/b><\/p> \nIn the three months ending March 31, 2026, our EBITDA increased 29.0% to Ps.1,587.5 million (or US$60.1 million), from Ps.1,230.5 million in the same period of 2025. The corresponding depreciation and amortization figures are Ps.75.3 million for January to March 2026 and Ps. 82.2 million for the same period of 2025.<\/p> \nComprehensive Financing Result<\/b><\/p> \nThe following table shows our comprehensive financing results for the three months ending March 31, 2026, and 2025:<\/p> \n2025<\/span><\/b><\/p><\/td> \n2026<\/span><\/b><\/p><\/td><\/tr>\n \n(78.5<\/p><\/td> \n)<\/p><\/td> \n(34.2<\/p><\/td> \n)<\/p><\/td><\/tr>\n \n30.6<\/p><\/td> \n\u00a0<\/p><\/td> \n61.8<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n88.9<\/p><\/td> \n\u00a0<\/p><\/td> \n9.6<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n(6.1<\/p><\/td> \n)<\/p><\/td> \n(7.9<\/p><\/td> \n)<\/p><\/td><\/tr>\n \n34.9<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n29.3<\/b><\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n<\/table> \nOur comprehensive financing result in the three months ending March 31, 2026, was an expense of Ps.29.3 million, compared to an expense of Ps.34.9 million in the same period of 2025.<\/p> \nTaxes and Statutory Employee Profit Sharing<\/b><\/p> \nThe provision for current and deferred income taxes and statutory employee profit sharing in the three months ended March 31, 2026, was an expense of Ps.398.8 million compared to an expense of Ps.290.4 million in the same period of 2025.<\/p> \nConsolidated Net Income<\/b><\/p> \nOur consolidated net income for the three months ended March 31, 2026, was Ps.1,114.3 million (US$62.2 million), compared to a net income of Ps.911.8 million in the same period of 2025.<\/p> \nLiquidity and Capital Resources<\/b><\/p> \nLiquidity<\/p> \nAs of March 31, 2026, we had cash and cash equivalents for Ps.1,722.5 million (U.S.$96.1 million). Our policy is to invest available cash in short-term instruments issued by Mexican and U.S. banks as well as in securities issued by the governments of Mexico and the U.S.<\/p> \nOur cash flow from operations and operating margins are significantly influenced by world market prices for raw copper, as quoted by COMEX and the London Metal Exchange (\u201cLME\u201d). Copper prices are subject to significant market fluctuations; average copper prices increased 26.8% in the three months ending March 31, 2026, to $5.79 US dollars per pound from $4.57 US dollar per pound in the same period of 2025.<\/p> \nWe obtain short-term financing from various sources, including Mexican and international banks. Short-term financing consists in part of lines of credit denominated in pesos and dollars. As of March 31, 2026, our outstanding short-term debt, including the current portion of long-term debt totaled Ps.450.9 million (U.S. $25.16 million), all of which was dollar denominated.<\/p> \nOn the same date, our outstanding consolidated long-term debt, excluding current portion thereof, totaled Ps.1,128.3 million (U.S.$62.95 million), all of which was dollar denominated.<\/p> \nAccounts receivable from third parties as of March 31, 2026, were Ps.7,041.0 million (U.S.$392.8 million). Days outstanding in the domestic market were 31 days as of March 31, 2026.<\/p> \nDebt Obligations<\/b><\/p> \nThe following table summarizes our debt as of March 31, 2026:<\/p> \n0.0<\/p><\/td><\/tr>\n \n1,579.3<\/p><\/td><\/tr>\n \n1,579.3<\/p><\/td><\/tr>\n<\/table> \nThis total includes the restructured debt of the Company.<\/p> \nCapital Expenditures<\/b><\/p> \nFor the three months ended March 31, 2026, we invested Ps.443.8 million (U.S.$24.8 million) in capital expenditure projects, mainly related to expansion of production and maintenance.<\/p> \nIn the three months ending March 31, 2026, our capital expenditures were allocated by segments as follows: 82.5% to copper tubing, 4.1% to wire and cable, 1.2% to valves and controls, 0.8% to electrical products and the remaining and 11.4% to other divisions. By geographic region 17.5% of total capital expenditures were invested in our Mexican facilities and the remaining 82.5% in the U.S.<\/p> \nYou should read this document in conjunction with the unaudited consolidated financial statements as of March 31, 2026, including the notes to those statements.<\/i><\/b><\/p> |