Ternium is a leading steel producer with industrial operations and an extensive commercial network across the Americas. The company manufactures and markets high value-added steel products for industries such as automotive, construction, energy, home appliances, and manufacturing.

Beyond steel production, Ternium develops solutions that help its customers create value while promoting innovation, sustainability, and community development. Its strategy integrates environmental, social, and governance (ESG) priorities to generate long-term value and advance toward increasingly efficient steelmaking with lower emissions intensity.

Ternium has operations in nine countries across the Americas: Argentina, Brazil, Colombia, Costa Rica, El Salvador, Guatemala, Mexico, Nicaragua, and the United States.

Its industrial system includes steelmaking facilities, service centers, distribution centers, and mining operations, enabling the company to serve a wide range of regional markets. This integrated footprint strengthens Ternium's ability to develop high-quality steel products and provide solutions tailored to the needs of each industry.

As of the end of 2025, Ternium had approximately 33,300 employees across its operations, including Usiminas.

Its workforce supports industrial, commercial, technological, and corporate activities in the nine countries where the company operates. Through training, technical education, leadership development, and safety programs, Ternium promotes professional growth while fostering a workplace culture built on respect, diversity, and continuous improvement.

Ternium's Sustainability Report presents the company's economic, environmental, social, and governance performance during 2025.

In addition to reporting key results and indicators, it outlines Ternium's sustainability strategy, major initiatives, and progress toward its decarbonization goals. The report was prepared in reference to internationally recognized standards, including ESRS, GRI, SASB, TCFD recommendations, and worldsteel guidance, providing transparent and comparable information for investors, customers, employees, and other stakeholders.

Ternium's 2025 Sustainability Report provides an overview of the company's performance across environmental, social, economic, and governance topics.

It includes updates on climate action, decarbonization, water management, biodiversity, circular economy initiatives, health and safety, talent development, diversity and inclusion, community investment, value chain management, corporate governance, and financial performance. The report also presents ESG indicators, 2030 targets, strategic projects such as the new steel shop in Pesquería, and the company's contribution to the United Nations Sustainable Development Goals.

Ternium's sustainability strategy seeks to combine business growth with environmental stewardship, people development, and ethical, transparent management.

Its priorities include reducing carbon emissions intensity, improving energy efficiency, increasing the use of renewable energy, strengthening responsible water management, enhancing the health, safety, and well-being of employees, and supporting the development of the communities where it operates. ESG considerations are integrated into decision-making processes and aligned with internationally recognized sustainability frameworks.

Ternium's goal is to reduce CO₂ equivalent emissions intensity per ton of hot-rolled steel by 15% by 2030, compared to a 2024 baseline.

The target includes Scope 1 and Scope 2 emissions, as well as selected Scope 3 emissions (Categories 1 and 10), in accordance with the Greenhouse Gas Protocol methodology. To achieve this goal, the company is advancing lower-emission production technologies, increasing the use of renewable energy, improving energy efficiency, expanding scrap utilization, developing carbon capture and utilization solutions, and evaluating the use of biomass as a partial substitute for coal in specific processes.

The new steel shop at Ternium Pesquería Industrial Center is one of the company's most significant projects for achieving its decarbonization goals.

The facility will use the DRI-EAF route (Direct Reduced Iron-Electric Arc Furnace), a steelmaking technology with significantly lower emissions intensity than traditional blast furnace-based production. It will also incorporate technologies such as carbon capture and utilization (CCU), Consteel® scrap preheating systems, high-efficiency electric furnaces, and the potential future use of hydrogen as technology and market conditions evolve.

Ternium's decarbonization strategy combines multiple technologies and initiatives designed to reduce carbon emissions across the steelmaking process.

These include the DRI-EAF route, increased use of recycled scrap as a raw material, high-efficiency electric arc furnaces, Consteel® scrap preheating systems, Consteerrer® technology to optimize energy consumption, carbon capture and utilization (CCU), renewable energy projects, and continuous improvements in energy efficiency. Together, these initiatives support the company's 2030 decarbonization roadmap and its commitment to producing steel with progressively lower emissions intensity.

The new steel shop at Ternium Pesquería Industrial Center in Nuevo León, is a strategic expansion project that will strengthen the company's capacity to produce lower-emissions steel.

Expected to begin operations in early 2027, the facility will manufacture steel slabs using the DRI-EAF route (Direct Reduced Iron-Electric Arc Furnace). In addition to expanding production capacity, the project incorporates technologies aimed at improving energy efficiency, enabling carbon capture and utilization (CCU), increasing renewable energy integration, and producing advanced steel grades for industries such as automotive manufacturing.

DRI-EAF technology combines Direct Reduced Iron (DRI) with an Electric Arc Furnace (EAF) to produce steel with a lower emissions intensity than traditional blast furnace-based steelmaking routes.

In this process, direct reduced iron is melted in an electric arc furnace, which can also incorporate recycled scrap as a raw material. This flexibility helps reduce coal consumption and improve energy efficiency. Ternium considers DRI-EAF technology a key component of its decarbonization strategy and its transition toward increasingly sustainable steel production.

The new steel shop in Pesquería will produce steel slabs that will serve as the raw material for a broad range of high value-added flat steel products.

These products are designed to meet the demanding requirements of industries such as automotive manufacturing, which require advanced steel grades with higher strength, improved performance, and lower emissions intensity. Through this project, Ternium will strengthen its ability to supply steel produced through lower-emissions processes, supporting customers in advancing their own sustainability goals.

Safety is a core value at Ternium and is integrated into every aspect of the company's operations.

Ternium promotes a prevention-focused culture built on leadership, training, risk management, and continuous improvement. In 2025, the company invested US$102 million in health and safety initiatives, strengthening prevention programs, management systems, and training for both employees and contractors. The company also promoted initiatives such as Ternium Safety Day and leadership programs focused on safety to reinforce commitment to incident prevention across all levels of the organization.

Ternium supports employee development through technical training, leadership programs, continuous learning opportunities, and international experiences.

The company provides learning opportunities designed to strengthen technical, managerial, and leadership capabilities while encouraging professional growth through collaboration across countries and operations. In 2025, Ternium also expanded its training portfolio in areas such as effective communication, intercultural leadership, and cybersecurity, helping prepare employees for the challenges of an increasingly digital and sustainable industry.

Ternium is committed to fostering a workplace built on equal opportunity, respect, and inclusion.

Its strategy includes unbiased recruitment processes, initiatives that support women's leadership development, diversity and anti-harassment policies, flexible work arrangements, and benefits for parents and caregivers. In 2025, employees from 28 nationalities were represented across the company, while programs such as Diversidad+ and Lean In Circles continued to strengthen an inclusive culture where all individuals can grow professionally and reach their full potential.

Education is one of the main pillars of Ternium's social investment strategy.

In 2025, 88% of the company's community investment was allocated to educational initiatives, benefiting more than 15,590 students. These efforts include Roberto Rocca Technical Schools, the Roberto Rocca Educational Program, Gen Técnico Roberto Rocca, scholarships, teacher training, and programs designed to strengthen technical education and improve youth employability in the communities where Ternium operates.

Roberto Rocca Technical Schools are part of the Techint Group's educational network and provide high-quality technical education to prepare students for careers in fields such as mechatronics and electromechanical technology.

Their educational model combines academic excellence, hands-on learning, strong connections with industry, and scholarship programs based on students' financial needs to promote equal opportunities. In 2025, the network operated schools in Argentina, Mexico, and Brazil, including the opening of a new campus in Santa Cruz, Brazil, which welcomed its first class of students.

ProPymes is Ternium's program designed to strengthen the development and competitiveness of small and medium-sized companies that are part of its value chain.

Through technical assistance, training, digital transformation initiatives, and management support, the program helps participating companies improve productivity and business performance. In 2025, ProPymes provided training to 7,339 participants and delivered more than 130,000 hours of learning, while also fostering industrial development projects and strengthening the connection between SMEs and technical education through initiatives such as Gen Técnico.

Ternium contributes to community development through programs focused on education, volunteering, culture, health, environmental stewardship, and local value chain development.

In 2025, the company invested US$51 million in its community relations programs, supporting educational initiatives, the construction of the new Roberto Rocca Technical School in Brazil, cultural programs, and volunteer activities aimed at improving public schools and community infrastructure. Ternium's approach is tailored to the specific needs of each region, with the goal of creating long-term opportunities for sustainable development.