Industrias Unidas, S.A. de C.V. Consolidated Results of Operations for Q2 2025
Industrias Unidas, S.A. de C.V. ('IUSA' or the 'Company') has announced its unaudited results for the six months ended June 30 of 2025. Figures are unaudited and have been prepared in accordance with Mexican Financial Reporting Standards ('MFRS'), which are different in certain respects from Generally Accepted Accounting Principles in the United States ('U.S. GAAP'). 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 'Pesos', 'pesos', or 'Ps.' are to pesos, the legal currency of Mexico and references to 'U.S. dollars', 'dollars', 'U.S. $' or '$' 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 June 30, 2025, 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. 18.77 per U.S. dollar, the exchange rate published by Banco de Mexico, the country's central bank, on June 30, 2025.
Six months ended June 30, 2025, compared to six months ended June 30, 2024.
The following table summarizes our results of operations for the six months ending June 30, 2025, and 2024:
Our consolidated net income for the six months ending June 30, 2025, was Ps.1,978.9 million (US$105.5 million), compared to a net income of Ps.1,080.2 million in the same period of 2024. This change is primarily due to an increase in sales and price of copper.
Revenues
Our net revenues for the six months of 2025 increased 19.9% to Ps.17,120.9 million (US$912.4 million) from Ps.14,282.8 million in the same period of 2024. This increase was driven mainly by market conditions, and the increase in copper prices which affect directly our final selling price in our copper products segment.
Our costs and revenues follow copper prices very closely since the market practice is to pass on to the buyer changes in raw material prices.
Our 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).
Our revenues consist mainly of sales of copper-based products (tubing, wire, cable and alloys) and electrical products.
By country of production, approximately 60.7% of our revenues in the six months ended June 30, 2025, came from products manufactured in Mexico and the remaining 39.3% from products manufactured in the U.S.
In terms of sales by region during the six months ended June 30, 2025, we derived approximately 45.0% of our revenues from sales to customers in the United States, 52.1% from customers in Mexico and 2.9% from the rest of the world ('ROW').
Cost of sales
Our cost of sales in the six months ended June 30, 2025, increased by 20.6% to Ps.13,109.2 million (US$698.6 million) from Ps.10,869.0 million in the same period of 2024. As a percentage of revenues, the cost of sales was 76.6% and 76.1% respectively.
We 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.
Gross Profit
Our gross profit in the six months ended June 30, 2025, increased 17.5% to Ps.4,011.7 million (US$213.8 million) from Ps.3,413.8 million in the same period of 2024. As a percentage of sales, gross profit in 2025 was 23.4% vs 23.9% in 2024.
Selling and Administrative Expenses
Our sales and administrative expenses in the six months ended June 30, 2025, increased 11.6% to Ps.1,634.2 million from Ps.1,464.9 in the same period of 2024.
Operating Income
Our operating income in the six months ended June 30, 2025, increased 22.0% to Ps.2,377.6 million (U.S. $126.7 million) from an operating income of Ps.1,948.9 in the same period of 2024.
EBITDA
In the six months ending June 30, 2025, our EBITDA increased 20.7% to Ps.2,534.5 million (or US$135.1 million), from Ps.2,100.6 million in the same period of 2024. The corresponding depreciation and amortization figures are Ps.156.9 million for January to June 2025 and Ps.151.7 million for the same period of 2024.
Comprehensive Financing Result
The following table shows our comprehensive financing results for the six months ending June 30, 2025, and 2024:
Our comprehensive financing result in the six months ending June 30, 2025, was an expense of Ps.372.0 million, compared to Ps.(343.0) million in the same period of 2024.
Taxes and Statutory Employee Profit Sharing
The provision for current and deferred income taxes and statutory employee profit sharing in the six months ended June 30, 2025, was an expense of Ps.803.0 million compared to an expense of Ps.465.4 million in the same period of 2024.
Consolidated Net Income
Our consolidated net income for the six months ending June 30, 2025, was Ps.1,978.9 million (US$105.5 million), compared to a net income of Ps.1,080.2 million in the same period of 2024.
Liquidity and Capital Resources
Liquidity
As of June 30, 2025, we had cash and cash equivalents for Ps.4,607.3 million (U.S.$245.5 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.
Our 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 ('LME'). Copper prices are subject to significant market fluctuations; average copper prices increased 10.5% in the six months ending June 30, 2025, to $4.65 US dollars per pound from $4.21 US dollar per pound in the same period of 2024.
We 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 June 30, 2025, our outstanding short-term debt, including the current portion of long-term debt totaled Ps.484.6 million (U.S.$25.8 million), all of which was dollar denominated.
On the same date, our outstanding consolidated long-term debt, excluding current portion thereof, totaled Ps. 3,655.7 million (U.S.$194.8 million), all of which was dollar denominated.
Accounts receivable from third parties as of June 30, 2025, were Ps.5,638.9 million (U.S.$300.5 million). Days outstanding in the domestic market were 30 days as of June 30, 2025.
Debt Obligations
The following table summarizes our debt as of June 30, 2025:
This total includes the restructured debt of the Company.
Capital Expenditures
For the six months ended June 30, 2025, we invested Ps.226.4 million (U.S.$12.0 million) in capital expenditure projects, mainly related to expansion of production and maintenance.
In the six months ending June 30, 2025, our capital expenditure was allocated by segments as follows: 62.0% to copper tubing, 9.3% to wire and cable, 14.7% to valves and controls, 2.4% to electrical products and the remaining and 11.6% to other divisions. By geographic region 39.6% of total capital expenditures were invested in our Mexican facilities and the remaining 60.4% in the U.S.
You should read this document in conjunction with the unaudited consolidated financial statements as of June 30, 2025, including the notes to those statements.
View source version on businesswire.com:https://www.businesswire.com/news/home/20250820680123/en/
CONTACT: Francisco Rodriguez
[email protected]
Tel. 5255 5216 4028
KEYWORD: LATIN AMERICA NORTH AMERICA UNITED STATES MEXICO CENTRAL AMERICA
INDUSTRY KEYWORD: ENGINEERING OTHER MANUFACTURING MANUFACTURING STEEL
SOURCE: Industrias Unidas, S.A. de C.V.
Copyright Business Wire 2025.
PUB: 08/20/2025 12:11 PM/DISC: 08/20/2025 12:11 PM
http://www.businesswire.com/news/home/20250820680123/en
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