Latin America's second-largest economy and a manufacturing hub tightly integrated with the US — spanning consumer, telecom and industrial names.
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Why is Mexico moving?
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Banxico opens door to cuts; mining and manufacturing bets build
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Banxico drops guidance, opening door to rate cuts Banxico held its rate at 6.50% but removed the line promising to keep it there, a clear signal it could cut sooner. Lower rates would support Mexican bonds and stocks, though the peso may weaken as the rate advantage shrinks.
This is the period's main monetary policy shift and moves bonds, the peso and borrowing costs across Mexico.
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Southern Copper in talks on $10.2B Mexico pipeline Southern Copper is negotiating with the government to advance $10.2 billion of Mexican copper projects, including El Pilar starting construction in early 2027. This would boost long-term copper supply, investment and mining activity in Mexico.
A large, concrete capital commitment that signals rising mining investment and future supply.
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Mexico presses US to cut steel, aluminum and auto tariffs Mexico is negotiating to reduce or remove the 50% US tariffs on its steel and aluminum and the 25% auto tariff. Success would lower costs for Mexican exporters and support manufacturing, though talks are not yet concluded.
Tariff relief is a major potential swing factor for Mexico's key export industries.
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Forgent adds Tijuana plant as orders surge Forgent guided fiscal 2027 revenue to $2.4–2.6 billion and announced a new 385,000 sq ft powertrain plant in Tijuana, with $3 billion in backlog. This shows strong demand for Mexican manufacturing and more foreign investment.
A concrete expansion that highlights Mexico's role in North American supply chains and capital inflows.
Q3 2026
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Mexico Q3 2026: Broad Market Strength on Earnings, Peso, and Policy Shifts
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Strong corporate earnings FEMSA beat estimates on OXXO and Coca-Cola FEMSA growth, while BBB Foods posted 20% same-store sales growth, signaling robust consumer demand and boosting market confidence.
Earnings strength was a key driver of Mexico's market gains in Q3.
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Peso hits five-month high The peso reached a five-month high on weak US jobs data, helping import costs but pressuring exporters. This mixed effect influenced trade-sensitive sectors and overall market sentiment.
Currency movements significantly impacted different parts of the Mexican economy.
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Banxico holds rates, signals cuts Banxico kept rates at 6.50% but dropped tightening guidance, opening the door to cuts. This supported bonds and stocks, though the peso may weaken as a result.
Monetary policy stance was a major factor for Mexican asset prices.
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Investment and trade developments Southern Copper advanced $10.2 billion in Mexican projects, Mexico pushed to reduce US tariffs on steel, aluminum, and autos, and Forgent announced a new Tijuana plant amid surging orders.
These developments signaled capital inflows and trade improvements, driving market optimism.
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Mexico
MercadoLibre Q2 2026 GMV Rises 44% to $21.9 Billion on Brazil Strength
MercadoLibre reported second-quarter 2026 gross merchandise volume of $21.9 billion, up 44% year over year and 36% on an FX-neutral basis, with items sold rising 45% to 795.4 million. Brazil remained the primary growth engine, posting 39% FX-neutral GMV growth and a 56% rise in items sold, while Mexico grew 26% FX-neutral despite tax reform and a weaker macroeconomic environment, and Argentina delivered 38% FX-neutral growth. Cross-border trade added another layer, with FX-neutral GMV up 60% and triple-digit growth in Argentina, Brazil and other markets, and the company's China fulfillment center saw volume rise 170% sequentially. Unique active buyers reached 89.3 million, with items sold per buyer up 14% overall. The Zacks Consensus Estimate implies 44.7% year-over-year sales growth for the current fiscal year but a 2.8% decline in earnings per share, and the stock carries a Zacks Rank #4 (Sell).
Mission Produce Marketing Unit Sales Climb to $414.3 Million on Avocado Demand
Mission Produce's Marketing and Distribution segment posted third-quarter fiscal 2026 sales of $414.3 million, up from $344.1 million a year earlier, with adjusted EBITDA rising to $24.7 million from $20 million. The company sold roughly 253 million pounds of avocados in the quarter, up 38% year over year, lifted by the Calavo acquisition and growth in its legacy business, though lower average selling prices partly offset the gain. A more balanced sourcing mix across Mexico, California and Peru helped per-unit margins recover sequentially from the fiscal second quarter, and Mission Produce increased its estimated U.S. retail market share by about 60 basis points year to date. Management said added packing capacity in Mexico and California and complementary customer relationships from the Calavo combination could drive meaningful market-share gains between 2027 and 2030. The Zacks Consensus Estimate points to a 17.7% year-over-year decline in AVO's fiscal 2026 earnings and 29.2% growth in fiscal 2027, with the stock carrying a Zacks Rank #2 (Buy).
AVO · Demand · Positive Avocado volume sold rose 38% YoY to ~253 million pounds, lifting Marketing & Distribution sales to $414.3M on strong avocado demand.
Endeavour Silver's Guanacevi Mill Offline About Three Weeks After Mechanical Fault
Endeavour Silver has reported a mechanical problem with the primary ball mill at its Guanacevi Mine, with the unit expected to remain offline for roughly three weeks while repairs proceed. Processing capacity is temporarily reduced, with the regrind circuit running at about 600 tonnes per day against ordinary throughput of roughly 1,100 tonnes per day, though mining activity on site continues. The disruption has weighed on the shares, which are down 20.45% over the past 30 days and 7.83% over the past week, even as the 1-year total shareholder return stands at 13.95% and the 3-year total shareholder return is approximately three times the initial value. Endeavour Silver last closed at CA$12.25, while the most followed narrative anchors on a fair value of CA$19.30 using an 8.1% discount rate, a gap that frames the stock as 37% undervalued. That bullish case rests on the Terronera mine nearing commercial production, optimization of recoveries on track, and potential expansion of the Kolpa mine to 2,500 tonnes per day in 2026, but it also leans heavily on Terronera ramping smoothly and on Guanacevi avoiding further mechanical setbacks. A contrasting view comes from the current P/E, with Endeavour Silver trading on 38.7x earnings versus a Canadian Metals and Mining average of 15.5x and an estimated fair ratio of 18.9x.
Mexico Pushes US to Cut Tariffs on Steel, Aluminum and Autos
Mexican Economy Minister Marcelo Ebrard said Mexico is pressing the United States to reduce import tariffs on steel, aluminum and automobiles, as trade negotiations between the two countries continue. Ebrard said that although trade relations between the two countries have made progress and he has spoken with US Trade Representative Jamieson Greer almost daily, talks to lower the tariffs the US collects under Section 232 of the US Trade Expansion Act have not yet reached a conclusion. Currently, the US imposes a 25% tariff on imports of passenger cars and light trucks, with qualifying vehicles from Mexico taxed only on the value of parts produced outside the United States. As for the 50% tariffs on steel and aluminum from Mexico set by the government of President Donald Trump, the two countries are negotiating to reduce or eliminate them. Ebrard said Mexico must also monitor additional trade measures from the US government, especially those related to the problem of excess capacity, and noted that the Section 301 tariff issue stemming from excess capacity was not raised at Thursday's meeting between the two countries, with Mexico awaiting a decision from the United States. Ebrard stressed that preserving Mexico's standing in the US market remains the top priority, with official data showing that the United States was the destination for about 85% of Mexico's non-oil exports in the first eight months of this year.
ALUMINUM · Tariff · Positive Mexico is negotiating to cut or eliminate the 50% US Section 232 tariffs on aluminum from Mexico, a positive for aluminum trade.
STEEL · Tariff · Positive Mexico is pressing the US to reduce or eliminate the 50% Section 232 tariffs on steel from Mexico, which would support US HRC steel trade flows.
Southern Copper in Talks to Advance $10.2 Billion Mexico Investment
Southern Copper Corporation is in discussions with the administration to advance its $10.2 billion in investments in Mexico, a pipeline the company expects to drive organic growth in the coming years. The company's Mexican copper circuit, which includes the Angangueo and Chalchihuites mines along with the Empalme Smelter, is expected to position it as a fully integrated copper producer. Southern Copper expects construction to begin in the first quarter of 2027 at its new El Pilar copper project in Sonora, with production slated to start in the second half of 2029; El Pilar's copper oxide mineralization holds estimated proven and probable reserves of 317 million tons of ore, an expected 18-year mine life, and projected output of 36,000 tons of copper cathode in 2029. The El Arco mine in Baja California, described as a world-class copper deposit with more than 1,230 million tons in sulfide ore reserves and 141 million tons of leach material, is expected to produce 190,000 ounces of copper in 2030. Southern Copper expects total production to reach 1.056 million tons in 2029 and targets 1.6 million tons by 2035, with Tía María, Los Chancas and Michiquillay in Peru, along with El Pilar, El Arco and other Mexican projects, aiding output in the coming years.
SCCO · Capital · Positive Southern Copper is in talks to advance its $10.2 billion Mexico investment pipeline, driving organic growth.
COPPER · Supply · Positive Southern Copper's planned Mexican copper projects add future copper supply, but the article is about a specific miner's expansion.
IFR and Kinjal Sign US$30 Million Credit Agreement with Summit Ridge
International Frontier Resources Corporation and Kinjal Corporation announced that Petro Frontera S.A.P.I. de C.V., an IFR subsidiary that will become a subsidiary of Kinjal upon completion of the proposed reverse takeover of IFR by Kinjal, has entered into a binding credit agreement dated September 25, 2026 with Summit Ridge Capital Partners, through Summit Ridge Capital Partners Fund I LP. The Credit Agreement provides Petro Frontera with access to up to US$30 million, with US$25 million immediately available upon satisfaction of the conditions precedent and provision for a further US$5 million, expected to be drawn before December 2026, subject to mutual agreement between the parties. The senior secured facility is intended principally to finance the acquisition of the Misión asset and the associated initial work program in the field, has an initial maturity of 18 months, and carries no scheduled principal repayments during the first 12 months. Kinjal and Summit Ridge have also entered into a letter of intent providing for the maturity of US$17 million of the principal amount of the loan to be extended to a term of up to 5 years, subject to mutual consent, and the Resulting Issuer will issue to the lenders up to 3.6 million warrants, each exercisable to acquire one common share at C$1.05 per share for three years, subject to TSX Venture Exchange acceptance. Together with the proceeds from the previously completed equity financing by Kinjal and IFR, which are currently held in escrow, the facility is expected to provide sufficient funding to complete the previously announced acquisitions and farm-in transactions involving Misión, Tecolutla/Tonalli and the CS.06 and A10.CS blocks, and to fund the initial work programs required to increase positive cash flow from those assets.
Petro Frontera S.A.P.I. de C.V. · Capital · Positive Petro Frontera secures up to US$30M senior secured credit facility to finance the Misión acquisition and initial work program.
International Frontier Resources Corporation · Capital · Positive IFR's subsidiary Petro Frontera obtains the US$30M credit facility, and IFR is party to the reverse takeover by Kinjal.
Kinjal Corporation · Capital · Positive Kinjal will become parent of Petro Frontera via the reverse takeover and the facility funds the acquisitions and work programs.
Citigroup Taps Wall Street Banks for Over $3B Banamex IPO
Citigroup is rounding up Wall Street banks as it seeks to raise more than $3B in an initial public offering for Mexico's Grupo Financiero Banamex, according to a media report. Bank of America, Goldman Sachs Group, and JPMorgan Chase are also participating in the deal, Bloomberg News reported, citing people familiar with the matter, adding that Citi and Banamex are planning for a listing in January. The banks are still assessing how much of Citigroup's remaining holdings in Banamex can be sold before an IPO, as further smaller stake sales are still possible, and talks are continuing with more banks potentially added and details subject to change. Last year, Citi sold a 25% stake in the Mexican retail bank to local billionaire Fernando Chico Pardo for about $2.3B, and earlier this year it sold 24% more of Banamex to General Atlantic and Blackstone.
C · Capital · Positive Citigroup is the subject, rounding up banks to raise over $3B via a Banamex IPO.
Grupo Financiero Banamex · Capital · Positive Banamex is the subject of a planned IPO raising over $3B, a major capital-markets event for the Mexican bank.
BAC · Capital · Positive Bank of America is participating in the over $3B Banamex IPO deal, a fee-generating mandate.
GS · Capital · Positive Goldman Sachs is participating in the over $3B Banamex IPO deal, a fee-generating mandate.
JPM · Capital · Positive JPMorgan Chase is participating in the over $3B Banamex IPO deal, a fee-generating mandate.
BX · Capital · Positive Blackstone earlier bought a 24% stake in Banamex, part of Citi's stake-sale process tied to the IPO.
TC Energy to Sell Guadalajara-Manzanillo Pipeline to ESENTIA Affiliates for C$560 Million
TC Energy Corporation announced on September 21 that it agreed to sell Energía Occidente de México, which owns the Guadalajara-Manzanillo pipeline, to affiliates of ESENTIA for a gross purchase price of approximately C$560 million, or US$400 million. Closing is expected in the first half of 2027, subject to customary conditions, regulatory approvals and consents, and management intends to redeploy the capital into growth opportunities across North America. The 313-kilometer pipeline can transport up to 500 million cubic feet of natural gas daily, serving power plants and industrial customers in Colima and Jalisco, and after closing TC Energy will retain a Mexican network of approximately 3,300 kilometers of pipeline and 8.7 billion cubic feet per day of installed transportation capacity. TC Energy did not disclose the asset's standalone annual earnings or cash contribution, leaving investors unable to assess the sale valuation against the income being surrendered. The company reported approximately C$3 billion of new projects sanctioned during the first half of 2026, including the Central Virginia Capacity and Clark expansions representing approximately US$400 million of combined investment and backed by 20-year take-or-pay contracts, though those projects have expected service dates in 2028 and 2030 and would not immediately replace income lost after a first-half 2027 disposal.
Energy Transition & Power Demand › Natural Gas Value Chain Capital
TRP · Capital · Positive TC Energy agreed to sell its Guadalajara-Manzanillo pipeline to ESENTIA affiliates for ~C$560M and redeploy capital into North American growth projects.
Banxico holds rate at 6.50%, drops forward guidance in signal it may open the door to policy shifts
Mexico's central bank, Banxico, announced it was holding its policy rate at 6.50% at its meeting on Thursday, September 24, in line with market expectations, but removed from its statement the forward guidance that had said the rate would be held at that level, a signal that it is opening the door to greater flexibility in adjusting monetary policy ahead. Banxico's five-member governing board voted unanimously to keep the policy rate at 6.50%, dropping the wording that said it was appropriate to keep the reference rate at its current level, which had appeared in the three previous statements. The statement said monetary policy decisions will depend on economic data, assessing the development of the inflation slowdown as well as the pass-through of the exchange rate to consumer prices, an economy that has not yet recovered its full potential, and inflation expectations in the system. It kept its forecast that headline inflation will gradually decline toward the 3.0% target in the fourth quarter of 2027, and said inflation risks remain tilted to the upside, while downside risks to economic activity persist amid uncertainty over U.S. economic policy and prolonged geopolitical conflicts. Although the Fed voted to raise its policy rate by another 0.25% at its September meeting, Banxico reiterated that Mexico's monetary policy does not need to move automatically in step with the Fed, because the macroeconomic conditions of the two countries differ.
Forgent Power Posts $462 Million Quarter, $3 Billion Backlog
Forgent Power Solutions reported fiscal fourth-quarter revenue of approximately $462 million on September 15, up 94% year over year, with bookings of $1.503 billion and backlog of $3.0 billion as of June 30, 2026. The company guided fiscal 2027 revenue to $2.4 billion to $2.6 billion, implying 76% growth at the midpoint. Fourth-quarter operating income reached $91.9 million versus $8.3 million a year earlier, and operating cash flow of $74 million exceeded $31 million of capital expenditures, though full-year fiscal 2026 operating cash flow of $109.1 million fell short of $115.9 million in property and equipment purchases. Forgent announced a $35 million expansion at its Tijuana campus for modular Powertrain Solutions, a category whose revenue rose 259% in fiscal 2026 and represented nearly one-third of fourth-quarter revenue; the project is expected to add approximately $800 million of annual revenue capacity, bringing total capacity to roughly $5.8 billion. Insider Monkey's database showed 74 hedge funds holding the stock at the end of 2Q2026, down from 76 three months earlier.
Forgent Power Solutions guided to fiscal 2027 revenue of $2.4 billion to $2.6 billion and adjusted EBITDA of $575 million to $625 million, alongside adjusted EPS of $1.26 to $1.40 and an adjusted EBITDA margin of approximately 24%, up from 22.7% in fiscal 2026. The guidance accompanied record fiscal fourth-quarter results, with revenues up 94% to $462 million and adjusted EBITDA margin expanding 200 basis points sequentially to 24.4%. For the full fiscal year, revenues rose 89% to $1.42 billion and adjusted EBITDA rose 91% to $323 million, while operating cash flow increased roughly 2.5 times to $109 million from $45 million, with management expecting more than $300 million in fiscal 2027. Chief Executive Gary Niederpruem said the company booked more than $1.5 billion of orders in the quarter alone, leaving backlog at $3 billion, and announced an incremental investment to build a dedicated 385,000 square foot Powertrain Solutions facility on its Tijuana, Mexico campus, expected online in the fourth quarter of fiscal 2027. For the first quarter of fiscal 2027, Forgent guided to revenues of $445 million to $465 million and adjusted EBITDA of $90 million to $100 million, including approximately $10 million of one-time costs, and said it will stop reporting orders and backlog quarterly while providing rolling quarterly revenue and adjusted EBITDA guidance.
FPS · Capital · Positive Forgent guided fiscal 2027 revenue to $2.4B-$2.6B with ~24% EBITDA margin and reported record Q4 results with revenues up 94%.
FPS · Demand · Positive Company booked more than $1.5 billion of orders in the quarter, leaving backlog at $3 billion.
Kapital raises $125m to fund AI development and global expansion
Kapital has raised $125m in fresh funding from Tru Arrow Partners and Fasanara Capital, with participation from Cervin Ventures, Niya Partners and Overlook Capital. The company said the funds will go towards further development of its in-house AI system and data analytics tools to support a broader financial services offering, and will be used to speed up expansion plans in Mexico, the rest of Latin America, the US and Europe. Kapital reported net income of about $50m for the first half of 2026, with its loan book rising 220% from a year earlier to more than $1.7bn and deposits increasing 234% to above $3.5bn. It reported a non-performing loan ratio of 2.86% and an efficiency ratio of 34.9%. In September 2025, the company announced a Series C funding round of up to $110m, which took its valuation to more than $1.3bn. Kapital said it currently serves more than 350,000 customers in Mexico, the US, Europe and other Latin American markets, and intends to keep growing in those regions.
Digital Finance & Tokenization › Digital Banking & Neobanks ▲Capital
Digital Finance & Tokenization › Digital Lending & Alt-Credit Platforms ▲Capital
Kapital · Capital · Positive Kapital raised $125m in fresh funding from Tru Arrow Partners and Fasanara Capital to fund AI development and global expansion.
Saavi Energía S.à r.l. announced the successful closing of its merger transaction with Grupo México, S.A.B. de C.V., creating a diversified energy platform with 10 power plants, one mobile power generation business, and three gas compression stations across Mexico. The combined platform has 4.5 GW of power generation capacity. Following the closing, Grupo México owns a 70% stake in Saavi Energía, while Global Infrastructure Partners, a subsidiary of BlackRock, holds the remaining 30%. Saavi Energía expects the combination to strengthen its financial position and reinforce its position as the leading power generation platform in Mexico.
Goldgroup Reports Strong Initial Results from San Francisco Drill Program
Goldgroup Mining Inc. has announced assay results from the first six drillholes of its ongoing 26,000-metre diamond drilling program at the San Francisco Gold Project in Sonora, Mexico, with high-grade intervals highlighting the project's potential and supporting work toward a possible restart. Notable intercepts include 23.4 metres grading 1.71 g/t gold in hole GGD-174, and 16.8 metres grading 4.36 g/t gold in GGD-178, which also returned a second interval of 10.0 metres grading 2.00 g/t gold. The company plans to incorporate these results into its geological and resource models to support a detailed technical study evaluating a potential restart and optimization of the formerly producing mine. Goldgroup has budgeted approximately US$8.5 million for the drilling program and expects the broader technical study to be completed in Q4 2026, with a possible restart in Q1 2027. CEO Javier Reyes said the results are a highly encouraging start and reinforce the belief that significant value can be unlocked from the established project.
Woodside and PEMEX Sign MOU to Expand Mexico Deepwater Partnership
Woodside Energy has signed a non-binding Memorandum of Understanding with Petróleos Mexicanos (PEMEX) to explore potential future opportunities for hydrocarbon exploration and extraction in the deep waters of the Gulf of Mexico, as well as to exchange technical knowledge and best practices. The MOU was signed in Mexico City following a meeting between Woodside CEO Liz Westcott and PEMEX CEO Juan Carlos Carpio Fragoso. The agreement builds on their existing collaboration on the Trion Oil Project, which is located about 180 kilometers off Mexico's coast and is set to become Mexico's first ultra-deepwater development, with first oil targeted for 2028. As of June 30, 2026, Trion was 64% complete, with a forecast total capital investment of US$7.2 billion, and is expected to contribute more than US$10 billion in taxes and royalties to Mexico over its life. Woodside holds a 60% participating interest in Trion and operates the project, while PEMEX holds the remaining 40%.
Petróleos Mexicanos · Demand · Positive PEMEX signed an MOU with Woodside to explore new deepwater Gulf of Mexico hydrocarbon opportunities, expanding its upstream project pipeline.
Mexico New Investment Slumps, Firms Consider Relocation Amid USMCA Uncertainty
Uncertainty over the United States-Mexico-Canada Agreement (USMCA) is deterring new investment, and some companies operating in Mexico are beginning to consider relocating to other regions. More than a dozen executives told Reuters they are reviewing their investment plans, and three auto parts companies in the central state of Aguascalientes are considering moving to Vietnam. Pedro Casas, CEO of the American Chamber of Commerce of Mexico, said that if renegotiations drag on until July next year, "it would be better to turn off the lights, close the door, and invest elsewhere." In the first half of this year, total foreign direct investment in Mexico reached a record high of about $35 billion, but nearly all of it was reinvested earnings, with new investment accounting for only 7.8% of the total, down 13% year-on-year.
Southern Copper Plans $20.5 Billion Investment to Boost Output
Southern Copper Corporation intends to invest $20.5 billion over the next decade to support its long-term growth, with a significant portion allocated to projects in Peru and Mexico. The company reaffirmed its commitment to collaborating with Peru's government, advancing the Tía María, Los Chancas, and Michiquillay projects, which together represent a total investment of $10.3 billion. Tía María, with a $1.8 billion investment, is designed to produce 120,000 tons of copper cathodes annually and was 42% complete as of June 30, 2026, targeting start-up in the second half of 2027. Los Chancas, requiring $2.6 billion, is expected to produce 130,000 tons of copper and 7,500 tons of molybdenum annually from 2031, while Michiquillay, with a $2.5 billion investment, aims for 225,000 tons of copper annually from 2032. In Mexico, the El Pilar project is moving toward early site work in September 2026 and construction in the first quarter of 2027, with production targeted for the second half of 2029, designed for 36,000 tons of annual copper cathode output. These projects provide multiple sources of organic growth, supporting Southern Copper's production target of 1.6 million tons by 2033 or 2034.
Mexico's Economy Minister Says Trade Relations with US Are the Century's Biggest Challenge
Marcelo Ebrard, Mexico's economy minister, said on Sunday (August 30) that the new form of trade relations between Mexico and the United States represents the country's biggest challenge of this century. Speaking at a meeting of the Morena party, he said, "We have never faced such a great and complex challenge in our relationship with the United States." He noted that the global economy is shifting from a free trade system to one increasingly influenced by protectionist ideas, with the aim of bringing some manufacturing activities back to the United States. Ebrard said that the origin of products is becoming more important, whereas in the past price and quality were more significant factors. Mexico is trying to maintain access to the U.S. market and keep its effective tariff rates among the lowest in the world. Additionally, Mexico has significantly increased exports of electronics, computer equipment, and products related to artificial intelligence (AI) to the United States during 2025-2026. The Mexican government forecasts that the economy, the second-largest in Latin America, will grow by around 1.8% to 2.8% in 2026, after expanding 0.5% in 2025, driven mainly by the services sector amid weakness in the industrial sector linked to the United States.
Nubank Posts First Billion-Dollar Quarter Amid Rising Costs
Nu Holdings Ltd. reported second-quarter net income of $1.1 billion, up 49% year over year and 17% from the first quarter, marking its first billion-dollar quarter. The digital bank also reached 139 million customers across Brazil, Mexico, and Colombia, and received a banking license in Mexico, transforming its credit-first operation there into a full-scale bank. Net interest margin expanded 180 basis points to 22.9%, and return on equity held at 33%. However, loans more than 90 days past due rose 35 basis points to 6.9%, and operating expenses jumped 20% sequentially to $806 million, pushing the efficiency ratio to 19.5%. The company plans to spend up to 100 basis points of its efficiency ratio testing a U.S. entry over the next 12 to 30 months. Hedge fund ownership fell from 104 to 92 funds, while short interest stands at 3.44% of float, and shares trade at a forward P/E of 21.01.
FEMSA's SPIN Digital Platform Gains Traction in Q2 2026
Fomento Economico Mexicano, S.A.B. de C.V., known as FEMSA, reported strong growth in its SPIN digital ecosystem during the second quarter of 2026, with Spin by OXXO reaching 17.6 million total acquired users, up 21.6% year over year from 14.5 million. Active users rose 22.1% to 11.5 million, representing 65% of the total acquired base, while average monthly transactions increased 61.5% to 119.1 million. Spin Premia, the company's loyalty program, reached 67.1 million total acquired users, up from 58.3 million a year earlier, with active users up 9.4% to 29.1 million and average tender at OXXO Mexico reaching 50.4%. FEMSA also announced a strategic equity investment by QED Investors in its lending business, which is expected to complement its payments and loyalty offerings and support scalable credit solutions in Mexico. The company's shares have lost 2.1% in the past three months, underperforming the industry and the broader Consumer Staples sector, and trade at a forward price-to-earnings ratio of 21.14X, above the industry average of 19.96X.
Mexico pushes back on US strawberry dumping ruling
Mexico expressed serious concern over a preliminary U.S. Commerce Department ruling that found dumping in Mexican strawberry exports during the winter. The Commerce Department determined Mexico sold strawberries at prices between 3.37% and 5.28% below normal value depending on the company, setting an average dumping margin of 4.83%. The case began on December 31, 2025, when Florida producers filed a petition seeking antidumping duties. The move could affect nearly 5,000 Mexican strawberry growers, 97% of whom are small- or medium-scale farmers with up to 10 hectares, and 151,000 jobs linked to strawberry cultivation. In 2025, Mexico exported 263,000 metric tons of strawberries to the U.S., worth $1 billion. Mexico said it will monitor the process alongside producers and exporters until the International Trade Commission's final ruling expected in early 2027, arguing the criteria used by Commerce are inconsistent with the World Trade Organization's Anti-Dumping Agreement and provisions of the United States-Mexico-Canada Agreement.
Sinopec Oilfield Service to acquire 50% stake in Mexico's DS and invest up to 212 million US dollars more
Sinopec Oilfield Service announced that its wholly owned subsidiary Sinopec International Petroleum Service Corporation and its Mexican subsidiary plan to acquire, for 4 million US dollars, the 50% stake in Mexico's DS held by DIAVAZ and the 0.01% interest in the EBANO project held by D&S. After the acquisition, Sinopec International Petroleum Service Corporation will hold 99% of Mexico's DS and indirectly obtain a 55% interest in the EBANO project through that company. At the same time, the company plans to invest up to 212 million US dollars more in the EBANO project. This transaction still needs to be submitted to the shareholders' meeting for approval and must satisfy multiple closing conditions.
600871.CG · Capital · Positive Sinopec Oilfield Service acquires 50% stake in Mexico's DS and invests up to $212M more in EBANO project, expanding its stake.
国工公司 (Sinopec Oilfield Service Mexico subsidiary) · Capital · Positive Sinopec's Mexican subsidiary indirectly gains 55% interest in EBANO project through acquisition.
Mexico DS Company (Diavaz Ebano JV) · Capital · Neutral Mexico's DS is the target of acquisition; impact depends on deal completion and future project performance.
Grupo Diavaz · Capital · Neutral Grupo Diavaz sells its 50% stake in Mexico's DS; impact depends on sale terms and future involvement.
BBB Foods reported second quarter 2026 revenue of MXN 26 billion, up 39% year-over-year, with same-store sales increasing 20%. Adjusted EBITDA excluding non-cash share-based compensation rose 44% to MXN 1.6 billion, and adjusted EBITDA margin expanded by 21 basis points year-over-year. The company opened 155 net new stores during the quarter, bringing total store count to 3,624 as of June 30, 2026, and opened one new distribution center, expanding its network to 21 regions. Operating cash flow for the first half of 2026 reached MXN 4.3 billion, a 119% increase compared to the first half of 2025. Management noted that approximately two-thirds of same-store sales growth was driven by volume and one-third by price, and that 100% of new stores open under the upgraded format.
Nu Holdings Stock Jumps 13% After Q2 Earnings Beat
Nu Holdings shares opened 13% higher on Friday after the Brazilian fintech reported second-quarter results that crushed Wall Street estimates. IFRS revenues rose 50% year-over-year to $5.51 billion, while adjusted earnings jumped 66% to $0.22 per diluted share, beating the average analyst expectation of $0.20 per share on revenue near $5.39 billion. The company added 4 million customers during the quarter, bringing its global client count to 139 million, up from 122.7 million a year earlier, with customer growth soaring 31.7% in Mexico and 55.9% in Colombia. Payment volume rose 30.3% year over year, more than doubling the 13.3% customer growth, and return on equity held steady at 33% with an efficiency ratio of 19.5%. The real headline came from Mexico, where regulators granted Nu a full banking license two weeks ago, making Nubank the largest digital bank in a country where 85% of people still prefer cash, and CEO David Vélez said Mexican operations reached breakeven in six years versus eight in Brazil. Nu is also planning U.S. services, with management discussing the upcoming launch and AI's role in building North American operations, and expects to spend 12 to 30 months building out its U.S. credit capabilities after launch.
BBB Foods Reports 20% Same-Store Sales Growth in Second Quarter
BBB Foods, the Mexican parent of discount grocery chain Tiendas 3B, reported 20% same-store sales growth in the second quarter, driving revenue to 26 billion pesos, or roughly $1.5 billion, up 38.7% year over year. The company added 155 new stores in the quarter to reach 3,624 locations, expanding its base by about 16% annually, and plans to at least quadruple its footprint to 14,000 stores over the long term. Adjusted EBITDA margin, excluding share-based compensation, was 6.1%, and the company's price-to-sales ratio stands at 1. Tiendas 3B operates small-format stores of 3,000 to 4,500 square feet with private-label products accounting for more than 58% of merchandise sales, a model similar to Trader Joe's and Aldi.
Ternium Reports 65% Jump in First-Half Adjusted EBITDA to $1.2 Billion
Ternium reported a 65% year-over-year increase in adjusted EBITDA to $1.2 billion for the first half of 2026, with the second-quarter EBITDA margin expanding to 16.5% from 12.2% in the prior quarter. Net income reached $465 million in the second quarter, driven by stronger operating performance in Mexico and Brazil, while first-half earnings per ADS nearly doubled to $2.84. The company expects capital expenditures to decline from a projected $1.6 billion in 2026 to around $1.2 billion in 2027 as the Pesquería expansion nears completion, though the new slab facility's EBITDA impact is not expected until after 2027 due to a multiyear ramp-up and certification process. Ternium ended June with a net debt position of $112 million, shifting from a net cash position of $327 million at the end of March, partly reflecting a $255 million dividend payment and a $418 million working capital buildup. Management highlighted improving market conditions in Mexico, supported by trade defense measures and restocking, while noting that Section 232 tariffs continue to weigh on industrial demand.
Mexican Peso hits five-month high on weak US jobs data
The Mexican Peso surged to a five-month high against the US Dollar on Friday, driven by a weaker-than-expected US jobs report. The disappointing data fueled speculation that the Federal Reserve may hold off on raising interest rates in 2026, weakening the Greenback and boosting risk appetite. The Peso capitalized on the improved market sentiment to extend its gains.
Mexico fast-tracks safety plan for Michoacán in bid to resume avocado exports to the US
Mexican President Claudia Sheinbaum has revealed that the government is drawing up an action plan to boost security in the state of Michoacán so that avocado exports to the United States can resume. The export process was suspended on Wednesday after the US issued a security alert and ordered government personnel in the area to halt operations because of threats to US interests. The plan aims to reinforce National Guard forces in certain areas that still lack sufficient access, alongside ongoing discussions with US authorities. Mexico’s Ministry of Agriculture and Rural Development has already requested talks with the US Embassy, proposing that inspections resume with inspectors from Mexico’s National Food Safety Agency also deployed on the ground. Michoacán is the largest producer and exporter of avocados to the US market.
Copenhagen Infrastructure Partners reaches financial close on its first Mexico project
Copenhagen Infrastructure Partners has reached financial close and started construction on La Esperanza Solar, its first project in Mexico. The 420 MWdc solar photovoltaic project combined with a 150 MW/5-hour battery energy storage system is one of Mexico's largest combined solar and battery storage projects. Project financing comprises approximately USD 510 million in debt facilities from BNP Paribas, JPMorgan Chase Bank, Natixis CIB, Santander, and Scotiabank, with equity from CI Growth Markets Fund II and an expected co-investment from Profuturo. The project is backed by a long-term Power Purchase Agreement with CFE Calificados and has been recognized as a priority project by Mexico's Ministry of Energy. Commercial operations are anticipated in 2028.
FEMSA Beats Q2 Earnings and Revenue Estimates on OXXO Mexico and Coca-Cola FEMSA Strength
Fomento Económico Mexicano, or FEMSA, topped second-quarter earnings and revenue expectations as OXXO Mexico and Coca-Cola FEMSA delivered solid growth. Adjusted earnings reached 93 cents per American depositary share, beating the Zacks Consensus Estimate of 82 cents by 13.4%, while revenues of 13.28 billion dollars exceeded the consensus mark by 2.7% and increased 9.3% in Mexican pesos. Net consolidated income rose 64.9% to 9.22 billion pesos, and adjusted EBITDA increased 12.7% to 33.34 billion pesos, with the adjusted EBITDA margin expanding 40 basis points to 14.4%. However, consolidated gross margin contracted 60 basis points to 40.1%, and operating margin slipped 10 basis points to 8.3%, as weaker profitability in international retail and Health, along with declines in Americas and Mobility and Europe, offset gains from the core businesses. FEMSA also completed a 300 million dollar accelerated share-repurchase program during the quarter, while net debt excluding Coca-Cola FEMSA rose to 90.02 billion pesos, lifting the net debt-to-adjusted EBITDA ratio to 1.15 times from 0.93 times a year earlier.
Ternium's Adjusted EBITDA Jumps 50% to $717 Million in Second Quarter
Ternium reported a 50% sequential increase in second-quarter 2026 Adjusted EBITDA to $717 million, driven by higher sales volumes and better margins. Net income reached $465 million, while capital expenditures totaled $431 million, mainly for the new steel shop in Pesquería, Mexico. The company paid a $255 million dividend and ended June with a net debt position of $112 million, compared to a net cash position of $327 million at the end of March. Looking ahead, Ternium expects Adjusted EBITDA to rise further in the third quarter on higher shipments and an improved margin.
