Copper's Current: How IUSA Is Wiring the Next Wave of Mobility

MEXICO CITY – November 26, 2025

In the race toward a future of electric vehicles, AI-driven cities, and ubiquitous connectivity, the spotlight often shines on software developers and high-tech automotive brands. Yet, beneath the surface of this digital revolution, a more fundamental transformation is underway, powered by raw materials and industrial might. The financial success of companies like Industrias Unidas, S.A. de C.V. (IUSA) offers a potent reminder that the connected future is not just coded; it is forged, drawn, and physically built.

The Mexican industrial conglomerate recently posted remarkable results for the first nine months of 2025, with its consolidated net income nearly doubling to Ps. 2,851.1 million (U.S. $155.7 million) compared to the same period last year. This surge wasn't driven by a new app or a breakthrough algorithm, but by the soaring demand for one of civilization's oldest materials: copper. As a key manufacturer of copper tubing, wire, and electrical components, IUSA's performance serves as a critical barometer for the immense physical infrastructure build-out required to power our increasingly electrified world.

Riding the Red Metal Wave

IUSA's 11.0% increase in net revenues, reaching Ps. 25,709.7 million (U.S. $1.4 billion), is directly linked to what the company calls "market conditions" and rising copper prices. This is a modest description for a global trend with profound implications. The world is grappling with a structural deficit in copper supply, a situation intensified by a confluence of powerful demand drivers.

The energy transition is chief among them. Electric vehicles require several times more copper than their internal combustion engine counterparts, and the charging stations that power them demand extensive, high-capacity wiring. Similarly, renewable energy projects, from wind turbines to solar farms, are voracious consumers of copper for cabling and components. This baseline demand is now being supercharged by an explosive new catalyst: the proliferation of artificial intelligence and its need for massive data centers. According to recent market analysis, global copper prices have surged by nearly 30% in 2025, with forecasts suggesting the supply deficit could widen further in the coming years.

This market dynamic is clearly reflected in IUSA's financial statements. While the company's cost of sales rose, its gross profit expanded by an impressive 21.8%, pushing its gross margin up from 22.5% to 24.7%. This indicates that IUSA is not only benefiting from higher prices but is also effectively managing its production costs and leveraging its market position. The company’s operating income saw an even steeper climb of 33.2%, underscoring the powerful operational leverage it commands in the current environment.

A Strategic Push into North America

While favorable commodity markets have provided a powerful tailwind, IUSA's strategy extends beyond simply riding the price wave. The company is making a deliberate and significant push to solidify its role as a key infrastructure supplier for the entire North American market, with a particular focus on the United States. Of the Ps. 552.7 million (U.S. $30.2 million) invested in capital expenditures this year, a substantial 61.4% was allocated to expand and maintain its U.S.-based facilities.

This move is strategically astute. The United States is in the midst of a historic infrastructure overhaul, fueled by federal initiatives like the Infrastructure Investment and Jobs Act. This legislation is funneling billions into modernizing the nation's electrical grid, expanding broadband access, and building a national network of EV chargers—all projects that are fundamentally dependent on the copper wire, cabling, and electrical products that form the core of IUSA's portfolio.

By increasing its manufacturing footprint within the U.S., where it already derives 45% of its sales, IUSA is positioning itself to directly capture this demand. This onshoring strategy offers multiple advantages. It reduces logistical complexities and transportation costs, insulates the company from potential cross-border trade friction, and enhances supply chain resilience for its American customers in the construction, energy, and HVACR sectors. It's a clear signal that the company aims to be a local supplier for a national project, embedding itself deeply into the fabric of America's infrastructure renaissance.

Engineering Financial Resilience

The strength of IUSA's position is reinforced by sophisticated financial management that complements its operational and market strategy. The company's reported EBITDA, a key measure of profitability, jumped 30.6% to Ps. 4,121.8 million (U.S. $225.1 million). More telling, however, was the dramatic turnaround in its Comprehensive Financing Result. After posting a loss of over Ps. 685 million in the first nine months of 2024, the company recorded a gain of Ps. 448.3 million this year, a swing of over a billion pesos.

This was primarily driven by a net exchange gain, likely reflecting favorable movements between the U.S. dollar and the Mexican peso on its dollar-denominated debt and revenue streams. While currency fluctuations can be volatile, this positive result provided a significant boost to the bottom line, helping to nearly double net income.

Perhaps more indicative of long-term stability is a detail mentioned in its debt summary: the inclusion of "restructured debt." While specifics were not provided, debt restructuring typically involves negotiating more favorable terms, such as lower interest rates or extended maturities. This proactive balance sheet management strengthens the company’s financial foundation, reduces risk, and frees up capital for strategic investments, such as the ongoing expansion in the United States. This financial fortitude is what enables IUSA to not only weather market cycles but to aggressively invest in future growth.

As cities and nations accelerate their transition toward smarter, more sustainable, and electrified futures, the quiet work of industrial powerhouses like IUSA becomes increasingly vital. Their financial health is more than just a set of numbers on a page; it is a direct reflection of the tangible progress being made in building the physical backbone of the connected world. The path to the next wave of mobility, it seems, is being paved with copper drawn from factories in Mexico and the United States.