Core Insights - Investors in the Steel - Producers sector should consider ArcelorMittal (MT) and United States Steel (X) for potential undervalued stock opportunities [1] Valuation Metrics - ArcelorMittal has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while United States Steel has a Zacks Rank of 5 (Strong Sell) [3] - MT's forward P/E ratio is 7.68, significantly lower than X's forward P/E of 22.26, suggesting MT is undervalued [5] - The PEG ratio for MT is 0.14, compared to X's PEG ratio of 1.29, indicating MT's expected earnings growth is more favorable [5] - MT's P/B ratio is 0.46, while X's P/B ratio is 0.76, further supporting MT's valuation as more attractive [6] - MT has a Value grade of A, while X has a Value grade of C, highlighting MT's stronger position in value metrics [6]

Core Viewpoint - ArcelorMittal S.A. is advancing plans to establish a non-grain-oriented electrical steel manufacturing facility in Alabama, aiming to enhance domestic production and reduce reliance on imports [1][2]. Group 1: Project Overview - The new facility will have an annual production capacity of up to 150,000 metric tons of non-grain-oriented electrical steel, with a total investment of $1.2 billion [1]. - The project is expected to support critical industries such as electric vehicles and energy-efficient technologies, while also creating high-quality jobs in Alabama [2]. Group 2: Economic Impact - Construction is anticipated to begin in the second half of 2025, creating up to 1,300 jobs, with over 200 permanent positions for plant operations [3]. - The facility will help meet the increasing demand for high-quality electrical steels and provide a steady domestic supply, addressing supply-chain challenges [3]. Group 3: Additional Infrastructure - The ArcelorMittal Calvert plant will include various specialized manufacturing operations such as an annealing pickling line, cold-rolling mill, and packaging and slitter line [4].

Financial Performance - ArcelorMittal S.A. recorded adjusted earnings of 52 cents for fourth-quarter 2024, down from $1.18 per share in the year-ago quarter, but surpassed the Zacks Consensus Estimate of 41 cents [1] - Total sales rose approximately 1.1% year over year to $14,714 million, but missed the consensus estimate of $15,553.5 million due to a decline in average steel selling prices [2] - Net cash provided by operating activities was $2,468 million compared to $3,328 million in the year-ago quarter, with net debt around $5.1 billion, up roughly 75.9% year over year [8] Segment Review - North America: Sales decreased 10.5% year over year to $2.63 billion, with crude steel production increasing 13.8% to 1,883 million metric tons, but steel shipments fell 7.7% to 2,391 million metric tons, missing the consensus estimate [4] - Brazil: Sales increased around 7% year over year to $2.89 billion, with crude steel production declining 0.2% to 3,527 million metric tons and shipments down 2.4% to 3,478 million metric tons, lagging the consensus [5] - Europe: Sales rose around 7.7% year over year to $7.14 billion, with crude steel production increasing roughly 17.7% to 7,696 million metric tons and shipments rising 12.6% to 7,213 million metric tons, exceeding the consensus [6] - Mining: Sales fell 7.8% year over year to $704 million, while iron ore production totaled 8.9 million metric tons, up around 43.5% from the year-ago quarter [7] Annual Results - For 2024, ArcelorMittal reported revenues of $62.44 billion, indicating an 8.5% decline from 2023, primarily due to lower average steel selling prices despite stable shipments [9] - The company reported a net income of $1,339 million, a notable increase from $919 million in 2023 [9] Market Outlook - The company expects world ex-China apparent steel consumption to grow 2.5% to 3.5% in 2025 from the 2024 level, supporting steel shipment growth [10] - By region, apparent steel consumption for Europe flat products is expected to grow between 0% and 2%, while U.S. flat products are projected to increase 1% to 3% [10] Stock Performance - Shares of ArcelorMittal have gained 3.3% in the past year, contrasting with the industry's 21.8% decline [11]

Financial Performance - FY 2024 EBITDA was $7.1 billion, with EBITDA per tonne at $130, reflecting structural business improvements and regional diversification [2]. - Adjusted net income for FY 2024 was $2.3 billion, with a basic adjusted EPS of $2.95, impacted by non-cash and exceptional items totaling $1.0 billion [2]. - Operating income for 12M 2024 was $3.3 billion, a 41.4% increase from $2.3 billion in 12M 2023, despite impairment charges of $116 million and exceptional items of $216 million [21]. - EBITDA for 12M 2024 decreased by 19.3% to $7,053 million compared to $8,742 million in 12M 2023, primarily due to negative price-cost effects and lower iron ore prices [22]. - Net income for 12M 2024 increased to $1,339 million from $919 million in 12M 2023, with adjusted net income of $2,326 million compared to $4,867 million in 12M 2023 [23]. - The company reported a net loss attributable to equity holders of the parent of $390 million for Q4 2024, compared to a profit of $287 million in Q3 2024 and a loss of $2,966 million in Q4 2023 [69]. - Adjusted net income attributable to equity holders of the parent for 2024 was $2,326 million, down from $4,867 million in 2023 [69]. Cash Flow and Debt - The company generated net cash from operating activities of $4.9 billion, with $1.3 billion allocated to strategic growth capex and $1.7 billion returned to shareholders [2]. - Net cash provided by operating activities for 12M 2024 was $4.9 billion, down from $7.6 billion in 12M 2023, with free cash flow of $0.3 billion compared to $2.9 billion in 12M 2023 [24]. - The net cash provided by operating activities for Q4 2024 was $2,468 million, a significant increase from $1,411 million in Q3 2024 and $3,328 million in Q4 2023 [63]. - Free cash flow for Q4 2024 was $1,317 million, compared to $275 million in Q3 2024 and $1,847 million in Q4 2023 [63]. - Net debt at the end of 2024 was $5.1 billion, with total liquidity of $12.0 billion [2]. - The net debt as of December 31, 2024, was $5,079 million, with a net debt to LTM EBITDA ratio of 0.7 [68]. - The average debt maturity as of December 31, 2024, was 6.7 years, with total gross debt of $11.6 billion [67]. Sales and Production - Sales for FY 2024 decreased by 8.5% to $62.4 billion, primarily due to a 7.6% decline in average steel selling prices [20]. - Sales in North America for 12M 2024 were $11.9 billion, down from $12.98 billion in 12M 2023, with operating income decreasing to $1.31 billion from $1.92 billion [30]. - Sales in Brazil for 12M 2024 were $12.4 billion, a decline from $13.16 billion in 12M 2023, with operating income of $1.4 billion compared to $1.46 billion [34]. - AMNS India recorded a 3.0% increase in sales to $1.6 billion in 4Q 2024, driven by a 13.3% increase in steel shipments [44]. - ArcelorMittal reported revenues of $62.4 billion and crude steel production of 57.9 million metric tonnes in 2024 [93]. - The company achieved iron ore production of 42.4 million metric tonnes in 2024 [93]. Capital Expenditures and Investments - Capital expenditures for 2025 are projected to be between $4.5 billion and $5.0 billion, including $1.4 billion to $1.5 billion for strategic growth projects [5]. - Total capital expenditures for 2024 amounted to $4,405 million, down from $4,613 million in 2023 [61]. - Strategic capital expenditures for Q4 2024 were $331 million, compared to $284 million in Q3 2024 and $505 million in Q4 2023 [63]. - The company plans to increase its DRI quality pellet feed production capacity to 4.5 million tonnes per year by 2H 2025 at the Serra Azul mine in Brazil, with an expected EBITDA impact of $100 million [65]. - A new advanced manufacturing facility in Alabama is projected to produce up to 150,000 tons of non-grain-oriented electrical steel annually, with an estimated net capex of $0.9 billion [57]. Strategic Initiatives and Future Outlook - The company expects a $1.9 billion increase in EBITDA potential from strategic growth projects, with $0.4 billion targeted for 2025 [3]. - The company is currently commissioning a renewable energy project in Andhra Pradesh, India, with a nominal capacity of 1GW, expected to contribute $0.1 billion to EBITDA [64]. - The company plans to increase production at the Sestao flat products plant to 1.6 million tonnes by 2026, with much of the production to be XCarb [85]. - XCarb low-carbon emissions steel sales increased from 0.2 million tonnes in 2023 to 0.4 million tonnes in 2024 [19]. - XCarb sales in 2024 totaled approximately 0.4 million tonnes, focusing on carbon-neutral steel production initiatives [85]. Segment Performance - EBITDA in 4Q 2024 increased by 4.6% to $1,654 million compared to $1,581 million in 3Q 2024, driven by improvements in the Mining segment [26]. - Mining segment sales in Q4 2024 rose by 19.4% to $704 million from $589 million in Q3 2024, attributed to higher iron ore shipments and reference prices [53]. - Iron ore production in Q4 2024 increased by 34.9% to 8.9 million tons compared to 6.6 million tons in Q3 2024 [53]. - Operating income in the Mining segment for Q4 2024 was $246 million, a 92.3% increase from $128 million in Q3 2024, due to higher pricing and lower costs [54].

Leadership presentation Journey to Zero Fatalities: Implementation of the audit recommendations is underway Business specific plans have been developed to implement the recommendations of the Company-wide safety audit Key highlights include: Q2 and 1H 2023 financial results 4Q 2024 and FY 2024 Financial Results February 6, 2025 Aditya Mittal, Chief Executive Officer Genuino Christino, Chief Financial Officer 27th July 2023 1. EBITDA is defined as operating income plus depreciation, impairment items and exce ...

Financial Data and Key Metrics Changes - EBITDA for 2024 was $7.1 billion, translating to $130 of EBITDA per ton shipped, nearly double the previous cycle lows, indicating a structural transformation in the business [17][18] - Adjusted net income reached $2.3 billion, representing a 4.4% return on book value of equity, with return on capital employed at 6% [18] - Generated over $2 billion of investable cash flow in 2024, totaling $21 billion since 2021 [19] Business Line Data and Key Metrics Changes - The company expects a structural EBITDA impact of $1.9 billion from high-return strategic projects, with $400 million to be captured in 2025 and $600 million in 2026 [9][10] - Recent projects, including the Vega coal mill complex in Brazil and a new hot strip mill in Mexico, are performing well and contributing to incremental EBITDA [10] Market Data and Key Metrics Changes - The company anticipates slightly positive apparent demand growth in the market, positioning itself to benefit from any recovery [21] - The automotive market in North America is stable, while Europe is expected to see a modest decline in production [115] Company Strategy and Development Direction - The company is focused on safety improvements and achieving a culture of being fatality and injury-free [6][7] - A commitment to decarbonization is evident, with absolute carbon emissions reduced to approximately half of 2018 levels [12] - The company aims to maintain a capital expenditure envelope between $4.5 billion to $5 billion, with flexibility in allocation based on market conditions [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in the current cycle but emphasizes resilient results and confidence in future cash flow generation [8][21] - The company is optimistic about the potential for recovery in demand and is well-positioned to capitalize on it [21] Other Important Information - The dividend has increased to $0.55 per share, reflecting a 10% increase from the previous year and an 80% increase since 2020 [21] - The company has returned significant cash to shareholders through buybacks, reducing share count by 37% over the last four years [11] Q&A Session Summary Question: Impact of the non-green steel plant in Calvert - Management confirmed that the commissioning of the new electric furnace in Calvert is on track and will not materially delay the second electric arc furnace [28][30] Question: CapEx expectations - The company plans to keep overall CapEx between $4.5 billion to $5 billion, with flexibility to adjust based on market conditions [31] Question: EBITDA potential from Liberia's volume increase - Management explained that the EBITDA potential increase is limited due to quality considerations of the products being produced [34] Question: Potential tariffs on Canadian and Mexican steel - Management noted that while tariffs could impact operations, the revenue impact would likely offset costs, and they are focused on strengthening the NAFTA trading block [42][44] Question: Electrical steel market outlook - The non-grain-oriented electrical steel market is currently in deficit, with strong growth expected due to demand from both electric and hybrid vehicles [50][52] Question: European performance and margin stability - Management highlighted strong cost performance in Europe, contributing to stable margins despite challenging market conditions [123] Question: Future of Vallourec stake - Management expressed satisfaction with the current 28% stake in Vallourec and has no immediate plans to increase it [140]

ArcelorMittal (MT) reported $14.71 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 1.1%. EPS of $0.52 for the same period compares to $1.18 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $15.55 billion, representing a surprise of -5.40%. The company delivered an EPS surprise of +26.83%, with the consensus EPS estimate being $0.41.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

Luxembourg, February 6, 2025 - ArcelorMittal (referred to as "ArcelorMittal" or the "Company" or the "Group") (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world's leading integrated steel and mining company, today announced results1 for the three-month and twelve-month periods ended December 31, 2024. 2024 key highlights: Safety focus: Protecting employee health and well-being remains an overarching priority of the Company. LTIF rate of 0.70x in FY 2024 and 0.92x in FY 2023. Business spe ...

Wall Street analysts expect ArcelorMittal (MT) to post quarterly earnings of $0.41 per share in its upcoming report, which indicates a year-over-year decline of 65.3%. Revenues are expected to be $15.55 billion, up 6.9% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Ahead of a company's earnings disclosure, it is cru ...

ArcelorMittal (‘the Company') today announces the publication of its fourth quarter and full year 2024 sell-side analyst consensus figures. The consensus figures are based on analysts' estimates recorded on an external web-based tool provided and managed by an independent company, Visible Alpha. To arrive at the consensus figures below, Visible Alpha has aggregated the expectations of sell-side analysts who, to the best of our knowledge, cover ArcelorMittal on a continuous basis. This is currently a group o ...