ArcelorMittal(MT) - 2024 Q4 - Annual Report

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$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$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$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$128 million in Q3 2024, due to higher pricing and lower costs [54].