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ArcelorMittal's Q4 Earnings Beat Estimates, Revenues Miss
MTArcelorMittal(MT) ZACKS·2025-02-07 14:21

Financial Performance - ArcelorMittal S.A. recorded adjusted earnings of 52 cents for fourth-quarter 2024, down from 1.18pershareintheyear−agoquarter,butsurpassedtheZacksConsensusEstimateof41cents[1]−Totalsalesroseapproximately1.11.18 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 15,553.5millionduetoadeclineinaveragesteelsellingprices[2]−Netcashprovidedbyoperatingactivitieswas15,553.5 million due to a decline in average steel selling prices [2] - Net cash provided by operating activities was 2,468 million compared to 3,328millionintheyear−agoquarter,withnetdebtaround3,328 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 2.63billion,withcrudesteelproductionincreasing13.82.63 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 7.14billion,withcrudesteelproductionincreasingroughly17.77.14 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 62.44billion,indicatingan8.562.44 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]