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ArcelorMittal S.A.: ArcelorMittal reports first quarter 2025
MTArcelorMittal(MT) GlobeNewswire·2025-04-30 05:00

Core Insights - ArcelorMittal reported a net income of 805millionforQ12025,asignificantrecoveryfromanetlossof805 million for Q1 2025, a significant recovery from a net loss of 390 million in Q4 2024, driven by higher operating income and foreign exchange gains [22][20][21] - The company achieved an EBITDA of 1.58billioninQ12025,reflectingadeclineof4.51.58 billion in Q1 2025, reflecting a decline of 4.5% from 1.65 billion in Q4 2024, primarily due to seasonal factors and negative price-cost effects in Europe [21][11] - The company’s sales remained stable at 14.8billioninQ12025comparedto14.8 billion in Q1 2025 compared to 14.7 billion in Q4 2024, with operating income increasing by 55.9% to 825million[20][52]FinancialPerformance−Thecompanygenerated825 million [20][52] Financial Performance - The company generated 4.6 billion in net cash from operating activities over the past 12 months, with 2.7billionallocatedtomaintenanceandnormativecapex,resultinginaninvestablecashflowof2.7 billion allocated to maintenance and normative capex, resulting in an investable cash flow of 1.9 billion [2] - Free cash outflow for Q1 2025 was 1.4billion,leadingtoanincreaseinnetdebtto1.4 billion, leading to an increase in net debt to 6.7 billion, while liquidity stood at 10.8billion[2][24]−Thecompany’sEBITDApertonnewas10.8 billion [2][24] - The company’s EBITDA per tonne was 116 in Q1 2025, which is favorable compared to the low points of previous cycles [2][11] Operational Highlights - Record production and shipments from Liberia's iron ore operations contributed to strong performance in the Mining segment, with total iron ore production of 11.8 million tonnes in Q1 2025 [7][44] - The company’s North American operations returned to normalized levels, with crude steel production of 2.26 million tonnes in Q1 2025 [25][26] - The company is on track with strategic growth projects, expecting an incremental EBITDA potential of 1.8billionby2027[3][11]StrategicFocus−ArcelorMittal′soptimizedassetportfolioandrepositionedbalancesheetenhanceitsabilitytonavigatemacroeconomicuncertaintieswhilepursuingstrategicgrowth[3]−Thecompanyisinvestingindecarbonizationinitiatives,withacapexenvelopeof1.8 billion by 2027 [3][11] Strategic Focus - ArcelorMittal's optimized asset portfolio and repositioned balance sheet enhance its ability to navigate macroeconomic uncertainties while pursuing strategic growth [3] - The company is investing in decarbonization initiatives, with a capex envelope of 4.5-5.0billionplannedfor2025,including5.0 billion planned for 2025, including 0.3-$0.4 billion for decarbonization projects [19][49] - The company has initiated a new long-term share buyback program, with the first tranche of 10 million shares commencing on April 7, 2025 [10][49] Market Outlook - The macroeconomic outlook remains uncertain, particularly regarding global trade disruptions, but the company has not altered its investment plans or capital return priorities [48][49] - The European Commission's Steel and Metals Action Plan is expected to support the company’s competitiveness against imports, while U.S. tariffs are aiding price stability [12][48] - Demand for low-carbon emission steel is anticipated to grow, supported by enhanced safeguards and anti-dumping measures [4][19]