1Q 2025 key highlights:
- Safety focus: Protecting employee health and well-being remains an overarching priority of the Company. LTIF rate of 0.63x in 1Q 2025. dss+ safety audit recommendations implementation phase is underway
- Delivering higher margins than in prior cycles: The Group's results are showing resilience; the benefits of asset optimization and a diversified asset portfolio are supporting higher and more stable margins than in prior cycles. Despite the impact of unsustainably low spreads, 1Q 2025 EBITDA of $1.6bn with EBITDA/tonne of $116/t compares favorably against low points of previous cycles. 1Q 2025 net income is $0.8bn
- Stronger operations: Record production and shipments from Liberia iron ore operations supporting strong Mining segment performance; European mills operating consistently supporting good cost performance; North America back to normalized operating levels
- Seasonal investment in working capital: A typical seasonal working capital investment of $1.7bn during the quarter led to a free cash outflow of $1.4bn and an increase in net debt10 to $6.7bn (while liquidity stood at $10.8bn8)
- Investing for growth and consistently rewarding shareholders all whilst maintaining a strong balance sheet: Over the past 12 months, the Company has generated net cash provided by operating activities of $4.6bn and spent maintenance/normative capex of $2.7bn resulting in investable cash flow of $1.9bn. The Company then invested $1.2bn on strategic growth capex projects, returned $1.2bn to ArcelorMittal shareholders and allocated a net $0.9bn to M&A
Strategic focus:
ArcelorMittal’s optimized asset portfolio and repositioned balance sheet places it in a much stronger position to navigate macro uncertainty whilst maintaining its strategic course
Delivering strategic growth projects: good momentum
The Group's strong financial position enables the consistent funding of organic growth projects to support future profitability and investable cashflow. The Group‘s high return strategic growth projects, together with impact of Vallourec and Italpannelli are expected to increase EBITDA potential by $1.8bn7, with a $0.6bn benefit to EBITDA targeted in 2025
Key projects for 2025 are on track:
- Liberia iron ore expansion project to 20Mt is running on time and budget. The commissioning of full 15Mt concentrator capacity is on track by mid-2025 with full 20Mt capacity run-rate targeted by end 2025. 10Mt shipments expected in 2025, and incremental EBITDA of $0.2bn expected in 2025 and $450m at full capacity assuming current long-term prices
- New state-of-the-art 1.5Mt EAF at AMNS Calvert (US) commissioning is underway. This will be the first EAF in North America capable of supplying exposed automotive grades with domestically melted and poured material with first heat expected in 2Q 2025
- Development of AMNS India continues to gather momentum. The phase 1 expansion of Hazira to 15Mt by the end of 2026 remains on track. 2025 will see the commissioning of new high added-value downstream facilities (CGL3, PLTCM and CGAL) particularly focused on steel for automotive customers. Land acquisition has commenced in Rajayyapeta, Andhra Pradesh, where a 7.3Mtpa state-of the art integrated greenfield steel plant is planned
Economic decarbonization:
- The Company has been encouraged by the European Commission's (EC) Steel and Metals Action Plan which has shown an understanding of the critical issues i.e. trade defenses, strengthened CBAM and demand for low carbon emission steel. The recently enhanced safeguards and new anti-dumping measures support the outlook for domestic producers relative to importers
- The Action Plan now needs to be supported by rapid implementation; of critical importance is visibility on the provision of industry access to competitive energy, an effective CBAM and Trade defenses. At that point, the Company will be able to review its investment priorities for the Europe segment
- The Company continues to optimize its decarbonization pathway, focused on generating a return on investment with related capex to be contained within the annual capex envelope of $4.5-$5.0bn
Consistent shareholder returns:
- Since September 20206, the Company has successfully completed 9 separate buyback programs, reducing fully diluted shares outstanding by 38%
- As per its capital allocation and return policy, in addition to its base dividend ($0.55/sh)9, the Company will continue to return a minimum of 50% of post-dividend annual free cash flow to shareholders
- Following completion of the most recent 85 million share buyback (SBB) program on April 1, 2025, a new 2025-2030 SBB program was announced. The Company will repurchase shares in a series of "tranches" through 2030. The first 10 million tranche commenced immediately upon announcement