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.

• Analyst & investor webcast - link
• Earnings Release - EN - PDF
• Analysts slides – EN – PDF
• Analyst model - XLS

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 specific plans have been developed to implement the recommendations of the Company-wide safety audit by dss+

Resilient operating results despite challenging market conditions: FY 2024 EBITDA of $7.1bn (EBITDA/tonne of $130/t), reflects structural business improvements and the benefits of regional/product diversification

Adjusted net income: FY 2024 net income of $1.3bn was impacted by non-cash and exceptional items totaling $1.0bn (including impairments², restructuring costs³ and one-off tax charges⁴). Adjusted net income for FY 2024 was $2.3bn (adjusted basic EPS of $2.95)⁵

Cash flow being reinvested for growth and shareholder returns: Over the past 12 months, the Company has generated net cash provided by operating activities of $4.9bn and spent maintenance/normative capex of $2.8bn resulting in investable cash flow of $2.0bn. Out of this, the Company invested $1.3bn on strategic growth capex projects, returned $1.7bn to ArcelorMittal shareholders and allocated a net $0.6bn to M&A. The Company has grown the business, rewarded shareholders (all-in cash yield of 8.4%) all whilst maintaining a strong balance sheet

Maintaining financial strength: Net debt at the end of 2024 was $5.1bn (gross debt of $11.6bn and cash and cash equivalents of $6.5bn). Year-end 2024 liquidity totaled $12.0bn⁹

Share repurchases driving enhanced value: During 2024, the Company repurchased 52 million shares⁶, reducing the total shares outstanding by 6.3% and bringing the fully diluted share count reduction since September 2020 to 37%. Book value per share is $64/sh at the end of 2024

Strategic priorities

Strategic growth update: The Group‘s high return strategic growth projects are now expected to increase EBITDA potential by $1.9bn⁷ (previously $1.8bn), with a $0.4bn benefit to EBITDA targeted in 2025, despite delays to some smaller projects:

• Targeting $0.2bn EBITDA contribution in 2025 from completed projects in India (1GW renewables) and Brazil (Vega CMC)
• Liberia iron ore expansion revised to 20Mt: A multiple product sinter feed and concentrate approach, together with a revised mining plan and additional investment in infrastructure, allows for an additional 5Mt per annum of marketable material vs. the previous approved plan. The first concentrate production was achieved in 4Q 2024, with ramp up to 20Mt run-rate capacity expected by the end of 2025. Project capex has been revised to $1.8bn (from $1.4bn previously) with EBITDA potential increased to $450m (from $350m previously) with $0.2bn EBITDA targeted in 2025 from ~10Mt of shipments (with the majority of shipments expected in 2H 2025)
• New state-of-the-art 1.5Mt EAF at AMNS Calvert (US) near completion, with commissioning underway. This will be the first EAF in North America capable of supplying exposed automotive grades with domestically melted and poured material
• New electrical steel plant to be constructed in Calvert (100% owned by ArcelorMittal) with capacity to deliver up to 150Kt of premium non-grain-oriented electrical steel (NOES) annually. Net capex to build the plant is estimated at $0.9bn⁸ with production anticipated to commence in 2H 2027 and expected annual EBITDA impact of $0.2bn at full capacity

Economic decarbonization: ArcelorMittal continues to optimize its decarbonization pathway to ensure competitiveness and an appropriate return on investment. Large scale decarbonization projects are advancing at a slower pace than originally anticipated due to insufficient policy/market developments. Current investments are focused on the new EAF at Gijón (Spain) and the EAF expansion at Sestao (Spain) which are intended to further expand the Company’s offering of XCarb^® low carbon emissions steel

Capital returns: As of the end of December 31, 2024, 92% of the current 85m share buy-back program has been completed. The Board proposes to increase the annual base dividend to shareholders to $0.55/sh in FY 2025 (from $0.50/sh in FY 2024), to be paid in two equal installments in June 2025 and December 2025, subject to the shareholders' approval at the 2025 AGM. The Company will continue to return a minimum of 50% of post-dividend free cash flow to shareholders via share buybacks

Outlook

Company believes demand will increase during 2025: The Company expects higher apparent demand in FY 2025 compared to FY 2024. With low inventory levels, especially in Europe, the Company is optimistic that restocking activity will supplement real demand improvement

Capex discipline in support of growth and competitive decarbonization: Capex in 2025 is projected to be within the range of $4.5-$5.0bn, including $1.4-$1.5bn on our strategic growth projects and $0.3-$0.4bn on projects related to decarbonization

Positive free cash flow outlook in 2025 and beyond: Cash flow in 2025 is expected to be supported by working capital optimization. The completion of the Company’s strategic growth projects is expected to support structurally higher EBITDA and investable cash flow in the coming periods

 

Financial highlights (on the basis of IFRS¹):

Commenting, Aditya Mittal, ArcelorMittal Chief Executive Officer, said:

“2024 saw the completion of the dss+ Group-wide safety audit, which was commissioned to help accelerate our progress to becoming a safer company. The recommendations are being implemented across the Group, with our teams everywhere determined to demonstrate that the significant efforts underway are yielding positive results.

“Last year was challenging from a global economic perspective, but, despite this EBITDA per tonne at $130 is considerably higher than the five- year-average pre-COVID. It is testament to the core strength of the Company that we are generating free cash flow, investing for growth and returning cash to shareholders in these markets. The long-term outlook for the steel industry is positive and our global presence means we have a unique opportunity to prioritize investment in markets where there is a strong outlook for growth and returns. We are particularly focused on Brazil, India, and the US, where we are enhancing our ability to meet automotive demand through a new high quality electric arc furnace at AM/NS Calvert and a new electric steel facility announced today.

“ArcelorMittal's absolute emissions are down 50% from 2018, including steps taken to shape the business with a portfolio of lower carbon operations. Current decarbonization investment is focused on ramping up production of the electric arc furnace in Sestao (Spain), which produces high quality low-carbon flat products, and the new EAF in Gijón (Spain). Electric arc furnaces now comprise 25% of our global production, up from 19% in 2018.

“Looking to the year ahead, while inventory levels are low and apparent demand is expected to improve, our industry continues to be characterized by global overcapacity and we are supportive of policy to address this in our markets. Further action is particularly necessary in Europe, which was impacted by increased imports in 2024, further adding to the pressures on European manufacturing.  It is critical that we see progress in 2025 both in providing necessary emergency relief and creating a policy environment that incentivizes the investment required to accelerate decarbonization in Europe.”

 

Fourth quarter 2024 earnings analyst conference call

ArcelorMittal Management will host a conference call for members of the investment community to present and comment on the three-month and twelve-month period ended December 31, 2024 on: Thursday February 6, 2025, at 9.30am US Eastern time. 14.30pm London time and 15.30pm CET.

To access via the conference call and ask a question during the Q&A, please register in advance:  https://register.vevent.com/register/BI22a60871e7224ca7824a278f22f4531f

Alternatively, the webcast can be accessed live on the day: https://edge.media-server.com/mmc/p/cjhvkxyu

Footnotes

1. The financial information in this press release has been prepared consistently with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and as adopted by the European Union. The interim financial information included in this announcement has also been prepared in accordance with IFRS applicable to interim periods, however this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standard 34, “Interim Financial Reporting”. The numbers in this press release have not been audited. The financial information and certain other information presented in a number of tables in this press release have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column. In addition, certain percentages presented in the tables in this press release reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based upon the rounded numbers. Segment information presented in this press release is prior to inter-segment eliminations and certain adjustments made to operating results of the segments to reflect corporate costs, income from non-steel operations (e.g. logistics and shipping services) and the elimination of stock margins between the segments.
2. Impairment charges of $116 million for 12M 2024, $37 million related to the closure of the ArcelorMittal South Africa long business (4Q 2024), $43 million impairment of civil works for the Monlevade project in Brazil (4Q 2024) and $36 million related to the closure of the coke oven battery in Krakow (Poland) in 3Q 2024. Impairment charge for 12M 2023 (excluding that related to the sale of operations in Kazakhstan) amounted to $0.1 billion, related to the Long business of ArcelorMittal South Africa. In addition, in 12M 2023, following the sale of the Company's steel and mining operations in Kazakhstan the Company recorded a $0.9 billion non-cash impairment charge (including $0.2 billion goodwill), and recorded $1.5 billion cumulative translation losses (previously recorded against equity) through the Consolidated Statements of Operations. These items are considered exceptional items for the calculation of adjusted net income.
3. Exceptional charges of $216 million in 12M 2024 including restructuring costs related to business optimization primarily through asset concentration. Specifically, $79 million restructuring charges in the Sustainable solutions division (4Q 2024), $63 million related to closure of the long business of ArcelorMittal South Africa (4Q 2024) and $74 million related to restructuring costs related to the closure of the coke oven battery in Krakow (Poland) in 3Q 2024.
4. One-off tax charges relate to i) In December 2024, Luxembourg passed a law resulting in a decrease of the statutory tax rate in Luxembourg (effective January 1, 2025) from 24.94% to 23.87%. The decrease in the deferred tax asset and resulting deferred tax expense was $0.4 billion in 4Q 2024; and ii) $0.2 billion provision relating to tax litigations. Both items are considered exceptional items for the calculation of adjusted net income.
5. See Appendix 4 for reconciliation of adjusted net income and adjusted basic earnings per share.
6. September 2020 was the inception date of the ongoing share buyback programs. The Company has repurchased 52 million shares during 12M 2024; totalling 78.2 million shares from the current 85 million share buyback program.
7. Out of the total $1.9 billion EBITDA potential, it is considered that $0.3 billion has been achieved to date from the completion of the Mexico HSM project on an observed run-rate basis, $0.4 billion is expected in 2025, $0.6 billion in 2026 and $0.6 billion in 2027 and beyond. The estimate of potential additional contribution to EBITDA is based on assumptions once ramped up to full capacity and assuming prices/spreads generally in line with the averages of 2015-2020. The Monlevade expansion project in Brazil has now been cancelled. Other projects under development include: ArcelorMittal Brasil is developing a plan to construct a new high added value finishing line and a coating line for approximately R$3.8~R$4.0 billion capex at its Tubarão facility. The Company is moving forward with detailed engineering (a full feasibility study) and construction is expected to take ~3 years. Strategic projects capex in 12M 2024 primarily included investments for the Liberia expansion project (41%), the renewables energy project in India (14%) and Mardyck electrical steels (14%).
8. Gross capex of $1.2 billion. Net amount of $0.9 billion, reflecting the value of federal, state and local support.
9. Liquidity at the end of December 31, 2024 of $12.0 billion consisted of cash and cash equivalents of $6.5 billion and $5.5 billion of available credit lines.
10. The 2018 baseline reflects assets owned by ArcelorMittal in 2018, and does not take into consideration footprint and portfolio optimization.

Forward-Looking Statements

This document contains forward-looking information and statements about ArcelorMittal and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words “believe”, “expect”, “anticipate”, “target”, "projected", "potential", "intend" or similar expressions. Although ArcelorMittal’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal’s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier) and the United States Securities and Exchange Commission (the “SEC”) made or to be made by ArcelorMittal, including ArcelorMittal’s latest Annual Report on Form 20-F on file with the SEC. ArcelorMittal undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.