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 six-month periods ended June 30, 2024

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

2Q 2024 key highlights:

• Health and safety focus: Protecting employee health and safety remains the overarching priority of the Company; the Company-wide audit of safety by dss+ remains on track for completion by 3Q 2024 and will support our pathway to zero serious injuries and fatalities; LTIF² rate of 0.57 in 2Q 2024 and 0.59 in 1H 2024
• Resilient operating results: Benefits of diversification were apparent in the second quarter, with higher steel shipments (+3.2% vs. 1Q 2024) and lower costs helping to offset the impact of lower steel prices; 2Q 2024 EBITDA³ of $1.9bn (vs. $2.0bn in 1Q 2024) with EBITDA/t of $134/t in 2Q 2024 (vs. $140/t in 1H 2024) continuing to reflect structural improvements
• Net income impacted by non-cash items: $0.5bn in 2Q 2024 vs. $0.9bn in 1Q 2024 largely explained by the impact of the non-cash mark-to-market on Vallourec shares¹⁰
• Financial strength: Net debt of $5.2bn at the end of the quarter (gross debt of $11.1bn and cash and cash equivalents of $5.9bn as of June 30, 2024) remains a strong foundation for continued growth investment and capital returns
• Cash flow being reinvested for growth and shareholder returns: over the past 12 months, the Company has generated investable cash flow¹⁸ of $2.6bn with $1.5bn invested on strategic growth projects and $1.8bn returned to ArcelorMittal shareholders

 Key developments towards strategic objectives:

• Organic growth: As expected the Vega CMC (Brazil) project is ramping up and the 1GW renewables project in India has begun commissioning. Further projects nearing completion include: Calvert EAF (US), Serra Azul (Brazil), electrical steel (France) and capacity expansion in Liberia. Strategic growth projects are estimated to add $1.8 billion to the Company's EBITDA potential by the end of 2026⁵
• Asset portfolio: The Sustainable Solutions segment is making progress towards the targeted doubling of EBITDA in the next 5 years. The Company has acquired Italpannelli’s Italian and Spanish businesses, building on ArcelorMittal’s exposure to insulation panels for low carbon emissions buildings. Together with Vallourec (which will be reported within India and JV segment), these acquisitions are estimated to add a further $0.2bn to EBITDA potential in 2025
• Consistent shareholder returns: In addition to its growing base dividend ($0.50/sh in 2024, of which the first $0.25/sh installment was paid in June 2024), the Company will continue to return a minimum 50% of post-dividend FCF to shareholders through its share buyback programs. The Company repurchased 1.5% of its outstanding shares during 2Q 2024 (4.2% during the 1H 2024)¹¹ bringing the total reduction in fully diluted share count to 36% since September 2020⁶

 Outlook:

• Company believes current market conditions are unsustainable: China’s excess production relative to demand is resulting in very low domestic steel spreads and aggressive exports; steel prices in both Europe and US are below the marginal cost. The Company expects apparent demand to be higher in 2H’24 vs. 2H’23 (which was impacted by destocking particularly in Europe). As absolute inventory levels remain low, particularly in Europe, the Company remains optimistic that restocking activity will occur once real demand begins to recover
• Disciplined capex investment: Capex in 2024 continues to be expected within the range of $4.5bn-$5.0bn range, including $1.4-1.5bn on our strategic growth projects^4,9. A capital-efficient decarbonization strategy is essential to achieving appropriate returns on investment. ArcelorMittal continues to optimize its decarbonization pathway, with the objective of achieving its targets within the established budget
• Positive free cash flow outlook in 2024 and beyond: The Company expects the $1.6bn investment in working capital in 1H’24 to reverse by year end, supporting the outlook for free cash flow generation. 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:

“The Company continued to make good progress in the first half of the year. Starting with safety, the comprehensive dss+ audit of all matters safety related is nearing completion. There has been excellent engagement at all levels across the Group and no doubt the learnings and recommendations will be instrumental in helping us achieve our safety goals.

“Our pipeline of attractive strategic growth projects, which combined with recent acquisitions, have the estimated potential to increase EBITDA by $2.0 billion, are starting to come on-line. The Vega CMC is ramping up and the 1GW renewables project in India has now started commissioning, with several other projects due to complete this year.

“Demand continues to grow for our XCarb recycled and renewably produced steels, which are currently shining brightly on the Eiffel Tower and Arc de Triomphe in the form of the Olympic “Spectacular” rings and Paralympic “Agitos”. As important as our low carbon steel products, are our climate solutions. We have recently launched the new HyMatch® brand for hydrogen transport pipelines supporting the implementation of hydrogen infrastructure globally and the recent acquisition of Italpannelli’s Italian and Spanish businesses, builds our exposure to the attractive insulation panels market for low carbon emissions buildings. We also continue to progress our decarbonization agenda, with groundbreaking having taken place on the new 1.1 million tonne electric arc furnace in Gijon.

“Financially, performance in the second quarter was broadly similar to the first, reflecting the continued subdued economic sentiment. Inventories are at a low level which will support apparent steel demand growth ex-China of between 2.5% and 3% this year. The Company enjoys a healthy balance sheet, from which it can continue to invest for growth and market share and consistently return cash to shareholders."

Second 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 period ended June 30, 2024 on: Thursday August 1, 2024, 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/BI9f82767e8da148158be3f4cf77dd0e13

Alternatively, the webcast can be accessed live on the day: https://edge.media-server.com/mmc/p/4p47v6en 

Please visit the results section on our website to listen to the replay once the event has finished https://corporate.arcelormittal.com/investors/results 

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. LTIF refers to lost time injury frequency rate equals lost time injuries per 1,000,000 worked hours, based on own personnel and contractors.
3. As announced with ArcelorMittal’s fourth quarter 2023 financial results, the Company has amended its presentation of reportable segments and EBITDA. The changes, applied as from January 1, 2024, are as follows: EBITDA is defined as operating result plus depreciation, impairment items and exceptional items and result from associates, joint ventures and other investments (excluding impairments and exceptional items if any); The NAFTA segment has been renamed "North America", a core growth region for the Company; A new ‘Sustainable Solutions’ segment is composed of a number of high-growth, niche, capital light businesses, playing an important role in supporting climate action (including renewables, special projects and construction business). Previously reported within the Europe segment, this is a growth vector of the Company and represents businesses employing over 12,000 people at more than 260 commercial and production sites across 60+ countries. Following the sale of the Company’s operations in Kazakhstan, the remaining parts of the former ‘ACIS’ segment have been assigned to ‘Others’; there are no changes to the ‘Brazil’ and ‘Mining’ segments. ‘India and JVs’ is now presented and the share of net income of AMNS India and AMNS Calvert as well as the other associates, joint ventures and other investments is included in EBITDA. India is a high growth vector of the Company, with our assets well-positioned to grow with the domestic market. These changes have been applied as from January 1, 2024, and the comparative periods of 2023 shown herein have been retrospectively recast.
4. 2Q 2024 includes decarbonization capex of $0.1 billion and strategic growth capex of $0.3 billion. Strategic projects capex in 2Q 2024 primarily include investments for the Liberia expansion project (first concentrate), Mardyck electrical steels, Serra Azul and the renewables energy project in India.
5. Estimate of additional contribution to EBITDA, based on assumptions once ramped up to capacity and assuming prices/spreads generally in line with the averages of the 2015-2020 period. Out of the total $1.8 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.
6. September 2020 was the inception date of the ongoing share buyback programs.
7. On March 9, 2023, ArcelorMittal announced that following receipt of customary regulatory approvals it had completed the acquisition of Companhia Siderúrgica do Pecém (‘CSP’) in Brazil for an enterprise value of approximately $2.2 billion.
8. 1H 2024 net cash provided by operating activities of $973 million (including working capital investment of $1,635 million) less capex of $2,221 million and dividends to minority shareholders of $84 million.
9. 1H 2024 includes decarbonization capex of $0.1 billion and strategic growth capex of $0.7 billion. Strategic projects capex in 1H 2024 primarily include investments for the Liberia expansion project (first concentrate), the renewables energy project in India and Mardyck electrical steels.
10. Vallourec share price increased to €17.20 as of March 31, 2024, as compared to €14.64 contractually agreed at the signing of the share price agreement for 65.2 million shares on March 12, 2024 generating a non-cash mark-to-market gain of $181 million as of March 31, 2024 and causing a non-cash mark-to-market loss of $173 million in 2Q 2024 as the Vallourec share price decreased to €14.76 as of June 30, 2024. In accordance with IFRS, the Company recognized this net gain as the final fair value of the investment is unknown until transaction closing.
11. The Company has repurchased 34.7 million shares during 1H 2024; totalling 60.9 million shares from the current 85 million share buyback program.

Forward-Looking Statements

This document may contain 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” 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.