ArcelorMittal reduced its EBITDA by 4.5% in the first quarter of 2025 compared to the fourth quarter, to $1.58 billion, the company said in a statement. Compared to the same period last year, the figure fell by 19.2%.
The quarterly decline in EBITDA was due to weather conditions in Brazil, while prices and costs in Europe also had a negative impact on the figure, along with a decline in financial results in India. At the same time, EBITDA was supported by an improved situation in North America, including higher production volumes and a positive effect from price increases.
Operating profit in the last quarter amounted to $825 million, compared to $529 million in the previous period and $1.072 billion a year earlier. The figure was impacted by impairment charges of $80 million related to the closure of the South African facility, among other things.
Net profit in January-March amounted to $805 million, compared to a loss of $390 million a quarter earlier and a profit of $938 million in Q1 2024. The quarterly increase was driven by higher operating profit, foreign exchange gains (mainly due to the depreciation of the US dollar) and lower taxes.
Revenue increased by 0.6% last quarter to $14.798 billion, amounting to $14.798 billion. In the first quarter of 2024, revenue was $16.282 billion.
ArcelorMittal’s capex in January-March amounted to $1 billion. The capex target for this year is $4.5-5 billion, including $1.4-1.5 billion for strategic projects and $300-400 million for decarbonization projects.
In the first quarter, the company increased steel production by 5.7% compared to the previous three months, to 14.8 million tons (14.4 million tons a year earlier). The company shipped 13.6 million tons of steel last quarter (13.5 million tons in the previous quarter and a year earlier). Iron ore production in the quarter decreased by 6.3% to 11.8 million tonnes (10.2 million tonnes a year earlier).
Steelmaker ArcelorMittal reduced its net loss and increased its revenue in the fourth quarter, while its EBITDA exceeded analysts’ forecasts.
According to the company’s press release, in October-December 2024, its net loss amounted to $390 million, or $0.51 per share, compared to a loss of $2.97 billion, or $3.57 per share, in the comparable period of the previous year. Excluding one-time items, earnings were $0.52 per share versus $1.18 a year earlier.
The earnings adjustment includes a one-time tax expense related to the change in the tax rate in Luxembourg ($0.4 billion) and a provision for tax litigation ($0.2 billion).
The company’s EBITDA in the fourth quarter increased by 13% to $1.65 billion from $1.45 billion a year earlier, while the consensus analysts’ forecast, presented earlier by the company itself, envisaged an increase to $1.53 billion.
ArcelorMittal’s revenue in the reporting quarter increased to $14.7 billion from $14.6 billion in the fourth quarter of 2023.
Steel production in the fourth quarter increased to 14 million tonnes from 13.7 million tonnes a year earlier, while steel supplies rose to 13.5 million tonnes against 13.3 million tonnes.
The company expects global steel consumption (excluding China) to grow by 2.5%-3.5% in 2025 compared to 2024.
Shares of ArcelorMittal are up 3.5% in trading on Thursday.
ArcelorMittal increased EBITDA by 35% in the first quarter of 2024 compared to the fourth quarter of 2023 to $1.96 billion, the company said in a statement.
The main increase in EBITDA was driven by improved performance of assets in North America, Brazil, Europe and India.
Operating profit in the last quarter amounted to $1 billion compared to a loss of $1.98 billion in the previous period.
Net profit in January-March amounted to $938 million, compared to a loss of almost $3 billion a quarter earlier.
Revenue increased by 12% last quarter compared to the fourth quarter, amounting to $16.28 billion.
ArcelorMittal’s capex in working capital amounted to $1.7 billion in January-March. The capex target for this year is $4.5-5 billion.
In the first quarter, the company increased steel production by 5% quarter-on-quarter to 14.4 million tons. Last quarter, metal shipments increased by 1.5% to 13.5 million tons. The company’s iron ore production increased by 4.8% to 6.5 million tons in the quarter.
According to ArcelorMittal’s forecasts, global steel consumption, excluding China, will increase by 3-4% in 2024. At the same time, demand in the US will increase by 1.5-3.5%, in Europe by 2-4%, in Brazil by 0.5-2.5%, and in India by 6.5-8.5%.
ArcelorMittal increased its EBITDA by 44% in Q2 2023 compared to Q1, to $2.6 bln, the company said in a statement.
The steelmaker points to improving market conditions as well as positive effects from M&A deals (the acquisition of Pecem in Brazil and the consolidation of ArcelorMittal Texas HBI). For the six months, EBITDA rose to $4.4 billion from $3.9 billion a year earlier.
Operating profit last quarter was up 62% on Q1, to $1.9 billion. January-June operating profit was $3.1 billion, compared with $8.9 in the first six months of 2022.
Net income in the April-June period was $1.86 billion (up 70%), down 63% to $2.96 billion for the first half of the year.
Revenue increased last quarter by 0.6% quarter-on-quarter to $18.6 bln. In January-June, ArcelorMittal’s revenue fell by 16% to $37.1 bln largely due to lower metal shipments and a 14.7% drop in average realized price.
ArcelorMittal’s April-June capex totaled $1.06 billion ($938 million quarter earlier), with a 2023 capex guidance of $4.5-5 billion.
In the second quarter, the company increased steel output by 1.4% quarter-on-quarter to 14.7 million tons; for the half-year, it decreased by 5.5% to 29.2 million tons.
Metal shipments fell 2% to 14.2 million tons last quarter, down 3.4% (to 28.7 million tons) in January-June.
The company’s production of yellow ore for the quarter fell 4.5% to 6.4 million tons, with 13.1 million tons produced in the six months compared to 14.2 million tons of yellow ore a year earlier.
ArcelorMittal Krivoy Rog (Dnipropetrovsk Region) has reduced its production to 15-20% of its pre-war level from 30-40% achieved recently due to problems with technical water supply after Russian occupants blew up the Kakhovska hydroelectric dam.
“From an industrial, industrial point of view, we are certainly feeling the effects. We can use what we have – the reserves. But still, you remember we were working, we had somewhere between 30-40% recently, now we’re back to 15-20% of our labor force. And we don’t see the opportunity to get more orders right now,” said ArcelorMittal Krivoy Rog (AMKR) CEO Mauro Longobardo at a discussion organized by the European Business Association (EBA) on Wednesday on “The Kakhovskaya HPP blast: implications for business.”
He said the company will focus on fulfilling earlier orders and implementing projects to provide the plant with water from alternative sources. Longobardo estimates it will take at least six months to implement projects that provide alternatives.
“We will do our best to fulfill previous orders. With the new orders, we’re waiting for the situation to normalize. We have yet to see the Dnieper water level stabilize – every day there is a decrease in the level, and we don’t expect things to return to previous levels anytime soon. But to start using water from other reservoirs, it takes time – we will need pumping stations. That is about half a year at least. Certain preparatory work is already underway,” said the AMKR CEO.
As one of the measures to minimize the negative effects, the company intends to make a change in production planning so that there are periods with high consumption and lower consumption. If during normal times the water consumption at the plant was 2.4 thousand cubic meters per hour, now it has dropped to 1 thousand cubic meters per hour or less, Longobardo specified.
In this case, the top manager noted that even though the customers are concerned, they are sympathetic to the situation, and assured that with the available reserves the company will meet all current orders.
In turn, Sergey Plichko, the financial director of ArcelorMittal Krivoy Rog, during the discussion explained that such a significant drop in water consumption was due to the lowering of its pressure, which was applied in connection with the need to save water in the southern reservoir, through which also meets the water needs of 70% of the population in Krivoy Rog.
“In order to adapt to these conditions, we had to stop some units. At first we stopped production of steel and rolled products. Now we understand that we will be able to restart some rolling mills. We will try to put one of them back in operation tomorrow. Then we’ll look at the level of consumption and whether we can launch some other units,” he said.
According to Plichko, the situation is better in the company’s mining department due to the fact that process water is used in a closed circuit. “The situation in the mining department is better – there is a closed circuit of water consumption. The water used in the production process is settled and fed back into production. There is only minor consumption to replenish this level. But there are also sufficient reserves after the spring floods. At least for the next 2-3 months the mining department is provided with water for work”, – specified the financial director of ArcelorMittal Krivoy Rog.
Earlier it was reported that ArcelorMittal Kryvyi Rih PJSC (Dnipropetrovsk region) is returning people to normal mode after sending some personnel to remote work due to the termination of water supply to some units because the occupants blew up the Kakhovskaya HPP dam. It was also reported that the company suspended steel smelting to reduce water consumption under critical conditions.
“ArcelorMittal Krivoy Rog is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, particularly rebar and wire rod.
ArcelorMittal owns in Ukraine the largest mining and metallurgical plant “ArcelorMittal Krivoy Rog” and a number of small companies, in particular PJSC “ArcelorMittal Beryslav”.
ArcelorMittal remains committed to Ukraine and believes in its future, despite the huge difficulties in the work of its own mining and smelting plant, ArcelorMittal Krivoy Rog (AMKR), caused by full-scale armed aggression of Russia, said Vijay Goyal, ArcelorMittal executive vice president and CEO of ArcelorMittal CIS.
“Every day we lose more than $1 million. 10% of our staff is at war, 67 people died defending the country… But I not only hope, but I believe that we will come out victorious. We are willing, able and ready to rebuild,” he said at a business forum on the rapid reconstruction of Ukraine in Luxembourg organized by the Ukrainian-Luxembourg Business Club.
ArcelorMittal board member Michel Wurth noted that since buying Krivorozhstal in a privatization tender in 2005, more than $10 billion has been invested in Ukraine in total, and in 2021 the plant, which employs 26,000 people, was a record producer.
“We remain committed to Ukraine, to its people, and we plan to participate in the rebuilding of Ukraine as quickly as possible,” he stressed
Goyal noted that the management and staff of AMKR set an incredible example of indestructibility, organizing the work of the enterprise during blackouts, without access to the Black Sea ports, during shelling.
According to him, ArcelorMittal counts on the high quality of state administration after the war, continued anti-corruption efforts, efficient infrastructure, as well as the provision of security conditions given the large number of weapons in the country.
For its part, he said, the company is exploring all opportunities to better integrate AMKR into the global market and bring new technologies to Ukraine.
For his part, Wurth added that the issue of public-private partnerships and attracting financing remains important.
“ArcelorMittal Kryvyi Rih is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, in particular rebar and wire rod.
ArcelorMittal owns in Ukraine the largest mining and metallurgical plant “ArcelorMittal Krivoy Rog” and a number of small companies, in particular PJSC “ArcelorMittal Beryslav”.
