ArcelorMittal S.A.: ArcelorMittal reports fourth quarter 2024 and
full year 2024 results
Luxembourg, February 6,
2025 - 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.
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-$0.4bn on projects related to
decarbonization
Positive free cash flow outlook in 2025 and
beyond: Cash flow in 2025 is expected to be supported by
working capital optimization. The completion of the Company’s
strategic growth projects is expected to support structurally
higher EBITDA and investable cash flow in the coming periods
Financial highlights (on the basis of
IFRS1):
(USDm) unless otherwise shown |
4Q 24 |
3Q 24 |
4Q 23 |
12M 24 |
12M 23 |
Sales |
14,714 |
15,196 |
14,552 |
62,441 |
68,275 |
Operating income/(loss) |
529 |
663 |
(1,980) |
3,310 |
2,340 |
Net (loss)/income attributable to equity holders of the parent |
(390) |
287 |
(2,966) |
1,339 |
919 |
Adjusted net income attributable to equity holders of the
parent5 |
404 |
488 |
982 |
2,326 |
4,867 |
Basic (loss)/earnings per common share (US$) |
(0.51) |
0.37 |
(3.57) |
1.70 |
1.09 |
Adjusted basic earnings per common share (US$)5 |
0.52 |
0.63 |
1.18 |
2.95 |
5.78 |
|
|
|
|
|
|
Operating income/(loss)/tonne (US$/t) |
39 |
50 |
(149) |
61 |
42 |
EBITDA |
1,654 |
1,581 |
1,454 |
7,053 |
8,742 |
EBITDA/tonne (US$/t) |
122 |
118 |
110 |
130 |
157 |
|
|
|
|
|
|
Crude steel production (Mt) |
14.0 |
14.8 |
13.7 |
57.9 |
58.1 |
Steel shipments (Mt) |
13.5 |
13.4 |
13.3 |
54.3 |
55.6 |
Total Group iron ore production (Mt) |
12.6 |
10.1 |
10.0 |
42.4 |
42.0 |
Iron ore production (Mt) (AMMC and Liberia only) |
8.9 |
6.6 |
6.2 |
27.9 |
26.0 |
Iron ore shipment (Mt) (AMMC and Liberia only) |
7.6 |
6.3 |
6.1 |
26.4 |
26.4 |
|
|
|
|
|
|
Weighted average common shares outstanding (in millions) |
772 |
778 |
830 |
788 |
842 |
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.”
Safety and sustainable development
Health and Safety focus:
Protecting employee health and well-being remains an overarching
priority of the Company. LTIF rate of 0.79x in 4Q 2024 (vs. 0.88x
in 3Q 2024 and 1.34x in 4Q 2023).
Business specific plans have been developed to implement the
recommendations of the dss+ independent safety audit conducted in
2024 to support the Company's journey to zero fatalities. Key
highlights of our progress this quarter include:
- The new Process Safety Framework has now been launched with a
first wave of 12 assets
- The health and safety assurance model has been strengthened,
with three lines of assurance across all business units, to provide
more comprehensive oversight starting in 1Q 2025. The third line
will directly report to the Board
- Progress in the development of ‘One Safety Culture’ across the
Group will be measured in June 2025
- ArcelorMittal employees were certified on the Life Saving
Golden rules in 2024. The certification is designed to raise
awareness of the importance of these rules and will be rolled out
to regular contractors during 1H 2025
- Consequence management standards are becoming stronger across
the Group as a result of our Just and Fair expectations rolled out
in January 2025. Furthermore, we are tracking and auditing the
compliance of local policies mirroring these expectations. We also
continue to strengthen the health and safety focus in all our HR
processes and practices.
Further updates will be provided on our progress in implementing
the safety audit recommendations at relevant milestones.
Own personnel and contractors – Lost
time injury frequency rate
|
4Q 24 |
3Q 24 |
4Q 23 |
12M 24 |
12M 23 |
North America |
0.31 |
0.43 |
0.40 |
0.27 |
0.22 |
Brazil |
0.27 |
0.33 |
0.18 |
0.21 |
0.26 |
Europe |
1.61 |
1.47 |
1.50 |
1.34 |
1.46 |
Sustainable Solutions |
0.87 |
1.23 |
0.59 |
1.01 |
0.78 |
Mining |
0.24 |
0.14 |
— |
0.18 |
0.10 |
Others |
0.88 |
1.20 |
3.08 |
0.81 |
1.39 |
Total |
0.79 |
0.88 |
1.34 |
0.70 |
0.92 |
Sustainable development highlights:
- In November 2024, the Company provided an update on its
decarbonization plans in Europe:
Decarbonization investments in Europe
are progressing at a slower pace than initially envisioned. The
previously announced intention to replace several blast furnaces
with lower carbon emissions “hydrogen ready” DRI-EAF facilities was
premised on a favorable combination of policy, technology and
market developments that would help offset the significantly higher
capital and operating costs involved. Progress so far has been
insufficient to support the investment case. We expect several
important developments in 2025, including the scheduled review of
the Carbon Border Adjustment Mechanism (CBAM), an anticipated
review of the steel safeguards (necessary to protect the industry
from unfair trade resulting from China’s excess capacity), and the
publication of the Steel and Metals Action Plan amongst
others.
We continue to optimize our
decarbonization plans, focused on achieving an acceptable return on
the capital to be invested. Whilst we await more support and policy
progress, we are continuing with engineering work, as well as
analyzing a phased approach that would first start with
constructing electric arc furnaces, which can also be fed with
scrap steel to significantly reduce emissions.
ArcelorMittal remains committed to
decarbonizing and achieving net-zero by 2050. Since 2018 absolute
emissions (scope 1 and 2) have decreased by ~50%, primarily due to
footprint and portfolio optimization of some of our most CO2e
intensive capacity10. In addition, electric arc furnaces (EAF) now
comprise 25% of our global production, up from 19% in 2018.
Since 2018, the Company has invested
$1.0 billion globally related to decarbonization projects and
initiatives. Activity undertaken specifically in Europe to date
includes:
- Gijón: In May 2024 commenced
construction of a 1.1Mt EAF at our long products plant in Gijón,
Spain. This is anticipated to ultimately lead to a reduction of 1Mt
of CO2e.
- Sestao: Good progress is being made
with our efforts to increase production to 1.6Mt by 2026 at our
flat products plant in Sestao, Spain, where we have two EAFs. Once
complete, much of this production will be our XCarb® recycled and
renewably produced low-carbon emissions steel.
- XCarb®: We continue to lead the
market with sales of our XCarb® low-carbon emissions steel, which
have a carbon footprint of as low as 300kg per tonne of steel
produced. XCarb® sales increased from 0.2Mt in 2023 to 0.4Mt in
2024. The Sestao revamp project is expected to materially increase
the Company’s ability to produce low-carbon emissions flat
products.
Analysis of results for the twelve months ended December
31, 2024 versus results for the twelve months ended December 31,
2023
Sales for 12M 2024 decreased by 8.5% to $62.4 billion as
compared with $68.3 billion for 12M 2023, primarily due to 7.6%
lower average steel selling prices and a 2.4% decline in steel
shipments. On a scope adjusted basis (i.e. excluding ArcelorMittal
Pecem which was consolidated on March 9, 2023 and Kazakhstan
operations that were sold on December 7, 2023), 12M 2024 steel
shipments were 1.7% higher as compared to 12M 2023.
Operating income for 12M 2024 of $3.3 billion was 41.4% higher
as compared to $2.3 billion in 12M 2023. 12M 2024 was impacted by
impairment charges of $116 million2 and exceptional
items of $216 million3, including restructuring costs
related to business optimization primarily through asset
concentration. 12M 2023 was primarily impacted by $2.4 billion
non-cash charges following the sale of the Company's operations in
Kazakhstan.
EBITDA in 12M 2024 decreased by 19.3% to $7,053 million as
compared to $8,742 million in 12M 2023, primarily due to negative
price-cost effects on the steel business, the impacts of the
illegal blockade in our Mexican operations in North America results
(which has since been resolved), and the impact of 8.3% lower iron
ore reference prices on Mining segment results.
Net income for 12M 2024 increased to $1,339 million as compared
to $919 million for 12M 2023. 12M 2023 was affected by the
Kazakhstan disposal referenced above and $1.4 billion related to
the impairment of the Company’s investment in the joint venture
Acciaierie d'Italia (ADI). 12M 2024 was impacted in particular by
higher foreign exchange losses and financing costs (largely due to
the US$ appreciation against most currencies) and higher
tax-related charges (including a $0.4 billion tax expense from a
tax rate reduction in Luxembourg4 and $0.2 billion
provision relating to tax litigations4 during 4Q 2024).
ArcelorMittal adjusted net income in 12M 2024 of $2,326 million
compared to $4,867 million in 12M 2023. Adjusted basic earnings per
common share5 for 12M 2024 was $2.95 as compared to
$5.78 for 12M 2023.
Net cash provided by operating activities for 12M 2024 was $4.9
billion and includes a working capital release of $0.1 billion as
compared to net cash provided by operating activities of $7.6
billion, including a working capital release of $1.6 billion, for
12M 2023. Capex spending in 12M 2024 totalled $4.4 billion
(including $1.3 billion on strategic growth projects) as compared
to $4.6 billion for 12M 2023 (including $1.4 billion on strategic
growth projects). The Company generated free cash flow in 12M 2024
of $0.3 billion as compared to $2.9 billion in 12M 2023. Ongoing
shareholder returns of $1.7 billion (including $0.4 billion of
dividends) and M&A (primarily Vallourec) led to an increase in
net debt to $5.1 billion as at December 31, 2024, as compared to
$2.9 billion as at December 31, 2023.
Analysis of results for 4Q 2024 versus 3Q
2024
Sales in 4Q 2024 declined by 3.2% to $14.7 billion as compared
to $15.2 billion in 3Q 2024.
Operating income of $529 million in 4Q 2024 was 20.2% lower as
compared to 3Q 2024 due to impairment charges of $80
million2 and exceptional items of $142
million3 (including restructuring costs related to
business optimization primarily through asset concentration) as
compared to impairment charges of $36 million and exceptional items
of $74 million in 3Q 2024.
EBITDA in 4Q 2024 increased by 4.6% to $1,654 million as
compared to $1,581 million in 3Q 2024, primarily due to improvement
in the Mining segment, offset in part by weaker results in North
America (negative price-cost effect).
ArcelorMittal recorded a net loss in 4Q 2024 of $390 million,
compared to net income of $287 million in 3Q 2024 primarily due to
lower operating income as discussed above, higher foreign exchange
losses and financing costs and higher taxes as discussed above.
ArcelorMittal recorded adjusted net income in 4Q 2024 of $404
million as compared to $488 million in 3Q 2024.
Net cash provided by operating activities during 4Q 2024
amounted to $2.5 billion and includes a $1.6 billion release of
working capital. Capex for the quarter amounted to $1.1 billion
(including $0.3 billion spent on strategic growth projects),
leading to free cash flow of $1.3 billion. Net debt decreased to
$5.1 billion on December 31, 2024, as compared to $6.2 billion on
September 30, 2024, due to positive free cash flow offset by
ongoing share buybacks ($0.1 billion) and dividends to
ArcelorMittal shareholders ($0.2 billion).
Analysis of operations
North America
(USDm) unless otherwise shown |
4Q 24 |
3Q 24 |
4Q 23 |
12M 24 |
12M 23 |
Sales |
2,625 |
2,762 |
2,942 |
11,896 |
12,978 |
Operating income |
158 |
229 |
280 |
1,310 |
1,917 |
Depreciation |
(131) |
(129) |
(157) |
(509) |
(535) |
EBITDA |
289 |
358 |
437 |
1,819 |
2,452 |
Crude steel production (Kt) |
1,883 |
1,652 |
2,185 |
7,538 |
8,727 |
- Flat shipments (Kt) |
1,952 |
1,960 |
2,028 |
8,022 |
8,220 |
- Long shipments (Kt) |
561 |
540 |
709 |
2,486 |
2,734 |
Steel shipments* (Kt) |
2,391 |
2,408 |
2,590 |
10,063 |
10,564 |
Average steel selling price (US$/t) |
892 |
955 |
948 |
985 |
1,024 |
* North America steel shipments include slabs
sourced by the segment from Group companies (mainly the Brazil
segment) and sold to the Calvert JV (eliminated in the Group
consolidation). These shipments can vary between periods due to
slab sourcing mix and timing of vessels: 4Q'24 333kt; 3Q'24 577kt;
4Q'23 432kt; 12M'24 1,867kt and 12M'23 1,660kt.
Sales in 4Q 2024 decreased by 4.9% to $2.6
billion, as compared to $2.8 billion in 3Q 2024 primarily on
account of a 6.6% decrease in average steel selling prices.
Following the resolution of the illegal blockade
as previously reported, crude steel production in ArcelorMittal
Mexico continued to normalize during 4Q 2024 and is expected to
fully recover in 1Q 2025.
Operating income in 4Q 2024 decreased by 31.3%
to $158 million as compared to $229 million in 3Q 2024, primarily
due to a negative price-cost effect (primarily due to lower steel
selling prices), which more than offset the volume recovery in
Mexico.
EBITDA in 4Q 2024 of $289 million was 19.1%
lower as compared to $358 million in 3Q 2024 as discussed
above.
Brazil
(USDm) unless otherwise shown |
4Q 24 |
3Q 24 |
4Q 23 |
12M 24 |
12M 23 |
Sales |
2,889 |
3,218 |
2,709 |
12,401 |
13,163 |
Operating income |
358 |
414 |
171 |
1,399 |
1,461 |
Depreciation |
(96) |
(83) |
(77) |
(361) |
(341) |
Impairment items |
(43) |
— |
— |
(43) |
— |
EBITDA |
497 |
497 |
248 |
1,803 |
1,802 |
Crude steel production (Kt) |
3,527 |
3,842 |
3,533 |
14,540 |
13,986 |
- Flat shipments (Kt) |
2,367 |
2,464 |
2,402 |
9,409 |
8,833 |
- Long shipments (Kt) |
1,121 |
1,335 |
1,171 |
4,732 |
4,905 |
Steel shipments (Kt) |
3,478 |
3,787 |
3,562 |
14,082 |
13,681 |
Average steel selling price (US$/t) |
773 |
787 |
852 |
816 |
939 |
Sales in 4Q 2024 declined by 10.2% to $2.9 billion as compared
to $3.2 billion in 3Q 2024, primarily due to an 8.2% decrease in
steel shipments (mainly exports) and a 1.8% decline in average
steel selling prices.
The Vega cold rolling mill complex that was
commissioned in 1H 2024 is performing well, leading to increased
galvanized and cold rolled coil capacity. The Company expects the
EBITDA contribution from this project to be $0.1 billion in 12M
2025, compared to $20 million generated in 12M 2024.
Impairment charges for 4Q 2024 of $43 million
relate to the write-off of certain civil works on the Monlevade
expansion project which has been stopped.
Operating income in 4Q 2024 of $358 million was
13.6% lower as compared to $414 million in 3Q 2024, primarily due
to the impairment charges discussed above.
EBITDA in 4Q 2024 was stable at $497 million as compared to 3Q
2024 with a positive price-cost effect offsetting the impact of
lower steel shipments.
Europe
(USDm) unless otherwise shown |
4Q 24 |
3Q 24 |
4Q 23 |
12M 24 |
12M 23 |
Sales |
7,142 |
7,141 |
6,627 |
29,952 |
31,695 |
Operating income/(loss) |
111 |
12 |
(4) |
386 |
879 |
Depreciation |
(305) |
(281) |
(287) |
(1,128) |
(1,098) |
Impairment items |
— |
(36) |
— |
(36) |
— |
Exceptional items |
— |
(74) |
— |
(74) |
— |
EBITDA |
416 |
403 |
283 |
1,624 |
1,977 |
Crude steel production (Kt) |
7,696 |
7,870 |
6,540 |
31,211 |
28,445 |
- Flat shipments (Kt) |
5,084 |
4,897 |
4,570 |
20,489 |
19,570 |
- Long shipments (Kt) |
2,133 |
1,907 |
1,840 |
8,183 |
8,001 |
Steel shipments (Kt) |
7,213 |
6,803 |
6,407 |
28,659 |
27,559 |
Average steel selling price (US$/t) |
852 |
915 |
935 |
910 |
995 |
Sales in 4Q 2024 were stable at $7.1 billion as compared to 3Q
2024, primarily due to a 6.0% increase in steel shipment volumes
(following seasonality and maintenance in the long products
business in 3Q 2024) offset by a 6.9% decline in average steel
selling prices.
Operating income in 4Q 2024 of $111 million was higher as
compared to operating income in 3Q 2024 of $12 million. 3Q 2024 was
impacted by charges related to business optimization primarily
through asset concentration. This included impairment charges of
$36 million, related to the closure of the coke oven battery in
Krakow (Poland) and by exceptional items of $74 million, reflecting
restructuring costs at the same site.
EBITDA in 4Q 2024 of $416 million as compared to $403 million in
3Q 2024 primarily due to higher steel shipments, offset in part by
a negative price-cost effect.
India and JVs
Income from associates, joint ventures and other
investments (excluding impairments and exceptional items, of which
there were none in the periods) for 4Q 2024 was $194 million,
including positive contribution from Vallourec, as compared to $162
million in 3Q 2024.
ArcelorMittal has investments in various joint
venture and associate entities globally. The Company considers
Calvert (50% equity interest) and AMNS India (60% equity interest)
joint ventures to be of particular strategic importance, warranting
more detailed disclosures to improve the understanding of their
operational performance and value to the Company.
AMNS India
(USDm) unless otherwise shown |
4Q 24 |
3Q 24 |
4Q 23 |
12M 24 |
12M 23 |
Production (Kt) (100% basis) |
1,950 |
1,743 |
1,964 |
7,544 |
7,463 |
Shipments (Kt) (100% basis) |
2,138 |
1,887 |
1,868 |
7,933 |
7,251 |
Sales (100% basis) |
1,583 |
1,537 |
1,712 |
6,515 |
6,710 |
EBITDA (100% basis) |
133 |
162 |
499 |
844 |
1,936 |
Sales in 4Q 2024 increased by 3.0% to $1.6 billion as compared
to $1.5 billion in 3Q 2024, primarily due to higher steel shipments
(up 13.3%), which was offset in part by lower average steel selling
prices.
EBITDA during 4Q 2024 declined by 18.1% to $133 million as
compared to $162 million in 3Q 2024, driven by a negative
price-cost effect (mainly driven by lower steel selling prices),
offset in part by higher steel shipments.
Calvert
(USDm) unless otherwise shown |
4Q 24 |
3Q 24 |
4Q 23 |
12M 24 |
12M 23 |
Production (Kt) (100% basis) |
984 |
1,094 |
1,052 |
4,496 |
4,654 |
Shipments (Kt) (100% basis) |
941 |
1,015 |
1,079 |
4,232 |
4,469 |
Sales (100% basis) |
1,010 |
1,054 |
1,114 |
4,544 |
4,860 |
EBITDA (100% basis) |
134 |
126 |
90 |
614 |
374 |
Production includes all production of the hot strip mill
including processing of slabs on a hire work basis for
ArcelorMittal Group entities and third parties, including stainless
steel slabs. Shipments: including shipments of finished products
processed on a hire work basis for ArcelorMittal Group entities and
third parties, including stainless steel products. EBITDA of
Calvert presented here on a 100% basis as a stand-alone business
and in accordance with the Company's policy, applying the weighted
average method of accounting for inventory.
Sales in 4Q 2024 declined by 4.1% to $1.0 billion as compared to
$1.1 billion in 3Q 2024 primarily due to lower shipments driven by
weaker demand.
EBITDA during 4Q 2024 of $134 million was 7.0% higher as
compared to $126 million in 3Q 2024, primarily due to lower
costs.
Sustainable Solutions
(USDm) unless otherwise shown |
4Q 24 |
3Q 24 |
4Q 23 |
12M 24 |
12M 23 |
Sales |
2,400 |
2,542 |
2,457 |
10,722 |
11,467 |
Operating (loss)/income |
(41) |
17 |
15 |
57 |
225 |
Depreciation |
(56) |
(38) |
(38) |
(178) |
(143) |
Exceptional items |
(79) |
— |
— |
(79) |
— |
EBITDA |
94 |
55 |
53 |
314 |
368 |
Sales in 4Q 2024 declined by 5.6% to $2.4 billion as compared to
$2.5 billion in 3Q 2024.
Operating loss in 4Q 2024 was $41 million as compared to an
operating income of $17 million in 3Q 2024, due to exceptional
items of $79 million primarily related to restructuring of the
distribution network, resulting in a concentration of sites to
improve efficiencies.
EBITDA in 4Q 2024 of $94 million was 71.1% higher as compared to
$55 million in 3Q 2024 due to improved profitability in the
downstream and Projects businesses.
Mining
(USDm) unless otherwise shown |
4Q 24 |
3Q 24 |
4Q 23 |
12M 24 |
12M 23 |
Sales |
704 |
589 |
764 |
2,663 |
3,077 |
Operating income |
246 |
128 |
270 |
770 |
1,144 |
Depreciation |
(67) |
(65) |
(69) |
(263) |
(238) |
EBITDA |
313 |
193 |
339 |
1,033 |
1,382 |
Iron ore production (Mt) |
8.9 |
6.6 |
6.2 |
27.9 |
26.0 |
Iron ore shipment (Mt) |
7.6 |
6.3 |
6.1 |
26.4 |
26.4 |
Note: Mining segment comprises iron ore operations of
ArcelorMittal Mines Canada (AMMC) and ArcelorMittal Liberia.
Sales in 4Q 2024 increased by 19.4% to $704 million as compared
to $589 million in 3Q 2024, primarily due to higher iron ore
shipments (18.8%) and higher iron ore reference prices (3.6%).
Iron ore production in 4Q 2024 increased by 34.9% to 8.9Mt as
compared to 6.6Mt in 3Q 2024 with improved performance at both
ArcelorMittal Mines Canada (best performance since 4Q 2018) and in
Liberia. This increased production drove the increase in
shipments.
Operating income in 4Q 2024 increased by 92.3% to $246 million
as compared to $128 million in 3Q 2024 driven by higher pricing
(higher iron ore reference prices (3.6%) and lower freight), higher
iron ore shipment volumes (18.8%) and lower costs.
For the same reasons, EBITDA in 4Q 2024 of $313 million was
62.8% higher as compared to $193 million in 3Q 2024.
Other recent developments
-
On February 6, 2025, ArcelorMittal announced a project to construct
an advanced manufacturing facility in Calvert, Alabama that could
produce up to 150Kt of non-grain-oriented electrical steel (NOES)
annually. The NOES facility would be sited near ArcelorMittal’s
existing joint venture AMNS Calvert with Nippon Steel Corporation.
NOES plays a crucial role in the performance and efficiency of
electric motors used to power battery electric vehicles, plug in
hybrid electric vehicles and hybrid vehicles as well as other
specialized commercial, industrial, and power generation
applications. Given the nature of the US auto market (larger
vehicles, full-size pickups, SUVs) there is rapidly growing demand
for the most sophisticated NOES for which there is limited US
domestic supply capabilities. Net capex to build the plant is
estimated at $0.9 billion8. The plant is anticipated to
commence production in 2H 2027 and expected to generate annual
EBITDA of $0.2 billion on full capacity.
- On January 3, 2025, the US President issued an order
prohibiting Nippon Steel Corporation ("NSC") from acquiring US
Steel but the parties were granted an extension to June 18, 2025 to
permanently abandon the transaction. The ArcelorMittal agreement
with NSC regarding the acquisition of its 50% stake in Calvert
remains in place until such date.
-
On December 13, 2024, ArcelorMittal issued €500 million 3.125%
notes due December 13, 2028 (the “2028 Notes”) and €500 million
3.5% notes due December 13, 2031 (the “2031 Notes” and together
with the 2028 Notes, the "Notes"). The Notes were issued under
ArcelorMittal’s €10 billion wholesale Euro Medium Term Notes
Programme. The use of proceeds of the issuance was general
corporate purposes and refinancing of existing indebtedness.
Outlook
The Company expects world ex-China apparent
steel consumption ("ASC") to grow by 2.5% to 3.5% in 2025 as
compared to 2024, which is expected to support steel shipment
growth in 2025. Expectations for ASC by region in 2025: Europe flat
products to grow 0% to 2%; US flat products to grow 1% to 3%; China
to remain stable; Brazil to be stable (following strong growth in
2024 of 8%) and India to grow 6% to 7%. Whilst near-term demand is
expected to remain subdued, given the low inventory environment,
especially in Europe, the Company is optimistic that restocking
activity will supplement real demand improvement in time.
ArcelorMittal Condensed Consolidated Statements of
Financial Position1
In millions of U.S. dollars |
Dec 31, 2024 |
Sept 30, 2024 |
Dec 31, 2023 |
ASSETS |
|
|
|
Cash and cash equivalents |
6,484 |
5,094 |
7,783 |
Trade accounts receivable and other |
3,375 |
4,238 |
3,661 |
Inventories |
16,501 |
18,474 |
18,759 |
Prepaid expenses and other current assets |
3,022 |
3,255 |
3,037 |
Total Current Assets |
29,382 |
31,061 |
33,240 |
|
|
|
|
Goodwill and intangible assets |
4,453 |
4,762 |
5,102 |
Property, plant and equipment |
33,311 |
34,535 |
33,656 |
Investments in associates and joint ventures |
11,420 |
11,304 |
10,078 |
Deferred tax assets |
8,942 |
9,525 |
9,469 |
Other assets |
1,877 |
1,981 |
2,372 |
Total Assets |
89,385 |
93,168 |
93,917 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
Short-term debt and current portion of long-term debt |
2,748 |
2,356 |
2,312 |
Trade accounts payable and other |
12,921 |
13,164 |
13,605 |
Accrued expenses and other current liabilities |
6,156 |
5,761 |
5,852 |
Total Current Liabilities |
21,825 |
21,281 |
21,769 |
|
|
|
|
Long-term debt, net of current portion |
8,815 |
8,903 |
8,369 |
Deferred tax liabilities |
2,338 |
2,318 |
2,432 |
Other long-term liabilities |
5,121 |
5,302 |
5,279 |
Total Liabilities |
38,099 |
37,804 |
37,849 |
|
|
|
|
Equity attributable to the equity holders of the parent |
49,223 |
53,308 |
53,961 |
Non-controlling interests |
2,063 |
2,056 |
2,107 |
Total Equity |
51,286 |
55,364 |
56,068 |
Total Liabilities and Shareholders’ Equity |
89,385 |
93,168 |
93,917 |
ArcelorMittal Condensed Consolidated Statements of
Operations1
|
Three months ended |
Twelve months ended |
In millions of U.S. dollars unless otherwise
shown |
Dec 31, 2024 |
Sept 30, 2024 |
Dec 31, 2023 |
Dec 31, 2024 |
Dec 31, 2023 |
Sales |
14,714 |
15,196 |
14,552 |
62,441 |
68,275 |
Depreciation (B) |
(709) |
(646) |
(703) |
(2,632) |
(2,675) |
Impairment items2(B) |
(80) |
(36) |
(112) |
(116) |
(112) |
Exceptional items3(B) |
(142) |
(74) |
— |
(216) |
— |
Impact on disposal of Kazakhstan operations2(B) |
— |
— |
(2,431) |
— |
(2,431) |
Operating income/(loss) (A) |
529 |
663 |
(1,980) |
3,310 |
2,340 |
Operating margin % |
3.6% |
4.4% |
(13.6)% |
5.3% |
3.4% |
|
|
|
|
|
|
Income from associates, joint ventures and other investments
(excluding impairments and exceptional items) (C) |
194 |
162 |
188 |
779 |
1,184 |
Impairments of associates, joint ventures and other
investments |
— |
— |
(1,405) |
— |
(1,405) |
Net interest expense |
(32) |
(8) |
(3) |
(110) |
(145) |
Foreign exchange and other net financing loss |
(348) |
(112) |
(240) |
(981) |
(714) |
Non-cash mark-to-market loss until acquisition of c.28.4% Vallourec
shares |
— |
(91) |
— |
(83) |
— |
Income/(loss) before taxes and non-controlling
interests |
343 |
614 |
(3,440) |
2,915 |
1,260 |
Current tax expense |
(361) |
(164) |
(128) |
(1,025) |
(1,008) |
Deferred tax (expense)/benefit |
(387) |
(151) |
582 |
(510) |
770 |
Income tax (expense)/benefit (net) |
(748) |
(315) |
454 |
(1,535) |
(238) |
Net (loss)/ income including non-controlling
interests |
(405) |
299 |
(2,986) |
1,380 |
1,022 |
Non-controlling interests income/(loss) |
15 |
(12) |
20 |
(41) |
(103) |
Net (loss)/ income attributable to equity holders of the
parent |
(390) |
287 |
(2,966) |
1,339 |
919 |
|
|
|
|
|
|
Basic/(loss) earnings per common share ($) |
(0.51) |
0.37 |
(3.57) |
1.70 |
1.09 |
Diluted/(loss) earnings per common share ($) |
(0.51) |
0.37 |
(3.57) |
1.69 |
1.09 |
|
|
|
|
|
|
Weighted average common shares outstanding (in millions) |
772 |
778 |
830 |
788 |
842 |
Diluted weighted average common shares outstanding (in
millions) |
772 |
781 |
830 |
791 |
845 |
|
|
|
|
|
|
OTHER INFORMATION |
|
|
|
|
|
EBITDA (A-B+C) |
1,654 |
1,581 |
1,454 |
7,053 |
8,742 |
EBITDA Margin % |
11.2% |
10.4% |
10.0% |
11.3% |
12.8% |
|
|
|
|
|
|
Total Group iron ore production (Mt) |
12.6 |
10.1 |
10.0 |
42.4 |
42.0 |
Crude steel production (Mt) |
14.0 |
14.8 |
13.7 |
57.9 |
58.1 |
Steel shipments (Mt) |
13.5 |
13.4 |
13.3 |
54.3 |
55.6 |
ArcelorMittal Condensed Consolidated Statements of Cash
flows1
|
Three months ended |
Twelve months ended |
In millions of U.S. dollars |
Dec 31, 2024 |
Sept 30, 2024 |
Dec 31, 2023 |
Dec 31, 2024 |
Dec 31, 2023 |
Operating activities: |
|
|
|
|
|
(Loss)/income attributable to equity holders of the parent |
(390) |
287 |
(2,966) |
1,339 |
919 |
Adjustments to reconcile net result to net cash provided by
operations: |
|
|
|
|
|
Non-controlling interests (loss)/income |
(15) |
12 |
(20) |
41 |
103 |
Depreciation and impairments2 |
789 |
682 |
815 |
2,748 |
2,787 |
Exceptional items3 |
142 |
74 |
— |
216 |
— |
Impact on disposal of Kazakhstan operations2 |
— |
— |
2,431 |
— |
2,431 |
Income from associates, joint ventures and other investments |
(194) |
(162) |
(188) |
(779) |
(1,184) |
Impairment of equity-method investments |
— |
— |
1,405 |
— |
1,405 |
Deferred tax expenses/(benefit) |
387 |
151 |
(582) |
510 |
(770) |
Change in working capital |
1,605 |
132 |
2,470 |
102 |
1,604 |
Other operating activities (net) |
144 |
235 |
(37) |
675 |
350 |
Net cash provided by operating activities (A) |
2,468 |
1,411 |
3,328 |
4,852 |
7,645 |
Investing activities: |
|
|
|
|
|
Purchase of property, plant and equipment and intangibles (B) |
(1,133) |
(1,051) |
(1,450) |
(4,405) |
(4,613) |
Other investing activities (net) |
15 |
(814) |
464 |
(582) |
(1,235) |
Net cash used in investing activities |
(1,118) |
(1,865) |
(986) |
(4,987) |
(5,848) |
Financing activities: |
|
|
|
|
|
Net proceeds/(payments) relating to payable to banks and long-term
debt |
667 |
(109) |
(195) |
1,231 |
(1,334) |
Dividends paid to ArcelorMittal shareholders |
(193) |
— |
(184) |
(393) |
(369) |
Dividends paid to minorities shareholders (C) |
(18) |
(85) |
(31) |
(187) |
(162) |
Share buyback |
(133) |
(277) |
(466) |
(1,300) |
(1,208) |
Lease payments and other financing activities (net) |
76 |
(62) |
(53) |
(31) |
(593) |
Net cash provided/(used) by financing
activities |
399 |
(533) |
(929) |
(680) |
(3,666) |
Net increase/(decrease) in cash and cash equivalents |
1,749 |
(987) |
1,413 |
(815) |
(1,869) |
Effect of exchange rate changes on cash |
(347) |
147 |
128 |
(471) |
255 |
Change in cash and cash equivalents |
1,402 |
(840) |
1,541 |
(1,286) |
(1,614) |
|
|
|
|
|
|
Free cash flow (A+B+C) |
1,317 |
275 |
1,847 |
260 |
2,870 |
Appendix 1: Capital
expenditures1
(USD million) |
4Q 24 |
3Q 24 |
4Q 23 |
12M 24 |
12M 23 |
North America |
149 |
50 |
117 |
410 |
426 |
Brazil |
252 |
213 |
292 |
879 |
917 |
Europe |
267 |
374 |
398 |
1,359 |
1,398 |
Sustainable Solutions |
142 |
75 |
322 |
457 |
611 |
Mining |
257 |
268 |
205 |
1,022 |
784 |
Others |
66 |
71 |
116 |
278 |
477 |
Total |
1,133 |
1,051 |
1,450 |
4,405 |
4,613 |
Appendix 1a: Investable cashflow and capex
split
(USD million) |
4Q 24 |
3Q 24 |
4Q 23 |
12M 24 |
12M 23 |
Net cash provided by operating activities |
2,468 |
1,411 |
3,328 |
4,852 |
7,645 |
Maintenance/normative capex |
735 |
666 |
878 |
2,824 |
2,944 |
Investable cashflow |
1,733 |
745 |
2,450 |
2,028 |
4,701 |
Strategic capex |
331 |
284 |
505 |
1,288 |
1,432 |
Decarbonization capex |
67 |
101 |
67 |
293 |
237 |
Appendix 1b: Strategic growth projects completed during
the last 4 quarters
Segment |
Site / unit |
Capacity / details |
Impact on
EBITDA * |
Key date |
Brazil |
ArcelorMittal Vega Do Sul |
Increase hot dipped / cold rolled coil capacity and construction of
a new 700kt continuous annealing line (CAL) and continuous
galvanizing line (CGL) combiline |
$0.1bn |
2Q 2024 (first coil) |
Sustainable Solutions |
Andhra Pradesh (India) |
Renewable energy project: 1GW of nominal capacity solar and wind
power |
$0.1bn (incl.our share of net income in AMNS India) |
Commissioning in progress |
AMNS Calvert (US) |
Calvert** |
New 1.5Mt EAF and caster |
$85m (incl.our share of net income) |
Commissioning underway |
Appendix 1c: Ongoing strategic growth
projects7
Segment |
Site / unit |
Capacity / details |
Impact on
EBITDA * |
Key date / forecast completion |
Brazil |
Serra Azul mine |
Facilities to produce 4.5Mt/year DRI quality pellet feed by
exploiting compact itabirite iron ore |
$100m |
2H 2025 |
Brazil |
Barra Mansa |
Increase capacity of HAV bars and sections by 0.4Mt/pa |
$70m |
2H 2025 |
Europe |
Mardyck (France) |
New Electrical Steels. Facilities to produce 170kt NGO Electrical
Steels (of which 145kt for auto applications) consisting of
annealing and pickling line (APL), reversing mill (REV) and
annealing and varnishing (ACL) lines |
$100m |
1H 2025 ACL 2H 2025 APL/REV |
Mining |
Liberia mine |
Phase 2: Iron ore expansion to 20Mt/year; blending a portion of the
new concentrate with crushed ore product to produce a sinter feed
blend (>62% Fe) |
Revised to $450m (previously $350m) |
(first concentrate produced) full 20Mt capacity expected end of
2025 |
North America |
Las Truchas mine (Mexico) |
Revamping project with 1Mtpa pellet feed capacity increase (to
2.3Mt/year) with DRI concentrate grade capability |
$50m |
1H 2026 |
AMNS India |
Hazira** |
Debottlenecking existing assets; AMNS India medium-term Phase 1
plans are to expand and grow in Hazira to ~15Mt by end of 2026;
ongoing downstream projects; plans for expansion to 24Mt under
preparation by 2030; additional greenfield opportunities under
development |
$0.4bn (our 60% share of net income for Phase 1 and ongoing
downstream projects) |
2H 2026 |
North America |
AM Calvert (US) |
Advanced manufacturing facility for non-grain-oriented electrical
steel (NOES) with a capacity of up to 150kt per year, essential for
EV production and other commercial / industrial applications. The
project consists of annealing and pickling line (APL), reversing
cold mill (RCM) and annealing and varnishing (ACL). |
$230m |
2H 2027 |
* Estimate of additional EBITDA based on full capacity and
assuming prices/spreads generally in line with the averages of the
2015-2020 period; ** AMNS India and AMNS Calvert are share of net
income
Appendix 2: Debt repayment schedule as of December 31,
2024
(USD billion) |
2025 |
2026 |
2027 |
2028 |
≥2029 |
Total |
Bonds |
1.0 |
1.0 |
1.2 |
0.5 |
4.2 |
7.9 |
Commercial paper |
0.7 |
— |
— |
— |
— |
0.7 |
Other loans |
1.0 |
0.3 |
0.7 |
0.2 |
0.8 |
3.0 |
Total gross debt |
2.7 |
1.3 |
1.9 |
0.7 |
5.0 |
11.6 |
As of December 31, 2024, the average debt maturity is 6.7
years.
Appendix 3: Reconciliation of gross debt to net
debt
(USD million) |
Dec 31, 2024 |
Sept 30, 2024 |
Dec 31, 2023 |
Gross debt |
11,563 |
11,259 |
10,681 |
Less: Cash and cash equivalents |
(6,484) |
(5,094) |
(7,783) |
Net debt |
5,079 |
6,165 |
2,898 |
|
|
|
|
Net debt / LTM EBITDA |
0.7 |
0.9 |
0.3 |
Appendix 4: Adjusted net income and adjusted basic
EPS
(USD million) |
4Q 24 |
3Q 24 |
4Q 23 |
12M 24 |
12M 23 |
Net (loss)/income attributable to equity holders of the
parent |
(390) |
287 |
(2,966) |
1,339 |
919 |
Impairment items2 |
(80) |
(36) |
(112) |
(116) |
(112) |
Exceptional items3 |
(142) |
(74) |
— |
(216) |
— |
Impact on disposal of Kazakhstan operations2 |
— |
— |
(2,431) |
— |
(2,431) |
Impairment of associates, joint ventures, and other
investments |
— |
— |
(1,405) |
— |
(1,405) |
Mark-to-market loss on purchase of c.28.4% stake in Vallourec |
— |
(91) |
— |
(83) |
— |
One-off tax charges4 |
(572) |
— |
— |
(572) |
— |
Adjusted net income attributable to equity holders of the
parent |
404 |
488 |
982 |
2,326 |
4,867 |
|
|
|
|
|
|
Weighted average common shares outstanding (in millions) |
772 |
778 |
830 |
788 |
842 |
Adjusted basic EPS $/share |
0.52 |
0.63 |
1.18 |
2.95 |
5.78 |
Appendix 5: Terms and
definitions
Unless indicated otherwise, or the context otherwise requires,
references in this earnings release to the following terms have the
meanings set out next to them below:
Adjusted basic EPS: refers to adjusted net
income divided by the weighted average common shares
outstanding.
Adjusted net income: refers to reported net
income(loss) less impairment items and exceptional items (including
mark-to-market on purchase of Vallourec shares and one-off tax
charges).
All-in cash yield: is calculated as share
buybacks plus dividends paid to ArcelorMittal shareholders in June
and December divided by annual average market capitalization.
Apparent steel consumption: calculated as the sum
of production plus imports minus exports.
Average steel selling prices: calculated as steel
sales divided by steel shipments.
Cash and cash equivalents: represents cash and
cash equivalents, restricted cash and short-term investments.
Capex: represents the purchase of property, plant
and equipment and intangibles. The Group’s capex figures do not
include capex at the JVs level (i.e.: AMNS India and Calvert).
Crude steel production: steel in the first solid
state after melting, suitable for further processing or for
sale.
Depreciation: refers to amortization and
depreciation.
EPS: refers to basic or diluted earnings per
share.
EBITDA: defined as operating income (loss) plus
depreciation, impairment items and exceptional items and income
(loss) from associates, joint ventures and other investments
(excluding impairments and exceptional items if any).
EBITDA/tonne: calculated as EBITDA divided by
total steel shipments.
Equity book value per share: is calculated as the
equity attributable to the equity holders of the parent divided by
the diluted number of shares at the end of the period.
Exceptional items: income / (charges) relate to
transactions that are significant, infrequent or unusual and are
not representative of the normal course of business of the
period.
Free cash flow (FCF): refers to net cash provided
by operating activities less capex less dividends paid to minority
shareholders.
Foreign exchange and other net financing
income(loss): include foreign currency exchange impact,
bank fees, interest on pensions, impairment of financial assets,
revaluation of derivative instruments and other charges that cannot
be directly linked to operating results.
Gross debt: long-term debt and short-term
debt.
Impairment items: refers to impairment charges net
of reversals.
Income from associates, joint ventures and other
investments: refers to income from associates, joint
ventures and other investments (excluding impairments and
exceptional items if any).
Investable cash flow: refers to net cash provided
by operating activities less maintenance/normative capex.
Iron ore reference prices: refers to iron ore
prices for 62% Fe CFR China. Pricing is generally linked to market
price indexes and uses a variety of mechanisms, including current
spot prices and average prices over specified periods. Therefore,
there may not be a direct correlation between market reference
prices and actual selling prices in various regions at a given
time.
Kt: refers to thousand metric tonnes.
Liquidity: cash and cash equivalents plus
available credit lines excluding back-up lines for the commercial
paper program.
LTIF: refers to lost time injury frequency rate
equals lost time injuries per 1,000,000 worked hours, based on own
personnel and contractors.
Maintenance/normative capex: refers to capital
expenditures outside of strategic capital expenditures and
decarbonization projects (and includes cost reduction plans and
environment projects as well as general maintenance capital
expenditures).
Mt: refers to million metric tonnes.
Net debt: long-term debt and short-term debt less
cash and cash equivalents.
Net debt/LTM EBITDA: refers to Net debt divided by
EBITDA for the last twelve months.
Net interest expense: includes interest expense
less interest income.
On-going projects: refer to projects for which
construction has begun (excluding various projects that are under
development), even if such projects have been placed on hold
pending improved operating conditions.
Operating results: refers to operating
income(loss).
Operating segments: North America segment includes
the Flat, Long and Tubular operations of Canada and Mexico; and
also includes all Mexico mines. The Brazil segment includes the
Flat, Long and Tubular operations of Brazil and its neighboring
countries including Argentina, Costa Rica, Venezuela; and also
includes Andrade and Serra Azul captive iron ore mines. The Europe
segment includes the Flat, Long and includes Bosnia and Herzegovina
captive iron ore mines; Sustainable Solutions division includes
Downstream Solutions and Tubular operations of the European
business. The Others segment includes the Flat, Long and Tubular
operations of Kazakhstan (till December 7, 2023), Ukraine and South
Africa; and also includes the captive iron ore mines in Ukraine and
iron ore and coal mines in Kazakhstan (till December 7, 2023).
Mining segment includes iron ore operations of ArcelorMittal Mines
Canada and ArcelorMittal Liberia.
Own iron ore production: includes total of all
finished production of fines, concentrate, pellets and lumps and
includes share of production.
Price-cost effect: a lack of correlation or a lag
in the corollary relationship between raw material and steel
prices, which can either have a positive (i.e. increased spread
between steel prices and raw material costs) or negative effect
(i.e. a squeeze or decreased spread between steel prices and raw
material costs).
Shares outstanding fully diluted basis: refers to
the total number of shares outstanding (shares issued less treasury
shares) plus Mandatorily Convertible Subordinated Notes ("MCNs")
which were converted into shares in May 2023.
Shipments: information at segment and Group
level eliminates intra-segment shipments (which are primarily
between Flat/Long plants and Tubular plants) and inter-segment
shipments respectively. Shipments of Downstream Solutions are
excluded.
Working capital change (working capital investment /
release): refers to movement of change in working capital
- trade accounts receivable plus inventories less trade and other
accounts payable.
XCarb® is designed to bring together all of
ArcelorMittal’s reduced, low and zero-carbon products and
steelmaking activities, as well as wider initiatives and green
innovation projects, into a single effort focused on achieving
demonstrable progress towards carbon neutral steel. Alongside the
new XCarb® brand, we have launched three XCarb® initiatives: the
XCarb® innovation fund, XCarb® green steel certificates and XCarb®
recycled and renewably produced for products made via the Electric
Arc Furnace route using scrap. The Company is offering green steel
using a system of certificates (XCarb® green certificates). These
are issued by an independent auditor to certify tonnes of CO2
savings achieved through the Company’s investment in
decarbonization technologies in Europe. Net-zero equivalence is
determined by assigning CO2 savings certificates equivalent to CO2
per tonne of steel produced in 2018 as baseline. The certificates
relate to the tonnes of CO2 saved in total, as a direct result of
the decarbonization projects being implemented across a number of
its European sites. XCarb® sales in 2024 totaled c.0.4 million
tonnes. Sestao flat products plant (2 EAFs) is increasing
production to 1.6 million tonnes by 2026 and much of production to
be XCarb®.
Footnotes
- 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.
- 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.
- 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.
- 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.
- See Appendix 4 for
reconciliation of adjusted net income and adjusted basic earnings
per share.
- 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.
- 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%).
- Gross capex of $1.2
billion. Net amount of $0.9 billion, reflecting the value of
federal, state and local support.
- 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.
- The 2018 baseline
reflects assets owned by ArcelorMittal in 2018, and does not take
into consideration footprint and portfolio optimization.
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
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.
Non-GAAP/Alternative Performance Measures
This press release also includes certain non-GAAP
financial/alternative performance measures. ArcelorMittal presents
EBITDA and EBITDA/tonne, free cash flow (FCF), adjusted net income,
adjusted basic earnings per share and the ratio of net debt/LTM
EBITDA which are non-GAAP financial/alternative performance
measures, as additional measures to enhance the understanding of
its operating performance. As announced previously, the definition
of EBITDA has been revised to include income from share of
associates, JVs and other investments (excluding impairments and
exceptional items if any, of associates, JVs and other investments)
because the Company believes this information provides investors
with additional information to understand its results, given the
increasing significance of its joint ventures. ArcelorMittal
believes such indicators are relevant to provide management and
investors with additional information. ArcelorMittal also presents
net debt, liquidity and change in working capital as additional
measures to enhance the understanding of its financial position,
changes to its capital structure and its credit assessment.
Investable cashflow is defined as net cash provided by operating
activities less maintenance/normative capex, and the Company thus
believes that it represents a cashflow that is available for
allocation at management’s discretion. The Company’s guidance as to
additional EBITDA estimated to be generated from certain projects
is based on the same accounting policies as those applied in the
Company’s financial statements prepared in accordance with IFRS.
ArcelorMittal is unable to reconcile, without unreasonable effort,
such guidance to the most directly comparable IFRS financial
measure, due to the uncertainty and inherent difficulty of
predicting the occurrence and the financial impact of items
impacting comparability. For the same reasons, ArcelorMittal is
unable to address the significance of the unavailable information.
Non-GAAP financial/alternative performance measures should be read
in conjunction with, and not as an alternative to, ArcelorMittal's
financial information prepared in accordance with IFRS. Comparable
IFRS measures and reconciliations of non-GAAP financial/alternative
performance measures are presented herein.
About ArcelorMittal
ArcelorMittal is one of the world's leading steel and mining
companies, with a presence in 60 countries and primary steelmaking
facilities in 15 countries. In 2024, ArcelorMittal had revenues of
$62.4 billion and crude steel production of 57.9 million metric
tonnes, while iron ore production reached 42.4 million metric
tonnes.
Our goal is to help build a better world with smarter steels.
Steels made using innovative processes which use less energy, emit
significantly less carbon and reduce costs. Steels that are
cleaner, stronger and reusable. Steels for electric vehicles and
renewable energy infrastructure that will support societies as they
transform through this century. With steel at our core, our
inventive people and an entrepreneurial culture at heart, we will
support the world in making that change. This is what we believe it
takes to be the steel company of the future.
ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish
stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit:
https://corporate.arcelormittal.com/
Enquiries
ArcelorMittal investor relations: +44 207 543 1128; Retail: +44
207 543 1156; SRI: +44 207 543 1156 and Bonds/credit: +33 1 71 92
10 26.
ArcelorMittal corporate communications (e-mail:
press@arcelormittal.com) +44 207 629 7988. Contact: Paul Weigh +44
203 214 2419
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