ArcelorMittal SA (MT) shares surged 7.54% in pre-market trading on Thursday, following the company's better-than-expected fourth-quarter 2024 earnings and an optimistic outlook for 2025 that buoyed investor sentiment.
The Luxembourg-based steelmaker reported adjusted earnings of $0.52 per share for the fourth quarter, surpassing analysts' expectations of $0.59 per share. Despite a challenging market environment marked by global overcapacity and weak demand, particularly in Europe, ArcelorMittal's operating income and EBITDA saw significant improvements, driven by favorable price-cost effects and improved performance in its Mining segment.
Looking ahead, ArcelorMittal expects world ex-China apparent steel consumption to grow by 2.5% to 3.5% in 2025, supporting steel shipment growth. The company anticipates restocking activity, particularly in Europe where inventory levels are low, to supplement real demand improvement. Additionally, ArcelorMittal plans to invest $4.5-$5.0 billion in capital expenditures, including $1.4-$1.5 billion on strategic growth projects, such as a new electrical steel plant in the U.S. to meet growing demand for electric vehicles and other specialized applications.