• EBITDA per tonne: $116 in the quarter, double compared to previous cyclical lows.
• Underlying Free Cash Flow: Approximately $700 million, excluding seasonal working capital investment and discretionary growth CapEx.
• Mining Segment Performance: Liberia achieved records for both production and shipments.
• Operational Performance: Consistent operations in Europe and normalized levels in North America.
• Strategic Growth Contribution: Expected to contribute EUR 1.2 billion to structurally higher EBITDA over the next few years.
• Capital Return Policy: Initiated a new long-term share buyback program through 2030.

• Warning! GuruFocus has detected 5 Warning Sign with MT.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ArcelorMittal SA (NYSE:MT) reported strong operational performance and cash flows, with the mining segment in Liberia achieving record production and shipments.
• The company has a resilient financial performance, with EBITDA per tonne doubling compared to previous cyclical lows, demonstrating its transformation and higher margins.
• ArcelorMittal SA (NYSE:MT) is well-positioned to benefit from global trade actions, with Europe and India introducing new safeguards to create a level playing field.
• The company has initiated a new long-term share buyback program through 2030, demonstrating confidence in its financial stability and commitment to returning capital to shareholders.
• Growth projects, such as the Liberia expansion and the new state-of-the-art EIF at Calvert, are on track and expected to contribute significantly to future EBITDA and cash flow.

Negative Points

• The journey to achieve zero fatalities and serious injuries is expected to take three years, indicating ongoing safety challenges.
• The impact of tariffs on demand remains uncertain, posing a risk to future order books and market conditions.
• High energy costs in Europe continue to be a concern, potentially affecting the competitiveness of ArcelorMittal SA (NYSE:MT)'s operations.
• The company faces challenges in India with land acquisition and environmental licensing for its new greenfield steel plant, which could delay project timelines.
• The decision to cancel the Monlevade expansion project in Brazil due to prohibitive costs highlights potential financial constraints and strategic reevaluations.

Q & A Highlights

Q: Can you provide the building blocks for Q2 2025 EBITDA by division, and have you seen the full benefit of falling met coal prices? A: In Q2, we expect strong support from recovering spreads in Europe, which were weak earlier. The full benefit of falling met coal prices will be modest due to the weighted average cost, as we are still working through high costs from early 2024. Higher volumes in Brazil and Ukraine, along with a positive price-cost effect in Europe, will support Q2 results. (Genuino Christino, CFO)

Q: Regarding North America, do the new automotive component exemptions apply to steel, and how are tariffs absorbed? A: The impact of Section 232 tariffs is expected to be neutral. There is no stacking of tariffs on auto parts, and clarification is needed for derivative products. Tariff costs are absorbed at the group level, not specifically at Calvert. (Genuino Christino, CFO)

Q: Can you provide an update on the new greenfield steel plant in India and the timeline for its phases? A: The project is in early stages, with land acquisition underway. We are working closely with the government for environmental licenses. The timeline quoted by the Indian press is realistic, but it's early to confirm. The site choice is strategic due to proximity to customers and access to iron ore. (Genuino Christino, CFO)

Q: What is the outlook for the European market, and how will job cuts affect your footprint? A: Demand in Europe is supported by reduced imports due to new trade actions. We expect imports to continue trending down, allowing domestic players to regain market share. We have no plans to change our footprint in Europe, and the momentum is positive. (Genuino Christino, CFO)

Q: How is the Liberia iron ore expansion progressing, and what are the expected financial impacts? A: The project is on track, with high-quality material expected. The $450 million additional EBITDA is based on conservative long-term prices. If prices remain high, there could be significant upside. The project will provide economies of scale and a richer product. (Genuino Christino, CFO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.