In This Article:
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EBITDA per tonne: $116 in the quarter, double compared to previous cyclical lows.
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Underlying Free Cash Flow: Approximately $700 million, excluding seasonal working capital investment and discretionary growth CapEx.
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Mining Segment Performance: Liberia achieved records for both production and shipments.
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Operational Performance: Consistent operations in Europe and normalized levels in North America.
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Strategic Growth Contribution: Expected to contribute EUR 1.2 billion to structurally higher EBITDA over the next few years.
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Capital Return Policy: Initiated a new long-term share buyback program through 2030.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ArcelorMittal SA (NYSE:MT) reported strong operational performance and cash flows, with the mining segment in Liberia achieving record production and shipments.
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The company has a resilient financial performance, with EBITDA per tonne doubling compared to previous cyclical lows, demonstrating its transformation and higher margins.
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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.
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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.
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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
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The journey to achieve zero fatalities and serious injuries is expected to take three years, indicating ongoing safety challenges.
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The impact of tariffs on demand remains uncertain, posing a risk to future order books and market conditions.
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High energy costs in Europe continue to be a concern, potentially affecting the competitiveness of ArcelorMittal SA (NYSE:MT)'s operations.
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The company faces challenges in India with land acquisition and environmental licensing for its new greenfield steel plant, which could delay project timelines.
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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)