• EBITDA: $7.1 billion for the year, translating to $130 of EBITDA per tonne shipped.
• Adjusted Net Income: $2.3 billion in 2024.
• Return on Capital Employed: 6% in 2024.
• Investable Cash Flow: Over $2 billion generated in 2024.
• Investment in Strategic Growth Projects: $1.3 billion in 2024.
• Shareholder Returns: $1.7 billion returned, including repurchase of 6% of outstanding shares.
• Dividend Increase: Increased to $0.55 per share, a 10% increase from last year.

• Warning! GuruFocus has detected 8 Warning Signs with MT.

Release Date: February 06, 2025

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

Positive Points

• ArcelorMittal SA (NYSE:MT) achieved $2 billion of investable cash flow in 2024, demonstrating resilience despite challenging market conditions.
• The company has successfully completed several strategic projects, including the Vega cold mill complex in Brazil and a new hot strip mill in Mexico, contributing to incremental EBITDA.
• ArcelorMittal SA (NYSE:MT) has reduced its share count by 37% over the last four years through buybacks, enhancing shareholder value.
• The company has made significant progress in decarbonization, reducing absolute carbon emissions to approximately half the level of 2018.
• ArcelorMittal SA (NYSE:MT) has a strong balance sheet, allowing for continued growth and strategic investments in key markets like India, Brazil, and the US.

Negative Points

• The company faces challenges with project delays, such as the Mardyck electrical steel facility in Europe, due to equipment supply issues and lack of large-scale project experience.
• There is uncertainty regarding potential tariffs on Canadian and Mexican steel imports to the US, which could impact costs and revenues.
• ArcelorMittal SA (NYSE:MT) is experiencing difficulties in the Indian market due to an influx of imports, affecting short-term performance.
• The company is cautious about its decarbonization investments in Europe and Canada, awaiting appropriate regulatory frameworks to ensure economic viability.
• ArcelorMittal SA (NYSE:MT) is operating at only 30% capacity in Ukraine, resulting in cash losses since the invasion, with uncertain prospects for full recovery.

Q & A Highlights

Q: With the plant non-green steel-oriented plant in Calvert to commence end of '27, does that mean anything for the second year at Calvert, either in terms of accelerating the timeline or delaying the terms in terms of project complexity on sequencing, etc.? A: The commissioning of the new electric furnace in Calvert, Alabama, is on track and is not expected to delay the second EAF. The focus is on commissioning the first EAF and then staffing the project for the second. The strategic growth CapEx is expected to remain between $4.5 billion to $5 billion, with flexibility to adjust based on market conditions and regulatory support.

Q: If there is a reemergence of a threat of tariffs on Canada and Mexico from the US, how are you thinking about the potential impacts on Dofasco and Mexico? A: Previous tariffs cost about $100 million per quarter but were offset by revenue impacts. The company has more domestically produced slabs now, which could mitigate some effects. The focus remains on strengthening the NAFTA trading block, and discussions about tariffs are still uncertain.

Q: Can you provide some insight on the bridge from Q4 to Q1 EBITDA? A: In the US, shipments are expected to be higher with stable prices and costs. In Brazil, shipments and prices are expected to remain stable. In Europe, higher volumes are expected, but prices may be slightly lower. The mining segment is expected to perform strongly with improved volumes, especially in Liberia.

Q: What are your thoughts on the current trends in the Indian market and the key positives or potential negatives for 2025? A: The Indian market is currently challenging due to import pressures. However, the government is evaluating safeguard actions, and there is confidence that appropriate measures will support growth. The company is doubling capacity and enhancing upstream and downstream capabilities in India.

Q: Regarding the decarbonization agenda, are you still thinking that decarbonization is economically viable? A: Economic decarbonization is crucial, but the pace of policy regulation has slowed, impacting progress. The focus is on maintaining economic viability while continuing to reduce emissions and increase the share of EAF production. The company is prepared to decarbonize further with the right policy framework.

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