Arcelor Mittal NY Registry Shares NEW
MT · NYSE
Next quarter
Reports Nov 5, 2026.
Consensus is $1.25 EPS for Sep 2026 across 2 estimates, ranging $1.21 to $1.29.
MT Jun 2026
- 24.58%
- +1.15%
- $1.18
- $0.89
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- —
Highlights
- Earnings miss: Diluted EPS was $0.89, below the $1.18 consensus estimate by 24.6%, although EBITDA rose 22.9% sequentially to $2.064 billion.
- Structurally higher margins: EBITDA per tonne reached $155, up from $131 in the first quarter and $135 a year earlier; the 12.3% EBITDA margin was the highest of the comparison periods.
- Improved operating result: Sales increased 8.4% sequentially to $16.761 billion and 5.2% year over year, while net income attributable to shareholders rose to $683 million from $575 million in the first quarter.
- Europe momentum: Europe EBITDA increased 39.3% sequentially to $697 million, with EBITDA per tonne improving by $28 to $155; third-quarter shipments are expected to be stable to slightly higher rather than falling seasonally.
- Broad-based steel improvement: North America EBITDA rose 27.4% sequentially to $488 million, Brazil increased 20.0% to $401 million, and Sustainable Solutions increased 14.3% to $142 million.
- Mining drag: Mining EBITDA fell 40.1% sequentially to $179 million as iron ore shipments declined to 9.4 million tonnes from 10.0 million tonnes, reflecting weather-related port delays and higher freight costs.
- Cash and capital allocation: First-half free cash flow was negative $1.493 billion after a $1.981 billion working-capital investment and $2.373 billion of capex; the company returned $0.7 billion to shareholders in the period.
- Balance sheet and outlook: Net debt increased to $9.5 billion from $9.3 billion at March 31, while liquidity remained $10.4 billion; 2026 capex guidance of $4.5-$5.0 billion and the approximately $1.8 billion strategic-project EBITDA potential were unchanged.
Analysis
ArcelorMittal’s second quarter was an operational improvement but an earnings miss. Diluted EPS of $0.89 was 24.6% below the $1.18 consensus, while sales of $16.8 billion rose 8.4% from the first quarter and 5.2% from a year earlier. EBITDA increased to $2.064 billion from $1.679 billion sequentially and $1.860 billion year over year, lifting the margin to 12.3% and EBITDA per tonne to $155. Net income of $683 million was up from $575 million in the prior quarter but far below the $1.793 billion reported in 2Q 2025, which benefited from $1.162 billion of exceptional gains and related items.
The defining feature was improving steel profitability across the operating portfolio, led by Europe, where price-cost effects lifted EBITDA 39.3% sequentially to $697 million. Management expects the new trade-rate quota framework and CBAM to support European order books and keep third-quarter shipments stable to slightly higher, against normal seasonal declines. Mining offset part of that progress, with EBITDA down to $179 million on lower shipments. Cash conversion remained constrained by the seasonal working-capital build and investment program: first-half free cash flow was negative $1.493 billion, although management cites $0.5 billion of underlying free cash flow excluding the $2.0 billion working-capital investment. Net debt rose modestly to $9.5 billion.
Margins and earnings
The quarter showed stronger operating performance despite the EPS shortfall. Sales rose to $16.761 billion from $15.457 billion in the first quarter and $15.926 billion in 2Q 2025, driven by higher steel prices and shipments. EBITDA increased 22.9% sequentially and 11.0% year over year to $2.064 billion, while operating income rose to $1.055 billion from $753 million in the prior quarter. Net financing costs were a significant earnings headwind: foreign exchange and other net financing losses reached $286 million, compared with $80 million in the first quarter and income of $8 million a year earlier.
Europe trade momentum
Europe was the clearest positive swing factor. EBITDA increased to $697 million from $501 million in the first quarter and $627 million a year earlier, primarily because of a positive price-cost effect. Sales rose 4.7% sequentially to $7.797 billion as the average steel selling price increased 3.9% to $967 per tonne. Production rose 10.5% to 7.6 million tonnes as facilities in Spain and Poland restarted, while shipments were broadly stable at 7.1 million tonnes. The company said order books improved after the July 1 implementation of the new tariff-rate quota, and expects third-quarter European shipments to be stable to slightly higher rather than declining by the typical high-single-digit seasonal rate. The Fos blast furnace in France was also restarted at the end of July.
Regional operating performance
- North America: EBITDA increased 27.4% sequentially to $488 million, supported by a positive price-cost effect and higher shipments. Steel shipments rose 7.9% to 2.831 million tonnes, while the average selling price increased 6.7% to $1,161 per tonne.
- Brazil: EBITDA rose 20.0% to $401 million as shipments increased 3.9% to 3.568 million tonnes and the average selling price rose 8.0% to $798 per tonne. Lower import penetration and stronger domestic-market volumes supported the result.
- India and JVs: AMNS India EBITDA increased 31.5% to $257 million on a 100% basis, primarily from a positive price-cost effect. Group income from associates, joint ventures and other investments rose to $229 million from $177 million sequentially.
- Mining: EBITDA declined to $179 million from $299 million, with sales down 15.0% to $780 million. Production increased 3.5% to 10.1 million tonnes, but shipments fell to 9.4 million tonnes because of heavy rainfall and port constraints in Liberia and Canada.
Cash flow and returns
Second-quarter operating cash flow was $961 million, including a $457 million working-capital investment, compared with cash usage of $9 million in the first quarter after a $1.524 billion seasonal working-capital investment. Capex was $1.102 billion, producing free cash flow of negative $152 million for the quarter and negative $1.493 billion for the first half. Management characterizes underlying first-half free cash flow as positive $0.5 billion after excluding the approximately $2.0 billion seasonal working-capital investment and after $0.8 billion of strategic growth spending. Shareholder returns totaled $0.7 billion in the first half, comprising $0.2 billion of dividends and $0.5 billion of buybacks; the company expects 2026 returns to exceed its policy minimum.
Growth portfolio and balance sheet
The company kept its medium-term investment case and financial targets unchanged. The portfolio of organic projects and completed M&A is expected to add approximately $1.8 billion of EBITDA potential from 2026 onward, including Liberia’s 20 million-tonne-per-year expansion, electrical-steel projects in Europe and North America, India expansion and renewable-energy investments. 2026 capex guidance remains $4.5-$5.0 billion, including $1.7-$1.9 billion of strategic capex. Net debt rose to $9.5 billion from $9.3 billion at March 31 and $7.9 billion at December 31, 2025, while gross debt was $14.4 billion and liquidity was $10.4 billion. The company expects stronger second-half profitability and cash generation to support further shareholder returns and debt reduction.
