ArcelorMittal (NYSE:MT) Announces Quarterly Earnings Results

ArcelorMittal (NYSE:MT) announced its earnings results on Thursday. The basic materials company reported $0.90 EPS for the quarter, missing analysts’ consensus estimates of $1.18 by ($0.28), Briefing.com reports. The firm had revenue of $16.76 billion for the quarter, compared to analyst estimates of $17.07 billion. ArcelorMittal had a net margin of 4.71% and a return on equity of 4.77%. ArcelorMittal’s revenue was up 5.2% compared to the same quarter last year. During the same period in the previous year, the company earned $1.32 EPS.

Here are the key takeaways from ArcelorMittal’s conference call:

• Improving second-quarter performance and momentum: EBITDA rose to $2.1 billion, or $155 per ton, while underlying first-half free cash flow annualized at approximately $2.5 billion. Management expects shipments in the third quarter to be stable to higher sequentially, an unusually strong seasonal outcome.
• European outlook strengthened: European EBITDA per ton reached a three-year high of $98, with stronger order books, firming prices and furnace restarts in Spain, Poland and France. Management expects the new tariff-rate quota to reduce imports and improve market share and margins, although higher production will also increase carbon costs.
• Growth projects are expected to lift earnings: Strategic projects are projected to contribute $1.8 billion of incremental EBITDA from 2026 onward, including investments in India, Liberia, Brazil and the U.S. The company is also advancing studies for a second Calvert EAF and additional downstream capacity.
• Long-term demand and shareholder returns remain priorities: Management sees structural demand from electrification, renewable energy, defense, infrastructure and data centers, alongside benefits from increasingly regional steel markets. It reiterated a focus on investment-grade balance-sheet strength, disciplined capital allocation, growing dividends and share buybacks.
• Decarbonization investments remain economically challenging: The company said European DRI projects are not currently part of its plans because gas and hydrogen economics remain difficult, and future projects will proceed only if they generate returns above the cost of capital. European production increases will also bring additional ETS carbon costs.

ArcelorMittal Trading Up 5.5%

NYSE:MT traded up $3.59 during trading hours on Thursday, hitting $69.29. The company had a trading volume of 1,774,855 shares, compared to its average volume of 1,910,168. The company has a current ratio of 1.39, a quick ratio of 0.54 and a debt-to-equity ratio of 0.19. The company has a 50-day moving average of $65.85 and a 200 day moving average of $60.41. The company has a market cap of $53.70 billion, a P/E ratio of 18.19, a P/E/G ratio of 0.52 and a beta of 1.55. ArcelorMittal has a 1 year low of $30.17 and a 1 year high of $72.50.

Analyst Ratings Changes

MT has been the subject of several research reports. JPMorgan Chase & Co. upgraded ArcelorMittal from an “underweight” rating to a “neutral” rating in a research report on Friday, July 10th. Citigroup restated a “buy” rating on shares of ArcelorMittal in a report on Wednesday, May 20th. Wells Fargo & Company lifted their target price on shares of ArcelorMittal from $61.00 to $62.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 9th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $70.00 target price on shares of ArcelorMittal in a report on Tuesday, July 7th. Finally, Santander cut shares of ArcelorMittal from an “outperform” rating to a “neutral” rating in a research report on Tuesday, April 21st. Six research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $68.40.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Compound Planning Inc. acquired a new position in shares of ArcelorMittal during the 4th quarter valued at about $232,000. Invesco Ltd. increased its position in ArcelorMittal by 239.8% during the fourth quarter. Invesco Ltd. now owns 19,785 shares of the basic materials company’s stock worth $902,000 after purchasing an additional 13,963 shares during the last quarter. Axxcess Wealth Management LLC purchased a new position in ArcelorMittal during the fourth quarter worth about $1,111,000. Mercer Global Advisors Inc. ADV raised its stake in ArcelorMittal by 3.5% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 89,543 shares of the basic materials company’s stock worth $4,080,000 after purchasing an additional 3,036 shares during the period. Finally, NewEdge Advisors LLC acquired a new position in ArcelorMittal in the 4th quarter valued at about $581,000. Hedge funds and other institutional investors own 9.29% of the company’s stock.

ArcelorMittal Company Profile

ArcelorMittal is a multinational steel manufacturing company formed in 2006 through the merger of Arcelor and Mittal Steel. Headquartered in Luxembourg, the company is one of the world’s largest producers of steel and operates an integrated value chain that spans raw material extraction, steelmaking, processing and distribution. Its product portfolio includes flat and long carbon steel products, coated and specialty steels, tubular products and value-added solutions tailored for sectors such as automotive, construction, household appliances, energy and packaging.

ArcelorMittal’s operations are global in scope, with production facilities, distribution networks and commercial activities across Europe, the Americas, Asia, Africa and the Commonwealth of Independent States.