Financial Performance - ArcelorMittal SA reported Q4 2025 earnings per share of $0.86, which is 38.71% higher than the consensus estimate of $0.62, although revenue was below expectations at $14.97 billion [1] Renewable Energy Initiatives - The company plans to create 2.8GW of renewable energy capacity by 2028, which is estimated to add $0.4 billion to EBITDA [2] - ArcelorMittal has already licensed 1.6GW of renewable energy in India, Brazil, and Argentina, with an additional 1.2GW in progress [2] Iron Ore Business Development - The iron ore business in Liberia achieved record exports of 10 million tons in 2025, contributing $0.2 billion to EBITDA [3] - An agreement with the Government of Liberia allows operations to extend until 2050, with a new concentrator expected to ramp up to full capacity in 2026, enabling an expansion to 30 million tons capacity [3] Company Overview - ArcelorMittal SA is a leading steel and mining company that produces and sells steel products for various industries, including automotive, construction, and household appliances [4]

Company Overview - ArcelorMittal is the world's leading steel and mining company, operating in over 60 countries with a balanced portfolio of cost-competitive steel plants across both developed and developing markets [11] - The company is a leader in key sectors including automotive, household appliances, packaging, and construction [11] Investment Potential - ArcelorMittal has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid investment profile [11] - The company is particularly appealing to growth investors, with a Growth Style Score of B and a forecasted year-over-year earnings growth of 28.3% for the current fiscal year [12] - Recent upward revisions in earnings estimates by two analysts over the last 60 days have increased the Zacks Consensus Estimate by $0.11 to $4.94 per share [12] - ArcelorMittal has an average earnings surprise of +26.6%, further enhancing its attractiveness to investors [12]

Core Insights - Liberia's President Weah urgently calls for Senate approval of the Mineral Development Agreement (MDA) with ArcelorMittal, emphasizing its importance for national economic credibility and U.S. strategic interests in the region [1] Group 1: Agreement Details - The MDA includes a signing bonus of $200 million, increased community development funds, and mining fees, along with "Liberianization" clauses aimed at enhancing local participation in management and employment [1] - The agreement has already been overwhelmingly approved by the House of Representatives and is now under Senate review [1] Group 2: Political Context - President Weah's call for urgency follows high-level diplomatic meetings in Guinea, where U.S. officials highlighted ArcelorMittal's investment as a cornerstone of U.S. national security interests in the region [1] - There are reports of some senators attempting to link the MDA approval to a controversial port decentralization bill, which may complicate the legislative process [1] - Internal power struggles within the Senate could also impact the progress of the MDA approval [1] Group 3: Economic Impact - ArcelorMittal is one of the largest foreign investors in post-war Liberia, and its operations are deemed crucial for the country's economic recovery [1]

Core Insights - ArcelorMittal S.A. has announced a strategic investment of Euro 1.3 billion to construct an electric arc furnace (EAF) at its Dunkirk steelmaking site, which is a significant move towards decarbonizing steel production in France [1] Group 1: Investment and Operations - The new 2-million-ton EAF is expected to commence operations in 2029 and will achieve a threefold reduction in CO2 emissions compared to traditional blast furnaces [2][6] - Approximately 50% of the total investment will be supported by France's Energy Efficiency Certificates (CEE) scheme due to the sustainable benefits of the EAF [2][6] - Additionally, ArcelorMittal is investing Euro 500 million in a new electrical steel production unit at its Mardyck plant, marking the largest investment in Europe in the last decade, excluding decarbonization efforts [4][6] Group 2: Policy and Market Context - The decision to invest reflects increasing confidence in the evolving European policy framework, including recent proposals from the European Commission aimed at strengthening the Tariff Rate Quota (TRQ) system and reforming the Carbon Border Adjustment Mechanism (CBAM) [3] - These policy changes are anticipated to better protect European steelmakers from unfair imports and carbon leakage, facilitating the swift advancement of this investment [3] Group 3: Stock Performance - Over the past year, ArcelorMittal's stock has increased by 117.4%, outperforming the industry average rise of 59.8% [4]

Core Insights - ArcelorMittal has confirmed a strategic €1.3 billion investment for the construction of an electric arc furnace (EAF) at its Dunkirk steelmaking site, marking a significant step in the decarbonisation of its steel production in France [1][3][10] Investment Details - The EAF is expected to have a production capacity of 2 million tonnes and will generate steel with three times less CO2 emissions compared to traditional blast furnaces, producing 0.6 tonnes of CO2 per tonne of steel [3] - The funding for this project will be partially supported by Energy Efficiency Certificates (CEE), which will cover 50% of the total investment [3] Regulatory Environment - Recent regulatory proposals from the European Commission aim to limit unfair imports through a Tariff Rate Quota (TRQ) mechanism and reform the Carbon Border Adjustment Mechanism (CBAM) [4] - ArcelorMittal expresses appreciation for these regulatory developments, which are expected to restore fair competition in the European steel market and secure a sustainable future for steel production in the EU [5] Government Support - The French government, including President Emmanuel Macron, has been instrumental in supporting the steel industry, which has facilitated the investment decision for the Dunkirk EAF [7][8] - A long-term contract with EDF for low-carbon electricity supply is also a critical component of ArcelorMittal's energy strategy in France [5] Future Prospects - The company is considering the possibility of building additional EAFs in other European locations, contingent on favorable economic conditions and regulatory frameworks [9] - The Dunkirk EAF project is seen as a milestone for ArcelorMittal's commitment to decarbonisation and the long-term viability of steel production in Europe [10] Additional Investments - In addition to the EAF, ArcelorMittal is launching a new electrical steel production unit at its Mardyck plant, with a €500 million investment, representing the largest investment in Europe in the last decade, excluding decarbonisation efforts [11]

Core Insights - ArcelorMittal S.A. reported a fourth-quarter 2025 net income of $177 million, or 23 cents per share, a significant improvement from a loss of $390 million, or 51 cents per share, in the same quarter last year [2] - Adjusted earnings were 86 cents per share, exceeding the Zacks Consensus Estimate of 56 cents [2] - Total sales increased by approximately 2% year over year to $14,971 million, although this figure fell short of the consensus estimate of $15,760.7 million [2] Financial Performance - Total steel shipments decreased by 4% year over year to 13 million metric tons, missing the consensus estimate of 14.5 million metric tons [3] - In North America, sales rose by 16% year over year to $3,045 million, while crude steel production fell by 4.2% to 1,804 million metric tons [4] - Brazil saw a slight sales increase of 0.4% year over year to $2,901 million, with crude steel production rising by 3.1% to 3,636 million metric tons [5] - European sales declined by around 6% year over year to $6,736 million, with crude steel production down nearly 17% to 6,398 million metric tons [6] - Mining segment sales surged by 29% year over year to $908 million, with iron ore production totaling 10.1 million metric tons, up approximately 13.5% [7] Cash and Debt Position - At the end of the reported quarter, cash and cash equivalents stood at $5,476 million, down from $5,733 million in the previous quarter, with net debt around $7.9 billion [8] Future Outlook - The company anticipates global steel demand, excluding China, to improve in 2026, with apparent steel consumption projected to grow around 2% year over year [9] - ArcelorMittal plans to invest $4.5 to $5.0 billion in capital expenditures during 2026 to enhance capacity and efficiency, targeting medium- and long-term structural demand drivers [11] Stock Performance - ArcelorMittal's shares have increased by 105.6% over the past year, contrasting with a 58.7% decline in the industry [14]

Core Viewpoint - ArcelorMittal reported a 1.7% year-on-year decline in revenue for 2025, amounting to $61.4 billion, primarily due to falling steel prices and weak European demand [2] Financial Performance - The average global steel price decreased by 2.3%, leading to a 7.3% drop in EBITDA to $6.54 billion [2] - Adjusted net profit increased by 26.3% year-on-year to $2.938 billion, with adjusted earnings per share rising to $3.85 from $2.95 in 2024 [2] Future Outlook - The company is optimistic about its prospects for 2026, planning to increase capital expenditures to $4.5-5 billion, up from $4.3 billion in 2025 [2] - A dividend of $0.60 per share will be distributed to shareholders, reflecting a 9% increase from the previous year's $0.55 [2] Market Context - The CEO highlighted that trade wars and tariffs, particularly in Europe through the carbon border adjustment mechanism, are expected to benefit domestic steel production and demand [2]

Group 1: Jobless Claims Data - Initial Jobless Claims reached 231K, exceeding expectations of 212K and the previous week's 209K, marking the highest level of 2026 so far [2] - Continuing Claims increased to 1.844 million from a revised 1.819 million the prior week, still favorable compared to the past six months where it ranged between 1.93 and 1.97 million [3] Group 2: Earnings Reports - Bristol Myers-Squibb (BMY) reported earnings of $1.26 per share, beating the Zacks consensus of $1.15, resulting in a 9.57% earnings beat, with shares up 1.7% [4] - ConocoPhillips (COP) missed earnings estimates by 6 cents, reporting $1.02 per share, leading to a 5.6% earnings miss and a 3.3% drop in shares [5] - Ralph Lauren (RL) posted earnings of $6.22 per share, surpassing expectations of $5.80 with a 7.2% positive surprise, although shares fell 6.5% due to declining annualized revenue growth [6] - Tapestry (TPR) reported earnings of $2.69 per share, exceeding the Zacks consensus of $2.20, with shares up 5.9% [7] - Other notable earnings beats included Hershey's (HSY) at +21.28% and ArcelorMittal (MT) at +53.57%, while MasterCraft Boat (MCFT) had the largest beat at +81.25%, despite a revenue miss leading to a 1.2% drop in shares [8]

Financial Data and Key Metrics Changes - In 2025, the company delivered EBITDA of $6.5 billion, equivalent to $121 EBITDA per ton shipped, nearly double the margin achieved at previous cyclical low points, indicating a structural improvement in earnings power [9] - The company generated $1.9 billion of investable cash flow in 2025, bringing the total since 2021 to $23.5 billion, with a proposed base dividend of $0.60 per share, marking a doubling over the past five years [10][11] Business Line Data and Key Metrics Changes - Strategic projects contributed $0.7 billion of new EBITDA in 2025, driven by strong performance in Liberia and the build-out of renewables capacity in India [9] - The company expects higher steel production and shipments across all regions in 2026, supported by operational improvements and strengthened trade protections [11] Market Data and Key Metrics Changes - The European market has seen significant changes in trade policy, with the introduction of a carbon border adjustment mechanism and tariff rate quotas, creating a more level playing field for competition [4][5] - The company anticipates incremental support from trade measures in Canada and Brazil, which should positively impact results in those regions [5] Company Strategy and Development Direction - The growth strategy focuses on energy transition, expanding the renewables portfolio, and building electrical steel capacities to support electrification and mobility [6][7] - The company aims to maintain competitiveness by allocating capital to high-return opportunities while consistently returning cash to shareholders [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate positive free cash flows in 2026 and beyond, emphasizing a disciplined approach to capital allocation [11] - The management highlighted the importance of customer demand as a signpost for bringing idle capacity online, ensuring profitability and sustainable returns on capital [19] Other Important Information - The company has a strong focus on safety, with measurable progress in safety KPIs and a commitment to achieving zero fatalities and serious injuries [3] - The share count has been reduced by 38% over the past five years, significantly enhancing value per share [10] Q&A Session Questions and Answers Question: Capacity ramp-up in Europe - The company is well-positioned to bring idle capacity online quickly, with a focus on customer demand and ensuring profitable returns on capital before increasing capacity [19] Question: Profit bridges from Q4 to Q1 - North America is expected to see a recovery in volumes and prices, while Europe will also experience higher shipments and prices, particularly in Q2 [24][26] Question: Decarbonization projects in Europe - The company is evaluating decarbonization projects sequentially, with a focus on economic viability and maintaining a CapEx guidance of $4.5 billion to $5 billion [31][32] Question: Market consolidation in Europe - The company is comfortable with its current footprint in Europe and does not see significant benefits from further consolidation at this time [73] Question: Impact of import quotas - The company is prepared to meet the demand created by the displacement of imports, with no significant additional CapEx required to maintain market share [52]

Financial Data and Key Metrics Changes - In 2025, the company delivered EBITDA of $6.5 billion, equivalent to $121 EBITDA per ton shipped, nearly double the margin achieved at previous cyclical low points, indicating a structural improvement in earnings power [9] - The company generated $1.9 billion of investable cash flow in 2025, bringing the total since 2021 to $23.5 billion, with a proposed base dividend of $0.60 per share, marking a doubling of the dividend over the past five years [10][11] Business Line Data and Key Metrics Changes - Strategic projects contributed $0.7 billion of new EBITDA in 2025, driven by strong performance in Liberia and the build-out of renewables capacity in India [9] - The company expects higher steel production and shipments across all regions in 2026, supported by operational improvements and strengthened trade protections [11] Market Data and Key Metrics Changes - The European market has seen significant changes in trade policy, including the Carbon Border Adjustment Mechanism, which is expected to create a more balanced market structure and restore profitability [4][5] - The company anticipates that trade measures in Canada and Brazil will provide incremental support to results in those regions [5] Company Strategy and Development Direction - The growth strategy focuses on energy transition, expanding the renewables portfolio, and building electrical steel capacities to support electrification and mobility [6][7] - The company remains committed to capital allocation where the strongest returns can be achieved, consistently generating solid investable cash flow [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate positive free cash flows in 2026 and beyond, emphasizing a disciplined approach to capital allocation [11] - The management highlighted the importance of customer demand as a signpost for bringing idle capacity online, ensuring profitability and sustainable returns on capital [19] Other Important Information - The company has reduced its share count by 38% over the past five years, significantly enhancing value per share [10] - The management is focused on maintaining a balance between returning capital to shareholders and investing in growth opportunities [60][63] Q&A Session Summary Question: How quickly can you bring additional capacity online in Europe? - The company is well positioned to bring idle capacity online quickly, with no significant reline or rehiring needed, aiming to meet projected deadlines [19] Question: What are the signposts for bringing capacity online? - Customer demand is the primary signpost, with a focus on ensuring profitable returns on capital employed [19] Question: Can you provide insights on the profit bridges from Q4 to Q1? - North America is expected to see a recovery in volumes and prices, while Europe will also experience higher shipments and prices, particularly in Q2 [23][24] Question: What are the next steps for decarbonization projects in Europe? - The company is evaluating decarbonization of its Dunkirk facility, with a focus on economic viability and sequential project execution [31][32] Question: What is the outlook for the European market and potential consolidation? - The company is comfortable with its current footprint in Europe and does not see significant benefits from further consolidation at this time [73] Question: How is the company addressing risks in India and Mexico? - The company acknowledges heightened risks but remains confident in the growth potential in India, with ongoing government support for the steel industry [88][90]