Financial Performance - ArcelorMittal reported sales of $62.4 billion for the year ended December 31, 2024, an 8.5% decrease from $68.3 billion in 2023, primarily due to a 7.6% decline in average steel selling prices and a 2.4% decrease in steel shipments [943]. - Operating income for 2024 was $3.31 billion, a significant increase from $2.34 billion in 2023, despite lower sales [929]. - Operating income for the year ended December 31, 2024, was $3.3 billion, an increase of 43.5% compared to $2.3 billion in 2023, despite challenges from illegal blockades and lower iron ore prices [953]. - Income from investments in associates, joint ventures, and other investments decreased to $779 million for the year ended December 31, 2024, from $1,184 million in 2023, affected by lower contributions from AMNS India [996]. - ArcelorMittal's net income attributable to equity holders of the parent was $1.3 billion in 2024, compared to $0.9 billion in 2023 and $9.3 billion in 2022 [1045]. Sales and Shipments - Steel shipments decreased by 2.4% to 54.3 million tonnes in 2024 compared to 55.6 million tonnes in 2023; on a comparable basis, shipments were 1.7% higher when excluding Kazakhstan operations [933]. - Average steel selling prices fell by 7.6% in 2024 compared to 2023, consistent with international price trends [936]. - The North America segment reported sales of $11.9 billion in 2024, a decrease from $13.0 billion in 2023, with operating income dropping to $1.31 billion from $1.92 billion [929]. - The Europe segment's sales fell to $29.95 billion in 2024 from $31.7 billion in 2023, with operating income decreasing to $386 million from $879 million [929]. - Sustainable Solutions segment sales were $10.72 billion in 2024, down from $11.47 billion in 2023, with operating income declining to $57 million from $225 million [929]. Production and Costs - Total iron ore production increased by 1.1% to 42.4 million tonnes in 2024, up from 42.0 million tonnes in 2023 [940]. - Cost of sales for 2024 was $56.7 billion, down from $63.5 billion in 2023, driven by lower raw material costs [946]. - Energy costs for the year ended December 31, 2024, totaled $5.858 billion, a decrease of 14.0% from $6.815 billion in 2023, and represented 10% of cost of sales [949]. - Crude steel production in North America decreased by 13.6% to 7.5 million tonnes in 2024, impacted by illegal blockades, resulting in an estimated loss of 800,000 tonnes of production [956]. - Crude steel production in Brazil increased by 4.0% to 14.5 million tonnes in 2024, driven by the consolidation of ArcelorMittal Pecém [968][970]. Debt and Financing - As of December 31, 2024, ArcelorMittal's total debt was $11.6 billion, an increase from $10.7 billion in 2023 [1052]. - Net debt rose to $5.1 billion in 2024 from $2.9 billion in 2023, reflecting an increase in long-term and short-term debt [1053]. - The company signed a new $5.5 billion revolving credit facility on May 29, 2024, maturing in 2029, replacing the previous facility [1066]. - The repayment schedule for total gross debt as of December 31, 2024, includes $2.7 billion in 2025 and $1.3 billion in 2026 [1061]. - Gearing ratio (net debt divided by total equity) increased to 10% in 2024 from 5% in 2023 [1047]. Cash Flow and Investments - For the year ended December 31, 2024, net cash provided by operating activities decreased to $4.9 billion, compared to $7.6 billion in 2023 and $10.2 billion in 2022 [1083][1085]. - Capital expenditures for the year ended December 31, 2024, were $4.4 billion, with expectations for 2025 capital expenditures to remain in the range of $4.5 to $5.0 billion [1087][1090]. - Net cash used in investing activities was $5.0 billion for the year ended December 31, 2024, down from $5.8 billion in 2023 [1087][1096]. - The Company repurchased 78 million shares for a total value of $2.0 billion by December 31, 2024, representing 92% of the current share buyback program [1079]. - Dividend payments for the year ended December 31, 2024, totaled $580 million, compared to $531 million in 2023 and $663 million in 2022 [1105]. Market Risks - The company is exposed to various market risks, including fluctuations in raw material prices and foreign currency exchange rates [1108]. - ArcelorMittal's foreign currency translation risk could significantly impact its consolidated financial statements due to the translation of subsidiaries' financials denominated in currencies other than the U.S. dollar [1120]. - The company has implemented strict policies to manage financial market risks, overseen by the CEO and CFO [1111].

Group 1 - The management at ArcelorMittal has made significant changes, focusing on prioritizing economic returns over mere scale [1] - There is a commitment to increased capital investment, indicating a strategic shift in operational priorities [1]

Core Insights - The article compares ArcelorMittal (MT) and United States Steel (X) to determine which stock is more attractive to value investors [1] Valuation Metrics - ArcelorMittal has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while United States Steel has a Zacks Rank of 5 (Strong Sell) [3] - MT has a forward P/E ratio of 8.14, significantly lower than X's forward P/E of 21.83 [5] - The PEG ratio for MT is 0.15, while X has a PEG ratio of 1.27, suggesting MT is more undervalued relative to its expected earnings growth [5] - MT's P/B ratio is 0.48, compared to X's P/B of 0.74, further indicating MT's relative undervaluation [6] - These metrics contribute to MT's Value grade of A and X's Value grade of D, suggesting MT is the better option for value investors [6]

Core Viewpoint - ArcelorMittal announces the appointment of Everton Negresiolo as CEO of its South American Long Products and mining business, effective April 1, 2025, succeeding Jefferson de Paula who is retiring after a 34-year career with the company [1][2][5][6]. Group 1: Leadership Changes - Everton Negresiolo has been with ArcelorMittal since 2010, holding various senior roles before his current appointment as CEO of South American Long Products [3]. - Jefferson de Paula, who has been with the company since 1991, has held multiple senior leadership positions and has been CEO of the South American Long Products and mining business since 2011 [2][5]. - Jorge Luiz Ribeiro de Oliveira has been nominated as Executive Vice President of ArcelorMittal, effective April 1, 2025 [4]. Group 2: Company Overview - ArcelorMittal is one of the world's leading integrated steel and mining companies, operating in 60 countries with primary steelmaking operations in 15 countries [7]. - In 2024, ArcelorMittal generated revenues of $62.4 billion, produced 57.9 million metric tonnes of crude steel, and 42.4 million tonnes of iron ore [7]. - The company serves a diverse range of customers across various industries, including automotive, engineering, construction, and machinery [7]. Group 3: Strategic Focus - The company aims to produce smarter steels that are cleaner, stronger, and reusable, focusing on innovative processes that reduce energy consumption and carbon emissions [8]. - ArcelorMittal is committed to supporting the transition to renewable energy infrastructure as part of its long-term strategy [8].

Core Viewpoint - The article emphasizes the importance of value investing and highlights ArcelorMittal (MT) as a strong value stock based on various financial metrics [2][4][7] Company Analysis - ArcelorMittal (MT) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The Forward P/E ratio for MT is 7.09, significantly lower than the industry average of 10.92, suggesting that MT is undervalued [4] - Over the past year, MT's Forward P/E has fluctuated between a high of 7.83 and a low of 4.80, with a median of 5.76 [4] - The PEG ratio for MT is 0.13, compared to the industry average of 0.37, indicating favorable valuation relative to expected earnings growth [5] - MT's PEG has ranged from a high of 0.56 to a low of 0.13 over the past year, with a median of 0.35 [5] - The P/CF ratio for MT is 5.25, which is attractive compared to the industry average of 13.83, further supporting the notion of undervaluation [6] - MT's P/CF has varied from a high of 14.53 to a low of 4.12 in the past 12 months, with a median of 6.58 [6] - Overall, the financial metrics suggest that ArcelorMittal is likely undervalued and stands out as one of the strongest value stocks in the market [7]

Core Insights - Investors in the Steel - Producers sector should consider ArcelorMittal (MT) and United States Steel (X) for potential undervalued stock opportunities [1] Valuation Metrics - ArcelorMittal has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while United States Steel has a Zacks Rank of 5 (Strong Sell) [3] - MT's forward P/E ratio is 7.68, significantly lower than X's forward P/E of 22.26, suggesting MT is undervalued [5] - The PEG ratio for MT is 0.14, compared to X's PEG ratio of 1.29, indicating MT's expected earnings growth is more favorable [5] - MT's P/B ratio is 0.46, while X's P/B ratio is 0.76, further supporting MT's valuation as more attractive [6] - MT has a Value grade of A, while X has a Value grade of C, highlighting MT's stronger position in value metrics [6]

Core Viewpoint - ArcelorMittal S.A. is advancing plans to establish a non-grain-oriented electrical steel manufacturing facility in Alabama, aiming to enhance domestic production and reduce reliance on imports [1][2]. Group 1: Project Overview - The new facility will have an annual production capacity of up to 150,000 metric tons of non-grain-oriented electrical steel, with a total investment of $1.2 billion [1]. - The project is expected to support critical industries such as electric vehicles and energy-efficient technologies, while also creating high-quality jobs in Alabama [2]. Group 2: Economic Impact - Construction is anticipated to begin in the second half of 2025, creating up to 1,300 jobs, with over 200 permanent positions for plant operations [3]. - The facility will help meet the increasing demand for high-quality electrical steels and provide a steady domestic supply, addressing supply-chain challenges [3]. Group 3: Additional Infrastructure - The ArcelorMittal Calvert plant will include various specialized manufacturing operations such as an annealing pickling line, cold-rolling mill, and packaging and slitter line [4].

Financial Performance - ArcelorMittal S.A. recorded adjusted earnings of 52 cents for fourth-quarter 2024, down from $1.18 per share in the year-ago quarter, but surpassed the Zacks Consensus Estimate of 41 cents [1] - Total sales rose approximately 1.1% year over year to $14,714 million, but missed the consensus estimate of $15,553.5 million due to a decline in average steel selling prices [2] - Net cash provided by operating activities was $2,468 million compared to $3,328 million in the year-ago quarter, with net debt around $5.1 billion, up roughly 75.9% year over year [8] Segment Review - North America: Sales decreased 10.5% year over year to $2.63 billion, with crude steel production increasing 13.8% to 1,883 million metric tons, but steel shipments fell 7.7% to 2,391 million metric tons, missing the consensus estimate [4] - Brazil: Sales increased around 7% year over year to $2.89 billion, with crude steel production declining 0.2% to 3,527 million metric tons and shipments down 2.4% to 3,478 million metric tons, lagging the consensus [5] - Europe: Sales rose around 7.7% year over year to $7.14 billion, with crude steel production increasing roughly 17.7% to 7,696 million metric tons and shipments rising 12.6% to 7,213 million metric tons, exceeding the consensus [6] - Mining: Sales fell 7.8% year over year to $704 million, while iron ore production totaled 8.9 million metric tons, up around 43.5% from the year-ago quarter [7] Annual Results - For 2024, ArcelorMittal reported revenues of $62.44 billion, indicating an 8.5% decline from 2023, primarily due to lower average steel selling prices despite stable shipments [9] - The company reported a net income of $1,339 million, a notable increase from $919 million in 2023 [9] Market Outlook - The company expects world ex-China apparent steel consumption to grow 2.5% to 3.5% in 2025 from the 2024 level, supporting steel shipment growth [10] - By region, apparent steel consumption for Europe flat products is expected to grow between 0% and 2%, while U.S. flat products are projected to increase 1% to 3% [10] Stock Performance - Shares of ArcelorMittal have gained 3.3% in the past year, contrasting with the industry's 21.8% decline [11]

Financial Performance - FY 2024 EBITDA was $7.1 billion, with EBITDA per tonne at $130, reflecting structural business improvements and regional diversification [2]. - Adjusted net income for FY 2024 was $2.3 billion, with a basic adjusted EPS of $2.95, impacted by non-cash and exceptional items totaling $1.0 billion [2]. - Operating income for 12M 2024 was $3.3 billion, a 41.4% increase from $2.3 billion in 12M 2023, despite impairment charges of $116 million and exceptional items of $216 million [21]. - EBITDA for 12M 2024 decreased by 19.3% to $7,053 million compared to $8,742 million in 12M 2023, primarily due to negative price-cost effects and lower iron ore prices [22]. - Net income for 12M 2024 increased to $1,339 million from $919 million in 12M 2023, with adjusted net income of $2,326 million compared to $4,867 million in 12M 2023 [23]. - The company reported a net loss attributable to equity holders of the parent of $390 million for Q4 2024, compared to a profit of $287 million in Q3 2024 and a loss of $2,966 million in Q4 2023 [69]. - Adjusted net income attributable to equity holders of the parent for 2024 was $2,326 million, down from $4,867 million in 2023 [69]. Cash Flow and Debt - The company generated net cash from operating activities of $4.9 billion, with $1.3 billion allocated to strategic growth capex and $1.7 billion returned to shareholders [2]. - Net cash provided by operating activities for 12M 2024 was $4.9 billion, down from $7.6 billion in 12M 2023, with free cash flow of $0.3 billion compared to $2.9 billion in 12M 2023 [24]. - The net cash provided by operating activities for Q4 2024 was $2,468 million, a significant increase from $1,411 million in Q3 2024 and $3,328 million in Q4 2023 [63]. - Free cash flow for Q4 2024 was $1,317 million, compared to $275 million in Q3 2024 and $1,847 million in Q4 2023 [63]. - Net debt at the end of 2024 was $5.1 billion, with total liquidity of $12.0 billion [2]. - The net debt as of December 31, 2024, was $5,079 million, with a net debt to LTM EBITDA ratio of 0.7 [68]. - The average debt maturity as of December 31, 2024, was 6.7 years, with total gross debt of $11.6 billion [67]. Sales and Production - Sales for FY 2024 decreased by 8.5% to $62.4 billion, primarily due to a 7.6% decline in average steel selling prices [20]. - Sales in North America for 12M 2024 were $11.9 billion, down from $12.98 billion in 12M 2023, with operating income decreasing to $1.31 billion from $1.92 billion [30]. - Sales in Brazil for 12M 2024 were $12.4 billion, a decline from $13.16 billion in 12M 2023, with operating income of $1.4 billion compared to $1.46 billion [34]. - AMNS India recorded a 3.0% increase in sales to $1.6 billion in 4Q 2024, driven by a 13.3% increase in steel shipments [44]. - ArcelorMittal reported revenues of $62.4 billion and crude steel production of 57.9 million metric tonnes in 2024 [93]. - The company achieved iron ore production of 42.4 million metric tonnes in 2024 [93]. Capital Expenditures and Investments - Capital expenditures for 2025 are projected to be between $4.5 billion and $5.0 billion, including $1.4 billion to $1.5 billion for strategic growth projects [5]. - Total capital expenditures for 2024 amounted to $4,405 million, down from $4,613 million in 2023 [61]. - Strategic capital expenditures for Q4 2024 were $331 million, compared to $284 million in Q3 2024 and $505 million in Q4 2023 [63]. - The company plans to increase its DRI quality pellet feed production capacity to 4.5 million tonnes per year by 2H 2025 at the Serra Azul mine in Brazil, with an expected EBITDA impact of $100 million [65]. - A new advanced manufacturing facility in Alabama is projected to produce up to 150,000 tons of non-grain-oriented electrical steel annually, with an estimated net capex of $0.9 billion [57]. Strategic Initiatives and Future Outlook - The company expects a $1.9 billion increase in EBITDA potential from strategic growth projects, with $0.4 billion targeted for 2025 [3]. - The company is currently commissioning a renewable energy project in Andhra Pradesh, India, with a nominal capacity of 1GW, expected to contribute $0.1 billion to EBITDA [64]. - The company plans to increase production at the Sestao flat products plant to 1.6 million tonnes by 2026, with much of the production to be XCarb [85]. - XCarb low-carbon emissions steel sales increased from 0.2 million tonnes in 2023 to 0.4 million tonnes in 2024 [19]. - XCarb sales in 2024 totaled approximately 0.4 million tonnes, focusing on carbon-neutral steel production initiatives [85]. Segment Performance - EBITDA in 4Q 2024 increased by 4.6% to $1,654 million compared to $1,581 million in 3Q 2024, driven by improvements in the Mining segment [26]. - Mining segment sales in Q4 2024 rose by 19.4% to $704 million from $589 million in Q3 2024, attributed to higher iron ore shipments and reference prices [53]. - Iron ore production in Q4 2024 increased by 34.9% to 8.9 million tons compared to 6.6 million tons in Q3 2024 [53]. - Operating income in the Mining segment for Q4 2024 was $246 million, a 92.3% increase from $128 million in Q3 2024, due to higher pricing and lower costs [54].

Leadership presentation Journey to Zero Fatalities: Implementation of the audit recommendations is underway Business specific plans have been developed to implement the recommendations of the Company-wide safety audit Key highlights include: Q2 and 1H 2023 financial results 4Q 2024 and FY 2024 Financial Results February 6, 2025 Aditya Mittal, Chief Executive Officer Genuino Christino, Chief Financial Officer 27th July 2023 1. EBITDA is defined as operating income plus depreciation, impairment items and exce ...