ArcelorMittal S.A.: ArcelorMittal reports second quarter 2025

Core Insights - ArcelorMittal reported strong financial results for 2Q 2025, with EBITDA of $1.9 billion and net income of $1.8 billion, driven by strategic growth investments and operational improvements [2][4][27] - The company completed significant acquisitions, including full control of AM/NS Calvert and Tuper, enhancing its position in North America [3][58] - The company is focused on safety, achieving a lost time injury frequency (LTIF) rate of 0.68x, and is undergoing a three-year transformation program to improve safety culture [2][12][13] Financial Performance - Sales for 2Q 2025 increased by 7.6% to $15.9 billion compared to 1Q 2025, primarily due to a 6.8% rise in average steel selling prices [25] - Operating income for 2Q 2025 was $1.9 billion, significantly higher than $825 million in 1Q 2025, aided by exceptional items [25][27] - Adjusted net income for 2Q 2025 was $1.0 billion, with adjusted earnings per share (EPS) of $1.32 [5][27] Operational Highlights - Record quarterly iron ore production and shipments from Liberia, on track to achieve a full expanded capacity of 20 million tonnes by the end of 2025 [2][9] - The company’s North America segment saw a significant increase in operating income due to the acquisition of AM/NS Calvert, contributing to a total EBITDA of $614 million in 2024 [33][45] - The company’s mining operations reported a 16.6% increase in sales to $857 million in 2Q 2025, driven by higher iron ore shipments [52][53] Strategic Developments - The company is investing in organic growth projects, with a targeted EBITDA increase of $2.1 billion from recent M&A and strategic initiatives [3][19] - The Steel and Metals Action Plan in Europe aims to restore competitiveness in the steel industry, with anticipated updates in 2H 2025 [10][19] - The company plans to maintain a minimum of 50% return of post-dividend annual free cash flow to shareholders, alongside ongoing share buybacks [3][11] Market Outlook - Steel demand in Brazil is expected to grow by up to 2.0% in 2025, while India remains the fastest-growing major steel market with a projected increase of 6.0% to 7.0% [60] - The company anticipates challenges from ongoing tariff impacts and subdued economic activity, particularly in the U.S. market [57][58] - Free cash flow is expected to remain positive in 2025, supported by a release of working capital in the second half of the year [62][63]