ArcelorMittal's Q2 Earnings Miss Estimates on Lower Shipments

Financial Performance - ArcelorMittal S.A. recorded a second-quarter 2025 net income of $1,793 million or $2.35 per share, a significant increase from $504 million or 63 cents per share in the same quarter last year [1] - Adjusted earnings were $1.32 per share, slightly missing the Zacks Consensus Estimate of $1.33 [1] - Total sales decreased by approximately 2% year over year to $15,926 million, also falling short of the consensus estimate of $15,541.8 million [1] Steel Shipments - Total steel shipments fell by 0.7% year over year to 13.8 million metric tons, which was below the expected 14.1 million metric tons [2][10] Segment Highlights - North America: Sales decreased by 1.9% year over year to $3,102 million; crude steel production increased by 11.6% to 2,034 million metric tons; steel shipments rose by 2.5% to 2,531 million metric tons, but were lower than the consensus estimate of 2,616 million metric tons; average steel selling price fell by 3.6% to $1,002 per ton [3] - Brazil: Sales dropped by 13.2% year over year to $2,816 million; crude steel production fell by 1.9% to 3,540 million metric tons; shipments decreased by 3.8% to 3,498 million metric tons, meeting the consensus estimate; average steel selling prices fell by 9.6% to $747 per ton [4] - Europe: Sales declined by around 2.2% year over year to $7,653 million; crude steel production decreased by nearly 6.3% to 7,530 million metric tons; shipments fell by 1.4% to 7,305 million metric tons, missing the consensus mark; average steel selling price declined by around 0.3% to $926 per ton [5] - Mining: Sales increased by 33.7% year over year to $857 million; iron ore production totaled 8.3 million metric tons, up around 40.7%; iron ore shipments rose by 59.7% year over year to 9.9 million metric tons [6] Financial Position - At the end of the reported quarter, cash and cash equivalents were $5,443 million, up from $5,319 million in the prior quarter; net debt was approximately $8.3 billion [7] Market Outlook - The company is facing softer demand, particularly in the U.S., with flat steel consumption expected to decline slightly in 2025 [8] - In Europe, demand is forecasted to grow between -0.5% to 1.5%, supported by low interest rates and potential policy support [9] - Brazil's demand has exceeded expectations, with up to 2% growth projected; India is expected to lead global growth with 6% to 7% growth driven by infrastructure investment [9][10] - Overall, steel demand outside China is now forecasted to grow 1.5% to 2.5% in 2025, down from earlier estimates [10] Price Performance - ArcelorMittal's shares have gained 48.3% in the past year, contrasting with the industry's 21.4% decline [14]