ArcelorMittal's Q3 Earnings Top Estimates on Y/Y Higher Shipments

Core Insights - ArcelorMittal S.A. reported a third-quarter 2025 net income of $377 million, or 50 cents per share, an increase from $287 million, or 37 cents per share, in the same quarter last year [1] - Adjusted earnings were 62 cents per share, surpassing the Zacks Consensus Estimate of 58 cents [1] - Total sales increased approximately 3% year over year to $15,657 million, exceeding the consensus estimate of $14,711 million [1] Financial Performance - Total steel shipments rose 1.5% year over year to 13.6 million metric tons, beating the consensus estimate of 13.57 million metric tons [2] - Cash and cash equivalents at the end of the quarter were $5,733 million, up from $5,443 million in the prior quarter, with net debt around $9.1 billion [6] Segment Performance - North America: Sales increased 20% year over year to $3,111 million, with crude steel production up 0.6% to 1,662 million metric tons and steel shipments rising 8.6% to 2,615 million metric tons, exceeding the consensus estimate of 2,555 million metric tons [2] - Brazil: Sales decreased 13% year over year to $2,807 million, with crude steel production down 6% to 3,595 million metric tons and shipments falling 6.8% to 3,530 million metric tons, missing the consensus estimate of 3,646 million metric tons [3] - Europe: Sales rose 0.6% year over year to $7,186 million, with crude steel production declining nearly 7.8% to 7,251 million metric tons, while shipments increased around 3% to 7,001 million metric tons, surpassing the consensus mark of 6,871 million metric tons [4] - Mining: Sales increased 24.3% year over year to $732 million, with iron ore production totaling 8.5 million metric tons, up 28.8% from the previous year [5] Future Outlook - The European Commission's new steel-sector trade tool and the Carbon Border Adjustment Mechanism (CBAM) are expected to enhance fair competition and support industry capacity utilization [7] - The company remains optimistic about its medium- and long-term outlook, anticipating benefits from rising steel demand linked to energy transition, infrastructure development, and defense needs [8] - Recent M&A activities and high-return organic growth projects are expected to boost future EBITDA by $2.1 billion, including $0.7 billion in 2025 and $0.8 billion in 2026 [10] Market Performance - ArcelorMittal's shares have gained 57.9% over the past year, contrasting with a 14.3% decline in the industry [11]