Financial Data and Key Metrics Changes - The third quarter EBITDA per ton was $111, which is 25% above the historical average margin, indicating structural improvements in the company's financial performance [3][4] - The underlying business generated approximately $0.5 billion in free cash flow for the first nine months, despite investing close to $1 billion in strategic growth projects [4][5] - The company expects to capture $0.7 billion in structural EBITDA improvement this year, with a medium-term impact of $2.1 billion remaining unchanged [3][4] Business Line Data and Key Metrics Changes - The company reported record levels of shipments at its Calvert facility, contributing positively to North American operations [20] - In Europe, the expectation is that imports will decrease by about 40%, allowing the company to capture a larger market share [14] Market Data and Key Metrics Changes - The outlook for the business has improved compared to three months ago, with new trade tools proposed by the European Commission expected to support a more sustainable steel sector [4][5] - The demand in Europe is currently moving sideways, with stable order books across the group [28][50] Company Strategy and Development Direction - The company is focused on enabling the energy transition by supplying steel for new energy and mobility systems, as well as investing in high-quality electrical steels [5] - The company aims to maintain a diversified asset base across geographies and markets, with a clear capital return policy that has allowed for a 16% compound growth in dividends over the past five years [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business outlook, citing improvements in trade conditions and the potential for higher capacity utilization in Europe [4][32] - The company is actively engaging with governments to address high energy costs in Ukraine and is committed to maintaining production under challenging conditions [58][59] Other Important Information - The company has a clear policy for capital allocation and is focused on ensuring that the European business can earn its cost of capital [32] - The company is confident in the recovery of its Mexican operations and does not expect the operational issues faced this year to recur in 2026 [10][54] Q&A Session Summary Question: What unusual or exceptional costs should be considered for 2026? - Management indicated that there are no significant changes expected regarding tariffs, and operational losses in Mexico are not anticipated to recur in 2026 [10][12] Question: How much can production be flexed in Europe if imports decline? - The company expects to capture a larger market share as imports decrease, with production capacity in Europe exceeding current output levels [14] Question: What is the CapEx profile for the medium term? - The company plans to maintain a CapEx range of $4.5 billion to $5 billion, including strategic and maintenance investments [24] Question: How is the company managing order books for 2026? - The order book remains stable, with no significant changes anticipated, and the company is preparing for a stronger 2026 [28] Question: How confident is the company about the release of working capital in Q4? - Management expressed confidence in a significant release of working capital, driven by seasonal factors and operational normalizations [46][47] Question: What is the company's stance on the situation in Brazil and India? - The company remains bullish on Brazil and continues to invest, while in India, demand is strong despite low prices due to new capacity [56][57] Question: What is the company's approach to CO2 emissions and free allocations? - The company does not expect to lose free emissions meaningfully and anticipates that CBAM will create a level playing field for costs [82][86] Question: How is the Calvert EAF ramp progressing? - The ramp-up is on track, with expectations to end the year at a run rate of 40% to 50% [91] Question: What is the company's view on the European trade policy proposals? - Management is hopeful for the swift implementation of trade measures to support the domestic industry [97]

Financial Data and Key Metrics Changes - Second quarter EBITDA increased to $135 per ton, reflecting structural improvements and benefits from asset optimization and growth strategy [5][11] - Future normalized EBITDA is expected to be $2.1 billion, with one-third to be captured in the current financial year [6] Business Line Data and Key Metrics Changes - Calvert facility achieved a new shipment record in Q2, 10% higher than Q1 and the same period last year [7] - Liberia posted record volume in Q2, with expectations to reach 10 million tonnes of shipments for the year [29] Market Data and Key Metrics Changes - The North American segment is expected to see marginally higher tariff costs, offset by the impacts of Calvert consolidation [18] - European market is transitioning to a more favorable structure with potential trade defense mechanisms and carbon border adjustments [9][10] Company Strategy and Development Direction - Full ownership of Calvert is seen as a positive development, enhancing the North American franchise [7] - Continued investment in strategic projects, including a billion-dollar electrical steel facility in Alabama, is underway [8] - The company aims to capitalize on defense and infrastructure investments, supported by low interest rates [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining growth momentum and highlighted the importance of strategic projects [6][11] - The company is optimistic about the European market's potential improvements due to anticipated trade protections [9][10] Other Important Information - The company has bought back 38% of its equity over the past four and a half years, enhancing shareholder value [12] - The impact of tariffs in Q2 was approximately $140 million, with ongoing efforts to mitigate these costs [36] Q&A Session Summary Question: Can you walk us through the EBITDA building blocks into Q3 2025? - Management discussed operational issues in Mexico affecting production, leading to $40 million in losses in Q2 [15][16] - Anticipated impacts include seasonally lower volumes in Europe and marginally higher tariff costs in North America [18] Question: How do you plan to mitigate the risk of tariffs on slab imports? - Management highlighted a new slab supply agreement with US Steel and ongoing discussions with customers to share tariff costs [22] Question: What is the expected timing for the second EAF at Calvert? - Management indicated that a decision will be made in the next capital allocation cycle, likely in 2026 [25][28] Question: Can you provide an update on iron ore shipments from Liberia? - The company expects to achieve 10 million tonnes of shipments this year, with a changing mix towards higher-value products [30] Question: What is the impact of tariffs on your financials? - Management confirmed that the impact of tariffs in Q2 was around $140 million, with efforts to mitigate these costs ongoing [36] Question: How confident are you in maintaining your CapEx envelope? - Management reiterated confidence in maintaining a CapEx envelope of €4.5 billion to €5 billion, with significant projects nearing completion [39] Question: What is the outlook for the European market? - Management noted that demand in Europe remains sideways, but inventory levels are low, creating potential for price increases [51] Question: What is the company's strategy regarding Brazilian slab capacity? - Management emphasized that Brazil's growing flat demand positions the company well, with no immediate need for new upstream investments [95]