Arcelormittal Stock Price, News & Analysis

ArcelorMittal reported Q3 2024 results with operating income of $0.7bn (vs $1.0bn in Q2 2024) and EBITDA of $1.6bn (vs $1.9bn in Q2 2024). Net income decreased to $287 million from $504 million in Q2. The company's net debt increased to $6.2bn following the acquisition of a 28.4% stake in Vallourec for $1.0bn and $0.3bn in share buybacks. Despite challenging market conditions, ArcelorMittal maintains structural improvements with EBITDA/t of $118/t in Q3. The company continues its share buyback program, having reduced share count by 37% since September 2020.

ArcelorMittal has released its third quarter 2024 sell-side analyst consensus figures, compiled by Visible Alpha from approximately 15 brokers who regularly cover the company. The consensus estimates for Q3 2024 project EBITDA of $1,488 million, net income of $420 million, and earnings per share of $0.53. The consensus is based on forecasts from 13 different brokers who have updated their estimates to reflect the Group's new EBITDA definition and reportable segmentation.

The VELUX Group has signed a 10-year agreement with ArcelorMittal for the supply of recycled and renewably produced steel. This partnership aims to reduce the carbon footprint of steel used in VELUX roof windows by up to 70% compared to conventional steel. By 2025, VELUX plans to incorporate ArcelorMittal's XCarb® steel in several components of their roof windows.

XCarb® is manufactured with a minimum of 75% recycled steel and uses 100% renewable electricity. It is produced in an electric arc furnace powered by renewable energy sources at ArcelorMittal's facility in Northern Spain. This initiative is part of VELUX's broader strategy to reduce its scope 3 upstream emissions by 50% by 2030.

ArcelorMittal (MT) has announced a definitive Equity Purchase Agreement with Nippon Steel (NSC) to acquire NSC's 50% stake in the AM/NS Calvert Joint Venture. This transaction, requested by NSC to address regulatory concerns related to its pending acquisition of US Steel, is contingent on NSC completing the US Steel deal. ArcelorMittal will pay $1 for the transaction, while NSC will inject cash and forgive partner loans totaling approximately $0.9 billion.

AM/NS Calvert, acquired in 2014, is North America's most advanced finishing facility, supplying high-quality steel to demanding customers. It features a state-of-the-art hot strip mill, continuous pickling line, coating lines, and a new 1.5mtpa electric arc furnace under construction. The facility plays a important role in supplying domestic manufacturing industries and is considering further investments to enhance its capabilities.

ArcelorMittal has released recommendations from a comprehensive workplace safety audit conducted by dss+ over nine months. The audit, commissioned in late 2023, covered fatality prevention standards, process safety management, and in-depth assessments of health and safety systems across the company's global operations.

Key findings include:

• ArcelorMittal has appropriate policies and standards, but implementation varies across the group
• There's a need to establish 'one safety culture' across the diverse organization
• Contractor safety management requires improvement

The audit resulted in six main recommendations, focusing on improving risk identification, strengthening assurance models, embedding safety culture, enhancing contractor safety management, adopting best practices for process safety management, and integrating safety into business processes.

ArcelorMittal has begun implementing these recommendations and will provide regular updates on progress towards achieving zero fatalities and serious injuries.

On the 20th anniversary of ArcelorMittal Poland, ArcelorMittal Europe CEO Geert Van Poelvoorde calls for European Union support and a firm action plan for steel to keep steelmaking alive in Europe. Since Mittal Steel acquired Polskie Huty Stali in 2004, the business has been transformed through significant investment, reducing carbon dioxide emissions by 42%, dust emissions by 90%, and energy consumption by 40%.

Van Poelvoorde emphasizes the intense pressure on European steelmakers due to high costs and cheap imports. He urges the Polish government's support during its upcoming European Council Presidency, particularly in finalizing the Carbon Border Adjustment Mechanism (CBAM) legislation. The CEO highlights the critical nature of the first six months of 2025 in defining the Commission's steel and metals action plan and the Clean Industrial Deal.

Van Poelvoorde expresses optimism about recent European Commissioner appointments, particularly the proposed Commissioner for Prosperity and Industrial Policy's focus on developing a steel and metals action plan. He stresses the importance of a strong steel industry for Europe's economic power and warns against decarbonizing through de-industrialization.

Utility Global, a company developing eXERO™ gas production technology for hard-to-abate industries, has raised $53 million in an ongoing Series C financing. The round was led by the OPG Pension Plan and joined by ArcelorMittal's XCarb® Innovation Fund, Ara Partners, and other existing investors.

ArcelorMittal and Utility Global have also entered a Collaboration Agreement to develop a commercial facility at one or more of ArcelorMittal's integrated steel plants. The funding will accelerate commercialization of Utility Global's eXERO technology, focusing on final design and productization for deploying first commercial units in 2026 under the H2Gen™ product line.

The company's technology aims to transform industries by providing a cost-effective way to reduce greenhouse gas emissions while producing low-carbon intensity fuels and chemicals.

ArcelorMittal has invested $5 million in Utility Global through its XCarb® Innovation Fund, as part of Utility Global's $53 million Series C fundraising round. Utility Global has developed a patented reactor that processes industrial gases into high-purity hydrogen and a concentrated CO2 stream without using electricity. This technology has potential for decarbonising steelmaking by replacing natural gas with hydrogen and simplifying carbon capture.

ArcelorMittal has also entered a collaboration agreement to accelerate the technology's commercial adoption, exploring opportunities to host pilot plants at its facilities. The XCarb® Innovation Fund, launched in 2021, has committed to investments in eight companies covering various decarbonisation technologies and is an anchor partner in Breakthrough Energy's Catalyst program with a $100 million commitment over five years.

ArcelorMittal hosted an investor day at AM/NS India's Hazira plant, showcasing the joint venture's progress and future plans. Key highlights include:

1. AM/NS India's strong performance since 2019 acquisition, with record production levels and competitive Ebitda.

2. $5.8 billion cash generation enabling significant growth investments.

3. Ongoing expansion project to increase steelmaking capacity from 9 to 15 million tonnes by 2026.

4. Long-term vision to reach 40 million tonnes annual capacity.

5. Plans to reduce carbon intensity by 20% by 2030 and develop renewable energy capacity.

India is projected to be the world's fastest-growing steel market, with domestic demand expected to grow at a CAGR of over 6% in the next decade.