Luxembourg, November 7, 2024 - ArcelorMittal (referred to as “ArcelorMittal” or the “Company” or the
"Group") (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world’s leading integrated steel
and mining company, today announced results1
for the three-month and nine-month periods ended
September 30, 2024.
3Q 2024 key highlights:
Safety focus: The Company-wide audit of safety by dss+ is now complete. It has provided the Group with a
clear set of 6 recommendations which the Company is committed to implement. LTIF2
rate of 0.88x in 3Q
2024 and 0.68x in 9M 2024
Structurally higher margins and resilient operating results: Despite the challenging market environment,
the Company continues to demonstrate resilient performance benefiting from regional diversification.
Operating income of $0.7bn in 3Q 2024 (vs $1.0bn in 2Q 2024); EBITDA of $1.6bn in 3Q 2024 (vs. $1.9bn in
2Q 2024) with EBITDA/t of $118/t in 3Q 2024 ($133/t in 9M 2024) and well above the Group's long-term
historical average18, reflecting structural improvements
Financial strength: Following the acquisition of c.28.4% stake in Vallourec6
for $1.0bn and $0.3bn share
buybacks, net debt increased to $6.2bn at the end of the quarter (gross debt of $11.3bn and cash and cash
equivalents of $5.1bn as of September 30, 2024) from $5.2bn as of June 30, 2024
Cash flow being reinvested for growth and shareholder returns: Over the past 12 months, the Company
has generated investable cash flow7 of $2.8bn with a net $0.6bn allocated to M&A, $1.5bn invested on
strategic growth capex projects8 and $2.0bn returns to ArcelorMittal shareholders while maintaining a strong
balance sheet
Consistent shareholder returns: The Company will continue to return a minimum 50% of post-dividend FCF
to shareholders through its share buyback programs. The Company repurchased 1.5% of its outstanding
shares during 3Q 2024 (5.7% during the 9M 2024) bringing the total reduction in fully diluted share count to
37% since September 20209
. To date, 73m shares from the current 85m share buy-back program have been
repurchased
Outlook
Positive free cash flow outlook in 2024 and beyond: FY 2024 capex is expected to be within the previously
communicated guidance range ($4.5bn-$5.0bn). The Company expects the year to date investment in
working capital to reverse by year end, supporting the outlook for free cash flow generation. The completion of
the Company’s strategic growth projects is expected to generate additional EBITDA and investable cash flow
in the coming periods10,16. ArcelorMittal continues to optimize its decarbonization pathway to ensure that the
Company can remain competitive and achieve an appropriate return on investment
Company believes current market conditions are unsustainable: China’s excess production relative to
demand is resulting in very low domestic steel spreads (with the majority of producers loss making) and
aggressive exports; steel prices particularly in Europe are well below the marginal cost curve. The Company
expects apparent demand in our aggregate markets to be higher in 2H 2024 vs. 2H 2023 (reflecting no repeat
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of the destock that impacted Europe ASC in 2H 2023 and YoY demand growth in India and Brazil). As
absolute inventory levels remain low, particularly in Europe, the Company remains optimistic that restocking
activity will occur once real demand begins to recover
Positive on medium/long term outlook: Through its global asset portfolio, ArcelorMittal is uniquely
positioned to capture the anticipated growth in steel demand over the medium/long-term; the Company’s
strategic focus is on safety, delivering its growth projects, and consistently returning capital to shareholders
whilst maintaining a strong balance sheet
Recently completed strategic projects are performing well: The Group‘s portfolio of approved strategic
growth projects is estimated to increase EBITDA potential (relative to historical normalized levels) by $1.8bn10
• Vega CMC (Brazil): Increase galvanized and cold rolled coil capacity: 1st continuous annealed commercial
coil delivered in June 2024; 1st coated coil produced in July 2024 and Magnelis® coil in September 2024
• India renewables: Project combining solar and wind power (1GW) began commissioning in June 2024,
and commenced supply of power to AMNS India as of September 2024, with the JV benefiting from green
power at a lower cost than accessing the grid
• Mexico HSM is performing well and expected to achieve targeted profitability in 2024 ($0.3bn EBITDA),
despite the disruptions caused by the illegal blockade that impacted 2Q/3Q 2024 operations
Financial highlights (on the basis of IFRS1 ):
see & read more on
https://corporate.arcelormittal.com/media/orkjf1nn/3q-24-earnings-release.pdf
