ArcelorMittal (NYSE:MT) Posts Earnings Results, Misses Expectations By $0.28 EPS

ArcelorMittal (NYSE:MT) issued its quarterly earnings results on Thursday. The basic materials company reported $0.90 EPS for the quarter, missing analysts’ consensus estimates of $1.18 by ($0.28), Briefing.com reports. The company had revenue of $16.76 billion during the quarter, compared to the consensus estimate of $17.07 billion. ArcelorMittal had a return on equity of 4.77% and a net margin of 4.71%.The business’s revenue for the quarter was up 5.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.32 earnings per share.

Here are the key takeaways from ArcelorMittal’s conference call:

• Improving second-quarter performance and momentum: EBITDA rose to $2.1 billion, or $155 per ton, while underlying first-half free cash flow annualized at approximately $2.5 billion. Management expects shipments in the third quarter to be stable to higher sequentially, an unusually strong seasonal outcome.
• European outlook strengthened: European EBITDA per ton reached a three-year high of $98, with stronger order books, firming prices and furnace restarts in Spain, Poland and France. Management expects the new tariff-rate quota to reduce imports and improve market share and margins, although higher production will also increase carbon costs.
• Growth projects are expected to lift earnings: Strategic projects are projected to contribute $1.8 billion of incremental EBITDA from 2026 onward, including investments in India, Liberia, Brazil and the U.S. The company is also advancing studies for a second Calvert EAF and additional downstream capacity.
• Long-term demand and shareholder returns remain priorities: Management sees structural demand from electrification, renewable energy, defense, infrastructure and data centers, alongside benefits from increasingly regional steel markets. It reiterated a focus on investment-grade balance-sheet strength, disciplined capital allocation, growing dividends and share buybacks.
• Decarbonization investments remain economically challenging: The company said European DRI projects are not currently part of its plans because gas and hydrogen economics remain difficult, and future projects will proceed only if they generate returns above the cost of capital. European production increases will also bring additional ETS carbon costs.

ArcelorMittal Stock Up 5.5%

NYSE MT traded up $3.59 during mid-day trading on Thursday, reaching $69.29. The stock had a trading volume of 1,774,855 shares, compared to its average volume of 1,706,786. The stock has a market cap of $53.70 billion, a PE ratio of 18.19, a price-to-earnings-growth ratio of 0.50 and a beta of 1.55. ArcelorMittal has a 1 year low of $30.17 and a 1 year high of $72.50. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.39 and a quick ratio of 0.54. The company has a fifty day moving average price of $65.95 and a 200 day moving average price of $60.56.

Key ArcelorMittal News

Here are the key news stories impacting ArcelorMittal this week:

• Positive Sentiment: Management said recently introduced trade measures to curb steel imports should support ArcelorMittal’s European operations. The company expects second-half sales in Europe to outperform the first half, improving the outlook for regional volumes and pricing. ArcelorMittal Posts Fall in Net Profit But Sees Improved Outlook for European Business
• Positive Sentiment: AM/NS India, ArcelorMittal’s Indian joint venture, reported a 28.5% increase in June-quarter EBITDA, helped by higher steel prices. Stronger pricing in India provides a positive offset to weaker profitability elsewhere in the group. AM/NS India June-quarter EBITDA rises 28.5% on higher steel prices
• Positive Sentiment: The company’s expectation for stronger second-half sales and supportive trade policy may have encouraged investors to look beyond the quarter’s earnings shortfall. ArcelorMittal says steps to curb imports will boost European business

Institutional Trading of ArcelorMittal

Institutional investors and hedge funds have recently modified their holdings of the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in shares of ArcelorMittal during the fourth quarter valued at $44,000. CIBC Private Wealth Group LLC increased its holdings in ArcelorMittal by 126.5% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,146 shares of the basic materials company’s stock worth $52,000 after buying an additional 640 shares in the last quarter. Geneos Wealth Management Inc. raised its position in ArcelorMittal by 44.2% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,635 shares of the basic materials company’s stock worth $47,000 after buying an additional 501 shares during the last quarter. Atlas Capital Advisors Inc. purchased a new position in ArcelorMittal in the 4th quarter worth about $92,000. Finally, EverSource Wealth Advisors LLC lifted its stake in ArcelorMittal by 268.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,422 shares of the basic materials company’s stock valued at $76,000 after acquiring an additional 1,765 shares during the period. Institutional investors own 9.29% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have issued reports on MT shares. Santander cut ArcelorMittal from an “outperform” rating to a “neutral” rating in a research note on Tuesday, April 21st. Weiss Ratings raised ArcelorMittal from a “hold (c)” rating to a “buy (b-)” rating in a research note on Monday, May 4th. Wells Fargo & Company raised their price target on ArcelorMittal from $61.00 to $62.00 and gave the company an “equal weight” rating in a report on Thursday, July 9th. Jefferies Financial Group reaffirmed a “buy” rating on shares of ArcelorMittal in a research report on Monday, July 6th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $70.00 price target on shares of ArcelorMittal in a research note on Tuesday, July 7th. Six equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $68.40.

About ArcelorMittal

ArcelorMittal is a multinational steel manufacturing company formed in 2006 through the merger of Arcelor and Mittal Steel. Headquartered in Luxembourg, the company is one of the world’s largest producers of steel and operates an integrated value chain that spans raw material extraction, steelmaking, processing and distribution. Its product portfolio includes flat and long carbon steel products, coated and specialty steels, tubular products and value-added solutions tailored for sectors such as automotive, construction, household appliances, energy and packaging.

ArcelorMittal’s operations are global in scope, with production facilities, distribution networks and commercial activities across Europe, the Americas, Asia, Africa and the Commonwealth of Independent States.