MT · ArcelorMittal S.A.

ArcelorMittal's 1Q 2026 results demonstrated resilience amid Middle East tensions, with sales rising 3.2% to $15.5 billion from 4Q 2025, driven by higher average steel prices. Operating income more than doubled to $753 million, boosted by North America segment performance after returning to normalized levels post-maintenance, despite seasonal working capital outflows of $1.5 billion leading to slightly negative operating cash flow of $9 million. Net income attributable to equity holders climbed to $575 million (EPS $0.76), supported by lower depreciation, reduced FX charges, and prior-period adjustments. CEO Aditya Mittal highlighted safety gains with LTIFR at a record low 0.45x, reflecting multi-year transformation efforts now in scale-up phase across regions. Strategically, the Company is poised for European market reset via CBAM (effective January 2026) and TRQ (from July 2026), enabling higher capacity utilization, restarts at Fos (France) and Dąbrowa (Poland), and new EAF projects like €1.3 billion Dunkirk (2029 commissioning). Record iron ore output/shipments in Liberia and AMMC underscore operational momentum. Capital allocation remains balanced: $1.3 billion capex (including Liberia MDA signing), first $0.15/share quarterly dividend, and 50% post-dividend FCF buyback commitment, reducing shares 38% since 2020. Unchanged 2026 capex guidance of $4.5-5.0 billion, with $1.7-2.0 billion strategic, signals confidence in growth vectors including India Hazira expansion, Calvert EAF ramp-up, and energy transition initiatives.