ArcelorMittal SA Q4 FY2025 earnings call

• Safety: Achieved measurable progress on safety KPIs, with custom safety road maps to strengthen safety culture and aim for zero fatalities and serious injuries.
• Trade Policy: ArcelorMittal advocated for addressing market distortions. European Commission's carbon border adjustment mechanism and tariff-rate quota reset the European steel industry outlook. Similar efforts in Canada and Brazil support results in those regions.
• Growth: Benefiting from strategic investments, with projects set to add $1.6 billion of EBITDA. Focus on energy transition, expanding renewables portfolio, electrical steel capacities, and EAF footprint. Consistent investable cash flow enables investment in high-return opportunities and returning cash to shareholders.

In 2025, ArcelorMittal delivered EBITDA of $6.5 billion, equivalent to $121 EBITDA per tonne shipped. Cash flows were $1.9 billion in 2025, with $1.1 billion allocated to high-return strategic growth projects, $0.7 billion returned to shareholders, and $0.2 billion to M&A. The company proposed a base dividend of $0.60 per share, doubling over the past 5 years. Revenue contribution from various segments was driven by optimized assets, diversified footprint, and strategic projects contributing $0.7 billion of new EBITDA in 2025.

• Expect higher steel production and shipments across regions in 2026 supported by operational improvements and trade protections.
• Confident in generating positive free cash flows in 2026 and beyond, with disciplined capital allocation through established policy.
• Proposed a base dividend of $0.60 per share, marking doubling over past 5 years.

• Market distortions and trade policy uncertainties in various regions pose risks. Potential circumvention of CBAM and challenges in downstream industry support measures. Heightened risk in markets like Canada, Mexico, Brazil, India due to trade actions and excess supply concerns.

Q: On Europe market structure and consolidation?

A: Comfortable with current European footprint, minimal need for consolidation at present, but will update if changes occur.

Q: On Liberia mine expansion criteria?

A: Study underway to explore and develop mining licenses for up to 30 million tonnes, with minimal rail infrastructure required, focusing on low capital costs and high return on capital.

Q: On substitution risk in Europe?

A: Not overly concerned about significant demand disruption, with focus on customer base competitiveness and downstream industry support measures in Europe.