ArcelorMittal ( (MT) ) has released its Q4 earnings. Here is a breakdown of the information ArcelorMittal presented to its investors.
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ArcelorMittal, the world’s leading integrated steel and mining company, specializes in steel production and mining with a global presence across several regions. In its latest earnings report, ArcelorMittal shared its financial performance for the fourth quarter and full year 2024, highlighting its resilience despite challenging market conditions. The company reported an EBITDA of $7.1 billion for the year, with significant cash flow reinvestments aimed at growth and shareholder returns. Although net income faced impacts from non-cash and exceptional items, the adjusted net income reached $2.3 billion.
Key performance metrics from the report include a decrease in sales by 8.5% to $62.4 billion for the year, primarily due to lower steel prices and shipments. The operating income rose by 41.4% to $3.3 billion, indicating effective business optimization despite the decline in EBITDA by 19.3% to $7.1 billion, affected by price-cost effects and disruptions in operations. Strategic announcements included the completion of high-return growth projects expected to increase EBITDA potential by $1.9 billion, alongside ongoing decarbonization efforts to optimize competitiveness.
Strategic priorities emphasize growth in markets with promising returns, including Brazil, India, and the US, with substantial investments in new electric arc furnaces and expansion of mining operations. The company is also focusing on decarbonization, with 25% of its global production now from electric arc furnaces, up from 19% in 2018. Shareholder returns are a key focus, with plans to continue share buybacks and increase dividends.
Looking ahead, ArcelorMittal remains optimistic about improved demand in 2025, expecting a rise in global steel consumption, particularly in Europe and India. The company plans to maintain capital discipline and continue investments in strategic growth projects and decarbonization, aiming for positive free cash flow and enhanced EBITDA in the coming periods.
