ArcelorMittal S.A. reported a 23% sequential increase in second-quarter EBITDA as stronger steel prices and higher shipments improved performance across North America, Brazil, Europe and its Indian joint venture. The New York Stock Exchange-listed steel and mining group, which trades under $MT, generated quarterly sales of $16.76 billion, EBITDA of $2.06 billion and net income attributable to shareholders of $683 million. Europe delivered the largest sequential profit improvement as stronger orderbooks supported the restart of previously idled production facilities in France, Spain and Poland. ArcelorMittal S.A. is also advancing steel projects connected with electric vehicles, renewable energy, grid infrastructure and India’s expanding manufacturing economy, with its current growth portfolio expected to add approximately $1.8 billion of annual EBITDA potential. The central tension is that the company is investing heavily ahead of the expected demand recovery while first-half capital expenditure, working-capital requirements and shareholder distributions increased net debt to $9.5 billion.
Second-quarter sales increased 8.4% from the opening quarter as average steel selling prices rose 4.4% and shipments increased 4.1%. Operating income climbed to $1.06 billion from $753 million, while the EBITDA margin expanded to 12.3% from 10.9%. Net income increased from $575 million, and earnings per share rose to $0.90 from $0.76.
ArcelorMittal S.A. shares rose approximately 5.2% to $69.13 during July 30 trading and reached an intraday high of $69.28. The market response indicates that investors placed greater weight on improving steel-market conditions and the stronger second-half outlook than on the increase in debt and first-half cash outflow.
Why ArcelorMittal’s European steel business is recovering faster than seasonal trends suggested
ArcelorMittal S.A.’s European business generated second-quarter EBITDA of $697 million, an increase of 39% from the first quarter and 11% from the corresponding 2025 period. Operating income increased to $410 million from $239 million, while the average steel selling price rose 3.9% to $967 per tonne.
European steel shipments were broadly stable sequentially at 7.14 million tonnes. The profit improvement therefore came mainly from a more favorable relationship between selling prices and production costs rather than a dramatic increase in volume.
The company said orderbooks strengthened after the European Union introduced a more restrictive tariff-rate quota system on July 1. The measures establish more detailed country-specific steel-import quotas, while proposed “melt and pour” requirements could make it harder for exporters to avoid restrictions by conducting only limited processing in another country.
ArcelorMittal S.A. believes the new system, combined with the Carbon Border Adjustment Mechanism, can reduce unfairly priced imports and allow European producers to recover carbon-compliance costs through domestic steel prices. That is the company’s policy assessment rather than a guaranteed market outcome, but the initial orderbook improvement has already influenced production decisions.
The company restarted the Dabrowa blast furnace in Poland on April 28 as demand improved. Production at Asturias in Spain recovered after maintenance that had affected operations since September 2025, while the Fos blast furnace in France returned to service at the end of July after remaining idle for nearly three years.
Restarting a blast furnace involves labor, raw-material and maintenance expenses before the operation reaches efficient production. ArcelorMittal S.A. would be unlikely to incur those costs without sufficient confidence that orders and pricing can support the additional output.
European crude steel production increased 10.5% sequentially to 7.55 million tonnes. The company expects third-quarter shipments to remain stable or increase slightly, compared with the high-single-digit seasonal decline that would normally occur during the European summer.
The forecast suggests the trade measures are affecting customer behavior, with buyers ordering more domestically produced steel before European demand has fully recovered. Maintaining that momentum will depend on construction, automotive and manufacturing activity, as well as the effectiveness of the new import rules.
Trade protection does not eliminate Europe’s structural disadvantages. Steelmakers continue to face high electricity prices, carbon costs and weaker industrial growth compared with several international markets. Quotas can improve capacity utilization, but long-term profitability still requires lower energy costs, operational efficiency and products that justify higher prices.
The recovery nevertheless matters because Europe remains ArcelorMittal S.A.’s largest steel segment by revenue. A sustained increase in European EBITDA per tonne could materially improve group profitability even if global steel demand grows only moderately.
How India, North America and Brazil are diversifying ArcelorMittal’s earnings base
North American EBITDA increased 27% sequentially to $488 million as higher prices and shipments supported stronger performance. Sales rose 11.3% to $3.67 billion, while steel shipments increased 7.9% to 2.83 million tonnes.
Average selling prices increased 6.7% to $1,161 per tonne. The segment also benefited from the full recovery of ArcelorMittal S.A.’s Mexican long-products operations, which restarted near the end of January.
The North American comparison increasingly reflects the full consolidation of the Calvert steelmaking operation in Alabama. ArcelorMittal S.A. acquired Nippon Steel Corporation’s 50% interest in the business during 2025, giving it complete ownership of a modern finishing and steelmaking platform serving automotive and industrial customers.
The transaction increased the company’s earnings exposure to the southern United States but also contributed to higher depreciation, debt and capital requirements. ArcelorMittal S.A. must generate sufficient operating improvement at Calvert to justify the additional balance-sheet commitment.
Brazil generated second-quarter EBITDA of $401 million, an increase of 20% from the first quarter. Sales rose 12.2% to $3.15 billion as domestic shipments increased and average selling prices benefited from stronger slab markets and appreciation of the Brazilian real.
Lower import penetration supported domestic steel demand. ArcelorMittal S.A. is reviewing potential downstream expansions that could use Brazil’s low-cost production base and excess slab capacity to manufacture more valuable finished products.
The Indian joint venture delivered one of the strongest quarterly improvements. AMNS India’s EBITDA increased 32% to $257 million as better pricing offset a modest decline in shipments. Production rose to 1.95 million tonnes, and first-half EBITDA reached $452 million compared with $301 million a year earlier.
India is central to the company’s medium-term strategy because steel consumption is increasing alongside infrastructure, urbanization, manufacturing and energy investment. AMNS India is expanding its Hazira operations toward approximately 15 million tonnes of capacity while developing additional downstream and greenfield opportunities.
ArcelorMittal S.A.’s 60% ownership gives it substantial exposure to that growth without fully consolidating the joint venture’s revenue and debt. The structure also means part of the economic value is recorded through income from associates rather than within consolidated steel-segment EBITDA.
The diversified portfolio reduces dependence on a single steel cycle. European trade measures, Indian consumption, Brazilian raw-material advantages and North American manufacturing can each support earnings at different points in the economic cycle.
It does not remove global exposure. Automotive production, construction demand, interest rates and manufacturing investment influence steel consumption across every region, while Chinese exports continue to affect international prices.
Why electrical steel and renewable infrastructure are becoming core growth markets
ArcelorMittal S.A. is increasing investment in non-grain-oriented electrical steel, a specialized product used in electric motors, generators and other equipment that converts electrical and mechanical energy. Demand is expected to grow with electric vehicles, renewable generation, industrial automation and grid expansion.
The company is constructing a $230 million electrical-steel facility at Calvert with annual capacity of up to 150,000 tonnes. Completion is expected during the second half of 2027.
A separate facility at Mardyck in France is designed to produce 155,000 tonnes annually, including approximately 125,000 tonnes for automotive applications. The project is also scheduled for completion during the second half of 2027.
Electrical steel generally commands higher margins than undifferentiated commodity products because customers require precise magnetic, thickness and surface characteristics. Qualification with automotive and equipment manufacturers can create longer commercial relationships and higher switching costs.
These investments give ArcelorMittal S.A. exposure to electric-vehicle production even when the total steel content of individual vehicles changes. Electric motors and power systems require materials designed to limit energy losses and improve efficiency, creating a more specialized opportunity than conventional body steel.
The company estimates that announced public-policy investments in wind, solar and electricity grids could require between 240 million and 290 million tonnes of steel outside China through 2035. This represents a company estimate based on targeted investments rather than confirmed future steel orders.
Transmission towers, solar mounting systems, wind turbines, substations and data centres require large quantities of structural and specialized steel. The energy transition therefore creates steel demand even as producers face pressure to reduce the emissions generated while manufacturing the material.
ArcelorMittal S.A.’s Sustainable Solutions segment generated quarterly EBITDA of $142 million, an increase of 15% from the first quarter and 11% from a year earlier. The business includes construction systems, tubular products and other downstream solutions connected with lower-carbon infrastructure.
The company expects Sustainable Solutions EBITDA to double by 2028 compared with 2023. New insulated-panel manufacturing investments in the United States, India and Brazil are expected to contribute approximately $100 million of additional annual EBITDA by 2031 once fully operational.
Insulated panels can improve building energy performance by reducing heating and cooling requirements. The opportunity broadens ArcelorMittal S.A.’s exposure from supplying commodity steel into providing finished systems with higher value per tonne.
The strategic direction is financially attractive, but these products remain exposed to project timing and customer investment cycles. Electrical-steel capacity will create value only if electric-vehicle and grid demand grows sufficiently to absorb the new production without weakening prices.
Why weaker mining earnings create a risk for ArcelorMittal’s integrated model
ArcelorMittal S.A.’s mining segment generated second-quarter EBITDA of $179 million, down 40% from the first quarter. Sales fell 15% to approximately $800 million as lower iron ore shipments and higher freight costs reduced earnings.
Total group iron ore production increased to 13.5 million tonnes from 12.9 million tonnes, but production alone did not translate into higher mining profit. Shipment timing, product mix, transportation costs and market prices determine how mined tonnes affect the income statement.
The company recorded a $300 million impairment connected with its investment in Baffinland Iron Mines Corporation. A roughly equal gain from selling a 10% interest in Vallourec S.A. offset the impairment within income from associates and investments, preventing the two items from materially changing quarterly net income when considered together.
Baffinland’s remote Arctic location creates substantial logistics, infrastructure and environmental challenges. The impairment shows that high-quality iron ore resources do not automatically produce attractive economic returns when transportation and development requirements remain difficult.
ArcelorMittal S.A. is continuing to expand its Liberian iron ore operation toward 20 million tonnes of annual capacity. The project is expected to add approximately $450 million of EBITDA potential, of which about $200 million was captured during 2025, with commissioning work continuing.
Liberia can provide higher-grade iron ore that supports more efficient steelmaking and can be blended with other products to create feedstock containing more than 62% iron. Higher-grade ore can reduce the amount of material and energy required to produce steel, making it commercially relevant as customers and regulators place more emphasis on emissions.
The expansion creates exposure to infrastructure reliability, commodity prices and political agreements. ArcelorMittal S.A. made a $200 million payment during the first quarter when it signed a new mineral development agreement in Liberia, contributing to the company’s capital and cash requirements.
Mining integration provides a strategic hedge because ArcelorMittal S.A. can supply part of its own iron ore requirements and sell surplus production. The model becomes less valuable when freight costs rise, shipments decline or mine investments fail to generate competitive returns.
Can shareholder buybacks continue while net debt and capital spending increase?
ArcelorMittal S.A. generated approximately $961 million of operating cash flow during the second quarter, compared with a $9 million outflow during the first quarter. The improvement reflected stronger earnings and a smaller working-capital investment.
Capital expenditure reached $1.1 billion, leaving quarterly free cash flow negative by approximately $152 million after minority dividends. First-half free cash outflow reached $1.49 billion as the company invested $2.37 billion in property, equipment and intangible assets.
The first-half figure included nearly $2 billion invested in working capital, reflecting higher inventories and receivables as activity and steel prices increased. ArcelorMittal S.A. expects part of that seasonal investment to reverse, supporting stronger cash generation during the second half.
Management calculates that the business generated approximately $500 million of underlying first-half free cash flow after investing $800 million in strategic projects but excluding the seasonal working-capital build. This adjusted view provides evidence of operating cash generation, although the working-capital cash was still used and contributed to higher debt.
Net debt reached $9.5 billion at June 30, compared with $7.93 billion at the end of 2025. Gross debt increased to $14.42 billion, while available liquidity remained substantial at $10.4 billion.
The company maintained 2026 capital-expenditure guidance of between $4.5 billion and $5 billion, including $1.7 billion to $1.9 billion for strategic growth. Its current projects are expected to create approximately $1.8 billion of additional EBITDA potential from 2026 onward.
ArcelorMittal S.A. returned approximately $700 million to shareholders during the first half, including about $500 million of share repurchases and $200 million of dividends. Its diluted share count has declined 38% since September 2020, increasing each remaining shareholder’s proportionate interest in the company.
The company also sold part of its Vallourec holding and allocated the proceeds to additional repurchases. Management expects 2026 shareholder returns to exceed the minimum policy of a $0.15 quarterly base dividend and buybacks equal to 50% of post-dividend free cash flow.
That commitment assumes cash generation improves during the second half. Continuing aggressive buybacks while net debt rises would weaken the balance sheet unless working capital reverses and operating profitability remains strong.
The improved steel outlook supports management’s confidence, but the company must balance three competing uses of cash: investing in high-return growth projects, maintaining an investment-grade financial position and returning capital to shareholders. The second-quarter results show that ArcelorMittal S.A. can produce stronger margins, while the coming six months will determine whether those earnings convert into debt reduction and sustainable free cash flow.
Key takeaways from ArcelorMittal’s second-quarter steel and mining results
- ArcelorMittal S.A. increased second-quarter sales by 8.4% to $16.76 billion as average steel prices and shipments improved across every major steel segment.
- EBITDA rose 22.9% to $2.06 billion, while the EBITDA margin expanded to 12.3%, indicating that stronger pricing and utilization converted effectively into operating profit.
- European EBITDA increased 39% to $697 million as trade measures strengthened orderbooks and supported the restart of steelmaking capacity in France, Spain and Poland.
- North American EBITDA reached $488 million as shipments increased 7.9% and selling prices rose 6.7%, with Calvert and recovering Mexican operations supporting performance.
- AMNS India EBITDA increased 32% to $257 million, reinforcing India’s role as one of ArcelorMittal S.A.’s most important long-term growth markets.
- Electrical-steel projects in Alabama and France will add approximately 305,000 tonnes of combined annual capacity targeting electric vehicles, renewable energy and industrial electrification.
- Mining EBITDA fell 40% to $179 million because lower iron ore shipments and higher freight costs offset an increase in total group iron ore production.
- First-half free cash flow was negative by $1.49 billion after $2.37 billion of capital expenditure and an approximately $2 billion seasonal working-capital investment.
- Net debt increased to $9.5 billion, making stronger second-half cash conversion essential as ArcelorMittal S.A. continues investing and repurchasing shares.
- The approximately 5.2% increase in $MT shares reflects confidence that Europe’s recovery and the company’s growth portfolio can produce structurally stronger earnings beyond the current steel cycle.
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