ArcelorMittal SA
AEX:MT
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ArcelorMittal SA
In the sprawling world of steel manufacturing, ArcelorMittal stands as a colossus, weaving a tale of industrial might and strategic prowess. Founded in 2006 from the merger of Arcelor and Mittal Steel, the company swiftly cemented its position as the largest steel producer globally. Headquartered in Luxembourg, ArcelorMittal operates a network of plants and offices around the world. Its operations span several key areas: mining, steel production, supply chain management, and even research and development, each crucial to its integrated business model. The company excels in transforming iron ore and coal from its vast mining resources into molten steel, which it then molds into a myriad of products ranging from slabs, beams, and sheets to automotive-grade steel and beyond—a testament to its heavy investment in innovation and technology.
Revenue generation for ArcelorMittal is as multifaceted as its operations. With steel as its core product, the company serves an expansive market, supplying essential material to industries such as automotive, construction, household appliances, and packaging. The company’s global footprint in both developing and developed markets allows it to capitalize on regional demand and strategically position itself against economic volatilities. Beyond its primary operations, ArcelorMittal also leverages financial acumen, strategically acquiring and divesting assets to optimize its portfolio and entering joint ventures to strengthen its influence and operational efficiency. Moreover, its vertical integration, from mining to the final product, not only helps in cost control but also ensures a steady supply chain, effectively allowing ArcelorMittal to navigate the ebbs and flows of the global steel market with resilience and foresight.
In the sprawling world of steel manufacturing, ArcelorMittal stands as a colossus, weaving a tale of industrial might and strategic prowess. Founded in 2006 from the merger of Arcelor and Mittal Steel, the company swiftly cemented its position as the largest steel producer globally. Headquartered in Luxembourg, ArcelorMittal operates a network of plants and offices around the world. Its operations span several key areas: mining, steel production, supply chain management, and even research and development, each crucial to its integrated business model. The company excels in transforming iron ore and coal from its vast mining resources into molten steel, which it then molds into a myriad of products ranging from slabs, beams, and sheets to automotive-grade steel and beyond—a testament to its heavy investment in innovation and technology.
Revenue generation for ArcelorMittal is as multifaceted as its operations. With steel as its core product, the company serves an expansive market, supplying essential material to industries such as automotive, construction, household appliances, and packaging. The company’s global footprint in both developing and developed markets allows it to capitalize on regional demand and strategically position itself against economic volatilities. Beyond its primary operations, ArcelorMittal also leverages financial acumen, strategically acquiring and divesting assets to optimize its portfolio and entering joint ventures to strengthen its influence and operational efficiency. Moreover, its vertical integration, from mining to the final product, not only helps in cost control but also ensures a steady supply chain, effectively allowing ArcelorMittal to navigate the ebbs and flows of the global steel market with resilience and foresight.
Structural Margin Gain: Q3 EBITDA per tonne was $111, 25% above ArcelorMittal's historical average, highlighting improved structural profitability even at the bottom of the cycle.
Strategic Project Impact: The company remains on track to capture $0.7 billion in structural EBITDA improvement in 2025, with a medium-term goal of $2.1 billion unchanged.
Free Cash Flow: Nine-month free cash flow (excluding working capital) was approximately $0.5 billion positive, even after nearly $1 billion invested in growth projects.
Outlook Improved: Management says the business outlook has clearly improved versus three months ago, helped by new European trade tools and expectations for healthier regional demand.
Mexico Cost Headwind to Ease: Roughly $200 million in exceptional costs from Mexico operations in 2025 are not expected to recur in 2026.
CapEx Guidance: Medium-term CapEx is expected to stay in the $4.5–$5 billion range, with more detail to be given in Q4.
Capital Returns: Over the past five years, ArcelorMittal has grown its dividend at a 16% CAGR and repurchased 38% of its equity, with the buyback policy continuing.
Order Book Stable: Order books and demand are generally stable, with some segments performing better than others; management is not taking special measures to anticipate stronger 2026 demand.
