ArcelorMittal S.A.

ArcelorMittal reported second-quarter EBITDA of $2.1 billion, equal to a margin of $155 per ton. European EBITDA per ton was $98, which management said was a three-year high. Underlying free cash flow in the first half annualized at $2.5 billion, excluding seasonal working capital investments and strategic growth CapEx. Management did not give company-wide revenue or EPS in the call remarks provided. For Q3, the company is guiding shipments to be stable to slightly higher than Q2, with all steel segments expected to improve sequentially and higher average selling prices expected, while carbon costs in Europe will rise as production increases.

The lead executive, Genuino Christino, framed the quarter around three themes: improving near-term momentum, a differentiated growth portfolio, and long-term shareholder value creation. He emphasized that the operating environment improved through the first half, that the company is seeing the early benefits of policy changes in Europe, and that regionalization of steel markets supports ArcelorMittal’s local-for-local model. His tone was confident and constructive, repeatedly saying the company is seeing more improvement ahead and is well positioned for structurally higher earnings and returns.

Christino highlighted the financial upside from the operating rebound, pointing to $2.1 billion of Q2 EBITDA, $155 per ton margins, and $2.5 billion annualized underlying free cash flow in H1. He said the first-half free cash flow excludes seasonal working capital and strategic growth CapEx, and that the strong cash outcome supports continued investment and shareholder returns. He also stressed that growth projects are being funded only when they clear the company’s return hurdle, with capital competing across the portfolio and a strong investment-grade balance sheet remaining part of the plan.

Analysts focused heavily on Europe, asking about order books, inventories, pricing, restart costs, and whether TRQ and other policy changes would lift margins further. Management said inventories are not excessively high, imports remain elevated but should fall under TRQ, and the company expects Europe’s tons coming back on line to be more profitable despite higher carbon costs because fixed-cost absorption should more than offset them. Questions also covered Section 232, a possible Mexican tariff framework, and future European consolidation or rerolling risks; management said it supports more regional policy alignment, is advancing the second EAF study at Calvert, sees limited near-term spare rolling capacity in Europe, and would welcome measures that protect domestic primary steel capacity.