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ArcelorMittal's Q2 Earnings Miss Estimates on Lower Shipments
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Key Takeaways
MT posted Q2 adjusted EPS of $1.32, missing estimates, as sales dipped 2% to $15.93 billion.
Steel shipments fell 0.7% year over year to 13.8M metric tons, below the expected 14.1M.
Despite soft U.S. demand, MT sees support from Europe, Brazil and India in second-half 2025.
ArcelorMittal S.A. (MT - Free Report) recorded a second-quarter 2025 net income of $1,793 million or $2.35 per share compared with $504 million or 63 cents per share in the year-ago quarter.
Barring one-time items, the company recorded adjusted earnings of $1.32 per share. The bottom line missed the Zacks Consensus Estimate of $1.33.
Total sales fell around 2% year over year to $15,926 million in the quarter. The figure also missed the consensus estimate of $15,541.8 million.
Total steel shipments fell 0.7% year over year to 13.8 million metric tons in the reported quarter. The figure lagged the consensus estimate of 14.1 million metric tons.
North America: Sales were down 1.9% year over year to $3,102 million in the reported quarter. Crude steel production was up 11.6% year over year to 2,034 million metric tons. Steel shipments rose around 2.5% year over year to 2,531 million metric tons, lower than the consensus estimate of 2,616 million metric tons. The average steel selling price fell 3.6% to $1,002 per ton.
Brazil: Sales were down 13.2% year over year to $2,816 million. Crude steel production fell 1.9% to 3,540 million metric tons. Shipments decreased 3.8% year over year to 3,498 million metric tons, meeting the consensus estimate of 3,498 million metric tons. Average steel selling prices fell 9.6% to $747 per ton.
Europe: Sales declined around 2.2% year over year to $7,653 million. Crude steel production declined nearly 6.3% to 7,530 million metric tons in the reported quarter. Shipments declined around 1.4% year over year to 7,305 million metric tons, missing the consensus mark of 7,554.1 million metric tons. The average steel selling price declined around 0.3% year over year to $926 per ton.
Mining: Sales rose 33.7% year over year to $857 million. Iron ore production totaled 8.3 million metric tons, up around 40.7% from the year-ago quarter’s levels. Iron ore shipments were up 59.7% year over year to 9.9 million metric tons.
MT’s Financials
At the end of the reported quarter, cash and cash equivalents were $5,443 million compared with $5,319 million in the prior quarter. The company’s net debt was around $8.3 billion.
MT’s Outlook
The company is facing softer demand, particularly in the United States, due to ongoing tariff pressures and cautious customer behavior. U.S. flat steel consumption is now expected to decline slightly in 2025 (-2.0% to 0%), down from earlier growth projections. Section 232 tariffs have also hurt demand in Canada and Mexico.
In Europe, demand is holding up better, with flat steel consumption forecast to grow -0.5% to 1.5%, supported by low interest rates and potential policy support. Inventories remain low, offering upside potential for the medium term. Brazil’s demand has exceeded expectations, with up to 2% growth now projected. India continues to lead global growth, with 6 % to 7% ASC growth expected, driven by infrastructure investment.
Overall, steel demand outside China is now forecast to grow 1.5% to 2.5% in 2025, down from the earlier estimate of 2.5% to 3.5%. China’s demand remains stable, though excess capacity and high exports continue to weigh on global markets.
Despite near-term headwinds, strategic growth projects and the Calvert consolidation are expected to support second-half profits. Free cash flow is projected to remain positive, aided by working capital release later in the year.
MT’s Price Performance
ArcelorMittal’s shares have gained 48.3% in the past year against the industry’s 21.4% fall.
Image Source: Zacks Investment Research
MT’s Zacks Rank & Key Picks
MT currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Gold Fields Limited (GFI - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Barrick Mining Corporation (B - Free Report) .
Gold Fields is slated to report second-quarter results on Aug. 22. The Zacks Consensus Estimate for earnings is pegged at 59 cents. GFI carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Avino Silver is scheduled to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for ASM’s second-quarter earnings is pegged at 3 cents. ASM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 104.2%. ASM currently carries a Zacks Rank #1.
Barrick Mining is slated to report second-quarter results on Aug. 11. The consensus estimate for Barrick’s earnings is pegged at 47 cents. Barrick, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters, with the average earnings surprise being 12.5%.
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ArcelorMittal's Q2 Earnings Miss Estimates on Lower Shipments
Key Takeaways
ArcelorMittal S.A. (MT - Free Report) recorded a second-quarter 2025 net income of $1,793 million or $2.35 per share compared with $504 million or 63 cents per share in the year-ago quarter.
Barring one-time items, the company recorded adjusted earnings of $1.32 per share. The bottom line missed the Zacks Consensus Estimate of $1.33.
Total sales fell around 2% year over year to $15,926 million in the quarter. The figure also missed the consensus estimate of $15,541.8 million.
Total steel shipments fell 0.7% year over year to 13.8 million metric tons in the reported quarter. The figure lagged the consensus estimate of 14.1 million metric tons.
ArcelorMittal Price, Consensus and EPS Surprise
ArcelorMittal price-consensus-eps-surprise-chart | ArcelorMittal Quote
MT’s Segment Highlights
North America: Sales were down 1.9% year over year to $3,102 million in the reported quarter. Crude steel production was up 11.6% year over year to 2,034 million metric tons. Steel shipments rose around 2.5% year over year to 2,531 million metric tons, lower than the consensus estimate of 2,616 million metric tons. The average steel selling price fell 3.6% to $1,002 per ton.
Brazil: Sales were down 13.2% year over year to $2,816 million. Crude steel production fell 1.9% to 3,540 million metric tons. Shipments decreased 3.8% year over year to 3,498 million metric tons, meeting the consensus estimate of 3,498 million metric tons. Average steel selling prices fell 9.6% to $747 per ton.
Europe: Sales declined around 2.2% year over year to $7,653 million. Crude steel production declined nearly 6.3% to 7,530 million metric tons in the reported quarter. Shipments declined around 1.4% year over year to 7,305 million metric tons, missing the consensus mark of 7,554.1 million metric tons. The average steel selling price declined around 0.3% year over year to $926 per ton.
Mining: Sales rose 33.7% year over year to $857 million. Iron ore production totaled 8.3 million metric tons, up around 40.7% from the year-ago quarter’s levels. Iron ore shipments were up 59.7% year over year to 9.9 million metric tons.
MT’s Financials
At the end of the reported quarter, cash and cash equivalents were $5,443 million compared with $5,319 million in the prior quarter. The company’s net debt was around $8.3 billion.
MT’s Outlook
The company is facing softer demand, particularly in the United States, due to ongoing tariff pressures and cautious customer behavior. U.S. flat steel consumption is now expected to decline slightly in 2025 (-2.0% to 0%), down from earlier growth projections. Section 232 tariffs have also hurt demand in Canada and Mexico.
In Europe, demand is holding up better, with flat steel consumption forecast to grow -0.5% to 1.5%, supported by low interest rates and potential policy support. Inventories remain low, offering upside potential for the medium term. Brazil’s demand has exceeded expectations, with up to 2% growth now projected. India continues to lead global growth, with 6 % to 7% ASC growth expected, driven by infrastructure investment.
Overall, steel demand outside China is now forecast to grow 1.5% to 2.5% in 2025, down from the earlier estimate of 2.5% to 3.5%. China’s demand remains stable, though excess capacity and high exports continue to weigh on global markets.
Despite near-term headwinds, strategic growth projects and the Calvert consolidation are expected to support second-half profits. Free cash flow is projected to remain positive, aided by working capital release later in the year.
MT’s Price Performance
ArcelorMittal’s shares have gained 48.3% in the past year against the industry’s 21.4% fall.
Image Source: Zacks Investment Research
MT’s Zacks Rank & Key Picks
MT currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Gold Fields Limited (GFI - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Barrick Mining Corporation (B - Free Report) .
Gold Fields is slated to report second-quarter results on Aug. 22. The Zacks Consensus Estimate for earnings is pegged at 59 cents. GFI carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Avino Silver is scheduled to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for ASM’s second-quarter earnings is pegged at 3 cents. ASM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 104.2%. ASM currently carries a Zacks Rank #1.
Barrick Mining is slated to report second-quarter results on Aug. 11. The consensus estimate for Barrick’s earnings is pegged at 47 cents. Barrick, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters, with the average earnings surprise being 12.5%.