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ArcelorMittal's Q1 Earnings Top Estimates, Sales Miss on Lower Volumes
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Key Takeaways
ArcelorMittal posted Q1 adjusted earnings of 76 cents per share, topping estimates.
MT's mining sales jumped 25% as iron ore production and shipments increased year over year
ArcelorMittal maintained 2026 capex guidance of $4.5B-$5B on strategic growth projects.
ArcelorMittal S.A. (MT - Free Report) recorded first-quarter 2026 net income of $575 million or 75 cents per share. This compares unfavorably with net income of $805 million or $1.04 per share in the year-ago quarter.
Barring one-time items, the company recorded adjusted earnings of 76 cents per share. The bottom line beat the Zacks Consensus Estimate of 72 cents.
Total sales were up around 4% year over year to $15,457 million In the quarter. The figure missed the consensus estimate of $15,670.9 million.
Total steel shipments fell around 6% year over year to 12.8 million metric tons in the reported quarter.
North America: Sales were up around 15% year over year to $3,297 million in the reported quarter. The figure missed the consensus estimate of $3,406 million. Crude steel production fell around 5% to 2,134 million metric tons. Steel shipments were down around 1% year over year to 2,624 million metric tons, lagging the consensus estimate of 2,671 million metric tons. The average steel selling price rose around 21% to $1,089 per ton.
Brazil: Sales were up around 6% year over year to $2,809 million, surpassing the consensus estimate of $2,533 million. Crude steel production declined around 2% to 3,514 million metric tons. Shipments increased around 9% year over year to 3,432 million metric tons, surpassing???the consensus estimate of 3,220 million metric tons. Average steel selling prices fell around 5% to $739 per ton.
Europe: Sales rose around 3% year over year to $7,446 million. The figure missed the consensus mark of $7,652 million. Crude steel production declined around 14% to 6,832 million metric tons in the reported quarter. Shipments declined around 6% year over year to 7,108 million metric tons, missing the consensus mark of 7,259 million metric tons. The average steel selling price increased around 12% year over year to $931 per ton.
Mining: Sales rose around 25% year over year to $917 million, surpassing the consensus estimate of $851 million. Iron ore production totaled 9.7 million metric tons, up around 15% from the year-ago quarter’s levels. Iron ore shipments were up 25% year over year to 10 million metric tons.
MT’s Financials
At the end of the reported quarter, cash and cash equivalents were $4,359 million compared with $5,476 million at the end of the prior quarter. The company’s net debt was around $9.3 billion. Free cash flow was a negative $1.3 billion in the quarter, reflecting a seasonal working capital investment.
MT’s Outlook
Per MT, the company remains confident in its prospects for the balance of 2026, supported by expected favorable impacts from new policy measures, including a materially improved pricing and volume environment. CBAM and the new tariff rate quota mechanism are expected to reset the European steel market by limiting imports and requiring imports to bear a carbon cost.
The company expects to benefit from strategic growth projects and has maintained its 2026 capex guidance of $4.5-$5 billion, including $1.7-$2 billion of capex on high-return projects. These investments are expected to support higher EBITDA and returns over time.
MT’s Price Performance
ArcelorMittal’s shares have gained 98.9% in the past year against the industry’s 76.5% rise.
Image Source: Zacks Investment Research
MT’s Zacks Rank & Key Picks
MT currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth a look in the basic materials space are Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
Sociedad is slated to report first-quarter 2026 results on May 26. The Zacks Consensus Estimate for loss is pegged at $1.78 per share, indicating 270.8% year-over-year growth. SQM has a Zacks Rank #2 (Buy) at present.
Idaho is expected to report first-quarter 2026 results on May 14. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share, indicating 258.3% year-over-year growth. IDR sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins is scheduled to report fiscal fourth-quarter results on May 13. The Zacks Consensus Estimate for HWKN’s fourth-quarter earnings is pegged at 76 cents per share. HWKN currently has a Zacks Rank #2.
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ArcelorMittal's Q1 Earnings Top Estimates, Sales Miss on Lower Volumes
Key Takeaways
ArcelorMittal S.A. (MT - Free Report) recorded first-quarter 2026 net income of $575 million or 75 cents per share. This compares unfavorably with net income of $805 million or $1.04 per share in the year-ago quarter.
Barring one-time items, the company recorded adjusted earnings of 76 cents per share. The bottom line beat the Zacks Consensus Estimate of 72 cents.
Total sales were up around 4% year over year to $15,457 million In the quarter. The figure missed the consensus estimate of $15,670.9 million.
Total steel shipments fell around 6% year over year to 12.8 million metric tons in the reported quarter.
ArcelorMittal Price, Consensus and EPS Surprise
ArcelorMittal price-consensus-eps-surprise-chart | ArcelorMittal Quote
MT’s Segment Highlights
North America: Sales were up around 15% year over year to $3,297 million in the reported quarter. The figure missed the consensus estimate of $3,406 million. Crude steel production fell around 5% to 2,134 million metric tons. Steel shipments were down around 1% year over year to 2,624 million metric tons, lagging the consensus estimate of 2,671 million metric tons. The average steel selling price rose around 21% to $1,089 per ton.
Brazil: Sales were up around 6% year over year to $2,809 million, surpassing the consensus estimate of $2,533 million. Crude steel production declined around 2% to 3,514 million metric tons. Shipments increased around 9% year over year to 3,432 million metric tons, surpassing???the consensus estimate of 3,220 million metric tons. Average steel selling prices fell around 5% to $739 per ton.
Europe: Sales rose around 3% year over year to $7,446 million. The figure missed the consensus mark of $7,652 million. Crude steel production declined around 14% to 6,832 million metric tons in the reported quarter. Shipments declined around 6% year over year to 7,108 million metric tons, missing the consensus mark of 7,259 million metric tons. The average steel selling price increased around 12% year over year to $931 per ton.
Mining: Sales rose around 25% year over year to $917 million, surpassing the consensus estimate of $851 million. Iron ore production totaled 9.7 million metric tons, up around 15% from the year-ago quarter’s levels. Iron ore shipments were up 25% year over year to 10 million metric tons.
MT’s Financials
At the end of the reported quarter, cash and cash equivalents were $4,359 million compared with $5,476 million at the end of the prior quarter. The company’s net debt was around $9.3 billion. Free cash flow was a negative $1.3 billion in the quarter, reflecting a seasonal working capital investment.
MT’s Outlook
Per MT, the company remains confident in its prospects for the balance of 2026, supported by expected favorable impacts from new policy measures, including a materially improved pricing and volume environment. CBAM and the new tariff rate quota mechanism are expected to reset the European steel market by limiting imports and requiring imports to bear a carbon cost.
The company expects to benefit from strategic growth projects and has maintained its 2026 capex guidance of $4.5-$5 billion, including $1.7-$2 billion of capex on high-return projects. These investments are expected to support higher EBITDA and returns over time.
MT’s Price Performance
ArcelorMittal’s shares have gained 98.9% in the past year against the industry’s 76.5% rise.
MT’s Zacks Rank & Key Picks
MT currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth a look in the basic materials space are Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
Sociedad is slated to report first-quarter 2026 results on May 26. The Zacks Consensus Estimate for loss is pegged at $1.78 per share, indicating 270.8% year-over-year growth. SQM has a Zacks Rank #2 (Buy) at present.
Idaho is expected to report first-quarter 2026 results on May 14. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share, indicating 258.3% year-over-year growth. IDR sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins is scheduled to report fiscal fourth-quarter results on May 13. The Zacks Consensus Estimate for HWKN’s fourth-quarter earnings is pegged at 76 cents per share. HWKN currently has a Zacks Rank #2.