ArcelorMittal S.A. MT recorded adjusted earnings of 52 cents for fourth-quarter 2024 compared with $1.18 per share in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 41 cents.

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Total sales rose around 1.1% year over year to $14,714 million in the quarter. However, the figure missed the consensus estimate of $15,553.5 million, primarily due to a decline in average steel selling prices.

Total steel shipments rose 1.5% year over year to 13.5 million metric tons in the reported quarter. The figure lagged the consensus of 13.6 million metric tons.

ArcelorMittal is optimizing its decarbonization strategy to maintain competitiveness and maximize return on investment.

MT’s Segment Review

North America: Sales were down 10.5% year over year at $2.63 billion in the reported quarter. Crude steel production increased 13.8% to 1,883 million metric tons. Steel shipments decreased around 7.7% year over year to 2,391 million metric tons, missing the consensus estimate of 2,452.4 million metric tons. The average steel selling price declined 5.9% to $892 per ton.

Brazil: Sales increased around 7% year over year to $2.89 billion. Crude steel production declined 0.2% to 3,527 million metric tons. Shipments decreased 2.4% year over year to 3,478 million metric tons, lagging the consensus mark of 3,610.7 million metric tons. Average steel selling prices fell 9.3% to $773 per ton.

Europe: Sales rose around 7.7% year over year to $7.14 billion. Crude steel production rose roughly 17.7% to 7,696 million metric tons in the reported quarter. Shipments rose around 12.6% year over year to 7,213 million metric tons, topping the consensus of 7,104.9 million metric tons. The average steel selling price declined roughly 8.9% year over year to $852 per ton.

Mining: Sales fell 7.8% year over year to $704 million. Iron ore production totaled 8.9 million metric tons, up around 43.5% from the year-ago quarter’s levels. Iron ore shipments were up 24.6% year over year to 7.6 million metric tons.

MT’s Financials

In the reported quarter, net cash provided by operating activities was $2,468 million compared with $3,328 million in the year-ago quarter. The company’s net debt was around $5.1 billion, up roughly 75.9% year over year.

MT’s FY24 Results

For 2024, MT reported revenues totaling $62.44 billion, indicating an 8.5% decline from 2023, primarily attributed to lower average steel selling prices despite stable shipments. ArcelorMittal reported a net income of $1,339 million, a notable increase from $919 million in 2023. 

MT’s Outlook

The company expects world ex-China apparent steel consumption (ASC) to grow 2.5% to 3.5% in 2025 from the 2024 level, supporting steel shipment growth. By region, ASC for Europe flat products is expected to grow between 0% and 2%, while U.S. flat products are projected to increase 1% to 3%. China and Brazil are anticipated to remain stable, whereas India is forecasted to grow 6% to 7%. Although near-term demand is expected to remain subdued due to the low inventory environment, particularly in Europe, the company remains optimistic that restocking activity will, over time, supplement real demand improvement.

MT’s Stock Price Performance

Shares of ArcelorMittal have gained 3.3% in the past year against the industry’s 21.8% decline.

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MT’s Zacks Rank & Key Picks

ArcelorMittal currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include ICL Group Ltd.  ICL, Hecla Mining Company HL and Ingevity Corporation NGVT.

ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hecla Mining is slated to report fourth-quarter results on Feb. 13. The Zacks Consensus Estimate for HL’s fourth-quarter earnings is pegged at 4 cents. HL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 50%. HL currently carries a Zacks Rank #1.

Ingevity is slated to report fourth-quarter results on Feb. 18, after market close. The consensus estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents. NGVT, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 95.4%. 

 

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