ArcelorMittal’s stock rose 8.42% following a strong Q4 2024 performance, with EBITDA at $1.65 billion, exceeding expectations. Revenues slightly increased year-on-year, but annual sales declined. Operating income improved significantly, and net profit rose to $1.339 billion. The board has proposed raising the 2025 dividend. Looking ahead, the company expects higher demand and plans $4.5 to $5 billion in investments, including a new electric steel mill in Alabama with production starting in 2027.
ArcelorMittal’s Strong Performance in Q4 2024
ArcelorMittal’s stock surged by 8.42% to reach 26.41 euros in Paris as investors reacted positively to the company’s robust performance in the final quarter of 2024. According to Jefferies, the company’s EBITDA for Q4 hit 1.65 billion dollars, surpassing the Visible Alpha consensus of 1.529 billion dollars by 8%. This impressive result was largely driven by significant advancements in the mining sector, marking the best performance from Canadian mines since Q4 2018. The operating income for this quarter stands at 529 million dollars, a remarkable turnaround from an operating loss of 1.98 billion dollars recorded in the same period last year.
Year-on-year, ArcelorMittal’s revenues showed a slight increase, rising from 14.55 billion dollars to 14.71 billion dollars during the last three months of 2024. However, for the entire year, sales decreased from 68.27 billion dollars to 62.44 billion dollars. The EBITDA for 2024 declined to 7.05 billion dollars, down from 8.74 billion euros in 2023. The steel giant attributed this decrease to structural improvements and the advantages of regional and product diversification. On a positive note, net profit for 2024 climbed from 919 million dollars to 1.339 billion dollars, and the company recorded a reduced net loss of 390 million dollars in Q4, compared to a staggering loss of 2.97 billion dollars in the same quarter of 2023.
Future Prospects and Dividend Increase
ArcelorMittal’s operating income improved in 2024, rising from 2.34 billion dollars to 3.31 billion dollars. The board of directors has proposed an increase in the annual base dividend to shareholders, raising it from 0.50 dollars in 2024 to 0.55 dollars for the 2025 fiscal year. This dividend will be distributed in two equal installments in June and December 2025, pending shareholder approval at the upcoming general meeting.
Looking ahead, ArcelorMittal anticipates enhanced apparent demand in the 2025 fiscal year compared to 2024, driven by low inventory levels, especially in Europe. The company remains optimistic that restocking activities will support actual demand improvements. Planned investments for 2025 are projected to be between 4.5 and 5 billion dollars, with 1.4 to 1.5 billion dollars allocated for strategic growth projects and 0.3 to 0.4 billion dollars for decarbonization initiatives. Cash flow is expected to remain positive in 2025, aided by effective working capital management.
Additionally, ArcelorMittal has confirmed the construction of a new electric steel mill in Calvert, Alabama, which will boast an annual production capacity of 150,000 tons. This project is estimated to require net investments of 900 million dollars, with production anticipated to commence in the latter half of 2027. At full capacity, the new mill is projected to contribute 0.2 billion dollars to EBITDA.