ArcelorMittal (NYSE:MT) Issues Earnings Results, Misses Estimates By $0.28 EPS

ArcelorMittal (NYSE:MT) released its quarterly earnings data on Thursday. The basic materials company reported $0.90 EPS for the quarter, missing analysts’ consensus estimates of $1.18 by ($0.28), Briefing.com reports. The business had revenue of $16.76 billion during the quarter, compared to analyst estimates of $17.07 billion. ArcelorMittal had a net margin of 4.71% and a return on equity of 4.77%. The company’s revenue was up 5.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.32 earnings per share.

Here are the key takeaways from ArcelorMittal’s conference call:

• Improving second-quarter performance and momentum: EBITDA rose to $2.1 billion, or $155 per ton, while underlying first-half free cash flow annualized at approximately $2.5 billion. Management expects shipments in the third quarter to be stable to higher sequentially, an unusually strong seasonal outcome.
• European outlook strengthened: European EBITDA per ton reached a three-year high of $98, with stronger order books, firming prices and furnace restarts in Spain, Poland and France. Management expects the new tariff-rate quota to reduce imports and improve market share and margins, although higher production will also increase carbon costs.
• Growth projects are expected to lift earnings: Strategic projects are projected to contribute $1.8 billion of incremental EBITDA from 2026 onward, including investments in India, Liberia, Brazil and the U.S. The company is also advancing studies for a second Calvert EAF and additional downstream capacity.
• Long-term demand and shareholder returns remain priorities: Management sees structural demand from electrification, renewable energy, defense, infrastructure and data centers, alongside benefits from increasingly regional steel markets. It reiterated a focus on investment-grade balance-sheet strength, disciplined capital allocation, growing dividends and share buybacks.
• Decarbonization investments remain economically challenging: The company said European DRI projects are not currently part of its plans because gas and hydrogen economics remain difficult, and future projects will proceed only if they generate returns above the cost of capital. European production increases will also bring additional ETS carbon costs.

ArcelorMittal Trading Up 5.5%

ArcelorMittal stock traded up $3.59 during midday trading on Thursday, reaching $69.29. 1,774,855 shares of the stock traded hands, compared to its average volume of 1,910,168. The firm has a market cap of $53.70 billion, a PE ratio of 18.19, a price-to-earnings-growth ratio of 0.52 and a beta of 1.55. The company has a current ratio of 1.39, a quick ratio of 0.54 and a debt-to-equity ratio of 0.19. The company has a 50-day simple moving average of $65.85 and a two-hundred day simple moving average of $60.41. ArcelorMittal has a 12-month low of $30.17 and a 12-month high of $72.50.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on MT shares. JPMorgan Chase & Co. raised ArcelorMittal from an “underweight” rating to a “neutral” rating in a research note on Friday, July 10th. Citigroup reaffirmed a “buy” rating on shares of ArcelorMittal in a research note on Wednesday, May 20th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $70.00 price target on shares of ArcelorMittal in a report on Tuesday, July 7th. Wells Fargo & Company boosted their price objective on shares of ArcelorMittal from $61.00 to $62.00 and gave the company an “equal weight” rating in a report on Thursday, July 9th. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of ArcelorMittal in a research report on Monday, July 6th. Six investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $68.40.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Cetera Investment Advisers grew its holdings in shares of ArcelorMittal by 1.0% in the fourth quarter. Cetera Investment Advisers now owns 18,386 shares of the basic materials company’s stock valued at $838,000 after purchasing an additional 190 shares in the last quarter. Parallel Advisors LLC lifted its holdings in ArcelorMittal by 16.4% during the 4th quarter. Parallel Advisors LLC now owns 2,455 shares of the basic materials company’s stock worth $112,000 after buying an additional 346 shares in the last quarter. Dorsey & Whitney Trust CO LLC lifted its holdings in ArcelorMittal by 6.7% during the 4th quarter. Dorsey & Whitney Trust CO LLC now owns 7,143 shares of the basic materials company’s stock worth $326,000 after buying an additional 448 shares in the last quarter. Osaic Holdings Inc. boosted its position in ArcelorMittal by 2.7% in the 4th quarter. Osaic Holdings Inc. now owns 18,027 shares of the basic materials company’s stock valued at $822,000 after buying an additional 482 shares during the period. Finally, Geneos Wealth Management Inc. boosted its position in ArcelorMittal by 44.2% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,635 shares of the basic materials company’s stock valued at $47,000 after buying an additional 501 shares during the period. Hedge funds and other institutional investors own 9.29% of the company’s stock.

ArcelorMittal Company Profile

ArcelorMittal is a multinational steel manufacturing company formed in 2006 through the merger of Arcelor and Mittal Steel. Headquartered in Luxembourg, the company is one of the world’s largest producers of steel and operates an integrated value chain that spans raw material extraction, steelmaking, processing and distribution. Its product portfolio includes flat and long carbon steel products, coated and specialty steels, tubular products and value-added solutions tailored for sectors such as automotive, construction, household appliances, energy and packaging.

ArcelorMittal’s operations are global in scope, with production facilities, distribution networks and commercial activities across Europe, the Americas, Asia, Africa and the Commonwealth of Independent States.