On Thursday, the world’s second-largest steelmaker projected an improvement in steel demand for 2025 and announced that its annual investment budget would remain in line with the previous year’s. This came after its fourth-quarter earnings surpassed market expectations.
By 10:42 GMT, the company’s shares had surged 6.6%, reaching their highest level since April 2024.
“Expectations for profit were weak in Europe. Demand is weak, but the company has been very profitable in Europe, indicative of the resilience of their business,” J.P. Morgan analyst Dominic O’Kane said.
ArcelorMittal reported a 13% rise in its quarterly earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $1.65 billion, a nearly 8% beat to analysts’ consensus provided by the company.
CEO Aditya Mittal said in a statement, “The long-term outlook for the steel industry is positive, and our global presence means we have a unique opportunity to prioritize investment in markets where there is a strong outlook for growth and returns.”
ArcelorMittal expects to invest between $4.5 billion and $5.0 billion in 2025, maintaining a budget aligned with its 2024 plans. Aditya Mittal stated that the company’s primary investment focus will be in Brazil, India, and the United States.
In a separate announcement, the company revealed plans to construct a new steel plant in Calvert, Alabama, to meet rising demand from U.S. automakers.
Excluding China, the world’s largest steel consumer and producer, ArcelorMittal forecasts global steel demand to grow between 2.5% and 3.5% this year. The company also raised its annual dividend by 10%, declaring a payout of $0.55 per share for 2024.
In the fourth quarter, ArcelorMittal shipped approximately 13.5 million metric tons of steel, marking a slight increase from both the same period in 2023 and the third quarter of 2024.
Meanwhile, Swedish steelmaker SSAB also surpassed quarterly profit expectations last week, supported by strong demand for its high-strength steel.