ArcelorMittal S.A. MT recorded second-quarter 2026 net income of $0.683 billion or 89 cents per share. This compares unfavorably with net income of $1.793 billion or $2.34 per share in the year-ago quarter. Earnings missed the Zacks Consensus Estimate of $1.18.
Total sales increased around 5% year over year to $16.76 billion in the quarter. The figure missed the consensus estimate of $16.82 billion. Total steel shipments declined around 3% year over year to 13.4 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 increased 18% year over year to $3.67 billion in the reported quarter. The figure surpassed the consensus estimate of $3.56 billion. Crude steel production rose 8% year over year to 2.2 million metric tons. Steel shipments increased 12% year over year to 2.83 million metric tons, surpassing the consensus estimate of 2.68 million metric tons. The average steel selling price increased 16% year over year to $1,161 per ton.
Brazil: Sales rose 12% year over year to $3.15 billion, surpassing the consensus estimate of $2.98 billion. Crude steel production increased 5% year over year to 3.71 million metric tons. Steel shipments increased 2% year over year to 3.57 million metric tons, exceeding the consensus estimate of 3.52 million metric tons by 1.4%. The average steel selling price increased 7% year over year to $798 per ton.
Europe: Sales increased 2% year over year to $7.79 billion. The figure missed the consensus estimate of $8 billion. Crude steel production was broadly flat year over year at 7.55 million metric tons. Steel shipments declined 2% year over year to 7.14 million metric tons, missing the consensus estimate of 7.44 million metric tons. The average steel selling price increased 4% year over year to $967 per ton.
Mining: Sales declined 9% year over year to $0.78 billion, missing the consensus estimate of $0.893 billion. Iron ore production increased 22% year over year to 10.1 million metric tons, driven by improved performance in Liberia and the continued ramp-up of the concentrator.
Iron ore shipments declined 5% year over year to 9.4 million metric tons. Shipments were affected by heavy rainfall in Liberia and weather-related constraints at port operations in Canada.
MT’s Financials
At the end of the reported quarter, cash and cash equivalents were $4.9 billion compared with $4.36 billion at the end of the prior quarter. Long-term debt, excluding the current portion, was $11.73 billion compared with $ 10.94 billion as of March 31, 2026. The company’s net debt was $9.5 billion at the end of the second quarter.
Net cash provided by operating activities was $0.96 billion compared with $1.42 billion in the year-ago quarter. Capital expenditures totaled $1.10 billion. Free cash outflow was $0.15 billion compared with free cash flow of $0.51 million in the prior-year quarter.
MT’s Outlook
ArcelorMittal expects shipments in the second half of 2026 to exceed first-half levels across all segments. European steel shipments are projected to be stable to slightly higher sequentially in the third quarter, contrasting with the typical high-single-digit seasonal decline.
Per MT, the implementation of the new tariff rate quota mechanism, together with the Carbon Border Adjustment Mechanism, is expected to support higher domestic capacity utilization and improve profitability in Europe. Stronger order books are also supporting the restart of production capacity across the region.
ArcelorMittal maintained its 2026 capital expenditure guidance of $4.5-$5 billion, including $1.7-$1.9 billion of strategic capex. Its portfolio of organic growth projects and completed acquisitions is expected to increase EBITDA potential by approximately $1.8 billion from 2026 and beyond.
The company maintained its 2026 depreciation guidance at approximately $3 billion and expects net interest expenses of around $550 million. Liberia’s 2026 iron ore shipment guidance remains at 18 million metric tons, supported by the continued ramp-up of the concentrator.
MT’s Price Performance
ArcelorMittal’s shares have gained 137.5% in the past year compared with the industry's 86.1% rise.
MT’s Zacks Rank & Key Picks
MT currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Avient Corporation AVNT, Neo Performance Materials Inc. NOPMF and Skeena Resources Limited SKE.
Avient is scheduled to report second-quarter results on Aug. 6. The Zacks Consensus Estimate for AVNT’s second-quarter earnings is pegged at 89 cents per share. It carries a Zacks Rank #2 (Buy) at present.
NOPMF is slated to report second-quarter results on Aug. 11. The Zacks Consensus Estimate for earnings is pegged at 5 cents per share. NOPMF has a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Skeena Resourcesbis expected to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for SKE’s second-quarter loss is pegged at 11 cents per share. It currently carries a Zacks Rank #2.
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