ArcelorMittal (NYSE: MT) reported third-quarter 2026 results, with EBITDA of $2 billion, up 34% year on year. EBITDA per ton rose to $155, $44 higher than a year earlier. According to CFO Genuino Christino, management attributes the improvement to portfolio optimization and strategic execution.
He also said the results do not yet reflect the full benefit of the new European trade framework (TRQ), and that steel price increases flow through to earnings with a lag. Around 25% of European flat product volumes remain under annual contracts that have yet to reset. (Source: Benzinga, ArcelorMittal Q3 2026 Earnings Call Transcript, 5 November 2026.) On imports, the CFO said flat steel imports in the quarter were approximately 50% lower than a year earlier. European flat product shipments rose quarter on quarter in Q3, which he described as counter to the normal seasonal pattern.
Management expects shipment growth to accelerate in Q4, with a double-digit year-on-year improvement in European flat products, and expects the trend to continue into 2027 as customers shift back to domestic supply. Inventory destocking was cited as a factor that has so far limited the translation of lower imports into higher shipments, with destocking expected to largely end in Q4. On operations, the CFO said the Dąbrowa, Asturias and Fos blast furnaces are back in operation and that all European blast furnaces are now running.
He added that Fos is still in its ramp-up phase and not yet where management wants it to be. In North America, management said a strike at the Canadian longs division has been resolved and DRI reliability issues in Mexico have been addressed, with the CFO estimating Q3 losses in the range of 150 kt. He expects normal capacity levels in Q4, while North American shipments are guided to be broadly flat, reflecting seasonality and maintenance.
The Calvert ramp-up is progressing more slowly than expected, according to the CFO. In India, the CFO said the downstream cold mill and automotive finishing lines at the Hazira project have been commissioned, and that coke oven batteries are being tested. Management expects higher volumes from the project already in 2027, mainly in the second half.
In Mining, Liberia had shipped about 10.5 million tonnes in the first nine months, against guidance of 16 million tonnes, and management expects the operation to run at capacity in Q4. Management also referred to a group capex reference of $4.5 to $5 billion going forward, and said the Tubarão cold rolling and coating project in Brazil is approved and under execution. On capital allocation, the CFO said the company has sufficient authorizations for buybacks and that management is considering returning more than the 50% of free cash flow called for by its policy.
Regarding policy, management said CBAM has been in effect since the beginning of the year and the TRQ mechanism started on 1 July, with an extension of CBAM to downstream products expected to be clarified around the end of this year or early next year. Management also raised concerns that medium-term slab imports could undermine the TRQ's objectives. On the United States, the CFO said he expects Section 232 to remain in place.
On Ukraine, the CFO said operations are being idled and he does not expect a significant impact on the European market. On demand, the CFO described real steel demand in Europe as relatively stable, with automotive resilient, and cited a World Steel Association forecast of 2.3% growth in European apparent steel consumption for 2027. He noted that the forward-looking statements made on the call reflect management's views as of the call date.
The transcript was provided by Benzinga as an automated transcription, may contain errors or omissions, and its statements have not been independently verified. Official company filings and press releases should be consulted for authoritative figures.
Source: benzinga.com