ArcelorMittal Reports Strong 2024 First Quarter Earnings
ArcelorMittal unveiled its first-quarter earnings for 2024, showcasing improved performance driven by rebounding volumes and increased steel spreads.
Adjusted steel shipments surged by 5.0% in the first quarter of 2024 compared to the previous quarter. EBITDA soared to $2.0 billion in Q1 2024, up from $1.5 billion in Q4 2023, with EBITDA per tonne hitting $145, a notable rise from $110 in Q4 2023.
Net income saw a significant turnaround, reaching $0.9 billion in Q1 2024 compared to a net loss of $3.0 billion in Q4 2023. Adjusted net income for Q1 2024 stood at $1.0 billion.
However, free cash flow faced seasonal impacts, with a working capital investment of $1.7 billion, combined with strategic growth project capex of $1.2 billion, resulting in a free cash outflow of $1.4 billion during the quarter.
Despite these challenges, ArcelorMittal demonstrated financial resilience, with net debt at the end of Q1 2024 standing at $4.8 billion, down from $2.9 billion at the end of 2023.
ArcelorMittal's strategic growth projects, including a 1GW renewables project in India among others, are expected to bolster organic growth, with estimated EBITDA potential of approximately $1.8 billion by the end of 2026.
AM/NS India, the joint venture of ArcelorMittal and Nippon Steel, witnessed robust performance, recording 2.0 million tonnes of crude steel production in Q1 2024, nearing its annual capacity target. Steel shipments also reached a record high of 2.0 million tonnes, marking a 7.9% increase compared to Q4 2023.
However, EBITDA for AM/NS India declined by 37.5% to $312 million in Q1 2024, attributed to negative price-cost effects, including lower natural gas hedge impacts, partially offset by higher shipments.
Adjusted steel shipments surged by 5.0% in the first quarter of 2024 compared to the previous quarter. EBITDA soared to $2.0 billion in Q1 2024, up from $1.5 billion in Q4 2023, with EBITDA per tonne hitting $145, a notable rise from $110 in Q4 2023.
Net income saw a significant turnaround, reaching $0.9 billion in Q1 2024 compared to a net loss of $3.0 billion in Q4 2023. Adjusted net income for Q1 2024 stood at $1.0 billion.
However, free cash flow faced seasonal impacts, with a working capital investment of $1.7 billion, combined with strategic growth project capex of $1.2 billion, resulting in a free cash outflow of $1.4 billion during the quarter.
Despite these challenges, ArcelorMittal demonstrated financial resilience, with net debt at the end of Q1 2024 standing at $4.8 billion, down from $2.9 billion at the end of 2023.
ArcelorMittal's strategic growth projects, including a 1GW renewables project in India among others, are expected to bolster organic growth, with estimated EBITDA potential of approximately $1.8 billion by the end of 2026.
AM/NS India, the joint venture of ArcelorMittal and Nippon Steel, witnessed robust performance, recording 2.0 million tonnes of crude steel production in Q1 2024, nearing its annual capacity target. Steel shipments also reached a record high of 2.0 million tonnes, marking a 7.9% increase compared to Q4 2023.
However, EBITDA for AM/NS India declined by 37.5% to $312 million in Q1 2024, attributed to negative price-cost effects, including lower natural gas hedge impacts, partially offset by higher shipments.
