ArcelorMittal profit beats estimates as EU policy shifts provide steel tailwind

ArcelorMittal (NYSE:MT) reported first-quarter 2026 financial results that showcased operational resilience amid a volatile global backdrop.

The Luxembourg-based steel giant posted sales of $15.5 billion and a net income of $575 million, or $0.76 per share, comfortably beating the consensus analyst estimate of $0.65 per share.

Profitability was bolstered by improving margins, with EBITDA reaching $1.679 billion.

On a unit basis, EBITDA per tonne rose to $131, up from $116 in the same period last year.

Chief Executive Officer Aditya Mittal attributed the performance to a "structural reset" in the European steel industry, where new regulatory tailwinds—including the Carbon Border Adjustment Mechanism (CBAM) that took effect January 1—are beginning to level the playing field against higher-emission imports.

The company’s balance sheet saw a seasonal uptick in net debt to $9.3 billion, following a $1.5 billion investment in working capital.

Despite this, liquidity remains robust at $9.9 billion.

Meanwhile, ArcelorMittal maintained its 2026 capital expenditure guidance of $4.5 billion to $5 billion, with up to $2 billion earmarked for strategic growth projects intended to add an incremental $1.8 billion to annual EBITDA over the coming years.

A central pillar of this strategy is the decarbonization of its European footprint.

The company officially greenlit a €1.3 billion investment to build a 2-million-tonne Electric Arc Furnace (EAF) in Dunkirk, France, targeted for a 2029 commissioning.

The project, which receives 50% funding support from the French government, is expected to reduce CO2 emissions threefold compared to traditional blast furnaces.