ArcelorMittal: Net Profit of $575M in Q1, but Negative Free Cash Flow of $1.3B
ArcelorMittal released its first quarter results showing an increase in its EBITDA per ton to $131, up $15 year-over-year, and a net profit of $575 million. However, the steel company recorded a significant increase in its net debt to $9.3 billion due to a seasonal investment of $1.5 billion in working capital, while its investment expenditures remain high to support its strategic growth projects.
EBITDA and Operating Income Rise in the First Quarter
The group achieved an EBITDA of $1.679 billion in Q1 2026, up 5.4% from $1.593 billion in the fourth quarter of 2025. EBITDA per ton reached $131, improving by $15 from a year earlier ($116 in Q1 2025). This increase reflects the benefits of strategic investments, asset optimization, and diversified market exposure. Revenue increased by 3.2% to $15.457 billion, driven particularly by the rise in average steel prices. The operating income was $753 million compared to $327 million in the fourth quarter of 2025. Following operating income, the group recorded $80 million in foreign exchange losses and other net financial charges, as well as a net interest charge of $133 million. The net profit attributable to shareholders increased to $575 million ($0.76 per share) from $177 million in the previous quarter.
Net Debt Rises, Free Cash Flow Weakened by Seasonal Investments
Net debt increased to $9.3 billion as of March 31, 2026, up from $7.9 billion on December 31, 2025, mainly due to a seasonal investment of $1.5 billion in working capital. Free cash flow was negative at $1.3 billion, reflecting this typical seasonal dynamic. However, liquidity remains strong at $9.9 billion. Over the past twelve months, the group generated $2.0 billion in investable cash flow (operating cash flow minus maintenance expenses), used to fund $1.5 billion in strategic expenditures, return $0.7 billion to shareholders, and allocate $0.2 billion for acquisitions. The management maintains a positive outlook on the 2026 free cash flow.
Ongoing Strategic Projects and Prospects for Revitalization in Europe
Investment expenditures amounted to $1.3 billion in Q1, including $0.2 billion for the signing of a new mining development agreement in Liberia. The 2026 capex guidance remains unchanged at $4.5-5.0 billion, with $1.7-2.0 billion in strategic projects. The group anticipates an additional EBITDA contribution of $1.8 billion from these projects, including the new electric arc furnace unit in Dunkirk and expansions at the Sestao and Gijón plants. The group is well-positioned to benefit from the new European political environment, with the Carbon Border Adjustment Mechanism (CBAM) now active and a new tariff rate quota (TRQ) expected on July 1, 2026. These measures should reduce imports and increase the use of existing capacities. ArcelorMittal is preparing for the restart of unused blast furnaces in Fos (France) and Dąbrowa Górnicza (Poland), subject to market conditions.
