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ArcelorMittal: 20 Years After the Merger, Lakshmi Mittal Defends the Integrated Model

On the occasion of its 20th anniversary on July 31, ArcelorMittal released a video address by its Executive Chairman Lakshmi Mittal on Thursday, aimed at participants of the Global Steel Dynamics 2026 forum to be held in New York on July 15 and 16. The steelmaker reviewed the merger and shared his vision of the industry in an operational environment that has radically changed since 2006.


ArcelorMittal: 20 Years After the Merger, Lakshmi Mittal Defends the Integrated Model

Twenty Years of Resilience Since the Mittal-Arcelor Merger

Lakshmi Mittal recalled the circumstances of the merger between Mittal Steel and Arcelor, which occurred shortly after his speech at the same forum two decades earlier. Reflecting on the past two decades, he emphasized that the combination had created a stronger and more resilient entity, equipped with the scale, diversification, and geographical reach to navigate major global shocks: the 2008 financial crisis, the COVID-19 pandemic, and the rise of the Chinese steel industry. The Executive Chairman affirmed that the group had weathered these crises better together than it would have separately.

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Mittal noted the major differences between the operational environment of 2006 and that of 2026. Markets move faster, competition is more global, technology is constantly evolving, and companies must adapt in real-time. Even traditional industries like steelmaking now operate in a more globalized, data-driven, and environmentally constrained world than twenty years ago. This transformation demands an adaptability that the Chairman attributes to ArcelorMittal's integrated model, which combines geographical diversification and operational resilience in the face of unpredictable shocks.

India, the New Growth Engine for Steel

Mittal identified India as the next center of gravity for the steel industry, after two decades dominated by China's exceptional growth. He highlighted the massive expansion of infrastructure, rapid urban growth in residential real estate, and investments in transitional energy infrastructure as factors likely to support steel demand. These prospects, coupled with the renewal of infrastructure in developed economies, represent solid fundamentals for the sector in the long term.



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Context

Period
  • Period: 1T2026
Key reported figures
  • Revenue: 15457 M€
  • EBITDA: 1679 M€
  • EBITDA margin: 10,9%
  • Net income: 575M$
  • Free cash flow: -1341 M€
  • 9311M$
Guidance from the release
  • Nous restons confiants dans les perspectives d'ArcelorMittal pour le reste de l'année.
  • Résultats du 1er trimestre démontrant une résilience avec des marges améliorées.
Risks mentioned
  • Les taux de change et autres charges financières nettes s'élevaient à 80 M$ au 1T 2026.
  • La dépense d'impôts sur le revenu pour le 1T 2026 était de 136 M$.
  • L'augmentation de la dette nette à 9,3 milliards $ pourrait affecter la perception des investisseurs.
  • Pressions sur le coût des matières premières en raison de l'inflation.
Opportunities identified
  • L'augmentation de la production d'acier brut à 13,3 Mt en 1T 2026.
  • Le programme d'investissement stratégique en cours offre un potentiel de croissance.
  • Le redémarrage des hauts-fourneaux inactifs à Fos et Dabrowa a été préparé.
  • Les investissements dans de nouveaux fours à arc électrique augurent de meilleures performances.

The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.

Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.

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