ArcelorMittal: $391M net loss in third quarter linked to Ukraine, adjusted EPS above expectations
ArcelorMittal reported, on November 5, 2026, a net loss of $391M in the third quarter, compared with a net profit of $377M a year earlier.
At the same time, its adjusted net income rose to $868M, from $474M. The gap is due to the shutdown of its Ukrainian site in Kryvyi Rih, which led to $852M in impairments and $293M in exceptional charges.
Excluding these items, the quarter came in above expectations. Core adjusted EPS reached $1.15, compared with an average of $0.99 expected by analysts.
EBITDA rose 34% year on year, to $2,023M, against a consensus of $1,972M made public by the group on November 2. Only revenue, at $16.47B, fell short of the $16.88B expected.
The shutdown of the Ukrainian site turns net income into a loss
On September 25, 2026, the group had indicated that it could no longer operate its Kryvyi Rih site safely and sustainably, following several missile strikes.
The charges related to this shutdown turned operating income into a loss of $131M, compared with a profit of $1,055M in the second quarter. The operating margin thus fell 4.3 points year on year, to -0.8%.
In addition, deferred tax assets were reduced by $170M. Excluding these items, adjusted net income rose from $683M to $868M quarter on quarter. Core adjusted EPS went from $0.90 to $1.15.
Since the start of the conflict, ArcelorMittal says it has provided more than $700M in financial support to this business. The group now plans limited spending, focused on asset preservation, safety and environmental compliance. It retains the option of a restart.
Brazil partly offsets the decline in Europe and mining
EBITDA per tonne stood at $155, stable quarter on quarter and up $44 year on year. The EBITDA margin rose 2.7 points year on year, to 12.3%, at the same level as in the second quarter. Group EBITDA, however, edged down quarter on quarter, from $2,064M to $2,023M.
Europe, the largest segment with $7.64B in sales, saw its EBITDA fall from $697M to $548M. The group attributes this to lower long product deliveries and a temporary gap between rapidly rising costs and selling prices.
European flat product deliveries nevertheless rose 1.1%, to 5.2 Mt, against the usual seasonal pattern. ArcelorMittal sees early effects of the new tariff quota mechanism. More than 25% of European flat product volumes are covered by annual contracts that have not yet been adjusted.
Conversely, Brazil's EBITDA rose 26.2%, to $506M, and North America's remained stable at $487M. In this region, a 5.7% increase in selling prices offset a 6.6% decline in deliveries, linked in particular to a strike in Canada resolved in early October.
The mining segment fell from $179M to $128M, due to a 7.8% drop in iron ore reference prices and higher freight costs. Sustainable solutions declined 16.2%, to $119M, which the group attributes to seasonality.
Over nine months, adjusted net income falls despite higher EBITDA
Over the first nine months, EBITDA rose from $4,948M to $5,766M. Adjusted net income, however, fell from $2,284M to $2,126M. This gap is partly explained by higher net interest expenses, which rose from $205M to $450M, and by a currency and financing loss of $356M, compared with a gain of $37M.
Net debt reached $10.3B at the end of September, compared with $9.5B at the end of June, after $390M in shareholder returns and a $492M increase in working capital over the quarter.
Over nine months, the latter reached $2.5B, and the group expects it to be largely reversed in the fourth quarter. Liquidity stands at $8.7B.
Capital expenditure expected for 2026 remains set between $4.5B and $5.0B. By contrast, the contribution of strategic projects in 2026 has been reduced to about $0.5B, versus $0.7B previously announced. Liberia is indeed expected to ship about 16 Mt of ore, compared with about 18 Mt planned.
The group believes this delay will be made up in 2027 and maintains the potential additional EBITDA from these projects at about $1.8B. It also anticipates a double-digit year-on-year increase in its flat product deliveries in the fourth quarter.
