ArcelorMittal posted a third-quarter net loss of $391 million after charges for idling its Kryvyi Rih steelworks in Ukraine. Underlying earnings improved: EBITDA rose 34% from a year earlier to $2.02 billion, and adjusted net income rose to $868 million.
At a glance
- The charges included $852 million of impairments and $293 million of exceptional charges linked to Kryvyi Rih.
- ArcelorMittal has restarted all its European blast furnaces after new EU tariff-rate quotas reduced import penetration.
- European flat steel shipments are set to grow by a double-digit percentage, the company says.
Background
ArcelorMittal is a Luxembourg-based steel and mining company. EBITDA means earnings before interest, taxes, depreciation and amortisation, a measure of operating profit. An impairment is a write-down in the value of assets. A tariff-rate quota lets a set volume of imports in at a low duty and charges more above it.
What happened
ArcelorMittal recorded a third-quarter net loss of $391 million, against a net profit of $377 million a year earlier and $683 million in the second quarter, SteelOrbis and Grafa reported.
The loss came from $852 million of impairment charges and $293 million of exceptional charges tied to idling ArcelorMittal Kryvyi Rih in Ukraine, plus a $170 million cut in deferred tax assets. Adjusted net income rose to $868 million from $683 million in the second quarter.
Why the Ukraine plant was idled
ArcelorMittal said it idled Kryvyi Rih because of increased safety risks after multiple missile strikes and severe pressure on logistics. Future spending there will focus on preserving assets, security and environmental compliance, while keeping the option to restart.
Underlying results improved. EBITDA rose 34% from a year earlier to $2.02 billion, and EBITDA per tonne rose to $155 from $111. Sales slipped to $16.47 billion from $16.76 billion in the second quarter.
What it means for European steel
ArcelorMittal said stronger EU trade measures are reducing import penetration, and it has restarted all its European blast furnaces under the new tariff-rate quota system. European flat steel shipments rose 1.1% from the second quarter to about 5.2 million tonnes, against the usual seasonal trend.
The company expects double-digit growth in European flat steel shipments. Crude steel output was 13.7 million tonnes in the quarter, down from 14.3 million tonnes in the second quarter.
Our read
Outlook: neutral. Idling Kryvyi Rih removes some Ukrainian steel output, while European blast furnaces are back in operation.
What to watch
- European flat steel shipments under the EU's new quota system.
- Any decision to restart Kryvyi Rih.
- The fourth-quarter release of the $2.5 billion built up in working capital.
For information only, not investment advice.
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Detailed analysis
Timeline
- 2026-11-05: ArcelorMittal reports third-quarter results.
Trade Tariffs
New EU tariff-rate quotas are cutting steel imports and lifting ArcelorMittal's European volumes.
Geopolitical Risks
Missile strikes forced ArcelorMittal to idle its Kryvyi Rih steelworks in Ukraine.
What could lift prices
- All of ArcelorMittal's European blast furnaces are running again, using more iron ore.
- European flat steel shipments are set to grow by a double-digit percentage, the company says.
What could weigh on prices
- Kryvyi Rih has been idled.
- Crude steel output fell to 13.7 million tonnes from 14.3 million.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Ukraine | High | ArcelorMittal idled its Kryvyi Rih steelworks after missile strikes. |
| European Union | Medium | EU trade quotas are cutting imports and helping European mills. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Steel | Neutral | Underlying earnings rose, but Ukraine charges pushed ArcelorMittal to a loss. |
Who gains, who loses
- European steel mills: EU trade measures are reducing import penetration and lifting capacity use.
- ArcelorMittal shareholders: Ukraine charges turned the quarter into a $391 million loss.
Other ways this could play out
- If EU quotas keep imports down, ArcelorMittal's European volumes could keep rising.
- If Kryvyi Rih stays idle, more Ukraine-related costs could follow.
Price risks
- Higher energy and carbon costs are squeezing European margins.
- A weaker economy could cut steel demand.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
