February 06, 2025 13:44 GMT
BASIC INDUSTRIES: ArcelorMittal (MTNA Baa3[P]/BBB-[P]/NR): 4Q24 Results
BASIC INDUSTRIES
Marginal positive. We viewed the recent return to the EUR market as attractive, the 10bp NIC at issuance pricing out on a relative basis. Still looks interesting here with potential ratings momentum.
- ArcelorMittal reported revenue 1% below consensus.
- Adj. EBITDA beat by 10%, with EBITDA/tonne higher than expected.
- FCF at $1.3bn was just ahead of $1.2bn expected with capex lower. Reported net leverage stood at 0.9x, up from 0.6x YoY following buybacks and unchanged QoQ. It intends to return minimum 50% of post dividend FCF to shareholders.
- It expects 2.5-3.5% steel demand growth globally ex-China in 2025, with current inventories low. Consensus has 2% revenue growth. It sees $0.4bn EBITDA benefit from new projects this year. Analysts have EBITDA change at $140mn. Capex guidance is in line and FCF is guided to positive for FY25 and beyond.
- Webcast 14.30 GMT https://edge.media-server.com/mmc/p/cjhvkxyu/.
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