The world’s second-largest steel producer, ArcelorMittal, exceeded financial expectations in its first-quarter results released Thursday, driven by rising steel prices and strengthened operations in North America.
The Luxembourg-headquartered corporation announced core earnings of $1.68 billion for the quarter, surpassing the $1.65 billion forecast by financial analysts, according to LSEG data.
“The fundamentals of the business have improved over the past three months, driven in particular by the favourable structural reset in the European policy environment,” CEO Aditya Mittal said in the earnings statement.
Mittal noted that first-quarter results remained strong despite the “unsettled backdrop” in the Middle East.
The steel industry appears poised for recovery as European Union pricing has climbed more rapidly than anticipated in recent months, thanks to policy shifts and rising energy costs.
Following years of depressed pricing, new European Commission measures including a carbon tax on high-emission products and trade policies designed to cut imports by half starting in July have contributed to a 22% increase in European hot rolled coil prices over the past six months.
Reduced import competition will boost capacity utilization rates, returning profitability and capital returns to sustainable levels, ArcelorMittal stated. The company is preparing to reactivate dormant blast furnaces in France and Poland.
The company indicated that first-quarter results did not yet capture the full benefit of the improved pricing environment, with those advantages expected to materialize beginning in the second quarter of 2026.
Industry analysts anticipate that European steel manufacturers have successfully transferred higher energy costs to their customers. Companies are also benefiting as clients increasingly source from domestic suppliers to avoid supply chain disruptions linked to Middle East conflicts.
