ArcelorMittal, the world’s second largest steelmaker, reported a better-than-expected third quarter profit on Thursday helped by a strong performance in Europe and gave a positive outlook for 2026.
The Luxembourg-based company booked a $1.51 billion core profit in the quarter, 3% above the $1.46 billion seen in company-provided consensus. Shares in the company were up around 5% at 0930 GMT, bringing their year-to-date gains to 53%.
Analysts at JPMorgan said in a note that the beat was driven by a stronger-than-expected performance in Europe.
ArcelorMittal’s earnings in the region rose 27% compared to the same period last year.
JPM analysts also noted the company was an outlier among steelmakers which have reported recently, with no reasons for estimates downgrades in the fourth quarter.
Outokumpu, SSAB and Acerinox all warned of uncertainty for the fourth quarter.
‘SIGNS OF STABILIZATION’
“We are seeing signs of stabilization and are optimistic on the outlook for our business in 2026, when we will benefit from more supportive industry policies in key markets,” ArcelorMittal’s chief executive Aditya Mittal said in a statement.
Still, overall demand remained weak in the quarter and there were no signs of restocking as customers maintain a “wait and see” approach, the company said.
Western steelmakers have welcomed an increase of protectionism in the countries where they manufacture, after the U.S. hike tariffs on steel to 50% in June and the European Commission announced plans for higher import quotas and heavier duties on volumes above those levels in October.
They have long argued against what they call global overcapacity and pressure from cheaper imported steel from Asia.
