Shares of ArcelorMittal, the Luxembourg-based steelmaker, saw a boost as the company reported better-than-expected earnings for the fourth quarter. At 0934 GMT, shares traded 2.6% higher at EUR25.83, reaching a peak of 5% earlier in the session.

Fourth Quarter Results

ArcelorMittal’s fourth-quarter earnings before interest, taxes, depreciation, and amortization stood at $1.27 billion, surpassing analysts’ consensus of $1.2 billion. The strong performance was largely driven by higher-than-anticipated earnings and average steel prices in Europe. Citi analysts noted that spot prices rebounded in the later part of the quarter, contributing to the positive outcome. Furthermore, average steel prices in Europe were $30 per ton higher than Citi’s projections of $975 per ton.

Positive Outlook

ArcelorMittal indicated that it has observed early signs of a more favorable industry environment moving forward. Jefferies analyst Cole Hathorn remarked that the company’s outlook appears cautiously optimistic.

Share Buybacks

In addition, ArcelorMittal’s robust cash inflow during the fourth quarter is expected to support potential share buybacks. Hathorn estimates more than $1.2 billion in share repurchases, surpassing the consensus of $1 billion for 2024.

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