ArcelorMittal S.A.’s MT shares have rallied this year thanks to its forecast-topping earnings in the first quarter, higher steel and iron ore production and record iron ore shipments from Liberia. It is well-placed on its diversified portfolio, business expansion moves and strong financial health.
MT stock has gained 43.4% year to date compared with the Zacks Steel – Producers industry’s 23.6% growth.
Let’s find out why MT stock is worth retaining at the moment.
Business Expansion and Value-Added Steel Focus Aid MT
ArcelorMittal produced 13.3 million metric tons of crude steel in the first quarter of 2026, up 3.9% from 12.8 million metric tons in the prior quarter. Steel shipments totaled 12.8 million metric tons during the quarter. The company’s operations benefited from a return to more normalized production levels in North America.
The mining segment delivered a strong performance, with total iron ore production reaching 12.9 million metric tons. Iron ore production from ArcelorMittal Mining Canada and Liberia operations totaled 9.7 million metric tons, while shipments reached 10 million metric tons. Liberia achieved record iron ore production and shipment volumes during the quarter.
MT is expanding its steel-making capacity and focusing on shifting to high-added-value products. ArcelorMittal has decided to move forward with plans to establish a fully owned non-grain-oriented electrical steel (NOES) manufacturing facility in Alabama. This new plant aims to meet the rising demand for high-quality electrical steel while supporting manufacturers with a reliable domestic supply and addressing supply chain challenges.
As part of this initiative, the ArcelorMittal Calvert plant will incorporate key infrastructure, including an annealing pickling line, a cold-rolling mill, an annealing coating line, a packaging and slitter line and other essential ancillary equipment required for specialized electrical steel production. The company also remains on course with its Liberia iron ore expansion project, which is expected to reach full run-rate capacity beyond 20 million tons in 2026.
China Slowdown and Heavy Capex Pressure Performance
Weaker steel demand in China amid the economic slowdown in the country is a concern. The slowdown in the real estate sector in China, as seen in falling home sales, is a significant contributor to this trend. This downturn is also affecting key steel-consuming industries like construction and manufacturing, resulting in lower steel demand. Moreover, China’s manufacturing is suffering from lower overseas demand.
The company plans to maintain its substantial capital expenditures in 2026, allocating $4.5-$5 billion for high-return investments and decarbonization efforts. Key investment areas include the NOES project at ArcelorMittal Calvert, iron ore initiatives in Liberia, EAF, Las Truchas and the renewables project in India. This elevated capital expenditure may adversely impact the company’s ability to generate free cash flows in the near term.
ArcelorMittal Price and Consensus
ArcelorMittal price-consensus-chart | ArcelorMittal Quote
MT’s Zacks Rank & Key Picks
MT carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are CSW Industrials, Inc. CSW, Idaho Strategic Resources, Inc. IDR and Albemarle Corporation ALB. CSW, IDR and ALB carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CSW’s current-year earnings stands at $12.52 per share, implying a 20.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.
The Zacks Consensus Estimate for IDR’s current-year earnings is pegged at $1.52 per share, implying a 33.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 68.7%.
The Zacks Consensus Estimate for ALB’s current-year earnings is pegged at $12.98 per share, indicating a 1,743% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 74.5%.
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This article originally published on Zacks Investment Research (zacks.com).
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