ArcelorMittal MT remains dedicated to reducing carbon emissions from its operations in France, working closely with the country’s government, whose strong support has been crucial in protecting the steel industry both in France and across Europe.

The European steel sector has been experiencing its most severe downturn since the 2009 financial crisis, prompting ArcelorMittal to postpone some of its decarbonization initiatives in Europe. Nonetheless, the European Commission’s Steel and Metal Action Plan, introduced in March 2025, offers hope that effective trade protection measures and the Carbon Border Adjustment Mechanism (CBAM) will be implemented in the near future.

The updated steel safeguard measures that took effect on April 1, 2025, represent an encouraging initial step toward stabilizing the European steel market. However, for these measures to truly level the playing field, the industry now urgently needs a more robust framework, including a strict cap on steel imports at 15% of market demand and a fully operational CBAM that effectively addresses issues like resource shuffling. These actions are essential to ensure fair competition and support the long-term viability of European steel production.

Against this backdrop, ArcelorMittal is optimistic that the necessary conditions will be in place shortly after the summer to move forward with its decarbonization strategy. As part of this renewed commitment, the company reaffirms its plan to build its first electric arc furnace (EAF) in Dunkirk, representing a major investment of approximately €1.2 billion.

This initiative complements a broader €2 billion investment strategy aimed at strengthening ArcelorMittal’s presence in France. It includes recent investment announcements such as €254 million for Dunkirk and €53 million for Fos, as well as the construction of a new electric steel production unit in Mardyck, which is expected to be completed by the end of 2025 with an investment of €500 million. Together, these investments reflect ArcelorMittal’s strong commitment to maintaining a sustainable steel business in France.

Shares of ArcelorMittal have gained 17.6% in a year compared with a 36.7% decline of the industry.Zacks Investment Research

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The company, on its fourth-quarter call, maintained its current investment strategies and capital return priorities. For 2025, capital expenditures are expected to range between $4.5 billion and $5 billion, including approximately $1.4 billion to $1.5 billion allocated to strategic growth initiatives and $0.3 billion to $0.4 billion dedicated to decarbonization projects.

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ArcelorMittal Price and Consensus

ArcelorMittal price-consensus-chart | ArcelorMittal Quote

MT’s Rank & Key Picks

MT currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Idaho Strategic Resources, Inc. IDR and Hawkins, Inc. HWKN

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 112% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Idaho Strategic Resources’ current-year earnings is pegged at 21 cents. IDR, carrying a Zacks Rank #2 (Buy), surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing twice, with an average earnings surprise of 21.7%. The company's shares have rallied 28% in the past year.

Hawkins, which currently carries a Zacks Rank #1, beat the consensus estimate in one of the trailing four quarters, while missing thrice. In this time frame, it has delivered an earnings surprise of roughly 6.1%, on average. The company's shares have rallied 57.3% in the past year.

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