Key Points

• Quarterly loss: $391 million, compared with a $683 million profit in Q2, following $1.145 billion in impairment and exceptional charges.
• Underlying performance: EBITDA reached $2.02 billion, while adjusted net income improved to $868 million.
• Ukraine operations: Kryvyi Rih remains idled, with asset preservation and potential future restart taking priority.

SCRAPMONSTER EDGE | STEEL INDUSTRY ANALYSIS

Accounting Charges Mask Positive Underlying Earnings

ArcelorMittal's $391 million reported loss contrasts with $868 million in adjusted net income. The difference primarily reflects charges related to the Ukrainian operations, together with associated tax and ownership adjustments.

Combined impairment and exceptional charges totalled $1.145 billion. These should not be interpreted as an equivalent immediate cash outflow, although maintaining the idled operation will continue to require spending.

Industry takeaway: The results illustrate how a major disruption at one steelmaking operation can materially affect group-wide financial statements even when other businesses remain profitable. For steel market participants, the future of Kryvyi Rih is a supply-side issue, while ArcelorMittal's adjusted earnings provide a separate indication of its ongoing financial performance.

Ukraine Steel Plant Idling Triggers $1.145 Billion in Charges

ArcelorMittal suspended production at its Kryvyi Rih facility in September 2026 after repeated Russian strikes created serious safety risks and disrupted critical infrastructure and logistics.

The company recorded $852 million in impairment charges and $293 million in exceptional charges associated with idling the operation.

An impairment reduces the recorded accounting value of assets and does not necessarily represent an immediate cash payment.

The facility has not been declared permanently closed. ArcelorMittal said future spending will focus on asset preservation, security and environmental compliance while maintaining the possibility of restarting production.

Since the beginning of the war, the company has provided more than $700 million in financial support to sustain its Ukrainian operations.

Underlying Earnings Exceed Market Expectations

ArcelorMittal reported third-quarter EBITDA of $2.023 billion, slightly below the $2.064 billion recorded in Q2 but above the approximately $1.96 billion expected by analysts surveyed by LSEG.

Adjusted net income increased to $868 million from $683 million in the previous quarter, while adjusted earnings per share improved from $0.90 to $1.15.

The European business benefited from improving steel market conditions and trade measures supporting domestic producers, although higher energy and carbon costs affected quarterly profitability.

European flat steel shipments increased sequentially, contrary to normal seasonal patterns, while the company continued to assess the benefits of the region's revised trade framework.

Nine-Month Net Profit Falls 70.9%

For January–September 2026, ArcelorMittal reported $867 million in net income attributable to shareholders, compared with $2.975 billion during the corresponding period in 2025.

That represents a decline of approximately 70.9%.

On an adjusted basis, however, nine-month net income was $2.126 billion, compared with $2.284 billion a year earlier, a decline of approximately 6.9%.

The narrower decline in adjusted earnings highlights the significant impact of exceptional charges and other accounting adjustments on reported profitability.

Kryvyi Rih Recovery Depends on Security and Operating Conditions

ArcelorMittal's immediate priority in Ukraine is preserving its industrial assets while limiting ongoing financial exposure.

Any restart will depend on improvements in security, logistics and the company's ability to operate safely and sustainably.

Elsewhere, the steelmaker continues to pursue growth investments, improved operating performance and stronger cash generation.

The company's third-quarter results demonstrate the financial consequences of the Ukrainian disruption, while its positive adjusted earnings indicate that underlying operations remain profitable.