ArcelorMittal’s European operating income increased 170% during the first half of 2026 even as steel shipments declined, as higher selling prices, improved price-cost conditions, trade protections, and the absence of a prior-year impairment strengthened profitability.
European operating income reached $649 million, compared with $240 million during the first half of 2025.
The $409 million increase substantially exceeded the segment’s revenue growth.
Sales increased 2.5% to $15.24 billion from $14.87 billion.
Steel shipments declined 4% to 14.25 million tonnes.
Flat-product shipments fell 1.9% to 10.45 million tonnes, while long-product shipments decreased 9.2% to 3.8 million tonnes.
Crude steel production declined 7.3% to 14.38 million tonnes.
The lower production reflected maintenance in Asturias, Spain, a temporary furnace shutdown in Poland, and the divestiture of ArcelorMittal’s Bosnian operations.
Despite the lower volume, the average European steel selling price increased 7.9% to $949 per tonne from $879 per tonne.
The stronger pricing more than offset the shipment decline and supported positive price-cost effects.
The prior-year result also included a $194 million impairment associated with the divestiture of the company’s steel and mining operations in Bosnia.
Excluding that impairment, the segment still produced underlying operating-income growth because of improved pricing relative to costs.
European steel conditions strengthened as policymakers introduced new measures intended to reduce imports and impose carbon-related costs on foreign producers.
The European Union’s Carbon Border Adjustment Mechanism took effect at the beginning of 2026.
A more restrictive tariff-rate quota framework was introduced on July 1.
ArcelorMittal said the combination of the two measures could support higher domestic capacity utilization, improved profitability, and stronger returns on capital.
European import penetration declined to approximately 18% during the first half from 21% in 2025.
Imports were estimated to be approximately 5% lower year over year.
Order books strengthened following the implementation of the trade framework.
The improving demand environment supported blast-furnace restarts in France, Poland, and Spain.
ArcelorMittal expects European steel shipments to be stable or slightly higher sequentially during the third quarter.
That outlook is notable because shipments would normally experience a high-single-digit seasonal decline during the period.
The company also expects shipments during the second half to exceed first-half levels across all operating segments.
European hot-rolled coil prices improved throughout the first half.
Average Northern European HRC pricing increased to €692 per tonne during the second quarter from €625 one year earlier.
Southern European HRC pricing increased to €685 from €604 per tonne.
European medium-sections prices reached €816 per tonne during the second quarter, compared with €789 one year earlier.
European rebar pricing increased to €652 per tonne from €622, while Turkish export rebar rose to $591 from $548.
ArcelorMittal’s European operation nevertheless continued facing substantial energy and carbon-related costs.
European natural gas prices averaged €42.7 per megawatt-hour during the first half, reflecting the effect of Middle Eastern supply disruptions and higher geopolitical risk premiums.
The company’s provision for emission-right obligations increased to $787 million from $506 million.
ArcelorMittal is investing in projects intended to improve the long-term competitiveness and carbon intensity of its European operations.
The company is constructing electrical-steel facilities in Mardyck, France, with annual capacity of 155,000 tonnes.
The project is expected to enter service during the second half of 2027 and will primarily produce non-grain-oriented electrical steel for automotive applications.
A new two-million-tonne electric arc furnace is planned for Dunkirk, France.
The project is designed to reduce carbon emissions while preserving the site’s annual crude-steel capacity of approximately 5.5 million tonnes.
ArcelorMittal is also constructing a 1.1-million-tonne electric arc furnace in Gijón, Spain, and expanding capacity at Sestao.
The company expects those Spanish projects to support low-carbon steel production and improved asset utilization.
European operating gains contributed to stronger consolidated EBITDA.
First-half EBITDA increased to $3.7 billion from $3.4 billion.
EBITDA per tonne improved to $143 from $125 and reached $155 during the second quarter.
However, consolidated net income attributable to shareholders declined to $1.26 billion from $2.6 billion.
Higher interest expense and a large swing in foreign-exchange and other financing results more than offset much of the underlying operating improvement.
Net interest expense increased to $269 million from $121 million.
Foreign-exchange and other net financing results shifted to a $366 million loss from a $123 million gain.
ArcelorMittal is also beginning to capture earnings from strategic investments across mining, steelmaking, renewables, and higher-value products.
The company expects those projects and completed acquisitions to provide approximately $1.8 billion of additional EBITDA potential from 2026 onward.
Approximately $300 million of that potential was captured during the first half.
The European segment’s 170% operating-income increase demonstrates how higher prices and trade protections can improve earnings even without shipment growth.
Future performance will depend on whether the new import framework produces sustainable improvements in capacity utilization and whether those benefits can offset energy, carbon, labor, and raw-material costs.
KEY QUOTES:
“Order books strengthened following the implementation of the new framework, enabling the restart of blast furnace capacity in France, Poland and Spain.”
“We expect European steel shipments to increase during the second half of the year compared with the first half.”
Genuino Christino, Chief Financial Officer Of ArcelorMittal
