The steelmaker announced that it expects to generate free cash flow (FCF) during 2025 and beyond. It also said that it would distribute half of post-dividend FCF to shareholders through share buybacks.

Shares of ArcelorMittal (MT) surged more than 9% in morning trade on Thursday after the steelmaker posted mixed fourth-quarter earnings.

While ArcelorMittal’s fourth-quarter earnings per share (EPS) came in at $0.52, ahead of analyst expectations of $0.49,  its revenue fell short of expectations, with sales of $14.71 billion, versus an expected $15.03 billion, according to Stocktwits data.

However, the company posted a bullish forecast for 2025. It expects global steel demand, excluding China, to rise between 2.5% and 3.5% in 2025.

The steelmaker posted an EPS of $2.95 for the fiscal year 2024, ahead of an estimated $2.67. However, it missed revenue expectations during this period – actual revenue stood at $62.44 billion, slightly below analyst consensus of $62.95 billion.

Its steel shipments rose to 13.5 million metric tons from 13.3 million metric tons during the same period last year. Iron ore shipments rose to 7.6 million metric tons from 6.1 million metric tons a year ago.

The steel giant also said it would build a new steel plant in Calvert, Alabama, to meet demand from the U.S. auto industry. The plant’s construction cost is estimated to be $900 million, and production is expected to begin in the second half of 2027.

ArcelorMittal expects the Alabama plant to contribute earnings before interest, tax, depreciation, and amortization (EBITDA) of $200 million at full capacity.

ArcelorMittal also announced that it expects to generate free cash flow (FCF) during 2025 and beyond. It also said it would distribute half of post-dividend FCF to shareholders through share buybacks.

Retail sentiment on Stocktwits around the ArcelorMittal stock turned ‘extremely bearish’ (0/100), the lowest in a year, from ‘neutral’ (50/100) a day ago.

MT sentiment and message volume February 6, 2025, as of 9:30 am ET | Source: Stocktwits

Message volume surged to enter the ‘extremely high’ (86/100) zone, indicating increased interest among users in the platform.

ArcelorMittal’s share price has surged over 30% in the past six months, while its one-year returns are less impressive at 2%.

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