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Reviewed condensed consolidated financial results for the six months ended 30 June 2026
ArcelorMittal South Africa Limited
Registration number: 1989/002164/06
Share code: ACL
ISIN: ZAE000134961
(ArcelorMittal South Africa, the Company or the group)
Reviewed condensed consolidated financial results for the six months ended 30 June 2026
Salient features
• ArcelorMittal South Africa today is fundamentally different from eighteen months ago
• 2026 is a transition year. While profitability and free cash flow remain under pressure, management has successfully protected
liquidity
• The Company's turnaround is gaining momentum with the placing into care and maintenance of the severely loss-making Long
steel operation, operational simplification, reliability improvements, procurement savings and fixed cost resizing
• Crude steel production down 35% or 5% down on a like-for-like basis1. Revenue declined 30% or 1.4% down on a like-for-like
basis. The R/$ exchange rate strength had a material 11% negative impact
• Average realised steel prices decreased by 4% in rand terms (increased by 7% in dollar terms), amid extremely challenging
market conditions and elevated imports (at 47% of South Africa's Apparent Steel Consumption), as trade measures remain
largely ineffective
• The ArcelorMittal South Africa raw material basket cost decreased by 10%, reducing to 37% of cash cost per tonne (2025 H1:
42%), while the international raw material basket remained flat in rand terms
• Fixed cost decreased 7% to R2 910 per tonne from R3 109 per tonne
• EBITDA loss increased to R409 million (2025 H1: R110 million loss), including non-recurring costs of R38 million severance- and
credit loss charges, R222 million of charges to support liquidity, a R74 million charge to settle a legacy municipal legal dispute,
and R237 million relating to mainly the recovery of the blast furnace chilled hearth conditions in January 2026 due to iron ore
quality issues
• Normalised EBITDA2 is trending positively
- Excluding the non-recurring Long steel operation support in the 2025 comparables, underlying EBITDA improved by
over R172 million in H1 2026
- Quarterly progression of EBITDA excluding Long steel operation support: 2025 Q3: -R1 084 million; Q4: -R639 million;
and for 2026: Q1: -R342 million; Q2: -R67 million
• Net finance cost paid decreased from R302 million (2025 H1) to R249 million (2026 H1) due to the reduced Borrowing Based
Facility (BBF) and utilisation
• Headline loss amounted to R1 489 million (2025 H1: R1 014 million)
• Free cash outflow for the six months of R1 186 million reflected higher than planned steel inventory levels due to an overstocked
market on account of high imports, the wind-down of the Long steel operation, and close-out of a R2 billion legacy trade supplier
financial facility
• Net borrowings increased to R7.9 billion (30 June 2025: R4.6 billion; 31 December 2025: R6.8 billion), aligned to the free cash
outflow for 2026 H1
• The large-scale sale of non-core assets and operations in care and maintenance has been put on hold pending the outcome of
the IDC transaction
• Structural cost base remains too high necessitating the progression of initiatives with Eskom and Transnet, other operational
energy and logistics partners, further footprint optimisation, and execution of AI-enabled productivity and automation initiatives
• Restart of smelting activity within the ferrochrome industry will aid recovery of commercial market coke sales in 2026 H2
• Level 3 B-BBEE achieved for 20253, improving from Level 7 in 2024
Key Statistics
Six months ended Year ended
30 June 2026 30 June 2025 % Change 31 December 2025
Financials (R millions)
Revenue 12 038 17 118 (30) 32 291
EBITDA loss (409) (110) (272) (1 135)
Loss from operations (720) (533) 35 2 043
Net loss (1 247) (932) (34) 2 754
Headline loss (1 489) (1 014) (47) 3 355
Net borrowing 7 938 4 620 72 6 763
1
Like-for-like basis: impact of the Newcastle Works closure removed from 2025 H1 comparable numbers
2
Normalised EBITDA: impact of Long steel operation support removed
3
Certified in 2026, with 2024 result certified in 2025
Six months ended Year ended
30 June 2026 30 June 2025 % Change 31 December 2025
Financial ratios (%)
EBITDA margin (3.4) (0.6) (429) (3.5)
Return on ordinary shareholders' equity (on
headline earnings) (119) (51) (333) (322)
Net borrowing to equity (479) 447 (207) (1 577)
Share statistics (cents)
Loss per share (112) (84) (33) (270)
Dividends per share - - - -
Safety
Lost-time injury frequency rate 0.72 0.41 (76) 0.62
Operational statistics ('000 tonnes)
Crude steel production 837 1 281 (35) 2 270
Steel sales
- Local 667 836 (20) 1 620
- Export 91 210 (57) 390
Commercial Coke 12 52 (77) 75
Segmental performance (R millions)
Steel operations
- Revenue 11 600 16 443 (30) 31 037
- EBITDA (533) (161) (231) (1 339)
Non-Steel operations
- Revenue 438 631 (31) 1 488
- EBITDA 124 63 97 236
Corporate including adjustments and
eliminations
- EBITDA - (12) >100 (32)
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the board of directors of ArcelorMittal South Africa and is a
summarised version of the group's full announcement. As such, any investment decisions should be based on the
reviewed condensed consolidated financial statements as the information in this results announcement does not contain
full or complete details pertaining to the group's results.
This short-form announcement is itself not reviewed but extracted from the reviewed condensed consolidated financial
statements which was reviewed by Ernst & Young Inc who issued a review opinion with a material uncertainty regarding
going concern on the reviewed condensed consolidated interim financial statements.
Their review conclusion report can be obtained from the company's registered office and on the group's website at
https://southafrica.arcelormittal.com/InvestorRelations/InterimResults.aspx.
The reviewed condensed consolidated financial results for the six months ended 30 June 2026 have been released on
the Stock Exchange News Services (SENS) of the JSE Limited (JSE) and are available through the following JSE
cloudlink and the Company's weblink: https://senspdf.jse.co.za/documents/2026/JSE/ISSE/ACL/AMSAInt26.pdf
https://southafrica.arcelormittal.com/InvestorRelations/InterimResults.aspx.
Release date: 30 July 2026
Sponsor to ArcelorMittal South Africa Limited
Absa Bank Limited (acting through its Corporate and Investment Banking division)
Date: 30-07-2026 09:39:00
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