ArcelorMittal S.A. MT has announced the commencement of the second tranche of its 2025-2030 share buyback program following the successful completion of the first tranche. Under the initial tranche, the company repurchased 10 million shares at an average price of €49.32 per share.
These repurchased shares are currently held in treasury and will be canceled in due course, reflecting ArcelorMittal's ongoing commitment to reducing its share capital and enhancing shareholder value.
The second tranche, authorized by shareholders at the company's annual general meeting held on May 6, 2025, will allow ArcelorMittal to repurchase up to 10 million additional shares and will commence immediately. The broader buyback program, announced on April 7, 2025, is scheduled to run through May 2030 and will be executed in multiple tranches.
The pace and size of future repurchases will depend on the company's post-dividend free cash flow generation, continued shareholder authorization and prevailing market conditions. In line with its capital allocation policy, ArcelorMittal intends to return at least 50% of its annual post-dividend free cash flow to shareholders. In addition to reducing the company's outstanding share capital, the repurchased shares may also be used to meet obligations arising from employee share programs.
Shares of MT have popped 82.3% in the past year compared with the industry’s 55.8% rise.
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MT’s Zacks Rank & Key Picks
MT currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Nucor Corporation NUE, L.B. Foster Company FSTR and Albemarle Corporation ALB. NUE, FSTR and ALB carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NUE’s current-year earnings stands at $17 per share, implying a 120.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average surprise being 8.1%.
The Zacks Consensus Estimate for FSTR’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, with the average surprise being 3.62%.
The Zacks Consensus Estimate for ALB’s current-year earnings is pegged at $12.98 per share, indicating a 1,743% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 74.5%.
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