Shares declined 3.2% following the quarter, reflecting investor disappointment with visible deceleration and cautious near-term visibility despite structural margin improvements. While management emphasized strategic growth and improving conditions ahead, the market reacted negatively to a lack of clear upside in current EBITDA and cautious guidance around carbon cost impacts and regional risks.

• Q1 EBITDA margin improved year-on-year to $131 per tonne, up $15 per tonne, representing about 50% above historical averages but still missing the stronger pricing environment expected to boost Q2.
• Underlying free cash flow remained solid, running at an annualized rate above $2 billion, excluding working capital seasonality and growth investments.
• Growth investments remain focused on steelmaking modernization, with key projects like the Dunkirk EAF backed by favorable policy and subsidy support, aiming for $1.8 billion incremental EBITDA from 2026 onward.
• The near-term outlook is tempered by continuing energy market volatility and higher European carbon costs, partially offset by trade protections and CBAM’s early pricing effects, but the benefit is not yet reflected in reported results.
• Management’s positive framing on structural progress and capital returns contrasts with cautious commentary on quarter-to-quarter operational improvements, signaling slower momentum than what investors anticipated.