OPERATING DATA

12 Months Ended

Dec. 31, 2025

Revenue, Cost Of Sales, Current Assets, And Current Liabilities [Abstract]

OPERATING DATA

NOTE 4: OPERATING DATA 4.1 Revenue

The Company’s revenue is derived from the single

performance obligation to transfer primarily steel and mining

products under arrangements in which the transfer of control of

the products and the fulfillment of the Company’s performance

obligation occur at the same time. Revenue from the sale of

goods is recognized when the Company has transferred

control of the goods to the buyer and the buyer obtains the

benefits from the goods, the potential cash flows and the

amount of revenue (the transaction price) can be measured

reliably, and it is probable that the Company will collect the

consideration to which it is entitled to in exchange for the

goods.

Whether the customer has obtained control over the asset

depends on when the goods are made available to the carrier

or the buyer takes possession of the goods, depending on the

delivery terms. For the Company’s steel producing operations,

generally the criteria to recognize revenue has been met when

its products are delivered to its customers or to a carrier who

will transport the goods to its customers, this is the point in time

when the Company has completed its performance obligations.

Revenue is measured at the transaction price of the

consideration received or receivable, the amount the Company

expects to be entitled to.

Additionally, the Company identifies when goods have left its

premises, not when the customer receives the goods.

Therefore, the Company estimates, based on its historical

experience, the amount of goods in-transit when the transfer of

control occurs at the destination and defers the revenue

recognition.

The Company’s products must meet customer specifications. A

certain portion of the Company’s products are returned or have

claims filed against the sale because the products contained

quality defects or other problems. Claims may be either of the

following:

–Product Rejection - Product shipped and billed to an

end customer that did not meet previously agreed

customer specifications. Claims typically result from

physical defects in the goods, goods shipped to the

wrong location, goods produced with incorrect

specifications and goods shipped outside acceptable

time parameters.

–Consequential Damages - Damages reported by the

customer not directly related to the value of the

rejected goods (for example: customer processing

cost or mill down time, sampling, storage, sorting,

administrative cost, replacement cost, etc.).

The Company estimates the variable consideration for such

claims using the expected value method and reduces the

amount of revenue recognized.

Warranties:

The warranties and claims arise when the product fails on the

criteria mentioned above. Sales-related warranties associated

with the goods cannot be purchased separately and they serve

as an assurance that the products sold comply with agreed

specifications. Accordingly, the Company accounts for

warranties in accordance with IAS 37 "Provisions, Contingent

Liabilities and Contingent Assets" (see note 9).

Periodically, the Company enters into volume or other rebate

programs where once a certain volume or other conditions are

met, it refunds the customer some portion of the amounts

previously billed or paid. For such arrangements, the Company

only recognizes revenue for the amounts it ultimately expects

to realize from the customer. The Company estimates the

variable consideration for these programs using the most likely

amount method or the expected value method, whichever

approach best predicts the amount of the consideration based

on the terms of the contract and available information and

updates its estimates each reporting period.

The Company’s payment terms range from 30 to 90 days from

date of delivery, depending on the market and product sold.

The Company received 365 and 505 as of December 31, 2025,

and 2024, respectively, as advances from its customers which

are classified as unsatisfied performance obligations and

recognized as liabilities in line with IFRS 15. The Company

expects 100% of these unsatisfied performance obligations as

of December 31, 2025 to be recognized as revenue during

2026 as the Company’s contracts have an original expected

duration of one year or less.

The tables below summarize the movements relating to the

Company's trade receivable and other for the years ended

December 31, 2025, 2024 and 2023.


	Year ended December 31,
	2025	2024	2023
Trade accounts receivable and other - opening balance	3,375	3,661	3,839
Performance obligations satisfied	61,352	62,441	68,275
Payments received	(61,949)	(62,249)	(68,590)
Impairment of receivables (net of write backs and utilization)	(12)	(18)	(165)
Recognition (derecognition) of receivables related to business combination and divestments 1	412	31	189
Foreign exchange and others	298	(491)	113
Trade accounts receivable and other - closing balance	3,476	3,375	3,661

1.Includes, in 2025, trade receivables recognized in connection with the

acquisitions of Calvert, Tuper, Tekno and AMTBA (see note 2.2.4) partly

offset by the derecognition of receivables following the divestments of AMZ

and AMTPI (see note 2.3). 2024 consists of receivables recognized in

connection with the acquisition of Italpannelli SRL. 2023 mainly included

receivables recognized in connection with the acquisition of ArcelorMittal

Pecém (see note 2.2.4) and receivables from ArcelorMittal Temirtau

recognized upon disposal partially offset by the derecognition of

ArcelorMittal Temirtau's receivables following its deconsolidation (see note

2.3).

4.2 Cost of sales

Cost of sales includes the following components:


	Year ended December 31,
	2025	2024	2023
Materials	40,549	41,932	46,422
Labor costs	7,171	6,781	7,038
Logistic expenses	4,163	3,789	4,028
Depreciation and amortization	2,945	2,632	2,675
Impairment charges (note 3.1)	204	116	1,038
Foreign exchange translation losses upon disposal of Kazakhstan operations (note 2.3)	—	—	1,469
Other	1,944	1,403	868
Total	56,976	56,653	63,538

4.3 Trade accounts receivable and other

Trade accounts receivable are initially recorded at their

transaction price and do not carry any interest. ArcelorMittal

maintains an allowance for lifetime expected credit loss at an

amount that it considers to be a reliable estimate of expected

credit losses resulting from the inability of its customers to

make required payments. In judging the adequacy of the

allowance for expected credit losses, ArcelorMittal considers

multiple factors including historical bad debt experience, the

current and forward looking economic environment and the

aging of the receivables. Recoveries of trade receivables

previously reserved in the allowance for expected credit losses

are recognized as gains in selling, general and administrative

expenses.

ArcelorMittal’s policy is to record an allowance for expected

lifetime credit losses and a charge in selling, general and

administrative expense when a specific account is deemed

uncollectible. The Company concluded that a trade receivable

is in default when it is overdue by more than 180 days. Based

on historical experience and analysis, the Company concluded

that there is a risk of default as such receivables are generally

not recoverable and therefore provided for, unless the

collectability can be clearly demonstrated. Uninsured trade

receivables and the associated allowance are written off when

ArcelorMittal has exhausted its recovery efforts and

enforcement options. ArcelorMittal continuously considered the

impacts on the current economic environment in its risk of

default assessment for receivables outstanding less than 180

days. Receivables aged 31 days or older and uninsured trade

receivables remain consistent with historical levels and the

Company did not identify any expected increased risk of

default.

Trade accounts receivable and allowance for lifetime expected

credit losses


	December 31,
	2025	2024
Gross amount	3,884	3,685
Allowance for lifetime expected credit losses	(408)	(310)
Total	3,476	3,375

The carrying amount of the trade accounts receivable and

other approximates their fair value. Before granting credit to

any new customer, ArcelorMittal uses an internally developed

credit scoring system to assess the potential customer’s credit

quality and to define credit limits by customer. For all significant

customers, the credit terms must be approved by the credit

committees of each reportable segment. Limits and scoring

attributed to customers are reviewed periodically. There are no

customers who represent more than 5% of the total balance of

trade accounts receivable.

Exposure to credit risk by reportable segment

The maximum exposure to credit risk for trade accounts

receivable by reportable segment and others is as follows:


	December 31,
	2025	2024
North America	387	313
Brazil	1,122	1,051
Europe	963	1,220
Sustainable Solutions	616	538
Mining	208	62
Others	180	191
Total	3,476	3,375

Aging of trade accounts receivable


	December 31,			December 31,
	2025			2024
	Gross	Allowance	Total	Gross	Allowance	Total
Not past due	2,971	(62)	2,909	2,930	(41)	2,889
Overdue 1-30 days	335	(3)	332	293	(5)	288
Overdue 31-60 days	74	—	74	80	(1)	79
Overdue 61-90 days	33	—	33	25	(1)	24
Overdue 91-180 days	88	(3)	85	43	(2)	41
More than 180 days	383	(340)	43	314	(260)	54
Total	3,884	(408)	3,476	3,685	(310)	3,375

The movements in the allowance are calculated based on

lifetime expected credit loss model for 2025, 2024 and 2023.

The allowances in respect of trade accounts receivable during

the periods presented are as follows:


	Year ended December 31,
	2025	2024	2023
Allowance - opening balance	310	364	190
Additions	29	30	178
Write backs / utilization	(17)	(12)	(13)
Foreign exchange and others	86	(72)	9
Allowance - closing balance	408	310	364

The Company has established a number of programs for sales

without recourse of trade accounts receivable to various

financial institutions (referred to as true sale of receivables

“TSR”). Through the TSR programs, certain operating

subsidiaries of ArcelorMittal surrender the control, risks and

benefits associated with the accounts receivable sold;

therefore, the amount of receivables sold is recorded as a sale

of financial assets and the balances are derecognized from the

consolidated statements of financial position at the moment of

sale. The Company classifies trade receivables subject to TSR

as financial assets that are held to collect or to sell and

recognizes them at FVOCI (see note 6). The fair value

measurement is determined based on the invoice amount net

of TSR expense payable, a Level 3 unobservable input. The

TSR expense is insignificant due to the rate applicable and the

short timeframe between the time of sale and the invoice due

date. Any loss allowance for these trade receivables is

recognized in OCI. As of December 31, 2025 and 2024, the

total amount of trade accounts receivables sold amounted to

5.0 billion and 4.4 billion, respectively.

4.4 Inventories

Inventories are carried at the lower of cost or net realizable

value. Cost is determined using the average cost method.

Costs of production in process and finished goods include the

purchase costs of raw materials and conversion costs such as

direct labor and an allocation of fixed and variable production

overheads. Raw materials and spare parts are valued at cost,

inclusive of freight, shipping, handling as well as any other

costs incurred in bringing the inventories to their present

location and condition. Interest charges, if any, on purchases

have been recorded as financing costs. Costs incurred when

production levels are abnormally low are capitalized as

inventories based on normal capacity with the remaining costs

incurred recorded as a component of cost of sales in the

consolidated statements of operations.

Net realizable value represents the estimated selling price at

which the inventories can be realized in the normal course of

business after allowing for the cost of conversion from their

existing state to a finished condition and for the cost of

marketing, selling, and distribution. Net realizable value is

estimated based on the most reliable evidence available at the

time the estimates were made of being the amount that the

inventory is expected to realize, taking into account the

purpose for which the inventory is held.

Previous write-downs are reversed in case the circumstances

that previously caused inventories to be written down below

cost no longer exist.

Inventories, net of allowance for slow-moving inventory, excess

of cost over net realizable value and obsolescence of 1,180

and 1,370 as of December 31, 2025 and 2024, respectively,

are comprised of the following:


	December 31,
	2025	2024
Finished products	5,589	4,853
Production in process	4,652	4,177
Raw materials	5,597	5,245
Manufacturing supplies, spare parts and other 1	2,751	2,226
Total	18,589	16,501

1.Including spare parts of 2.1 billion and 1.7 billion, and manufacturing and

other supplies of 0.6 billion and 0.5 billion as of December 31, 2025 and

2024, respectively.

Movements in the inventory write-downs are as follows:


	Year ended December 31,
	2025	2024	2023
Inventory write-downs - opening balance	1,370	1,434	1,629
Additions 1	220	567	516
Deductions / Releases 2	(554)	(550)	(681)
Foreign exchange and others	144	(81)	(30)
Inventory write-downs - closing balance	1,180	1,370	1,434

1.Additions refer to write-downs of inventories excluding those utilized or

written back during the same financial year.

2.Deductions/releases correspond to write-backs and utilization related to the

prior periods.

4.5 Prepaid expenses and other current assets


	December 31,
	2025	2024
VAT receivables	844	836
Prepaid expenses and non-trade receivables	954	610
Financial amounts receivable2	282	389
Income tax receivable	163	148
Receivables from public authorities	179	207
Receivables from sale of intangible, tangible and financial assets	44	91
Derivative financial instruments (notes 6.1 and 6.3)	193	305
CO2 emission rights	100	180
Other1	268	256
Total	3,027	3,022

1.Other included mainly advances to employees, accrued interest and other

miscellaneous receivables.

2.Includes nil and 98 of outstanding receivables in connection with the sale of

ArcelorMittal Temirtau, at December 31, 2025 and 2024, respectively (see

note 2.3).

4.6 Other assets

Other assets consisted of the following:


	December 31,
	2025	2024
Derivative financial instruments (notes 6.1 and 6.3)	105	133
Financial amounts receivable2	179	594
Long-term VAT receivables	278	239
Cash guarantees and deposits	188	153
Receivables from public authorities	110	71
Accrued interest	36	25
Receivables from sale of intangible, tangible and financial assets	12	68
Income tax receivable	27	49
Other1	264	246
Total	1,199	1,578

1.Other mainly includes assets in pension funds and other amounts receivable.

2.Includes nil and 197 of outstanding receivables in connection with the sale of

ArcelorMittal Temirtau, at December 31, 2025 and 2024, respectively (see

note 2.3).

4.7 Trade accounts payable and other

Trade accounts payable are obligations to pay for goods that

have been acquired in the ordinary course of business from

suppliers. Trade accounts payable have maturities from 15 to

180 days depending on the type of material, the geographic

area in which the purchase transaction occurs and the various

contractual agreements. The carrying value of trade accounts

payable approximates fair value. The Company’s average

outstanding number of trade payable days amounted to 82

over the last 5 years.

Certain contractual arrangements with the longest maturities

enable suppliers, at their own discretion, to early discount their

receivables due from the Company to obtain funding for their

own working capital needs. The Company has determined that

such arrangements did neither lead to the extinguishment of

the liability against the supplier nor resulted in significant

modifications of amounts payable and applicable terms and

conditions. Accordingly, in the consolidated statement of

financial position the corresponding payables remain classified

as trade accounts payables until they are settled at their

agreed due dates, and the corresponding cash outflows are

classified as part of the operating activities in the consolidated

statement of cash flows.

As of December 31, 2025, the Company estimates that about

2.3 billion of outstanding trade payables were subject to the

above-mentioned contractual arrangements as compared to

2.8 billion in 2024 and the Company estimates that similar

amounts of trade payables were early discounted by its

suppliers in 2025 and 2024.

4.8 Accrued expenses and other liabilities

Accrued expenses and other liabilities were comprised of the

following:


	December 31,
	2025	2024
Accrued payroll and employee related expenses	1,426	1,335
Accrued interest and other payables	1,091	873
Payable from acquisition of intangible, tangible & financial assets	1,420	1,471
Other amounts due to public authorities	914	644
Derivative financial instruments (notes 6.1 and 6.3)	223	327
Unearned revenue and accrued payables	94	88
Total	5,168	4,738