GOODWILL, INTANGIBLE AND TANGIBLE ASSETS

12 Months Ended

Dec. 31, 2025

GOODWILL, INTANGIBLE AND TANGIBLE ASSETS

NOTE 5: GOODWILL, INTANGIBLE AND TANGIBLE ASSETS 5.1 Goodwill and intangible assets

The carrying amounts of goodwill and intangible assets are

summarized as follows:


	December 31,
	2025	2024
Goodwill on acquisitions	4,266	3,605
Concessions, patents and licenses	370	285
Customer relationships and trade marks	292	204
Emission rights	181	246
Other	143	113
Total	5,252	4,453

Goodwill

Goodwill arising on an acquisition is recognized as previously

described within the business combinations section in note

2.2.3. Goodwill is allocated to those groups of cash-generating

units ("GCGUs") that are expected to benefit from the business

combination in which the goodwill arose and in all cases is at

the operating segment level, which represents the lowest level

at which goodwill is monitored for internal management

purposes except for goodwill allocated to AMKR cash-

generating unit ("CGU") in Ukraine and AMSA GCGU in South

Africa (see below).

Goodwill acquired in business combinations for each of the

Company’s operating segments and certain other CGUs and

GCGUs is as follows:


	December 31, 2024	Acquisitions1	Foreign exchange differences and other movements	December 31, 2025
North America	1,501	97	38	1,636
Brazil	1,062	301	117	1,480
Europe	488	—	56	544
Sustainable Solutions	178	—	55	233
Others2	376	—	(3)	373
Total	3,605	398	263	4,266

1.See note 2.2.4

2.Includes the CGU AMKR and the GCGU AMSA

Intangible assets are recognized only when it is probable that

the expected future economic benefits attributable to the

assets will accrue to the Company and the cost can be reliably

measured. Intangible assets acquired separately by

ArcelorMittal are initially recorded at cost and those acquired in

a business combination are initially recorded at fair value at the

date of the business combination. These primarily include

customer relationships and trade marks as well as emission

rights, and the cost of technology and licenses purchased from

third parties and operating authorizations granted by

governments or other public bodies (concessions). Intangible

assets are amortized on a straight-line basis over their

estimated economic useful lives, which typically do not exceed

five years. Amortization is included in the consolidated

statements of operations as part of cost of sales.

ArcelorMittal’s industrial sites which are regulated by the

European Directive 2003/87/EC of October 13, 2003 on carbon

dioxide (“CO2”) emission rights, effective as of January 1, 2005,

are located primarily in Belgium, France, Germany,

Luxembourg, Poland and Spain. In Ontario, Canada,

ArcelorMittal's operations have been subject to output based

pricing system regulations since January 1, 2019 but effective

January 1, 2022, they are regulated on carbon pricing under

the Ontario Emissions Performance System (“OEPS”). In

South Africa, a CO2 tax system was introduced in 2019.

Emission rights allocated to the Company on a no-charge basis

pursuant to the annual national allocation plan are recorded at

nil value and purchased emission rights are recorded at cost.

Other intangible assets are summarized as follows:


	Concessions, patents and licenses	Customer relationships and trade marks	Other1	Total
Cost
At December 31, 2023	556	1,168	1,024	2,748
Acquisitions	85	—	42	127
Acquisitions through business combinations (note 2.2.4)	—	58	—	58
Disposals	—	—	(182)	(182)
Foreign exchange differences	(82)	(92)	(62)	(236)
Transfers and other movements	27	14	(193)	(152)
Fully amortized intangible assets	(35)	(322)	(3)	(360)
At December 31, 2024	551	826	626	2,003
Acquisitions	102	—	52	154
Acquisitions through business combination (note 2.2.4)	3	105	—	108
Foreign exchange differences	114	87	90	291
Transfers and other movements	10	(11)	(91)	(92)
At December 31, 2025	780	1,007	677	2,464

Accumulated amortization and impairment losses
At December 31, 2023	290	1,013	251	1,554
Amortization charge	67	15	25	107
Foreign exchange differences	(57)	(84)	(23)	(164)
Transfers and other movements	—	—	17	17
Fully amortized intangible assets	(34)	(322)	(3)	(359)
At December 31, 2024	266	622	267	1,155
Amortization charge	76	26	27	129
Impairment charge (note 5.3)	—	—	10	10
Foreign exchange differences	83	68	36	187
Transfers and other movements	(15)	(1)	13	(3)
At December 31, 2025	410	715	353	1,478

Carrying amount
At December 31, 2024	285	204	359	848
At December 31, 2025	370	292	324	986

1 Including emission rights of 181 and 246 at December 31, 2025 and 2024, respectively.

Disposal of other intangible assets resulted in a nil and 190

gain in 2025 and 2024, respectively.

Research and development costs not meeting the criteria for

capitalization are expensed as incurred. These costs amounted

to 335, 285 and 299 for the years ended December 31, 2025,

2024 and 2023, respectively and were recognized in selling,

general and administrative expenses. 5.2 Property, plant and equipment and biological assets

Property, plant and equipment is recorded at cost less

accumulated depreciation and impairment. Cost includes all

related costs directly attributable to the acquisition or

construction of the asset. Except for land and assets used in

mining activities, property, plant and equipment is depreciated

using the straight-line method over the useful lives of the

related assets as presented in the table below.


Asset Category		Useful Life Range
Land		Not depreciated
Buildings		10 to 50 years
Property plant & equipment		15 to 64 years
Auxiliary facilities		15 to 60 years
Other facilities		5 to 20 years

The Company’s annual review of useful lives leverages on the

experience gained from an in-depth review performed every

five years, any significant change in the expected pattern of

consumption embodied in the asset, and the specialized

knowledge of ArcelorMittal’s network of chief technical officers.

The chief technical officer network includes engineers with

facility-specific expertise related to plant and equipment used

in the principal production units of the Company’s operations.

The most recent in-depth review took place in 2024, during

which the Company performed a review, which was finalized

early 2025, of the useful lives of its fixed assets and

determined there were no material changes to the useful lives

of property, plant and equipment. In performing this review, the

Company gathered and evaluated data, including

commissioning dates, designed capacities, maintenance

records and programs, and asset performance history, among

other attributes. In accordance with IAS 16, Property, Plant and

Equipment, the Company considered this information at the

level of components significant in relation to the total cost of

the item of plant and equipment. Other factors the Company

considered in its determination of useful lives included the

expected use of the assets, technical or commercial

obsolescence, and operational factors. In addition, the

Company considered the accumulated technical experience

and knowledge sharing programs that allowed for the

exchange of best practices within the chief technical officer

network and the deployment of these practices across the

Company’s principal production units.

Major improvements, which add to productive capacity or

extend the life of an asset, are capitalized, while repairs and

maintenance are expensed as incurred. Where a tangible fixed

asset comprises major components having different useful

lives, these components are accounted for as separate items.

Property, plant and equipment under construction is recorded

as construction in progress until it is ready for its intended use;

thereafter it is transferred to the related class of property, plant

and equipment and depreciated over its estimated useful life.

Interest incurred during construction is capitalized if the

borrowing cost is directly attributable to the construction. Gains

and losses on retirement or disposal of assets are recognized

in cost of sales.

The residual values and useful lives of property, plant and

equipment are reviewed at each reporting date and adjusted if

expectations differ from previous estimates. Depreciation

methods applied to property, plant and equipment are reviewed

at each reporting date and changed if there has been a

significant change in the expected pattern of consumption of

the future economic benefits embodied in the asset.

Mining assets comprise:

•Mineral rights acquired;

•Capitalized developmental stripping (as described

below in “—Stripping and overburden removal costs”).

Property, plant and equipment used in mining activities is

depreciated over its useful life or over the remaining life of the

mine, if shorter, and if there is no alternative use. For the

majority of assets used in mining activities, the economic

benefits from the asset are consumed in a pattern which is

linked to the production level and accordingly, assets used in

mining activities are primarily depreciated on a units-of-

production basis. A unit-of-production is based on the available

estimate of proven and probable reserves.

Capitalization of pre-production expenditures ceases when the

mining property is capable of commercial production as it is

intended by management. General administration costs that

are not directly attributable to a specific exploration area are

charged to the consolidated statements of operations.

Mineral Reserves and resources

Mineral Reserves are estimates of the amount of product that

can be economically and legally extracted from the Company’s

properties. Furthermore, mineral resource estimates constitute

the part of a mineral deposit that have the potential to be

economically and legally extracted or produced at the time of

the resource determination. In order to estimate mineral

reserves, estimates are required for a range of geological,

technical and economic factors, including quantities, grades,

production techniques, recovery rates, production costs,

transport costs, commodity demand, commodity prices and

exchange rates. The potential for economic viability and

estimate of mineral resources is established through high level

and conceptual engineering studies.

Estimating the quantity and/or grade of mineral reserves

requires the size, shape and depth of ore bodies to be

determined by analyzing geological data such as drilling

samples. This process may require complex and difficult

geological judgments to interpret the data. The estimation of

mineral resource is based on detailed and reliable exploration,

sampling and testing information gathered through appropriate

techniques from locations such as outcrops, trenches, pits,

workings and drill holes that are spaced closely enough to

confirm both geological and grade continuity.

Because the economic assumptions used to estimate mineral

reserves and mineral resources change from period to period,

and because additional geological data is generated during the

course of operations, estimates of mineral reserves and

mineral resources may change from period to period. Changes

in reported mineral reserves and mineral resources may affect

the Company’s financial results and financial position in a

number of ways, including the following:

•Asset carrying amounts may be affected due to

changes in estimated future cash flows.

•Depreciation, depletion and amortization charged in

the consolidated statements of operations may

change where such charges are determined by the

units of production basis, or where the useful

economic lives of assets change.

•Overburden removal costs recognized in the

consolidated statements of financial position or

charged to the consolidated statements of operations

may change due to changes in stripping ratios or the

units of production basis of depreciation.

•Decommissioning, site restoration and environmental

provisions may change where changes in estimated

reserves affect expectations about the timing or cost

of these activities.

Stripping and overburden removal costs

In open pit and underground mining operations, it is often

necessary to remove overburden and other waste materials to

access the deposit from which minerals can be extracted. This

process is referred to as stripping. Stripping costs can be

incurred before the mining production commences

(“developmental stripping”) or during the production stage

(“production stripping”).

A mine can operate several open pits that are regarded as

separate operations for the purpose of mine planning and

production. In this case, stripping costs are accounted for

separately, by reference to the ore extracted from each

separate pit. If, however, the pits are highly integrated for the

purpose of mine planning and production, stripping costs are

aggregated.

The determination of whether multiple pit mines are considered

separate or integrated operations depends on each mine’s

specific circumstances. The following factors would point

towards the stripping costs for the individual pits being

accounted for separately:

•If mining of the second and subsequent pits is

conducted consecutively with that of the first pit,

rather than concurrently.

•If separate investment decisions are made to develop

each pit, rather than a single investment decision

being made at the outset.

•If the pits are operated as separate units in terms of

mine planning and the sequencing of overburden and

ore mining, rather than as an integrated unit.

•If expenditures for additional infrastructure to support

the second and subsequent pits are relatively large.

•If the pits extract ore from separate and distinct ore

bodies, rather than from a single ore body.

The relative importance of each factor is considered by local

management to determine whether the stripping costs should

be attributed to the individual pit or to the combined output from

several pits.

Developmental stripping costs contribute to the future

economic benefits of mining operations when the production

begins and so are capitalized as tangible assets (construction

in progress), whereas production stripping is a part of on-going

activities and commences when the production stage of mining

operations begins and continues throughout the life of a mine.

Capitalization of developmental stripping costs ends when the

commercial production of the minerals commences.

Production stripping costs are incurred to extract the ore in the

form of inventories and/or to improve access to an additional

component of an ore body or deeper levels of material.

Production stripping costs are accounted for as inventories to

the extent the benefit from production stripping activity is

realized in the form of inventories. Production stripping costs

are recognized as a non-current asset (“stripping activity

assets”) to the extent it is probable that future economic benefit

in terms of improved access to ore will flow to the Company,

the components of the ore body for which access has been

improved can be identified and the costs relating to the

stripping activity associated with that component can be

measured reliably.

All stripping costs assets (either stripping activity assets or

capitalized developmental stripping costs) are presented within

a specific “mining assets” class of property, plant and

equipment and then depreciated on a units-of-production basis.

Exploration and evaluation expenditure

Exploration and evaluation activities involve the search for iron

ore and coal resources, the determination of technical

feasibility and the assessment of commercial viability of an

identified resource. Exploration and evaluation activities

include:

•researching and analyzing historical exploration data;

•conducting topographical, geological, geochemical

and geophysical studies;

•carrying out exploratory drilling, trenching and

sampling activities;

•drilling, trenching and sampling activities to determine

the quantity and grade of the deposit;

•examining and testing extraction methods and

metallurgical or treatment processes; and

•detailed economic feasibility evaluations to determine

whether development of the reserves is commercially

justified and to plan methods for mine development.

Exploration and evaluation expenditure is charged to the

consolidated statements of operations as incurred except in the

following circumstances, in which case the expenditure is

capitalized: (i) the exploration and evaluation activity is within

an area of interest which was previously acquired in a business

combination and measured at fair value on acquisition; or (ii)

when management has a high degree of confidence in the

project’s economic viability and it is probable that future

economic benefits will flow to the Company.

Capitalized exploration and evaluation expenditures are

generally recorded as a component of property, plant and

equipment at cost less impairment charges, unless their nature

requires them to be recorded as an intangible asset. As the

asset is not available for use, it is not depreciated and all

capitalized exploration and evaluation expenditure is monitored

for indications of impairment. To the extent that capitalized

expenditure is not expected to be recovered, it is recognized as

an expense in the consolidated statements of operations.

Cash flows associated with exploration and evaluation

expenditure are classified as operating activities when they are

related to expenses or as an investing activity when they are

related to a capitalized asset in the consolidated statements of

cash flows.

Development expenditure

Development is the establishment of access to the mineral

reserve and other preparations for commercial production.

Development activities often continue during production and

include:

•sinking shafts and underground drifts (often called

mine development);

•making permanent excavations;

•developing passageways and rooms or galleries;

•building roads and tunnels; and

•advance removal of overburden and waste rock.

Development (or construction) also includes the installation of

infrastructure (e.g., roads, utilities and housing), machinery,

equipment and facilities.

When reserves are determined and development is approved,

expenditures capitalized as exploration and evaluation are

reclassified as construction in progress and are reported as a

component of property, plant and equipment. All subsequent

development expenditures are capitalized and classified as

construction in progress. On completion of development, all

assets included in construction in progress are individually

reclassified to the appropriate category of property, plant and

equipment and depreciated accordingly.

Biological assets

Biological assets are part of the Brazil operating segment and

consist of eucalyptus forests located in the Brazilian state of

Minas Gerais exclusively from renewable plantations and

intended for the production of charcoal to be utilized as fuel

and a source of carbon in the direct reduction process of pig

iron production in some of the Company’s blast furnaces in

Brazil.

Biological assets are measured at their fair value, net of

estimated costs to sell at the time of harvest. The fair value

(Level 3 in the fair value hierarchy) is determined based on the

discounted cash flow method, taking into consideration the

cubic volume of wood, segregated by plantation year, and the

equivalent sales value of standing trees. The average sales

price was estimated based on domestic market prices. In

determining the fair value of biological assets, a discounted

cash flow model was used, with a harvest cycle of 6 to 7 years.

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are part of the cost of the asset

until such assets are commissioned. If the project is subject to a specific funding, the capitalization of borrowing costs is based on the

borrowing rate. If the project is financed by the Company's debt, the capitalization of borrowing costs is based on the weighted average

borrowing cost for the period.

Property, plant and equipment and biological assets are summarized as follows:


	Land, buildings and Improvements	Machinery, equipment and other2	Construction in progress	Right-of-use assets	Mining Assets	Total
Cost
At December 31, 2023	10,850	35,965	7,343	2,272	3,032	59,462
Additions	43	243	3,854	209	207	4,556
Acquisitions through business combinations (note 2.2.4)	36	18	—	—	—	54
Foreign exchange differences	(1,163)	(4,462)	(500)	(151)	(45)	(6,321)
Disposals	(82)	(470)	(77)	—	—	(629)
Other movements 1	365	2,159	(2,267)	(94)	208	371
At December 31, 2024	10,049	33,453	8,353	2,236	3,402	57,493
Additions	36	284	3,882	226	—	4,428
Acquisitions through business combinations (note 2.2.4)	299	1,159	1,833	48	—	3,339
Foreign exchange differences	1,538	5,756	498	223	28	8,043
Disposals	(29)	(208)	—	—	—	(237)
Divestments (note 2.3)	(173)	(379)	(11)	—	—	(563)
Transfer to assets held for sale (note 2.3)	(15)	(37)	(18)	—	—	(70)
Other movements 1	1,075	4,204	(5,969)	(109)	739	(60)
At December 31, 2025	12,780	44,232	8,568	2,624	4,169	72,373

Accumulated depreciation and impairment
At December 31, 2023	3,819	18,152	1,083	928	1,824	25,806
Depreciation charge for the year	314	1,884	—	227	100	2,525
Impairment (note 5.3)	15	49	52	—	—	116
Disposals	(34)	(431)	—	—	—	(465)
Foreign exchange differences	(573)	(3,034)	(18)	(71)	(38)	(3,734)
Other movements 1	5	23	(17)	(88)	11	(66)
At December 31, 2024	3,546	16,643	1,100	996	1,897	24,182
Depreciation charge for the year	334	2,040	38	240	164	2,816
Impairment (note 5.3)	40	74	29	—	—	143
Disposals	(23)	(172)	—	—	—	(195)
Foreign exchange differences	915	4,236	16	91	10	5,268
Divestments (note 2.3)	(173)	(379)	(11)	—	—	(563)
Transfer to assets held for sale (note 2.3)	(14)	(33)	(18)	—	—	(65)
Other movements 1	(6)	(99)	(31)	(82)	(36)	(254)
At December 31, 2025	4,619	22,310	1,123	1,245	2,035	31,332

Carrying amount
At December 31, 2024	6,503	16,810	7,253	1,240	1,505	33,311
At December 31, 2025	8,161	21,922	7,445	1,379	2,134	41,041

1.Other movements predominantly represent transfers from construction in progress to other categories and retirement of fully depreciated assets and capitalization of

borrowing costs.

2.Machinery, equipment and other include biological assets of 140 and 74 as of December 31, 2025 and 2024, respectively, and bearer plants of 62 and 47 as of

December 31, 2025 and 2024, respectively.

Capital expenditures relating to decarbonization

In 2025 and 2024, capital expenditures relating to

decarbonization projects amounted to 0.3 billion for each year

and related mainly to the Europe reportable segment.

Assets pledged as security

See note 9.4 for information about assets pledged as security

by the Company.

Capital commitments

See note 9.4 for information about contractual commitments for

acquisition of property, plant and equipment by the Company.

Other information

The carrying amount of temporarily idle property, plant and

equipment at December 31, 2025 and 2024 was 302 and 286

including mainly 47 and 30 in Brazil, 176 and 164 in the Europe

segment and 74 and 87 in Others, respectively.

The carrying amount of property, plant and equipment retired

from active use and not classified as held for sale was 3 and 1

at December 31, 2025 and 2024, respectively. Such assets are

carried at their recoverable amount.

For each of the years ended December 31, 2025 and 2024, the

Company capitalized 0.2 billion of borrowing costs and applied

a 5.1% capitalization rate.

5.3 Impairment of intangible assets, including goodwill, and

tangible assets

Impairment charges were as follows:


	Year ended December 31,
Type of asset	2025	2024	2023
Goodwill	—	—	194
Intangible assets	10	—	—
Tangible assets	143	116	844
Total	153	116	1,038

Impairment test of goodwill

Goodwill is tested for impairment annually, as of October 1 or

whenever changes in circumstances indicate that the carrying

amount may not be recoverable at the level of the CGU (in the

case of AMKR) or GCGU which corresponds either to AMSA or

the operating segments representing the lowest level at which

goodwill is monitored for internal management purposes.

Whenever the CGUs comprising the operating segments or

AMSA are tested for impairment at the same time as goodwill,

the cash-generating units are tested first and any impairment of

the assets is recorded prior to the testing of goodwill.

The recoverable amounts of the GCGUs are mainly

determined based on their value in use. The value in use of

each GCGU is determined by estimating future cash flows. The

2025 impairment test of goodwill did not include the GCGU

corresponding to the Mining segment as goodwill allocated to

this GCGU was fully impaired in 2015. The key assumptions

for the value in use calculations are primarily the discount

rates, growth rates, expected changes to average selling

prices, shipments and direct costs during the period.

Assumptions for average selling prices and shipments are

based on historical experience and expectations of future

changes in the market. In addition, with respect to raw material

price assumptions, the Company applied a range of $80 per

tonne to $97 per tonne for iron ore ($80 per tonne to $98 per

tonne in 2024) and $183 per tonne to $210 per tonne ($190 per

tonne to $210 per tonne in 2024) for coking coal. Cash flow

forecasts adjusted for the risks specific to the tested assets are

derived from the most recent financial plans approved by

management for the next 5 years. Beyond the specifically

forecasted period, the Company extrapolates cash flows for the

remaining years based on an estimated growth rate of 2%.

This rate does not exceed the average long-term growth rate

for the relevant markets.

The Company considered its exposure to certain climate-

related risks which could affect its estimates of future cash flow

projections applied for the determination of the recoverable

amount of its GCGUs and CGUs. With the switch to electric

vehicles and the move to wind and solar power generation, the

Company sees also additional opportunities as customers

deepen their understanding of embedded and lifecycle

emissions of the materials where steel compares favorably.

The Company is committed to achieve group-wide net zero by

2050. These announced goals will require significant long-term

investments which require global level playing field, access to

abundant and affordable clean energy, facilitating necessary

energy infrastructure, access to sustainable finance for low-

emissions steelmaking and accelerated transition to a circular

economy. In addition, the Company considered whether there

was a net zero legal obligation in the jurisdictions in which it

operates and in such cases ArcelorMittal concluded that future

decarbonization capital expenditures are necessary to maintain

the level of economic benefits expected to arise from the

assets in their current condition and should therefore be

included in the Company’s assumptions for cash flow

projections to determine the recoverable amount of the

respective GCGUs and CGUs. At the same time, the Company

is engaged in developing in the near to medium term a range

of innovative low-emission technologies for the transition to

decarbonized steel and required investments are considered in

the Company's future cash flow projections. ArcelorMittal

acknowledges that CGUs and GCGUs applying the BF-BOF

route in jurisdictions not yet subject to a net zero legal

obligation will apply decarbonization at a lower pace, as a

result of which the future estimated decarbonization cost for

such operations is reflected through an additional risk premium

embedded in discount rates until they are able to accelerate

their decarbonization strategy to meet the 2050 net zero

objective and a legal obligation arises in the relevant

jurisdiction.

ArcelorMittal's most substantial climate-related policy risk is the

EU Emissions Trading scheme ("'EU-ETS"), which applies to

all its European plants. The risk concerns the Company's

primary steelmaking plants which are exposed to this

regulation. In addition, on January 1, 2026, the carbon border

adjustment mechanism (“CBAM”) entered into force. The EU-

ETS and CBAM regulations will impact the carbon emissions

allowances from the second trading period of Phase IV

(2026-2030) onwards as they will be gradually phased out

(2.5% by 2026, 5% by 2027, 10% by 2028, 22.5% by 2029,

48.5% by 2030, 61% by 2031, 73.5% by 2032, 86% by 2033

and 100% by 2034). The Company’s assumptions for future

cash flows include an estimate for costs that the Company

expects to incur to acquire emission allowances, which

primarily impacts the flat steel operations in the EU. The

assumption for carbon emission cost is based on historical

experience, implementation of decarbonization strategies to

mitigate or otherwise offset such future costs and information

available of future regulatory or operational changes. With

respect to the EU-ETS scheme, the assumption for carbon

emission cost includes also the gradual phasing out of free

emission allowances and the forecast market price of emission

rights, for which the Company considered in its five-year cash

flow projections internal estimates of 77€/t, 80€/t, 80€/t, 85€/t

and 100€/t for 2026, 2027, 2028, 2029 and 2030, respectively.

The assumptions used in the value in use calculations are

inherently uncertain and require management judgment as

described in note 1.3. The Company's process includes

specific consideration given to the most recent short, medium

and long-term price forecasts and discount rates consistent

with external information, expected production and shipment

volumes and updated development plans, operating costs and

capital expenditure plans. In 2025, heightened uncertainty,

particularly trade-related, negatively impacted the global

economy and steel market. However, despite subdued growth

in real steel demand in core developed markets, steel prices

were supported by improved trade protection, most notably in

the U.S., followed by the EU toward the end of the year. The

Company forecasts steel demand to increase in 2026 subject

to macroeconomic uncertainties and improved outlook in

Europe in connection with the combined effect of CBAM and

tariff rate quota mechanism strengthening throughout the year.

Management estimates discount rates using pre-tax rates that

reflect current market rates for investments of similar risk. The

rate for each CGU, including beta, cost of debt and capital

structure was estimated from the weighted average cost of

capital of producers, which operate a portfolio of assets similar

to those of the Company’s assets and CGU specific country

risk premiums were applied. The weighted average pre-tax

discount rates used in connection with the historical goodwill

impairment testing in 2025 and 2024 are set forth below:


	North America	Brazil	Europe	Sustainable Solutions	AMSA	AMKR1
GCGU weighted average pre-tax discount rate used in 2025 (in %)	12.7	15.4	10.7	10.9	14.6	19.1
GCGU weighted average pre-tax discount rate used in 2024 (in %)	12.9	17.0	11.6	10.2	16.1	19.7
1 Rates for AMKR are blended and include distinct country risk premiums reflecting differentiated pre-war and post-war conditions.

Once recognized, impairment losses for goodwill are not reversed.

There were no impairment charges recognized with respect to goodwill following the Company’s impairment tests as of October 1, 2025

and October 1, 2024. The total value in use calculated for all GCGUs increased overall in 2025 as compared to 2024 primarily as a

result of higher cash flow projections in Europe due to above-mentioned improved outlook following CBAM and tariff rate quota

implementation.

In validating the value in use determined for the GCGUs, the

Company performed a sensitivity analysis of key assumptions

used in the discounted cash-flow model (such as discount

rates, average selling prices and shipments) and believes that

reasonably possible changes in key assumptions could cause

an impairment loss to be recognized in respect of AMKR and

the Brazil segment.

The Brazil segment includes the flat operations of Brazil, the

long and tubular operations of Brazil and neighboring countries

including Argentina, Costa Rica and Venezuela. The raw

material supply of the Brazil operations includes sourcing from

iron ore captive mines in Brazil. Sales are mainly domestic with

some export sales primarily related to flat products. The AMKR

CGU consists of a long steel plant (see also note 1.3) serving

mainly the domestic market and includes captive iron ore

mines. The Brazil segment and AMKR operations are exposed

to international steel prices which are volatile reflecting the

cyclical nature of the global steel industry, developments in

particular steel consuming industries and macroeconomic

trends in the respective domestic markets. The Company

believes that sales volumes, prices and discount rates are the

key assumptions most sensitive to change. The Brazil segment

value in use model anticipate higher steel shipments in 2026

(15.4 million tonnes) as compared to 2025 (13.9 million tonnes)

followed by a subsequent overall upward trend. Average selling

prices are expected to remain relatively stable between the

beginning and the end of the 5-year forecast period with some

intermediate volatility. The AMKR model anticipates slightly

higher sales volumes in 2026 (1.7 million tonnes) as compared

to 2025 (1.5 million tonnes) and a further subsequent increase

in 2027 to a stable level. Average selling prices are expected to

decrease marginally over time.

The following changes in key assumptions in projected

earnings in every year of the initial 5-year period and perpetuity

of the Brazil segment and AMKR operations, assuming

unchanged values for the other assumptions, would cause the

recoverable amount to equal the carrying amount:


	AMKR	Brazil
Excess of recoverable amount over carrying amount	196	612
Increase in pre-tax discount rate (change in basis points)	271	65
Decrease in average selling price (change in %)1	2.3%	0.8%
Decrease in shipments (change in %)	8.5%	3.5%

1.excluding effect on raw material cost

Impairment test of property, plant and equipment and

intangibles (excluding goodwill)

At each reporting date, ArcelorMittal reviews the carrying

amounts of its intangible assets (excluding goodwill) and

tangible assets to determine whether there is any indication

that the carrying amount of those assets may not be

recoverable through continuing use, or that a reversal of

previous periods' impairment charges may be required. If any

such indication exists, the recoverable amount of the asset (or

CGU) is reviewed in order to determine the amount of the

impairment (or reversal of prior periods' impairment charges), if

any. The recoverable amount is the higher of its fair value less

cost of disposal and its value in use.

In estimating its value in use, the estimated future cash flows

are discounted to their present value using a pre-tax discount

rate that reflects current market assessments of the time value

of money and the risks specific to the asset (or cash-

generating unit). For an asset that does not generate cash

inflows largely independent of those from other assets, the

recoverable amount is determined for the CGU to which the

asset belongs. The CGU is the smallest identifiable group of

assets corresponding to operating units that generate cash

inflows. If the recoverable amount of an asset (or CGU) is

estimated to be less than its carrying amount, an impairment

loss is recognized. An impairment loss is recognized as an

expense immediately as part of cost of sales (see note 4.2) in

the consolidated statements of operations.

In the case of permanently idled assets, the impairment is

measured at the individual asset level. Otherwise, the

Company’s assets are measured for impairment at the CGU

level. In certain instances, the CGU is an integrated

manufacturing facility which may also be an operating

subsidiary. Further, a manufacturing facility may be operated in

concert with another facility with neither facility generating cash

inflows that are largely independent from the cash inflows of

the other. In this instance, the two facilities are combined for

purposes of testing for impairment. As of December 31, 2025

and December 31, 2024, the Company determined it has 46

and 45 cash-generating units, respectively.

An impairment loss, related to intangible assets other than

goodwill and tangible assets recognized in prior years is

reversed if, and only if, there has been a change in the

estimates used to determine the asset’s recoverable amount

since the last impairment loss was recognized. However, the

increased carrying amount of an asset due to a reversal of an

impairment loss will not exceed the carrying amount that would

have been determined (net of amortization or depreciation) had

no impairment loss been recognized for the asset in prior

years. A reversal of an impairment loss is recognized

immediately as part of operating income in the consolidated

statements of operations.

Impairment charges and reversals relating to property, plant

and equipment and intangibles (excluding goodwill) were as

follows for the years ended December 31, 2025, 2024 and

2023:

2025

In 2025, the Company recognized a 143 impairment charge of

property, plant and equipment in the context of the

measurement of the recoverable amount of the Company's

steel and mining operations in Bosnia (ArcelorMittal Zenica and

ArcelorMittal Prijedor) at fair value less cost of disposal

following their classification as held for sale prior to their

disposal on October 30, 2025 (see note 2.3).

2024

In 2024, the Company recognized a 37 impairment charge of

property, plant and equipment with respect to its Longs

Business in South Africa. The wind-down, which was

announced initially on January 6, 2025, was finally postponed

to September 1, 2025 ahead of the end of a six-month deferral

period ending on September 30, 2025. Continuation of

operations during this period had been enabled by a facility

provided by the Industrial Development Corporation of South

Africa SOC Limited.

ArcelorMittal also recognized a 43 impairment charge of

property, plant and equipment for assets measured at fair value

less cost of disposal following the termination of the Monlevade

expansion project in Brazil.

In addition, the Company recognized a 36 impairment charge

of property, plant and equipment in connection with the

definitive closure of the Kraków coke plant in Poland which was

announced on July 19, 2024.

The Company reviewed impairment reversal indicators on

assets previously impaired. It concluded that there was a

significant change with a positive effect resulting in an

impairment reversal indicator with respect to its iron ore

expansion project in Liberia, which was restarted in 2021 and

for which the first concentrate was produced in the fourth

quarter of 2024 with full 20 million tonnes capacity expected by

the end of 2025. The Company performed a value in use

calculation as well as a sensitivity analysis and, in addition to

the fact that the project was not yet fully operational, it

concluded that no impairment reversal should be recognized in

relation to the 1,426 impairment charge of property, plant and

equipment and intangible assets recognized in 2015. The

Company did not identify an indicator of impairment reversal

for any other assets. The following changes in key

assumptions in projected earnings of AML throughout the life of

mine, assuming unchanged values for the other assumptions,

would cause the recoverable amount to equal the carrying

amount at December 31, 2024:


	AML
Excess of recoverable amount over carrying amount	135
Increase in pre-tax discount rate (change in basis points)	109
Decrease in average selling price (change in %)	2.3%
Decrease in shipments (change in %)	4.2%

2023

In 2023, ArcelorMittal recognized a 732 impairment charge

related to property, plant and equipment with respect to the

sale on December 7, 2023 of its Kazakhstan operations in the

former ACIS segment to Qazaqstan Investment Corporation, a

state-controlled direct investment fund. The impairment loss

resulted from the adjustment of the carrying amount of the

disposal group to the net sales proceeds of 278 (see note 2.3).

On November 28, 2023, AMSA announced that it contemplates

the wind down of its Longs Business subject to a due diligence

and a consultative process involving key customers, suppliers,

organized labour, and other stakeholders. The Company

assessed the recoverable amount of its Longs Business in

South Africa based on a value in use calculation and

recognized accordingly a 112 impairment charge of property,

plant and equipment.

Cash Generating Unit

Region

Recoverable

Amount (Value

in Use)

Total

Impairment

Recorded

2023 Pre-Tax

Discount Rate

2022 Pre-Tax

Discount Rate

Carrying Amount of

property, plant and

equipment as of

December 31, 2023

Long Products South Africa

South Africa

264

112

17.3%

17.5%