FINANCING AND FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2025

Financial Instruments [Abstract]

FINANCING AND FINANCIAL INSTRUMENTS

NOTE 6: FINANCING AND FINANCIAL INSTRUMENTS 6.1 Financial assets and liabilities

Financial assets and liabilities mainly comprise:

•gross debt (see note 6.1.2)

•cash and cash equivalents, restricted cash and reconciliations of cash flows (see note 6.1.3)

•net debt (see note 6.1.4)

•derivative financial instruments (see note 6.1.5)

•other non-derivative financial assets and liabilities (see note 6.1.6)6.1.1 Fair values versus carrying amounts

The estimated fair values of certain financial instruments have been determined using available market information or other valuation

methodologies that require judgment in interpreting market data and developing estimates. The following table summarizes assets and

liabilities based on their categories at December 31, 2025:


	December 31, 2025
	Carrying amount in the consolidated statements of financial position	Non- financial assets and liabilities	Assets / Liabilities at amortized cost	Fair value recognized in profit or loss	Fair value recognized in OCI	Derivatives
ASSETS
Current assets:
Cash and cash equivalents	5,392	—	5,392	—	—	—
Restricted cash	84	—	84	—	—	—
Trade accounts receivable and other	3,476	—	3,218	—	258	—
Inventories	18,589	18,589	—	—	—	—
Prepaid expenses and other current assets	3,027	1,319	1,515	—	—	193
Assets held for sale	37	37		—	—	—
Total current assets	30,605	19,945	10,209	—	258	193

Non-current assets:
Goodwill and intangible assets	5,252	5,252	—	—	—	—
Property, plant and equipment and biological assets	41,041	40,901	—	140	—	—
Investments in associates and joint ventures	10,393	10,393	—	—	—	—
Other investments	353	—	—	—	353	—
Deferred tax assets	8,860	8,860	—	—	—	—
Other assets	1,199	528	430	136	—	105
Total non-current assets	67,098	65,934	430	276	353	105
Total assets	97,703	85,879	10,639	276	611	298

LIABILITIES AND EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	2,739	—	2,739	—	—	—
Trade accounts payable and other	13,008	—	13,008	—	—	—
Short-term provisions	1,039	1,024	15	—	—	—
Accrued expenses and other liabilities	5,168	1,299	3,646	—	—	223
Income tax liabilities	547	547	—	—	—	—
Liabilities held for sale	19	19	—	—	—	—
Total current liabilities	22,520	2,889	19,408	—	—	223

Non-current liabilities:
Long-term debt, net of current portion	10,671	—	10,671	—	—	—
Deferred tax liabilities	2,294	2,294	—	—	—	—
Deferred employee benefits	2,526	2,526	—	—	—	—
Long-term provisions	1,616	1,613	3	—	—	—
Other long-term obligations	1,540	288	1,024	—	—	228
Total non-current liabilities	18,647	6,721	11,698	—	—	228

Equity:
Equity attributable to the equity holders of the parent	54,466	54,466	—	—	—	—
Non-controlling interests	2,070	2,070	—	—	—	—
Total equity	56,536	56,536	—	—	—	—
Total liabilities and equity	97,703	66,146	31,106	—	—	451


	December 31, 2024
	Carrying amount in the consolidated statements of financial position	Non-financial assets and liabilities	Assets / Liabilities at amortized cost	Fair value recognized in profit or loss	Fair value recognized in OCI	Derivatives
ASSETS
Current assets:
Cash and cash equivalents	6,400	—	6,400	—	—	—
Restricted cash	84	—	84	—	—	—
Trade accounts receivable and other	3,375	—	3,151	—	224	—
Inventories	16,501	16,501	—	—	—	—
Prepaid expenses and other current assets	3,022	1,292	1,425	—	—	305
Total current assets	29,382	17,793	11,060	—	224	305

Non-current assets:
Goodwill and intangible assets	4,453	4,453	—	—	—	—
Property, plant and equipment and biological assets	33,311	33,237	—	74	—	—
Investments in associates and joint ventures	11,420	11,420	—	—	—	—
Other investments	299	—	—	—	299	—
Deferred tax assets	8,942	8,942	—	—	—	—
Other assets	1,578	445	864	136	—	133
Total non-current assets	60,003	58,497	864	210	299	133
Total assets	89,385	76,290	11,924	210	523	438

LIABILITIES AND EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt	2,748	—	2,748	—	—	—
Trade accounts payable and other	12,921	—	12,921	—	—	—
Short-term provisions	938	906	32	—	—	—
Accrued expenses and other liabilities	4,738	773	3,638	—	—	327
Income tax liabilities	480	480	—	—	—	—
Total current liabilities	21,825	2,159	19,339	—	—	327

Non-current liabilities:
Long-term debt, net of current portion	8,815	—	8,815	—	—	—
Deferred tax liabilities	2,338	2,338	—	—	—	—
Deferred employee benefits	2,338	2,338	—	—	—	—
Long-term provisions	1,361	1,359	2	—	—	—
Other long-term obligations	1,422	322	757	—	—	343
Total non-current liabilities	16,274	6,357	9,574	—	—	343

Equity:
Equity attributable to the equity holders of the parent	49,223	49,223	—	—	—	—
Non-controlling interests	2,063	2,063	—	—	—	—
Total equity	51,286	51,286	—	—	—	—
Total liabilities and equity	89,385	59,802	28,913	—	—	670

The Company classifies the bases used to measure certain

assets and liabilities at their fair value. Assets and liabilities

carried or measured at fair value have been classified into

three levels based upon a fair value hierarchy that reflects the

significance of the inputs used in making the measurements.

The levels are as follows:

Level 1: Quoted prices in active markets for identical assets or

liabilities that the entity can access at the measurement date;

Level 2: Significant inputs other than within Level 1 that are

observable for the asset or liability, either directly (i.e.: as

prices) or indirectly (i.e.: derived from prices);

Level 3: Inputs for the assets or liabilities that are not based on

observable market data and require management assumptions

or inputs from unobservable `markets.

The following tables summarize the bases used to measure

certain financial assets and financial liabilities at their fair value

on recurring basis.


As of December 31, 2025
	Level 1	Level 2	Level 3	Total
Assets at fair value:
Investments in equity instruments at FVOCI	108	—	245	353
Trade accounts receivable and other subject to TSR programs*	—	—	258	258
Derivative financial current assets	—	193	—	193
Derivative financial non-current assets	—	105	—	105
Total assets at fair value	108	298	503	909
Liabilities at fair value:
Derivative financial current liabilities	—	223		223
Derivative financial non-current liabilities	—	193	35	228
Total liabilities at fair value	—	416	35	451

*The fair value of TSR program receivables equals carrying amount due to the short time frame between the initial recognition and time of sale.


As of December 31, 2024
	Level 1	Level 2	Level 3	Total
Assets at fair value:
Investments in equity instruments at FVOCI	88	—	211	299
Trade accounts receivable and other subject to TSR programs*	—	—	224	224
Derivative financial current assets	—	305	—	305
Derivative financial non-current assets	—	133	—	133
Total assets at fair value	88	438	435	961
Liabilities at fair value:
Derivative financial current liabilities	—	327		327
Derivative financial non-current liabilities	—	311	32	343
Total liabilities at fair value	—	638	32	670

*The fair value of TSR program receivables equals carrying amount due to the short time frame between the initial recognition and time of sale.

Investments in equity instruments at FVOCI classified as Level

1 refer to listed securities quoted in active markets (see note

2.5). A quoted market price in an active market provides the

most reliable evidence of fair value and is used without

adjustment to measure fair value whenever available, with

limited exceptions. The total fair value is either the price of the

most recent trade at the time of the market close or the official

close price as defined by the stock exchange on which the

asset is most actively traded on the last trading day of the

period, multiplied by the number of units held without

consideration of transaction costs.

Derivative financial assets and liabilities classified as Level 2

refer to instruments to hedge fluctuations in interest rates,

foreign exchange rates, raw materials (base metals), freight,

energy and emission rights, see note 6.1.5 for further

information.

Derivative financial assets and liabilities classified as Level 3

are described in note 6.1.5.

6.1.2 Gross debt

Gross debt includes bank debt, debenture loans and lease obligations and is stated at amortized cost.

6.1.2.1 Short-term debt

Short-term debt, including the current portion of long-term debt, consisted of the following:


	December 31,
	2025	2024
Short-term bank loans and other credit facilities including commercial paper 1	1,119	1,016
Current portion of long-term debt	1,406	1,550
Lease obligations2	214	182
Total	2,739	2,748

1.The weighted average interest rate on short-term borrowings outstanding was 3.8% and 5.0% as of December 31, 2025 and 2024, respectively.

2.See note 7.

Short-term bank loans and other credit facilities include short-term loans, overdrafts and commercial paper.

ArcelorMittal has entered into certain short-term committed bilateral credit facilities renewable on an annual basis. As of December 31,

2025, facilities totaling approximately 0.5 billion, remained fully available.

Commercial paper

The Company has a commercial paper program enabling borrowings of up to €1.5 billion. As of December 31, 2025 and 2024, the

outstanding amount was 879 and 745, respectively.

6.1.2.2 Long-term debt

Long-term debt is comprised of the following:


				December 31,
				2025	2024
	Year of maturity	Type of Interest	Interest rate1	Carrying amount at amortized cost
Corporate
5.5 billion Revolving Credit Facility	2029	Floating	—	—	—
500 Unsecured Notes	2025	Fixed	6.13%	—	184
€750 million Unsecured Notes	2025	Fixed	1.75%	—	778
750 Unsecured Notes	2026	Fixed	4.55%	401	400
€600 million Unsecured Notes	2026	Fixed	4.88%	704	621
1.2 billion Unsecured Notes	2027	Fixed	6.55%	1,197	1,196
€500 million Unsecured Notes	2028	Fixed	3.13%	584	515
500 Unsecured Notes	2029	Fixed	4.25%	497	496
€650 million Unsecured Notes	2030	Fixed	3.25%	757	—
€500 million Unsecured Notes	2031	Fixed	3.50%	581	513
1.0 billion Unsecured Notes	2032	Fixed	6.80%	991	990
500 Unsecured Notes	2034	Fixed	6.00%	496	496
1.5 billion Unsecured Bonds	2039	Fixed	7.00%	673	672
1.0 billion Unsecured Notes	2041	Fixed	6.75%	429	428
500 Unsecured Notes	2054	Fixed	6.35%	491	491
EIB loan	2025	Fixed	1.16%	—	15
EIB loan	2032	Floating	3.40%	267	273
Schuldschein loans	2027	Fixed	3.0%	77	94
Schuldschein loans	2028-2030	Floating	3.4% - 3.6%	819	659
Samurai loan	2028-2030	Floating	1.5% - 1.6%	450	—
Other loans	2028 - 2035	Floating	2.5%	181	191
Total Corporate				9,595	9,012
Subsidiaries
Other loans				1,515	501
Total				11,110	9,513
Less current portion of long-term debt				(1,406)	(1,550)
Total long-term debt (excluding lease obligations)				9,704	7,963
Long-term lease obligations2				967	852
Total long-term debt, net of current portion				10,671	8,815

1.Rates applicable to balances outstanding at December 31, 2025. For debt that has been redeemed in its entirety during 2025, the interest rates refer to the rates at

repayment date.

2.Net of current portion of 214 and 182 as of December 31, 2025 and 2024, respectively. See note 7.

Corporate

5.5 billion Revolving Credit Facility

On May 29, 2024, ArcelorMittal signed an agreement for a 5.5

billion revolving credit facility (the "Facility"). This Facility

replaced the 5.5 billion revolving credit facility dated December

19, 2018, which was amended and extended on April 27, 2021.

The agreement incorporated a single tranche of 5.5 billion

maturing on May 29, 2029, with two one-year extension

options. On April 30, 2025, ArcelorMittal exercised the option to

extend the Facility's maturity by one year to May 29, 2030. The

Facility contains restrictive covenants, which among other

things, limit encumbrances on the assets of ArcelorMittal and

its subsidiaries, the ability of ArcelorMittal’s subsidiaries to

incur debt and the ability of ArcelorMittal and its subsidiaries to

dispose of assets in certain circumstances. The margin

applicable to ArcelorMittal’s principal credit facilities (the

Facility and certain other credit facilities) and the coupons on

certain of its outstanding bonds are subject to adjustment in the

event of certain changes in its long-term credit ratings. On

June 9, 2025, Standard & Poor's upgraded ArcelorMittal's

credit rating from 'BBB-' to 'BBB' on improved business and

assigned a 'Stable' outlook. On December 4, 2025, Moody's

upgraded ArcelorMittal's credit rating from 'Baa3' to 'Baa2' on

strengthening of its business profile, including a structural

improvement in margins and a reduction in earnings volatility;

and assigned a 'Stable' outlook. The Facility may be used for

general corporate purposes and was fully available as of

December 31, 2025.

The Company makes drawdowns from and repayments on this

Facility in the framework of its cash management.

On September 30, 2010, ArcelorMittal entered into 500

revolving multi-currency letter of credit facility (the "Letter of

Credit Facility"). The Letter of Credit Facility is used by the

Company and its subsidiaries for the issuance of letters of

credit and other instruments. The terms of the letters of credit

and other instruments contain certain restrictions as to

duration. The Letter of Credit facility, whose amount and

maturity have been revised from time to time, amounted to 395

prior to refinancing through a 445 Letter of Credit Facility

entered into on July 31, 2024, with maturity extended from July

31, 2024 to July 31, 2027 and with two extension options for

one year each. The Letter of Credit Facility also includes an

accordion clause which allows the Company to invite lenders to

increase their commitments up to 595 in aggregate. On March

18, 2025, the Company exercised the option to extend the

maturity by one year to July 31, 2028. On July 28, 2025 the

Company exercised the accordion clause to increase the total

amount of the Letter of Credit Facility by 55 to 500.

Bonds

On June 1, 2025, at maturity, ArcelorMittal fully repaid the

outstanding 184 of its 500 Fixed Rate Notes due 2025.

On September 30, 2025, ArcelorMittal issued €650 million

(754) of 3.25% Notes due on September 30, 2030. The Notes

were issued under ArcelorMittal's €10 billion wholesale Euro

Medium Term Notes Program and the use of proceeds of the

issuance was general corporate purposes.

On November 19, 2025, at maturity, ArcelorMittal fully repaid

the outstanding €750 million (869) of its €750 million Fixed

Rate Notes due 2025.

The margin applicable to ArcelorMittal’s principal credit facilities

5.5 billion Revolving Credit Facility and certain other credit

facilities) and the coupons on certain of its outstanding bonds

are subject to adjustment in the event of a change in its long-

term credit ratings.

The following table provides details of the outstanding bonds on maturity, the original coupons and the current interest rates for the

bonds impacted by changes in the long-term credit rating:


Initial value	Nominal amount of outstanding value	Date of issuance	Repayment date	Interest rate1	Issued at
750 Unsecured Notes	401	Mar 11, 2019	Mar 11, 2026	4.55%	99.72%
€600 million Unsecured Notes	€600 million	Sep 26, 2022	Sep 28, 2026	4.88%	99.65%
1.2 billion Unsecured Bonds	1.2 Billion	Nov 29, 2022	Nov 29, 2027	6.55%	99.91%
€500 million Unsecured Notes	€500 million	Dec 13, 2024	Dec 13, 2028	3.13%	99.52%
500 Unsecured Notes	500	Jul 16, 2019	Jul 16, 2029	4.25%	99.00%
€650 million Unsecured Notes	€650 million	Sep 30, 2025	Sep 30, 2030	3.25%	99.42%
€500 million Unsecured Notes	€500 million	Dec 13, 2024	Dec 13, 2031	3.50%	99.21%
1.0 billion Unsecured Notes	1.0 Billion	Nov 29, 2022	Nov 29, 2032	6.80%	99.37%
500 Unsecured Notes	500	Jun 17, 2024	Jun 17, 2034	6.00%	99.86%
1.0 billion Unsecured Bonds	457	Oct 8, 2009	Oct 15, 2039	7.00%	95.20%
500 Unsecured Bonds	229	Aug 5, 2010	Oct 15, 2039	7.00%	104.84%
1.0 billion Unsecured Notes	434	Mar 7, 2011	Mar 1, 2041	6.75%	99.18%
500 Unsecured Notes	500	Jun 17, 2024	Jun 17, 2054	6.35%	99.32%

1.Rate applicable at December 31, 2025.

European Investment Bank (“EIB”) Loan

On December 19, 2025, ArcelorMittal signed a €400 million

loan agreement with the European Investment Bank ("EIB") for

funding of research, development and innovation projects in

Europe over the period of 2025-2028. As of December 31,

2025, the facility was fully available. On January 30, 2026, the

full amount was drawn down.

On June 2, 2021, ArcelorMittal signed a €280 million loan

agreement with the EIB for funding of research, development

and innovation projects in Europe over the period of

2021-2023. This operation benefits from a guarantee from the

European Union under the European Fund for Strategic

Investments. On March 16, 2022 ArcelorMittal draw down the

facility in full. As of December 31, 2025, €228 million (267) was

outstanding.

On December 16, 2016, ArcelorMittal signed a €350 million

finance contract with the EIB in order to finance European

research, development and innovation projects over the period

2017-2020 within the European Union, mainly in France,

Belgium, Spain, Poland and Luxembourg. This funding benefits

from a guarantee from the European Union under the

European Fund for Strategic Investments. As of December 31,

2025, the debt was reimbursed in full.

On November 21, 2025, ArcelorMittal completed the offering of

a JPY 37.5 billion and a JPY 33 billion variable rate loans on

the Japanese Samurai loan market. The proceeds of these

loans were used for general corporate purposes. As of

December 31, 2025, a total of JPY 70.5 billion (450) was

outstanding.

On June 24, 2025, ArcelorMittal completed the offering of a

€310 million, a €80 million and a €310 million variable rate

loans in the German Schuldschein market. The proceeds of

these loans were used for general corporate purposes. As of

December 31, 2025, €700 million (819) was outstanding.

On May 4, 2022, ArcelorMittal completed the offering of a

€346.5 million variable rate loan, a €24.5 million fixed rate loan,

a €263 million variable rate loan and a €66 million fixed rate

loan in the German Schuldschein market. On May 6, 2022, the

Company further completed the offering of a €25 million

variable rate loan. The proceeds of these issuances were used

for general corporate purposes. On May 13, 2025, at maturity,

ArcelorMittal fully repaid €371 million (419). On November 13,

2025, ArcelorMittal prepaid €263 million (304) and €25 million

(29) variable rate loans. As of December 31, 2025, €66 million

(77) was outstanding.

On December 21, 2018, the Company entered into a facility

agreement with a group of lenders for €235 million to finance

the construction of a new hot strip mill in Mexico. This facility

became effective upon issuance of a guarantee by the

Oesterreichische Kontrollbank AG in March 2019. The last

installment under this agreement is due December 28, 2029.

The outstanding amount in total as of December 31, 2025 was

€78 million (92).

Other corporate loans relate to various debt with banks and

public institutions.

Americas

In June and December 2024, the Industrial Development

Authority of Mobile County issued tax-exempt bonds of 378

and 480, respectively, with a final maturity of June 1, 2054, and

December 1, 2054, respectively, with Calvert. The bond

proceeds support the construction and equipping of solid waste

disposal infrastructure and related industrial facilities, including

a melt shop in Calvert, Alabama. As of December 31, 2025,

843 was outstanding under these agreements.

Europe, Asia and Africa

On December 15, 2022, AMKR entered into a 100 loan

agreement with EBRD for working capital purposes. As of

December 31, 2025, the facility was fully reimbursed.

On November 17, 2023, AMKR entered into a 150 loan

agreement with EBRD for working capital purposes. 80 were

committed and fully drawn as of December 31, 2025.

On December 5, 2025, ArcelorMittal signed a 200 refinancing

facility with EBRD. The purpose of the facility is to re-finance

the existing facilities signed in 2022 and 2023. The new facility

is composed of two tranches, 100 committed and 100

uncommitted, to be committed by EBRD upon AMKR’s request.

As of December 31, 2025, 100 was drawn under the

agreement.

On May 25, 2017, ArcelorMittal South Africa signed a ZAR4.5

billion revolving borrowing base finance facility whose maturity

was extended over time to September 7, 2026. Any borrowings

under the facility are secured by certain eligible inventory and

receivables, as well as certain other working capital and related

assets of ArcelorMittal South Africa. The facility is used for

general corporate purposes. The facility is not guaranteed by

ArcelorMittal. On September 16, 2025, ArcelorMittal South

Africa agreed with the lenders to extend further the maturity to

March 8, 2027 and to reduce the maximum amount to ZAR4

billion. On December 30, 2025, ArcelorMittal South Africa and

its lenders agreed to further reduce the facility maximum

amount to ZAR3 billion. As of December 31, 2025, ZAR2.9

billion (175) was drawn. The borrowing base facility at

ArcelorMittal South Africa remains subject to a financial

covenant as of December 31, 2025. Non-compliance with the

covenant would entitle the lenders under such facility to

accelerate repayment obligations.

On December 28, 2023, and on March 4, 2024, AM Green

Energy signed two INR7.5 billion loans to finance the

development of its renewable energy project. As of December

31, 2025, INR15 billion (167) was outstanding.

Other loans in subsidiaries

Other loans in subsidiaries mainly relate to loans contracted by

ArcelorMittal subsidiaries with different counterparties.

Hedge of net investments

As of April 1, 2018, the Company designated a portfolio of euro

denominated debt (€3,978 million and €4,142 million as of

December 31, 2025 and 2024, respectively) as a hedge of

certain euro denominated investments (€8,516 million and

€8,208 million as of December 31, 2025 and 2024,

respectively) in order to mitigate the foreign currency risk

arising from certain euro denominated subsidiaries' net assets.

The risk arises from the fluctuation in spot exchange rates

between the U.S. dollar and euro, which causes the amount of

the net investments to vary. The hedged risk in the hedge of

net investments is a risk of a weakening euro against the U.S.

dollar that will result in a reduction in the carrying amount of the

Company's net investments in the subsidiaries subject to the

hedge. The euro denominated debt is designated as a hedging

instrument for the change in the value of the net investments

that is attributable to changes in the euro/U.S. dollar spot rate.

To assess the hedge effectiveness, the Company determines

the economic relationship between the hedging instrument and

the hedged item by comparing changes in the carrying amount

of the debt portfolio that are attributable to a change in the spot

rate with changes in the net investments in the foreign

operations due to movements in the spot rate.

As of December 31, 2025 and 2024, the Company recognized

624 foreign exchange loss and 232 foreign exchange gain,

respectively, arising on the translation of the euro denominated

debt designated as a hedge of the euro denominated net

investments in foreign operations in other comprehensive

income within the foreign exchange translation reserve.

Maturity profile

As of December 31, 2025 the scheduled maturities of short-

term debt, long-term debt and long-term lease obligations,

including their current portion are as follows:


Year of maturity		Amount
2026		2,739
2027		1,631
2028		1,374
2029		794
2030		1,630
Subsequent years		5,242
Total		13,410

Fair value

The following tables summarize the Company’s bases used to

estimate its debt at fair value. Fair value measurement has

been classified into three levels based upon a fair value

hierarchy that reflects the significance of the inputs used in

making the measurements.


As of December 31, 2025	Carrying amount	Fair Value
		Level 1	Level 2	Level 3	Total
Instruments payable bearing interest at fixed rates (excluding long and short-term lease liabilities)	8,764	8,249	793	—	9,042
Instruments payable bearing interest at variable rates (excluding long and short-term lease liabilities)	2,346	—	2,352	—	2,352
Total long-term debt, including current portion	11,110	8,249	3,145	—	11,394
Short term bank loans and other credit facilities including commercial paper	1,119	—	1,130	—	1,130


As of December 31, 2024	Carrying amount	Fair Value
		Level 1	Level 2	Level 3	Total
Instruments payable bearing interest at fixed rates (excluding long and short-term lease liabilities)	7,923	8,008	138	—	8,146
Instruments payable bearing interest at variable rates (excluding long and short-term lease liabilities)	1,590	—	1,609	—	1,609
Total long-term debt, including current portion	9,513	8,008	1,747	—	9,755
Short term bank loans and other credit facilities including commercial paper	1,016	—	1,023	—	1,023

Instruments payable classified as Level 1 refer to the

Company’s listed bonds quoted in active markets. The total fair

value is the official closing price as defined by the exchange on

which the instrument is most actively traded on the last trading

day of the period, multiplied by the number of units held without

consideration of transaction costs.

Instruments payable classified as Level 2 refer to all debt

instruments not classified as Level 1. The fair value of the debt

is based on estimated future cash flows converted into U.S.

dollar at the forward rate and discounted using current U.S.

dollar zero coupon rates and ArcelorMittal’s credit spread

quotations for the relevant maturities. There were no

instruments payable classified as Level 3.

6.1.3 Cash and cash equivalents, restricted cash and

reconciliations of cash flows

Cash and cash equivalents consist of cash and short-term

highly liquid investments that are readily convertible to cash

with original maturities of three months or less at the time of

purchase and are carried at cost plus accrued interest, which

approximates fair value.

Cash and cash equivalents are primarily centralized at the

parent level and are managed by ArcelorMittal Treasury SNC,

although from time to time cash or cash equivalent balances

may be held at the Company’s international subsidiaries or its

holding companies. Some of these operating subsidiaries have

debt outstanding or are subject to acquisition agreements that

impose restrictions on such operating subsidiaries’ ability to

pay dividends, but such restrictions are not significant in the

context of ArcelorMittal’s overall liquidity. Repatriation of funds

from operating subsidiaries may also be affected by tax and

foreign exchange policies in place from time to time in the

various countries where the Company operates, though none

of these policies are currently significant in the context of

ArcelorMittal’s overall liquidity.

Cash and cash equivalents consisted of the following:


	December 31,
	2025	2024
Cash at bank	4,482	4,355
Term deposits	792	949
Money market funds1	118	1,096
Total	5,392	6,400

1Money market funds are highly liquid investments with a maturity of 3

months or less from the date of acquisition.

Restricted cash represents cash and cash equivalents not

readily available to the Company, mainly related to insurance

deposits, cash accounts in connection with environmental

obligations and true sale of receivables programs, as well as

various other deposits or required balance obligations related

to letters of credit and credit arrangements.

Restricted cash of 84 and 84 as of December 31, 2025 and

December 31, 2024, respectively, included 67 and 68 relating

to various environmental obligations, true sales of receivables

programs and letters of credit issued at ArcelorMittal South

Africa as of December 31, 2025 and December 31, 2024,

respectively. It also included 13 and 13 in connection with the

mandatory convertible bonds as of December 31, 2025 and

December 31, 2024, respectively (see note 11.2).

Changes in restricted cash are included within investing

activities in the consolidated statements of cash flows.

Reconciliation of liabilities arising from financing activities

The table below details changes in the Company's liabilities

arising from financing activities, including both cash and non-

cash changes. Liabilities arising from financing activities are

those for which cash flows were, or future cash flows will be

classified in the Company's consolidated statements of cash

flows from financing activities.


	Long-term debt, net of current portion	Short-term debt and current portion of long term debt
Balance as of December 31, 2023 (note 6.1.2)	8,369	2,312
Proceeds from long-term debt	2,227	—
Payments of long-term debt	(61)	—
Amortized cost	6	2
Proceeds from short-term debt	—	257
Payments of short-term debt	—	(1,192)
Current portion of long-term debt	(1,732)	1,732
Payments of principal portion of lease liabilities (note 7) 1	(10)	(214)
Additions to lease liabilities (notes 5.2 and 7)	186	23
Unrealized foreign exchange effects and other movements	(170)	(172)
Balance as of December 31, 2024 (note 6.1.2)	8,815	2,748
Proceeds from long-term debt	2,107	—
Payments of long-term debt	(420)	—
Amortized cost	9	3
Proceeds from short-term debt	—	32
Payments of short-term debt	—	(2,359)
Current portion of long-term debt	(1,620)	1,620
Payments of principal portion of lease liabilities (note 7) 1	(19)	(215)
Additions to lease liabilities (notes 5.2 and 7)	236	38
Debt acquired through business combinations	914	769
Unrealized foreign exchange effects and other movements	649	103
Balance as of December 31, 2025 (note 6.1.2)	10,671	2,739

1.Cash payments decreasing the outstanding liability relating to leases are classified under payments of principal portion of lease liabilities and other financing activities in

the Company's consolidated statements of cash flows.

6.1.4 Net debt

The Company monitors its net debt in order to manage its capital. The following tables present the structure of the Company’s net debt

by original currency translated into USD at December 31, 2025 and December 31, 2024:


At December 31, 2025	Total	EUR	USD	ARS	BRL	INR	JPY	Other
Short-term debt and current portion of long-term debt	2,739	1,697	581	—	159	10	—	292
Long-term debt, net of current portion	10,671	3,588	5,893	—	93	186	450	461
Cash and cash equivalents and restricted cash 1	(5,479)	(2,577)	(1,555)	(429)	(271)	(151)	—	(496)
Net debt	7,931	2,708	4,919	(429)	(19)	45	450	257


At December 31, 2024	Total	EUR	USD	ARS	BRL	INR	JPY	Other
Short-term debt and current portion of long-term debt	2,748	2,088	348	—	22	1	—	289
Long-term debt, net of current portion	8,815	2,790	5,378	—	80	186	—	381
Cash and cash equivalents and restricted cash	(6,484)	(3,969)	(1,183)	(489)	(237)	(83)	—	(523)
Net debt	5,079	909	4,543	(489)	(135)	104	—	147

6.1.5 Derivative financial instruments

The Company uses derivative financial instruments to manage

its exposure to fluctuations in interest rates, exchange rates,

raw material prices, freight, energy and emission rights

allowances arising from operating, financing and investing

activities. Derivative financial instruments are classified as

current or non-current assets or liabilities based on their

maturity dates and are accounted for at the trade date.

Embedded derivatives are separated from the host contract

and accounted for separately if they are not closely related to

the host contract. The Company measures all derivative

financial instruments based on fair values derived from market

prices of the instruments or from option pricing models, as

appropriate. Gains or losses arising from changes in fair value

of derivatives are recognized in the consolidated statements of

operations, except for derivatives that are designated and

qualify for cash flow or net investment hedge accounting.

Changes in the fair value of a derivative that is designated and

qualifies as a cash flow hedge are recorded in other

comprehensive income. Amounts deferred in equity are

recorded in the consolidated statements of operations in the

periods when the hedged item is recognized in the

consolidated statements of operations and within the same line

item (see note 6.3 Cash flow hedges).

The Company formally assesses, both at the hedge’s inception

and on an ongoing basis, whether the derivatives that are used

in hedging transactions are effective in offsetting changes in

fair values or cash flows of hedged items. When a hedging

instrument is sold, terminated, expired or exercised, the

accumulated gain or loss on the hedging instrument is

maintained in equity until the forecasted transaction occurs. If

the hedged transaction is no longer probable, the cumulative

gain or loss, which had been recognized in equity, is reported

immediately in the consolidated statements of operations.

Foreign currency differences arising on the translation of a

financial liability designated as a hedge of a net investment in a

foreign operation are recognized directly as a separate

component of equity, to the extent that the hedge is effective.

To the extent that the hedge is ineffective, such differences are

recognized in the consolidated statements of operations (see

note 6.3 Net investment hedge).

The Company manages the counter-party risk associated with

its instruments by centralizing its commitments and by applying

procedures which specify, for each type of transaction and

underlying position, risk limits and/or the characteristics of the

counter-party. The Company does not generally grant to or

require guarantees from its counterparties for the risks

incurred. Allowing for exceptions, the Company’s

counterparties are part of its financial partners and the related

market transactions are governed by framework agreements

(mainly International Swaps and Derivatives Association

agreements which allow netting only in case of counterparty

default). Accordingly, derivative assets and derivative liabilities

are not offset.

Derivative financial instruments classified as Level 2:

The following tables summarize this portfolio:


	December 31, 2025
	Assets		Liabilities
	Notional Amount	Fair Value	Notional Amount	Fair Value
Interest rate instruments
Other interest rate instruments	258	1	15	—
Total interest rate instruments		1		—

Foreign exchange rate instruments
Forward purchase contracts	168	4	116	(6)
Forward sale contracts	332	6	389	(12)
Currency swaps sales	1,339	10	4,169	(81)
Currency swaps purchases	3,216	24	534	(6)
Exchange option purchases	1,063	15	1,368	(5)
Exchange options sales	3,974	43	3,333	(55)
Total foreign exchange rate instruments		102		(165)

Raw materials (base metals), freight, energy, emission rights
Term contracts sales	486	58	371	(38)
Term contracts purchases	1,082	126	1,249	(196)
Options sales/purchases	633	11	391	(17)
Total raw materials (base metals), freight, energy, emission rights		195		(251)
Total		298		(416)

Fair values of raw material, freight, energy and emission rights instruments are categorized as Level 2 as follows:


	December 31,
	2025	2024
Base metals	11	(11)
Freight	22	3
Energy (oil, gas, electricity)	(89)	60
Emission rights	—	—
Total	(56)	52

Derivative assets associated with raw materials, energy, freight and emission rights	195	172
Derivative liabilities associated with raw materials, energy, freight and emission rights	(251)	(120)
Total	(56)	52


	December 31, 2024
	Assets		Liabilities
	Notional Amount	Fair Value	Notional Amount	Fair Value
Interest rate instruments
Other interest rate instruments	8	—	20	—
Total interest rate instruments		—		—

Foreign exchange rate instruments
Forward purchase contracts	499	35	195	(39)
Forward sale contracts	59	6	1,088	(113)
Currency swaps sales	1,189	7	3,734	(55)
Currency swaps purchases	2,614	151	1,701	(17)
Exchange option purchases	4,203	67	75	—
Exchange options sales	1	—	3,602	(294)
Total foreign exchange rate instruments		266		(518)

Raw materials (base metals), freight, energy, emission rights
Term contracts sales	386	26	302	(44)
Term contracts purchases	571	146	651	(76)
Option sales/purchases	3	—	—	—
Total raw materials (base metals), freight, energy, emission rights		172		(120)
Total		438		(638)

Derivative instruments classified as Level 2 of the fair value

hierarchy refer to instruments whose fair value is determined

using valuation techniques that rely on inputs other than

quoted prices included in Level 1 that are observable either

directly or indirectly. The total fair value is based on the price a

dealer would pay or receive for the security or similar

securities, adjusted for any terms specific to that asset or

liability. Market inputs are obtained from well-established and

recognized vendors of market data and the fair value is

calculated using standard industry models based on significant

observable market inputs such as foreign exchange rates,

commodity prices, swap rates and interest rates and based on

principles such as discounting future cash flows to present

value. Such instruments are used to hedge fluctuations in

interest rates, foreign exchange rates, raw materials (base

metals), freight, energy and emission rights. They include also

certain of the Company's power purchase agreements not

subject to own use exemption.

Derivative instruments classified as Level 3 are those

instruments whose fair value is determined using valuation

techniques that incorporate significant unobservable inputs

which reflect the Company's own views about the assumptions

market participant would use in pricing the asset or liability. The

fair valuation of Level 3 derivative instruments is established at

each reporting date and compared to the prior period.

ArcelorMittal’s valuation policies for Level 3 derivatives are an

integral part of its internal control procedures and have been

reviewed and approved according to the Company’s principles

for establishing such procedures. In particular, such

procedures address the accuracy and reliability of input data,

the accuracy of the valuation model and the knowledge of the

staff performing the valuations.

Electricity option

ArcelorMittal and an electricity supplier entered into a multi-

buyer power supply contract on the French market. Other

clients of this contract are committed to purchase electricity

from the supplier with opt-out rights to be exercised in 2029 for

2030-2034 delivery period. The opt-out rights for 2025-2029

delivery period expired unexercised in 2024. The Company is

committed to acquire up to 51% of the opt-out volumes.

The fair value of the option classified as Level 3 is based on

the Black-Scholes formula model. Observable input data used

in the valuation include euro zero coupon yield curve and

electricity forward prices for tenors quoted by the European

Energy Exchange (EEX). A 10% increase and decrease in

electricity forward prices would result in a 12% decrease and

15% increase, respectively, of the fair value of the option at

December 31, 2025.

The following table summarizes the reconciliation of the fair

value of the financial instrument classified as Level 3:


		Electricity option
Balance as of December 31, 2023		(82)
Change in fair value		50
Balance as of December 31, 2024		(32)
Change in fair value		(3)
Balance as of December 31, 2025		(35)

The fair value movement relating to the Level 3 derivative

instrument is recognized in financing costs-net in the

consolidated statements of operations.

6.1.6 Other non-derivative financial assets and liabilities

Other non-derivative financial assets and liabilities include cash

and cash equivalents and restricted cash (see note 6.1.3),

certain trade and certain other receivables (see note 4.3, 4.5

and 4.6), investments in equity instruments at FVOCI (see note

2.5), trade payables and certain other liabilities (see notes 4.7

and 4.8). These instruments are recognized initially at fair

value when the Company becomes a party to the contractual

provisions of the instrument. Non-derivative financial assets

are derecognized if the Company’s contractual rights to the

cash flows from the financial instruments expire or if the

Company transfers the financial instruments to another party

without retaining control of substantially all risks and rewards of

the instruments. Non-derivative financial liabilities are

derecognized when they are extinguished (i.e. when the

obligation specified in the contract is discharged, canceled or

expired).

Impairment of financial assets

In relation to the impairment of financial assets, an expected

credit loss ("ECL") model is required. The ECL model requires

the Group to account for expected credit losses and changes in

those ECL at each reporting date to reflect changes in credit

risk since initial recognition of the financial assets. In particular,

the Company measures the loss allowance for a financial

instrument at an amount equal to the lifetime ECL if the credit

risk on that financial instrument has increased significantly

since initial recognition. 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 (note 4.3).

Investments in equity instruments at FVOCI are exempt from

the impairment test because the fair value of the investment is

recorded in OCI and not reclassified to profit and loss.

Financial assets are tested for ECLs annually or whenever

changes in circumstances indicate that there is a change in

credit risk. Any ECL is recognized in the consolidated

statements of operations. An ECL related to financial assets is

reversed if and to the extent there has been a change in the

factors used to determine the recoverable amount. The loss is

reversed only to the extent that the asset’s carrying amount

does not exceed the carrying amount that would have been

determined if no ECL had been recognized. Reversals of ECLs

are recognized in net income, except for investments in equity

instruments at FVOCI, in which all fair value movements are

recognized in OCI.

Financing costs - net

Financing costs - net recognized in the years ended

December 31, 2025, 2024 and 2023 are as follows:


	Year ended December 31,
	2025	2024	2023
Interest expense	(577)	(510)	(715)
Interest income	281	400	570
Accretion of defined benefit obligations and other long term liabilities	(309)	(202)	(243)
Net foreign exchange gain/ (loss)	256	(565)	(48)
Other1	(360)	(297)	(423)
Total	(709)	(1,174)	(859)

1.Other mainly included expenses related to TSR programs and bank fees. In

2025 and 2023, Other included 101 and 66, respectively, relating to the term

extension of mandatorily convertible bonds (see note 11.2). In 2024, Other

included also 83 expense relating to the fair value at acquisition date of the

forward in connection with the Vallourec acquisition (see note 2.4.2).

6.3 Risk management policy

The Company is exposed to a variety of financial risks arising

from ordinary business exposure such as interest rate risk,

foreign exchange risk, liquidity risk and risks in fluctuations in

prices of raw materials, freight, energy and CO2 emissions

rights. The Company actively monitors and seeks to reduce

volatility of these exposures through a diversity of financial

instruments, where considered appropriate. The Company has

formalized how it manages these risks within the Treasury and

Financial Risk Management Policy, which has been approved

by Management.

Capital management

The Company's objective when managing capital is to

safeguard continuity, maintain a strong credit rating and

healthy capital ratios to support its business and provide

adequate return to shareholders through continuing growth.

The Company sets the amount of capital required on the basis

of annual business and long-term operating plans which

include capital and other strategic investments. The funding

requirement is met through a combination of equity, bonds and

other long-term and short-term borrowings.

The Company monitors capital using a gearing ratio, being the

ratio of net debt as a percentage of total equity.


	December 31,
	2025	2024
Total equity	56,536	51,286
Net debt	7,931	5,079
Gearing	14.0%	9.9%

6.3.1 Market risks

Market risks result from the exposure to possible market price

movements and their impact on future financial

performance.They include interest rate risk, foreign exchange

risk and price risk for emission rights and raw materials

(including iron ore and base metals such as zinc, nickel,

aluminum and tin), freight and energy, either through the

purchase of raw materials and through sales contracts.

Interest rate risk

The Company is exposed to interest rate risk on short-term and

long-term floating rate instruments and on refinancing of fixed

rate debt. The Company's policy is to maintain a balance of

fixed and floating interest rate borrowings, which is adjusted

depending on the prevailing market interest rates and outlook.

As at December 31, 2025, the long-term debt was comprised

of 79% fixed rate debt and 21% variable rate debt (note 6.1.2).

The Company may utilize certain instruments to manage

interest rate risks. Interest rate instruments allow the Company

to borrow long-term at fixed or variable rates, and to swap the

rate of this debt either at inception or during the lifetime of the

borrowing. The Company and its counterparties exchange, at

predefined intervals, the difference between the agreed fixed

rate and the variable rate, calculated on the basis of the

notional amount of the swap. Similarly, swaps may be used for

the exchange of variable rates against other variable rates.

Foreign exchange rate risk

The Company is exposed to changes in values arising from

foreign exchange rate fluctuations generated by its operating

activities. Because a substantial portion of ArcelorMittal’s

assets, liabilities, sales and earnings are denominated in

currencies other than the U.S. dollar (its reporting currency),

ArcelorMittal has an exposure to fluctuations and depreciation

in the values of these currencies relative to the U.S. dollar.

These currency fluctuations, especially the fluctuation of the

value of the U.S. dollar relative to the euro, the Canadian

dollar, Brazilian real, Polish Zloty, South African rand, Mexican

peso and Ukrainian hryvnia, as well as fluctuations in the other

countries’ currencies in which ArcelorMittal has significant

operations and/or sales, could have a material impact on its

financial position, cash flows and results of operations.

ArcelorMittal faces transaction risk, where its businesses

generate sales in one currency but incur costs relating to that

revenue in a different currency. For example, ArcelorMittal’s

subsidiaries may purchase raw materials, including iron ore

and coking coal, in U.S. dollar, but may sell finished steel

products in other currencies. Consequently, an appreciation of

the U.S. dollar will increase the cost of raw materials; thereby

having a negative impact on the Company’s operating margins,

unless the Company is able to pass along the higher cost in

the form of higher selling prices.

Following its Treasury and Financial Risk Management Policy,

the Company hedges a portion of its net exposure to foreign

exchange rates through forwards, options and swaps.

ArcelorMittal also faces foreign currency translation risk, which

arises when ArcelorMittal translates the statements of

operations of its subsidiaries, its corporate net debt (note 6.1.4)

and other items denominated in currencies other than the U.S.

dollar, for inclusion in the consolidated financial statements.

The Company manages translation risk arising from its

investments in subsidiaries by monitoring the currency mix of

the consolidated statements of financial position. The

Company may enter into derivative transactions to hedge the

residual exposure (see “Net investment hedge”).

The Company also uses derivative instruments at the

corporate level to hedge debt recorded in foreign currency

other than the functional currency or the balance sheet risk

associated with certain monetary assets denominated in a

foreign currency other than the functional currency.

Foreign currency sensitivity analysis

As of December 31, 2025, the Company is mainly subject to

foreign exchange exposure relating to the euro, Brazilian real,

Canadian dollar, South African rand, Mexican peso, Polish

zloty, Argentine peso and Ukrainian hryvnia against the U.S.

dollar resulting from its trade payables and receivables. The

structure of trade receivables and trade payables by original

currency translated in USD is as follows as of December 31,

2025:


	December 31, 2025
	Trade receivables	Trade payables
USD	934	4,559
EUR	887	5,730
BRL	837	701
PLN	189	473
MAD	189	277
ZAR	89	387
CAD	77	371
ARS	74	68
UAH	60	76
GBP	27	108
MXN	12	86
Other	101	172
Total	3,476	13,008

The sensitivity analysis carried out by the Company considers

the effects on its trade receivables and trade payables of a

10% increase or decrease between the relevant foreign

currencies and the U.S. dollar.


	10% increase		10% decrease
	Trade receivables	Trade payables	Trade receivables	Trade payables
EUR	89	573	(89)	(573)
BRL	84	70	(84)	(70)
PLN	19	47	(19)	(47)
MAD	19	28	(19)	(28)
ZAR	9	39	(9)	(39)
CAD	8	37	(8)	(37)
ARS	7	7	(7)	(7)
UAH	6	8	(6)	(8)
GBP	3	11	(3)	(11)
MXN	1	9	(1)	(9)

The use of a 10% sensitivity rate is used when reporting

foreign currency exposure internally to key management

personnel and represents management’s assessment of the

reasonably possible change in foreign exchange rates. The

sensitivity analysis includes trade receivables and trade

payables denominated in a currency other than the U.S. dollar

and adjusts their translation at the period end for a 10%

change in foreign currency rates. For trade receivables, a

positive number indicates an income and a negative number

an expense. For trade payables, a positive number indicates

an expense and a negative number an income.

Commodity price risk and emission rights

ArcelorMittal consumes large amounts of raw materials (the

prices of which are related to the London Metals Exchange

price index, the Steel Index and Platts Index), ocean freight

(the price of which is related to a Baltic Exchange Index), and

energy (the prices of which are mainly related to the New York

Mercantile Exchange energy index (NYMEX) and the EEX

power indexes). As a general matter, ArcelorMittal is exposed

to price volatility with respect to its purchases in the spot

market, its long-term supply contracts and trading activities. In

accordance with its risk management policy, ArcelorMittal

hedges a part of its exposure related to raw materials

procurement.

Pursuant to the application of the European Directive 2003/87/

EC of October 13, 2003, as amended by the European

Directive 2009/29/EC of April 23, 2009, establishing a scheme

for emission allowance trading, the Company enters into

certain types of derivatives (mainly forward transactions and

options) in order to implement its management policy for

associated risks. As of December 31, 2025 and 2024, the

Company had a net nil notional position with a net nil fair

value and a net notional position of (2) with a net nil fair value,

respectively.

6.3.2 Liquidity Risk

Liquidity risk is the risk that the Company may encounter

difficulties in meeting its obligations associated with financial

liabilities that are settled by delivering cash. ArcelorMittal

Treasury is responsible for the Company's funding and liquidity

management. ArcelorMittal’s principal sources of liquidity are

cash generated from its operations, its credit lines at the

corporate level and various working capital credit lines at the

level of its operating subsidiaries. The Company actively

manages its liquidity. Following the Company's Treasury and

Financial Risk Management Policy, the levels of cash, credit

lines and debt are closely monitored and appropriate actions

are taken in order to comply with the covenant ratios, leverage,

fixed/floating ratios, maturity profile and currency mix.

The contractual maturities of the below financial liabilities

include estimated loan repayments, interest payments and

settlement of derivatives, excluding any impact of netting

agreements. The cash flows are calculated based on market

data as of December 31, 2025, and as such are sensitive to

movements in mainly foreign exchange rates and interest

rates. The cash flows are non-discounted, except for derivative

financial liabilities where the cash flows equal their fair values.


	December 31, 2025
	Carrying amount	Contractual Cash Flow	2026	2027	from 2028 to 2030	After 2030
Non-derivative financial liabilities
Bonds	(7,890)	(11,264)	(1,522)	(1,571)	(2,704)	(5,467)
Loans over 100	(2,944)	(4,839)	(574)	(139)	(1,526)	(2,600)
Trade and other payables	(13,008)	(13,008)	(13,008)	—	—	—
Other loans and leases	(2,576)	(3,154)	(1,274)	(459)	(755)	(666)
Total	(26,418)	(32,265)	(16,378)	(2,169)	(4,985)	(8,733)
Derivative financial liabilities
Foreign exchange contracts	(165)	(165)	(60)	(47)	(1)	(57)
Commodity contracts1	(286)	(286)	(163)	(62)	(58)	(3)
Total	(451)	(451)	(223)	(109)	(59)	(60)

1.Commodity contracts include base metals, freight, energy and emission rights.


	December 31, 2024
	Carrying amount	Contractual Cash Flow	2025	2026	from 2027 to 2029	After 2029
Non-derivative financial liabilities
Bonds	(7,871)	(11,510)	(1,374)	(1,406)	(3,068)	(5,662)
Loans over 100	(1,250)	(1,829)	(584)	(70)	(441)	(734)
Trade and other payables	(12,921)	(12,921)	(12,921)	—	—	—
Other loans and leases	(2,442)	(2,842)	(1,326)	(293)	(719)	(504)
Total	(24,484)	(29,102)	(16,205)	(1,769)	(4,228)	(6,900)
Derivative financial liabilities
Foreign exchange contracts	(518)	(518)	(240)	(120)	(136)	(22)
Commodity contracts1	(152)	(152)	(83)	(34)	(35)	—
Total	(670)	(670)	(323)	(154)	(171)	(22)

1.Commodity contracts include base metals, freight, energy and emission rights.

6.3.3 Credit risk

The Company’s treasury department monitors various market

data regarding the credit standings and overall reliability of the

financial institutions for all countries where the Company’s

subsidiaries operate. The choice of the financial institution for

the financial transactions must be approved by the treasury

department. Credit risk related to customers, customer credit

terms and receivables are discussed in note 4.3.

6.3.4 Hedge accounting policy

The Company determines the economic relationship between

the hedged item and the hedging instrument by analyzing the

critical terms of the hedge relationship. In case critical terms do

not match and fair value changes in the hedging instrument

cannot be expected to perfectly offset changes in the fair value

of the hedged item, further qualitative analysis may be

performed. Such analysis serves to establish whether the

economic relationship is sufficiently strong to comply with the

Company’s risk management policies.

The hedge ratio is set out in the Company's risk management

strategy and may be individually tailored for each hedging

program in the risk management objective. Hedge ratios below

100% would usually be applied on hedging of forecast

exposures with the hedge ratio typically reducing where there

is uncertainty due to long hedging tenors or volatility in the

underlying exposure.

The most frequent sources of hedge ineffectiveness relate to

changes in the hedged item (such as maturity, volume and

pricing indices), basis spread and significant changes in the

credit risk. Such sources are analyzed at hedge initiation and

monitored throughout the life of a hedge.

Cash flow hedges

The following tables present the periods in which the derivatives designated as cash flows hedges are expected to mature:


	December 31, 2025
	Assets/ (liabilities)	(Outflows)/inflows
	Fair value	3 months and less	3-6 months	6-12 months	2027	After 2027
Foreign exchange contracts	(1)	9	5	—	(15)	—
Commodities	(17)	(31)	(9)	4	25	(6)
Emission rights	—	—	—	—	—	—
Total	(18)	(22)	(4)	4	10	(6)


	December 31, 2024
	Assets/ (liabilities)	(Outflows)/inflows
	Fair value	3 months and less	3-6 months	6-12 months	2026	After 2026
Foreign exchange contracts	(194)	(10)	(12)	(23)	(60)	(89)
Commodities	61	11	—	8	(16)	58
Emission rights	—	—	—	—	—	—
Total	(133)	1	(12)	(15)	(76)	(31)

Associated gains or losses that were recognized in other comprehensive income are reclassified to the consolidated statements of

operations in the same period during which the hedged forecasted cash flow affects the consolidated statements of operations. The

following table presents the periods in which the realized and unrealized gains or losses on derivatives designated as cash flows

hedges recognized in other comprehensive income, net of tax, are expected to impact the consolidated statements of operations:


	December 31, 2025
	Cash flow hedge reserve1	(Expense)/income
	Carrying amount	3 months and less	3-6 months	6-12 months	2027	After 2027
Foreign exchange contracts	(57)	(2)	3	1	(17)	(42)
Commodity contracts	63	(9)	6	42	26	(2)
Emission rights	953	—	—	59	273	621
Total	959	(11)	9	102	282	577

1.The cash flow hedge reserve balance as of December 31, 2025 includes 185 deferred gains for the Company's share of such reserves at its equity method investments,

which are not included in the table above (365 as of December 31, 2024).


	December 31, 2024
	Cash flow hedge reserve1	(Expense)/income
	Carrying amount	3 months and less	3-6 months	6-12 months	2026	After 2026
Foreign exchange contracts	(184)	(9)	(9)	(18)	(59)	(89)
Commodity contracts	296	40	44	95	69	48
Emission rights	844	—	—	—	48	796
Total	956	31	35	77	58	755

1.The cash flow hedge reserve balance as of December 31, 2024 includes 365 deferred gains for the Company's share of such reserves at its equity method investments,

which are not included in the table above (417 as of December 31, 2023).

The following tables summarize the effect of hedge accounting on ArcelorMittal’s consolidated statement of financial position, statement

of comprehensive income and statement of changes in equity.


	December 31, 2025
Hedging Instruments	Nominal amount of the hedging instrument	Assets carrying amount	Liabilities carrying amount	Line item in the statement of financial position where the hedging instrument is located
Cash flow hedges
Foreign exchange risk - Option/forward/swap contracts	3,048	31	(16)	Prepaid expenses and other current assets/Accrued expenses and other liabilities
Foreign exchange risk - Option/forward/swap contracts	663	22	(38)	Other assets/Other long-term obligations
Price risk - Commodities Options/forwards	362	32	(68)	Prepaid expenses and other current assets/Accrued expenses and other liabilities
Price risk - Commodities Options/forwards	489	33	(14)	Other assets/Other long-term obligations
Price risk - Emission rights forwards	—	—	—	Prepaid expenses and other current assets/Accrued expenses and other liabilities
Total		118	(136)
Current derivative assets classified as cash flow hedge		63
Other current derivative assets		130
Total current derivative assets (note 4.5)		193
Non-current derivative assets classified as cash flow hedge		55
Other non-current derivative assets		50
Total non-current derivative assets (note 4.6)		105
Current derivative liabilities classified as cash flow hedge			(84)
Other current derivative liabilities			(139)
Total current derivative liabilities (note 4.8)			(223)
Non-current derivative liabilities classified as cash flow hedge			(52)
Other non-current derivative liabilities			(176)
Total non-current derivative liabilities (note 9.2)			(228)


	December 31, 2025
Hedging Instruments	Cash flow hedge reserve at December 31, 2024	Hedging gains or losses of the reporting period that were recognized in OCI	Gains or losses reclassification adjustment and hedge ineffectiveness	Basis adjustment	Line item in the statement of comprehensive income that includes the reclassification adjustment and hedge ineffectiveness	Cash flow hedge reserve1 at December 31, 2025
Cash flow hedges
Foreign exchange risk - Option/Forward contracts	(184)	64	(25)	88	Sales	(57)
Price risk - Commodities Option/Forward contracts	296	(71)	18	(180)	Sales, Cost of sales	63
Price risk - Emission rights forwards	844	111	(2)	—	Cost of sales	953
Total	956	104	(9)	(92)		959

1.The cash flow hedge reserve balance as of December 31, 2025 also included 185 deferred gains for the Company's share of such reserves at its equity method

investments, which are not disclosed above.


	December 31, 2024
Hedging Instruments	Nominal amount of the hedging instrument	Assets carrying amount	Liabilities carrying amount	Line item in the statement of financial position where the hedging instrument is located
Cash flow hedges
Foreign exchange risk - Option/ forward/swap contracts	1,472	9	(54)	Prepaid expenses and other current assets/Accrued expenses and other liabilities
Foreign exchange risk - Option/ forward/swap contracts	1,326	43	(192)	Other assets/Other long-term obligations
Price risk - Commodities Options/ forwards	354	50	(31)	Prepaid expenses and other current assets/Accrued expenses and other liabilities
Price risk - Commodities Options/ forwards	254	61	(19)	Other assets/Other long-term obligations
Price risk - Emission rights forwards	—	—	—	Prepaid expenses and other current assets/Accrued expenses and other liabilities
Total		163	(296)
Current derivative assets classified as cash flow hedge		59
Other current derivative assets		246
Total current derivative assets (note 4.5)		305
Non-current derivative assets classified as cash flow hedge		104
Other non-current derivative assets		29
Total non-current derivative assets (note 4.6)		133
Current derivative liabilities classified as cash flow hedge			(85)
Other current derivative liabilities			(242)
Total current derivative liabilities (note 4.8)			(327)
Non-current derivative liabilities classified as cash flow hedge			(211)
Other non-current derivative liabilities			(132)
Total non-current derivative liabilities (note 9.2)			(343)


	December 31, 2024
Hedging Instruments	Cash flow hedge reserve at December 31, 2023	Hedging gains or losses of the reporting period that were recognized in OCI	Gains or losses reclassification adjustment and hedge ineffectiveness	Basis adjustment	Line item in the statement of comprehensive income that includes the reclassification adjustment and hedge ineffectiveness	Cash flow hedge reserve1 at December 31, 2024
Cash flow hedges
Foreign exchange risk - Option/ Forward contracts	28	(152)	(18)	(42)	Sales	(184)
Price risk - Commodities Option/ Forward contracts	633	(105)	82	(314)	Sales, Cost of sales	296
Price risk - Emission rights forwards	900	(54)	(2)	—	Cost of sales	844
Total	1,561	(311)	62	(356)		956

1.The cash flow hedge reserve balance as of December 31, 2024 also included 365 deferred gains for the Company's share of such reserves at its equity method

investments, which are not disclosed above.

Net investment hedge

The Company designated a portfolio of euro denominated debt

as a hedge of certain euro denominated investments (see also

note 6.1.2.2.)

The Company has periodically hedged a part of its euro

denominated net investments via euro/U.S. dollar cross

currency swaps ("CCS"). These CCS, some of which have

been unwound, were designated as net investment hedges.

The hedging instrument is categorized as Level 2.

The following tables summarizes the historical gain/loss that

will be recycled to the consolidation statements of operations

when the hedged assets are disposed of.


	December 31, 2025
Date traded	Date maturity /unwound	Notional	OCI gross	Deferred tax	OCI net of deferred tax
December, 2014	January, 2016	375	83	(24)	59
May, 2015	March, 2020	500	11	(3)	8
May, 2015	July, 2019	500	(16)	5	(11)
March, 2018	June, 2018	100	8	(2)	6
April, 2019	November, 2019	200	11	(3)	8
July, 2025	January, 2026	660	(14)	3	(11)
Total			83	(24)	59


	December 31, 2025
Hedging Instruments	Nominal amount of the hedging instrument	Assets carrying amount	Liabilities carrying amount	Line item in the statement of financial position where the hedging instrument is located	Change in value used for calculating hedge ineffectiveness for 2024	Line item in the statement of comprehensive income that includes the recognized hedge ineffectiveness	Foreign currency translation reserve
Net investment hedges
Foreign exchange risk - Cross Currency Swap	660	—	14	Accrued expenses and other liabilities	—	N/a	59
Foreign exchange risk - EUR debt	4,697	—	4,675	Short-term debt and current portion of long- term debt; long- term debt, net of current portion	—	N/a	89
Total	5,357	—	4,689		—		148


	December 31, 2024
Hedging Instruments	Nominal amount of the hedging instrument	Assets carrying amount	Liabilities carrying amount	Line item in the statement of financial position where the hedging instrument is located	Change in value used for calculating hedge ineffectiveness for 2023	Line item in the statement of comprehensive income that includes the recognized hedge ineffectiveness	Foreign currency translation reserve
Net investment hedges
Foreign exchange risk - Cross Currency Swap	—	—	—	N/a	—	N/a	70
Foreign exchange risk - EUR debt	4,319	—	4,303	Short-term debt and current portion of long-term debt; long-term debt, net of current portion	—	N/a	564
Total	4,319	—	4,303		—		634

6.3.5 Sensitivity analysis

Foreign currency sensitivity

The following tables demonstrate the Company’s derivative

financial instruments' sensitivity to a 10% strengthening and a

10% weakening in the U.S. Dollar and Euro exchange rates

against the relevant currencies, with all other variables held

constant. A positive number indicates an increase in profit or

loss and other equity, where a negative number indicates a

decrease in profit or loss and other equity.

The sensitivity analysis includes the Company’s complete

portfolio of foreign currency derivatives outstanding.


	December 31, 2025
	Income (loss)	Other Equity
10% strengthening in U.S. dollar	247	158
10% strengthening in Euro	45	—
10% weakening in U.S. dollar	(101)	(126)
10% weakening in Euro	(55)	—


	December 31, 2024
	Income (loss)	Other Equity
10% strengthening in U.S. dollar	(276)	(70)
10% strengthening in Euro	63	—
10% weakening in U.S. dollar	248	89
10% weakening in Euro	(77)	—

Cash flow sensitivity analysis for variable rate instruments

The following tables detail the Company’s variable interest rate

instruments’ sensitivity. A change of 100 basis points (“bp”) in

interest rates during the period would have increased

(decreased) profit or loss by the amounts presented below.

This analysis assumes that all other variables, in particular

foreign currency rates, remain constant.


	December 31, 2025
	Floating portion of net debt1	Interest Rate Swaps/ Forward Rate Agreements
100 bp increase	31	3
100 bp decrease	(31)	(2)


	December 31, 2024
	Floating portion of net debt1	Interest Rate Swaps/ Forward Rate Agreements
100 bp increase	39	1
100 bp decrease	(39)	(1)

1.See note 6.1.4 for a description of net debt (including fixed and floating

portion).

Base metals, energy, freight, emissions rights

The following tables detail the Company’s sensitivity to a 10%

increase and decrease in the price of the relevant base metals,

energy, freight and emissions rights. The sensitivity analysis

includes only outstanding, un-matured derivative instruments

either held for trading at fair value through the consolidated

statements of operations or designated in hedge accounting

relationships.


	December 31, 2025
	Income (loss)	Other Equity Cash Flow Hedging Reserves
'+10% in prices
Base Metals	2	11
Iron Ore	—	1
Freight	—	11
Emission rights	—	—
Energy	(20)	36
'-10% in prices
Base Metals	(1)	(11)
Iron Ore	—	(1)
Freight	—	(11)
Emission rights	—	—
Energy	21	(36)


	December 31, 2024
	Income (loss)	Other Equity Cash Flow Hedging Reserves
'+10% in prices
Base Metals	3	12
Iron Ore	—	10
Freight	—	3
Emission rights	—	—
Energy	(2)	23
'-10% in prices
Base Metals	(3)	(12)
Iron Ore	—	(10)
Freight	—	(3)
Emission rights	—	—
Energy	2	(23)