ACCOUNTING PRINCIPLES (Policies)

12 Months Ended

Dec. 31, 2025

General Information About Financial Statements [Abstract]

Basis of presentation

1.1 Basis of presentation

The consolidated financial statements have been prepared on

a historical cost basis, except for equity instruments and

certain trade receivables at fair value through other

comprehensive income ("FVOCI"), financial assets at fair value

through profit or loss ("FVTPL"), derivative financial

instruments and biological assets, which are measured at fair

value less cost to sell, inventories, which are measured at the

lower of net realizable value or cost, and the financial

statements of the Company’s Venezuelan tubular production

facilities Industrias Unicon CA (“Unicon”) and the Company's

Argentinian operation Acindar Industria Argentina de Aceros

S.A. ("Acindar"), for which hyperinflationary accounting is

applied (see note 2.2.2). The consolidated financial statements

have been prepared in accordance with International Financial

Reporting Standards (“IFRS”) Accounting Standards as issued

by the International Accounting Standards Board (“IASB”) and

are presented in U.S. dollar with all amounts rounded to the

nearest million, except for share and per share data.

Use of judgment and estimates

1.3 Use of judgment and estimates

The preparation of consolidated financial statements in

conformity with IFRS recognition and measurement principles

and, in particular, making the critical accounting judgments

requires the use of estimates and assumptions that affect the

reported amounts of assets, liabilities, revenues and expenses.

Management reviews its estimates on an ongoing basis using

currently available information. Changes in facts and

circumstances or obtaining new information or more experience

may result in revised estimates, and actual results could differ

from those estimates.

The following summary provides further information about the

Company’s critical accounting policies under which significant

judgments, estimates and assumptions are made. It should be

read in conjunction with the notes mentioned in the summary:

Deferred tax assets (note 10.4): The Company assesses the

recoverability of deferred tax assets based on future taxable

income projections, which are inherently uncertain and may be

subject to changes over time. Judgment is required to assess

the impact of such changes on the measurement of these

assets and the time frame for their utilization. In addition, the

Company applies judgment to recognize income tax liabilities

when they are probable and can be reasonably estimated

depending on the interpretation, which may be uncertain, of

applicable tax laws and regulations. ArcelorMittal periodically

reviews its estimates to reflect changes in facts and

circumstances.

Provisions for pensions and other post-employment benefits

(note 8.2): Benefit obligations and plan assets can be subject to

significant volatility, in particular due to changes in market

conditions and actuarial assumptions. Such assumptions differ

by plan, take local conditions into account and include discount

rates, expected rates of compensation increases, health care

cost trend rates, mortality and retirement rates. They are

determined following a formal process involving the Company's

expertise and independent actuaries. Assumptions are reviewed

annually and adjusted following actuarial and experience

changes.

Provisions (note 9): Provisions, which result from legal or

constructive obligations arising as a result of past events, are

recognized based on the Company's, and in certain instances,

third-party's best estimate of costs when the obligation arises.

They are reviewed periodically to take into consideration

changes in laws and regulations and underlying facts and

circumstances.

Impairment of tangible and intangible assets, including goodwill

and impairment reversal (note 5.3): In order to assess the

recoverable amount of tangible assets, intangible assets and

goodwill, the Company mainly determines their value in use on

the basis of the present value of cash flow projections. The

estimates, judgments and assumptions applied for the value in

use calculations relate primarily to growth rates, expected

changes to average selling prices, shipments and direct costs.

Assumptions for average selling prices and shipments are

based on historical experience and expectations of future

changes in the market. When determining value in use,

management also applies judgment when assessing whether

cash flows expected to arise to achieve sustainability and

decarbonization targets are deemed to maintain the same level

of economic benefits or whether they improve or enhance the

asset's performance (see also below judgments and estimates

made in assessing the impact of climate change and the

transition to a low carbon economy). Discount rates are

reviewed annually.

Impairment of associates and joint ventures (note 2.6):

Whenever there is an indication of impairment related to

investments accounted for under the equity method, the

Company performs an impairment test based, amongst others,

on an estimate of its share in the present value of the projected

future cash flows expected to be generated by operations of

associates and joint ventures and, similarly to impairment

testing of tangible and intangible assets, including goodwill, the

estimates, judgments and assumptions applied for the value in

use calculations relate primarily to growth rates, expected

changes to average selling prices, shipments and direct costs.

Assumptions for average selling prices and shipments are

based on historical experience and expectations of future

changes in the market.

Business combinations (note 2.2.3): Assets acquired and

liabilities assumed as part of a business combination are

recorded at their acquisition-date fair values. Similarly,

consideration including consideration receivable and contingent

consideration is measured at fair value. In connection with each

of its acquisitions, the Company undertakes a process to identify

all assets and liabilities acquired, including intangible assets.

Determining the fair value of identifiable assets and liabilities

requires the use of valuation techniques which may include

judgment and estimates and which may affect the allocation of

the amount of consideration paid to the assets and liabilities

acquired and goodwill or gain from a bargain purchase recorded

as part of the business combination. Estimated fair values are

based on information available at acquisition date and on

expectations and assumptions that have been deemed

reasonable by management. There are several methods that

can be used to determine the fair value of assets acquired and

liabilities assumed. The "income approach" is based on the

forecast of the expected future cash flows adjusted to present

value by applying an appropriate discount rate that reflects the

risk factors associated with the cash flow streams. Some of the

more significant estimates and assumptions inherent in the

income method or other methods include the amount and timing

of projected future cash flows; the discount rate selected to

measure the risks inherent in the future cash flows (weighted

average cost of capital); the assessment of the asset's life cycle

and the competitive trends impacting the asset, including

consideration of any technical, legal, regulatory or economic

barriers to entry. The "cost approach" estimates the value of an

asset based on the current cost to reproduce or replace the

asset. Replacement cost is determined based on market data

subsequently adjusted for physical, functional and economic

obsolescence. The most common purchase accounting

adjustments relate to the following assets and liabilities:

•The fair value of identifiable intangible assets (generally

patents, customer relationships, technology, brand or

favorable contracts) is estimated based on the above-

mentioned income approach;

•Property, plant and equipment is recorded at market value,

or, if not available, depreciated replacement cost;

•The fair value of pension and other post-employment

benefits is determined separately for each plan using

actuarial assumptions valid as of the acquisition date

relating to the population of employees involved and the fair

value of plan assets.

•Inventories are estimated based on expected selling prices

at the date of acquisition reduced by an estimate of selling

expenses and a normal profit margin.

•Adjustments to deferred tax assets and liabilities of the

acquiree are recorded to reflect the deferred tax effects of

the fair value adjustments relating to identifiable assets and

liabilities other than goodwill.

Determining the estimated residual useful lives of tangible and

intangible assets acquired requires judgment and certain

intangible assets may be considered to have indefinite useful

lives.

Derivative financial instruments (note 6.1.5) and financial

amounts receivable (note 4.5 and 4.6): Certain of the

Company's financial instruments are classified as Level 3 as

they include unobservable inputs.

Mineral reserve and resource estimates (note 5.2): Proven iron

ore reserves are those quantities whose recoverability can be

determined with reasonable certainty from a given date forward

and under existing government regulations, economic and

operating conditions; probable reserves have a lower degree of

assurance but high enough to assume continuity between points

of observation. 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. The potential for economic viability is established

through qualitative evaluation of relevant technical and

economic factors likely to influence the prospect of economic

extraction. A measured mineral resource is that part of a mineral

resource for which quantity, grade or quality, densities, shape,

and physical characteristics are so well established that they

can be estimated with confidence sufficient to allow the

appropriate application of technical and economic parameters,

to support production planning and evaluation of the economic

viability of the deposit. The estimate 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. An

indicated mineral resource is that part of a mineral resource for

which quantity, grade or quality, densities, shape and physical

characteristics, can be estimated with a level of confidence

sufficient to allow the appropriate application of technical and

economic parameters, to support mine planning and evaluation

of the economic viability of the deposit. The estimate 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 for geological and grade

continuity to be reasonably assumed. An inferred mineral

resource is that part of a mineral resource for which quantity and

grade or quality can be estimated on the basis of geological

evidence and limited sampling, and reasonably assumed but not

verified geological and grade continuity. The estimate is based

on limited information and sampling gathered through

appropriate techniques from locations such as outcrops,

trenches, pits, workings and drill holes. Estimates of mineral

reserves and resources and the estimates of mine life have

been prepared by ArcelorMittal experienced engineers and

geologists and detailed independent verifications of the methods

and procedures are conducted on a regular basis by external

consultants. Reserves and resources are updated annually and

calculated using a reference price duly adjusted for quality, ore

content, logistics and other considerations. In order to estimate

reserves and resources, 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. Estimating the quantity and/or grade of

reserves and resources 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. Because the

economic assumptions used to estimate reserves and resources

change from period to period, and because additional geological

data is generated during the course of operations, estimates of

reserves and resources may change from period to period.

Judgments and estimates made in assessing the impact of

climate change and the transition to a low carbon economy

Assumptions in respect of climate change and the transition to a

low carbon economy may impact the Company’s significant

judgments and key estimates and result in material changes to

financial results and the carrying values of certain assets and

liabilities in future reporting periods. The main judgments and

estimates made by ArcelorMittal when preparing the 2025

consolidated financial statements with respect to the expected

effects of climate change and the transition to a low carbon

economy are described below.

•Impairment of tangible and intangible assets, including

goodwill: Value in use calculations for operations which

apply the BF-BOF route include the impact of

decarbonization at the level of cash flow projections when

decarbonization is necessary to maintain the level of

economic benefits expected to arise from the assets in their

current condition considering the legal obligation of net zero

for such operations. Accordingly the Company developed

assumptions in determining related capital expenditures

which reflect announced commitments and initiatives in

place, costs associated with operating the new technologies

which are expected to be deployed in the short to medium

term, commodity prices and carbon emission costs on the

basis of historical experience and expectations of future

changes. This requires to assess the future development in

supply, technology change, production changes and other

important factors. For other operations, discount rates are

increased to include a risk premium relative to the future

estimated decarbonization cost. Due to economic

developments, uncertainties over the pace of transition to

low-emission technologies, political and environmental

actions that will be taken to meet the carbon reduction

goals, regulatory changes and emissions activity arising

from climate-related matters, the Company’s assumptions

used in the recoverable amount calculations, such as

capital expenditure, carbon emission costs, level of public

funding and other assumptions are inherently uncertain,

which could result in significant changes to value in use

calculations in future periods and affect impairment

assessments.

•Decommissioning costs: Over the next ten years, the

retirement of certain above-mentioned assets in the context

of the transition to low-carbon steelmaking infrastructures

may lead to certain decommissioning costs. The Company

considered such costs in its value in use calculations but it

has not recognized decommissioning provisions related to

decarbonization as the obligating event has not occurred

yet. Decommissioning cost estimates are based on the

known regulatory and external environment. These cost

estimates may change in the future including as a result of

the transition to a lower carbon economy.

•Renewable power purchase agreements: The Company

enters into power purchase agreements ("PPAs"), which

provide for the physical delivery of renewable energy and

enable ArcelorMittal to reduce its indirect emissions (Scope

2) related to energy purchases. The Company analyzes the

accounting treatment for such contracts based on their

relevant terms. When they do not comply either with the

requirements of IFRS 10 for the existence of control or

IFRS 11 for joint control over a company or regarding the

existence of joint operation over an asset, IFRS 16 for the

recognition of a lease, or with the definition of a derivative

under IFRS 9, they are accounted for as an executory

contract on the basis of the own use exemption when the

relevant conditions are met (see note 9.4). Virtual PPAs

including a cash settlement based on the difference

between the contract price and the market price are

recognized as financial instruments in accordance with

IFRS 9.

Situation in Ukraine and collateral consequences

The Company's operations in Ukraine consist of a steel plant,

which produced 1.7 million tonnes of steel (mainly billets,

rebars, wire rods, light sections and merchant bars) in 2025 (1.6

million tonnes in 2024), and captive mines that produced 7.6

million tonnes of iron ore in 2025 (7.8 million tonnes in 2024);

the related carrying amount of property, plant and equipment

remained unchanged at 0.7 billion on the Company’s statement

of financial position at December 31, 2025 as compared to

December 31, 2024. In 2025, the Company’s Ukrainian

operations (and in particular its Kryvyi Rih steel plant) recorded

1.5 million of steel shipments (1.5 million tonnes in 2024),

generating 1.7 billion of sales (1.6 billion in 2024) including 0.5

billion of sales (0.5 billion in 2024) to customers located in

Ukraine.

Since the war outbreak in February 2022, ArcelorMittal Kryvyi

Rih ("AMKR") has reduced steel and mining production levels

and experienced a combination of periods of suspension and

ramp up of activity. In July 2023, AMKR completed the

construction of a new pumping station and 5 kilometers pipeline

to supply water to the city and to ensure full coverage of its

production needs following the destruction of the Nova

Kakhovka reservoir's dam. AMKR is currently operating its open

pit mining and steel facilities at 73% and 35%, respectively.

ArcelorMittal continued to exercise control over its Ukrainian

operations and key production assets have not been seriously

damaged at the date of this report. In addition, despite the lower

level of activity, none of the assets are held for sale or were

discontinued.

In the context of the annual impairment test of intangible assets,

including goodwill and tangible assets, the Company applied in

its value in use calculation separate discount rates over the

discrete projections period, including a higher country risk

premium for the cash flow projections until the end of 2026 and

a return to a pre-war country risk premium after 2026 and for the

terminal value calculation as value in use is sensitive to a

difference in country risk for different periods. It concluded that

the recoverable amount remains in excess of the carrying

amount. Conversely, if the ongoing conflict between Russia and

Ukraine persists, it could continue to have a material effect on

the overall macroeconomic environment potentially affecting

steel and iron ore demand and prices as well as energy costs. It

could also result in further reduced production, sales and

income with respect to the Company's Ukrainian operations thus

increasing the risk that the Company may need to record an

additional impairment charge with respect to such operations in

the future.

In 2025, heightened uncertainty, particularly trade-related,

negatively impacted the global economy. U.S. tariff policy

uncertainty impacted the global economy and steel market, with

frequent changes in the timing and the extent of such tariffs

adding downside risk to steel demand due to its negative impact

on business investment. 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. As of

October 1, 2025, when goodwill was tested for impairment,

discount rates applied for value in use calculations included

lower country risk premiums, in particular in Ukraine, as risk-free

rates increased while governmental bond yields remained

relatively stable as compared to October 1, 2024. The Company

expects demand to increase in 2026 subject to macroeconomic

uncertainties. The Company's European steel shipments are

expected to increase as domestic mills begin to recapture

market share from imports reflecting the combined effect of

CBAM and the new tariff-rate quota trade tool which should

strengthen progressively over the course of the year.

Critical accounting policies