ArcelorMittal reports US$2.5bn working-capital investment and US$852m Ukraine impairment

ArcelorMittal has disclosed that US$2.5bn of cash was absorbed by working-capital investment during the first nine months of 2026, while the idling of its Ukrainian operations triggered a US$852m impairment charge in the third quarter.

The steelmaking group said the working-capital investment was largely temporary and expected most of it to unwind during the fourth quarter, potentially releasing cash and helping reduce net debt.

The figures were published in ArcelorMittal’s third-quarter results on 5 November and highlight the different pressures facing a capital-intensive manufacturer: cash tied up in day-to-day operations and substantial costs arising from disruption to production assets.

Working capital increased by a further US$500m during the third quarter. Net debt reached US$10.3bn at the end of September, reflecting both this temporary investment and US$400m of shareholder returns during the period.

ArcelorMittal reported US$500m of underlying free cash flow for the first nine months, calculated after US$1.1bn of strategic growth investment but excluding the temporary US$2.5bn working-capital outflow.

The underlying cash-flow measure therefore differs materially from cash generation after the movement in working capital. The company expects a substantial reversal, although the timing and amount ultimately released will depend on trading and operating conditions.

The balance-sheet pressure coincided with exceptional costs linked to ArcelorMittal Kryvyi Rih in Ukraine.

The company announced in September that it would idle the operations following repeated missile strikes, deteriorating safety conditions and severe logistics pressures. The newly reported financial consequences include US$852m of impairment charges and a further US$293m of exceptional charges.

An additional US$170m reduction in deferred tax assets also affected the quarter’s tax expense.

ArcelorMittal reported a quarterly net loss of US$391m, despite generating US$2.02bn of earnings before interest, tax, depreciation and amortisation, up 34 per cent year on year.

The company maintained liquidity of US$8.7bn at the end of September, comprising US$3.2bn of cash and US$5.5bn of available credit lines.

For corporate lenders and working-capital providers, the results illustrate how inventory, receivables and other operating-capital requirements can affect liquidity even when underlying trading performance improves. The immediate financial question is whether the anticipated fourth-quarter release of working capital materialises alongside the group’s continuing operational commitments.