Steel producer ArcelorMittal South Africa (AMSA) has reported a headline loss of R3.355 billion for the year ended 31 December 2025, narrowing from the R5.102 billion loss recorded in 2024. The results, released on Thursday, 5 February 2026, were presented against what the company described as a sustained downturn in both domestic and global steel markets.
Chief Executive Officer Kobus Verster said the figures reflect the intensity of the pressures facing the industry.
“The year reflects the challenging operating environment the steel industry faced during 2025. Profitability was impacted by weak domestic economic activity, persistent global overcapacity, high import penetration, elevated administered input costs, and continued pressure on steel prices,” he said.
Despite the market strain, AMSA reported measurable improvement in both financial and operational performance, driven largely by a sharp reduction in operating losses.
“The Company reduced its EBITDA loss by nearly two-thirds to R1.098 billion, from R2.95 billion in the prior year, reflecting disciplined cost control, a 15% reduction in the raw material basket, stabilised fixed costs of R6.8 billion, and improved operational reliability in the Flats Business,” Verster said.
The company also reported progress under its Value Plan, which delivered R1.1 billion in savings, up from R0.91 billion in 2024.
However, AMSA acknowledged that operational setbacks partially offset these gains.
Moreover, Verster noted that inefficiencies and negative incidents reduced EBITDA by approximately R0.41 billion during the year.
Liquidity management featured prominently in the year-end assessment. AMSA generated approximately R1.23 billion in cash through the disposal of surplus metallics and by-products during the restructuring period.
Revenue declined 16% to R32.298 billion (2024: R38.598 billion), which AMSA attributed to a 12% drop in total steel sales volumes and a 5% decline in realised steel prices in rand terms.
On the cost side, electricity tariffs rose by 15%, while the raw material basket declined 15%, helping to limit the net impact of cost pressures.
Operational performance improved, with average capacity utilisation rising from 64% in 2024 to 68% in 2025, although crude steel production and sales volumes both declined by around 12% year-on-year.
A key structural intervention during the year was the wind-down of the Longs Business, which had direct implications for Newcastle Works and operations in Vereeniging.
“The impact of the Longs Business on EBITDA was neutralised in 2025, compared to a loss of R1.7 billion in 2024,” Verster said.
To support liquidity during this process, AMSA generated approximately R1.23 billion from the disposal of surplus metallics and by-products, although this carried a R0.47 billion negative impact on EBITDA.
Net finance charges declined to R1.227 billion from R1.372 billion in 2024. However, free cash outflow increased to R0.888 billion (2024: R0.559 billion) following capital expenditure of R0.794 billion.
As a result of the restructuring and trading conditions, net borrowings increased to R6.448 billion at year-end, up from R5.111 billion a year earlier.
Looking ahead, AMSA said ongoing discussions with the Industrial Development Corporation (IDC) could materially influence the company’s direction if concluded. Previous negotiations late in 2025 had collapsed after the company declined an informal proposal valued at approximately R8.5 billion, which would have included repayment of R7 billion owed to the group’s parent company.
AMSA’s 2025 results illustrate a company undergoing structural adjustment within a difficult steel market.
While revenue and volumes remain under pressure, the reduction in operating losses and improved reliability in the Flats Business signal a deliberate effort to stabilise the core business while navigating a volatile domestic and global environment.
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