ArcelorMittal South Africa (AMSA) remains under severe financial pressure after reporting a sharp drop in revenue, a widening net loss and a growing debt burden in the first half of 2026.
The steelmaker reported a 34% loss to R1.25-billion from R932-million in the same period last year, while revenue dropped 30% to R12-billion. This situation comes as crude steel production declined and weak domestic demand, lower realised steel processes and high levels of imported steel weighed on sales.
Net borrowings also increased 72% to R7.94-billion from R4.6-billion the previous year, which reflected a free cash outflow of R1-billion during the period.
The business continued to face extremely challenging market conditions, with imported steel accounting for 47% of South Africa’s apparent steel consumption, while a stronger rand also reduced revenue.
The company posted an EBITDA loss of R409-million compared with a loss of R110-million in the first half of 2025. It said the result included several once-off costs, including charges linked to supporting liquidity, severance costs, and the recovery of blast furnace operations following issues with iron ore quality.
Kobus Verster, AMSA chief executive, said despite the challenges seen, the restructuring programme was beginning to gain momentum.
He said the placement of the loss-making long steel business into care and maintenance, operational simplification, procurement savings, reliability improvements and lower fixed costs had strengthened the business despite continued pressure on profitability and cash generation.
“Fundamentally, the company is in a much stronger and more focused position, having faced several loss-making operations in care and maintenance. Our priorities remain liquidity, liability, and improving our cost position.
“The substantial improvement in operation performance and the expected implementation of fair trade measures could support volume in the near term and support moving the company to a positive cash flow on a sustainable basis,” said Verster.
He acknowledged that the group’s cost base remains too high and said further progress depends on reducing energy and logistics costs, improving operational efficiency and advancing discussions with Eskom, Transnet and other partners.
AMSA also suspended plans to sell non-core assets while it awaits the outcome of its proposed transaction with the Industrial Development Corporation.
- ArcelorMittal South Africa reported a 34% net loss increase to R1.25 billion and a 30% revenue drop to R12 billion in H1 2026 due to weak demand, lower prices, and high steel imports.
- Net borrowings surged 72% to R7.94 billion, with a free cash outflow of R1 billion, amidst continuing challenging market conditions and a stronger rand impacting revenue.
- EBITDA loss widened to R409 million from R110 million, influenced by one-off costs related to liquidity support, severance, and blast furnace recovery issues.
- CEO Kobus Verster noted progress from restructuring efforts, including care and maintenance of loss-making operations, procurement savings, and operational improvements.
- The company suspended non-core asset sales pending a proposed transaction with the Industrial Development Corporation and aims to reduce costs and improve operational efficiency.
ArcelorMittal
Net borrowings also increased 72% to R7.94-billion from R4.6-billion the previous year, which reflected a free cash outflow of R1-billion during the period.
Kobus Verster, AMSA chief executive, said despite the challenges seen, the restructuring programme was beginning to gain momentum.
He said the placement of the loss-making long steel business into care and maintenance, operational simplification, procurement savings, reliability improvements and lower fixed costs had strengthened the business despite continued pressure on profitability and cash generation.
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He acknowledged that the group's cost base remains too high and said further progress depends on reducing energy and logistics costs, improving operational efficiency and advancing discussions with Eskom, Transnet and other partners.
AMSA also suspended plans to sell non-core assets while it awaits the outcome of its proposed transaction with the
