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ArcelorMittal South Africa Limited (Amsa) has reported a significant reduction in financial losses for the year ended 31 December 2025, even as it battles a \u201cmaterial uncertainty\u201d regarding its ability to continue as a going concern. The company successfully reduced its Ebitda loss by 63% to R1 098 million and its headline loss by more than a third to R3 355 million, primarily driven by the aggressive winding down of its chronically loss-making Longs Business into care and maintenance.<\/p>\n
Despite these improvements, the group\u2019s financial position remains precarious. Total liabilities now exceed total assets by R317 million, and net borrowings have climbed to R6 448 million. Independent auditors, EY, issued an unmodified review report but included an \u201cemphasis of matter\u201d regarding going concern, highlighting the company\u2019s dependency on successful discussions with the Industrial Development Corporation (IDC) for a R1 000 million loan facility and the continued support of its lenders.<\/p>\n
Read:
Can South Africa survive without Amsa?
ArcelorMittal, IDC end exclusive talks with no deal<\/p>\n
The pivot to flats and industrial repurposing<\/strong><\/p>\n With the Newcastle facility now in care and maintenance, Amsa is shifting its strategic focus. The primary objective for the Newcastle site is a transition into an industrial park, with plans to monetise assets and inventories to contribute to earnings starting in 2026.<\/p>\n ADVERTISEMENT<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n Meanwhile, the Flats Business remains the core of the group\u2019s turnaround strategy. While sales volumes for Flats were down 4%, crude steel production in this segment increased by 8% to 1.8 million tonnes, driven by improved plant reliability.<\/p>\n The restructuring has necessitated \u201cstructural footprint adjustments\u201d expected to contribute R740 million in support of the 2026 business plan. CEO HJ Verster noted that the priority for 2026 is to restore the core Flats Business to operating profitability, while also focusing on quality, service, and competitive pricing.<\/p>\n Read: ArcelorMittal ceases production at Newcastle, still no rescue in sight<\/p>\n Global headwinds and domestic risks<\/strong><\/p>\n ADVERTISEMENT:<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n Amsa\u2019s performance was hamstrung by a 16% drop in revenue to R32 291 million, impacted by a 12% decrease in total sales volumes and a 5% fall in realised rand steel prices. The global steel industry continues to struggle with overcapacity; while China\u2019s output hit a seven-year low, its exports reached a record 119 million tonnes, saturating international markets.<\/p>\n Domestically, high levels of imports, reaching 37% of South Africa\u2019s apparent steel consumption, have constrained domestic supply and market share. Looking ahead, management cited the rand\u2019s current strength against the dollar as a material risk to the 2026 first-half outlook.<\/p>\n The company is pinning hopes on commitments from the Department of Trade, Industry and Competition (DTIC) to implement fair trade protections in early 2026 to level the playing field against unfair imports.<\/p>\n ArcelorMittal South Africa share price<\/strong><\/p>\n Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n