PITTSBURGH–(BUSINESS WIRE)– United States Steel Corporation (NYSE: X) has announced a net loss of $116 million for the first quarter of 2025, translating to a loss of $0.52 per diluted share.
In comparison, the adjusted net loss for the same period stands at $87 million, or $0.39 per diluted share.
This disappointing performance contrasts sharply with the company’s figures from the first quarter of 2024, where it reported net earnings of $171 million, or $0.68 per diluted share, along with adjusted net earnings of $206 million, equating to $0.82 per diluted share.
Reflecting on these results, David B. Burritt, President and Chief Executive Officer of U.S. Steel, stated, “Our adjusted EBITDA of $172 million highlights the strength and resilience of our operating performance, despite the seasonally low results driven by annual mining logistics constraints in our North American Flat-Rolled segment and lagging spot prices.”
The North American Flat-Rolled segment saw a solid EBITDA margin of 5%, showcasing the effectiveness of the company’s commercial strategy, product mix, and disciplined cost management.
Notably, U.S. Steel recorded its highest quarterly shipments from its Mini Mill segment, attributed to the ongoing ramp-up of Big River 2 (BR2), a hallmark of American innovation in steelmaking which is steadily moving towards full operational capacity.
Burritt elaborated, “After accounting for $55 million in ramp-up impact at BR2, Mini Mill EBITDA margins reached 10%.
Our European business experienced a boost from increased shipments and effective cost management, and our Tubular segment also showed sequential improvements due to elevated average selling prices.”
Looking ahead, Burritt expects the first quarter to reflect the lowest cash balance for the year, mainly due to the impacts of working capital associated with mining and the BR2 ramp-up.
He added, “We are pleased to see shipments from BR2 continue to rise, with customers praising product quality, especially related to our industry-leading ultra-light gauge hot roll, a first in North America, including for the U.S. commercial construction industry.”
As the market remains dynamic, Burritt acknowledged that U.S. Steel’s dedicated teams are effectively navigating current challenges through optimizations in product mix, operational efficiency, and growing shipment volumes in the Mini Mill segment.
Particularly, the company achieved record-setting safety performance this quarter, which Burritt noted as a testament to the operational excellence of all U.S. Steel mills.
For the second quarter of 2025, U.S. Steel anticipates adjusted EBITDA to range between $375 million and $425 million.
The North American Flat-Rolled segment is expected to improve, as seasonal constraints in mining logistics mitigate and higher average steel prices begin to affect results.
However, this positive outlook may be partially offset by lower shipments due to planned maintenance and outage costs throughout the quarter.
Results from the Mini Mill segment are projected to enhance thanks to both an increase in average selling prices and shipments stemming from BR2, even with an expected $50 million ramp-up cost.
In Europe, despite ongoing tepid demand, U.S. Steel expects results to stabilize, with higher average selling prices and volumes likely to balance out against planned seasonal maintenance activities.
The Tubular segment is also expected to perform consistently, as the benefits from higher selling prices may be slightly counteracted by modest increases in costs.
Overall, the company is optimistic about achieving positive enterprise free cash flow in the second quarter, as the effects of first-quarter working capital pressures begin to unwind.
In terms of performance metrics, U.S. Steel continues to present adjusted net earnings, adjusted net earnings per diluted share, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, and adjusted EBITDA margin as non-GAAP measures.
These metrics serve as valuable tools for understanding the company’s operational performance and provide additional insight for management and investors to compare results with those of other enterprises in the sector.
Management aspires to highlight adjusted net earnings and adjusted EBITDA as reflections of ongoing operating performance by excluding exceptional items from the analysis.
While these measures offer useful perspectives, U.S. Steel emphasizes that they should not serve as replacements for net earnings or other U.S. GAAP financial measurements.
The company also reports on free cash flow and investable free cash flow as non-GAAP measures that illustrate cash generation from operations after accounting for investment activities.
These financial snapshots support a deeper understanding of the Company’s cash utilization and overall fiscal health.
U.S. Steel’s recent release also includes a cautionary note regarding forward-looking statements, underlining the inherent risks and uncertainties associated with such statements as identified by the Private Securities Litigation Reform Act of 1995 and other relevant securities legislation.
Management confirms that while they believe these forward-looking statements to be reasonable at the time of issuance, actual results may vary significantly due to various uncontrollable factors.
The company specifically warns against placing undue reliance on these statements, which reflect beliefs rather than historical facts about its future operations, financial performance, and other anticipated developments.
Risks highlighted include potential complications in completing any proposed transactions, government approvals, operational disruptions, unforeseen costs, and impacts on customer relationships and key personnel during transitional phases.
U.S. Steel encourages stakeholders to review the company’s Annual Report on Form 10-K for comprehensive details on the risks affecting future performance.
The information shared in this release is current as of the date specified and the company does not commit to updating forward-looking statements beyond mandated obligations by law.
The document also clarifies terminology: references to “U. S. Steel,” “the Company,” “we,” “us,” and “our” collectively refer to United States Steel Corporation and its subsidiaries, while “Big River Steel” refers to Big River Steel Holdings LLC and its subsidiaries.
Founded in 1901, U. S. Steel is committed to providing profitable and sustainable steel solutions.
Leveraging the expertise of its workforce and a strong emphasis on safety, U. S. Steel serves a variety of industries, including automotive, construction, and packaging, with high-quality steel products.
By leveraging competitively advantageous iron ore production, the company supports its integrated steelmaking processes and invests in electric arc furnaces to enhance efficiency.
Looking towards the future, U.S. Steel aims to achieve net-zero greenhouse gas emissions by 2050, positioning itself at the forefront of developing stronger, lighter, and environmentally friendly steel products.
These include innovative offerings such as XG3® advanced high-strength steel and verdeX® steel, which has significantly lower CO2 emissions and greater recycled content.
Additionally, the lightweight InduX™ steel caters to emerging markets like electric vehicles and renewable energy generators.
U. S. Steel operates across the United States and Central Europe, with its headquarters based in Pittsburgh, Pennsylvania.
For further details, interested parties are encouraged to visit www.ussteel.com and follow U.S. Steel on various social media platforms.
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