United States Steel Corporation Provides Fourth Quarter 2024 Guidance
U.S. Steel (NYSE: X) has provided its Q4 2024 guidance, projecting adjusted net earnings per diluted share of ($0.29) to ($0.25) and adjusted EBITDA of approximately $150 million. The company completed over $4 billion in growth capital investments, with Big River 2 (BR2) achieving first coil production on October 31, 2024.
The guidance reflects challenges including depressed steel prices and BR2 ramp-related costs. The North American Flat-Rolled segment maintains strong EBITDA through its commercial strategy, while Europe faces weak demand and pricing. The company is temporarily operating three blast furnaces due to unplanned downtime from a fire at #1 Caster, planning to return to two furnaces by January. The Tubular segment faces pressure from weak pricing environment.
U.S. Steel (NYSE: X) ha fornito la sua guida per il quarto trimestre del 2024, prevedendo un utile netto rettificato per azione diluita compreso tra ($0.29) e ($0.25) e un EBITDA rettificato di circa 150 milioni di dollari. L'azienda ha completato oltre 4 miliardi di dollari in investimenti di capitale per la crescita, con Big River 2 (BR2) che ha raggiunto la produzione del primo coil il 31 ottobre 2024.
Le previsioni riflettono le sfide, tra cui i prezzi dell'acciaio depressi e i costi legati all'avvio di BR2. Il segmento North American Flat-Rolled mantiene un forte EBITDA grazie alla sua strategia commerciale, mentre in Europa si fa fronte a una domanda e prezzi deboli. L'azienda sta attualmente operando tre altiforni a causa di inattività non pianificata a causa di un incendio presso il Caster #1, e prevede di tornare a due altiforni entro gennaio. Il segmento Tubular affronta pressioni a causa di un ambiente di prezzi sfavorevole.
U.S. Steel (NYSE: X) ha proporcionado su guía para el cuarto trimestre de 2024, proyectando ganancias netas ajustadas por acción diluida de ($0.29) a ($0.25) y un EBITDA ajustado de aproximadamente 150 millones de dólares. La compañía ha completado más de 4 mil millones de dólares en inversiones de capital para crecimiento, con Big River 2 (BR2) logrando la producción del primer bobinado el 31 de octubre de 2024.
La guía refleja desafíos que incluyen precios del acero deprimidos y costos relacionados con la fase de ramp-up de BR2. El segmento North American Flat-Rolled mantiene un fuerte EBITDA gracias a su estrategia comercial, mientras que Europa enfrenta una débil demanda y precios. La compañía está operando temporalmente tres altos hornos debido a un tiempo de inactividad no planificado por un incendio en el Caster #1, planeando regresar a dos hornos para enero. El segmento Tubular enfrenta presión debido a un entorno de precios bajo.
U.S. Steel (NYSE: X)는 2024년 4분기 가이던스를 제공하며, 희석 주당 조정 순이익이 ($0.29)에서 ($0.25) 범위에 있으며, 조정 EBITDA는 약 1억 5천만 달러가 될 것으로 예상한다고 밝혔습니다. 이 회사는 40억 달러 이상의 성장 자본 투자 완료했으며, Big River 2 (BR2)는 2024년 10월 31일 첫 코일 생산을 달성했습니다.
이번 가이던스는 축소된 철강 가격과 BR2 ramp 관련 비용을 포함한 도전 과제를 반영하고 있습니다. 북미 평판 압연 부문은 상업적 전략을 통해 강력한 EBITDA를 유지하고 있는 반면, 유럽은 부진한 수요와 가격에 직면해 있습니다. 이 회사는 #1 캐스터의 화재로 인한 예기치 않은 가동 중지 때문에 현재 3개의 고로를 운영하고 있으며, 1월에는 2개 고로로 돌아갈 계획입니다. 튜브 부문은 약세 가격 환경에서 압박을 받고 있습니다.
U.S. Steel (NYSE: X) a fourni ses prévisions pour le quatrième trimestre 2024, projetant des bénéfices nets ajustés par action diluée de ($0.29) à ($0.25) et un EBITDA ajusté d'environ 150 millions de dollars. La société a réalisé plus de 4 milliards de dollars d'investissements en capital de croissance, le Big River 2 (BR2) ayant atteint la production de la première bobine le 31 octobre 2024.
Les prévisions reflètent des défis, y compris des prix de l'acier déprimés et des coûts liés à la montée en puissance de BR2. Le segment North American Flat-Rolled maintient un EBITDA solide grâce à sa stratégie commerciale, tandis que l'Europe fait face à une demande et des prix faibles. L'entreprise exploite temporairement trois hauts fourneaux en raison d'un temps d'arrêt imprévu causé par un incendie au Caster n°1, prévoyant de revenir à deux fourneaux d'ici janvier. Le segment Tubular est soumis à une pression en raison d'un environnement de prix faible.
U.S. Steel (NYSE: X) hat seine Prognose für das vierte Quartal 2024 abgegeben und erwartet bereinigte Nettoerträge pro verwässerter Aktie von ($0.29) bis ($0.25) sowie ein bereinigtes EBITDA von etwa 150 Millionen US-Dollar. Das Unternehmen hat über 4 Milliarden US-Dollar in Wachstumsinvestitionen getätigt, wobei Big River 2 (BR2) am 31. Oktober 2024 die erste Coilanlage in Betrieb genommen hat.
Die Prognose spiegelt Herausforderungen wider, darunter deprimierte Stahlpreise und damit verbundene Kosten für den Ramp-up von BR2. Der nordamerikanische Flachstahlbereich erzielt durch seine kommerzielle Strategie ein starkes EBITDA, während Europa mit schwacher Nachfrage und Preisen konfrontiert ist. Das Unternehmen betreibt vorübergehend drei Hochöfen aufgrund ungeplanter Stillstandszeiten durch einen Brand am #1 Caster und plant, bis Januar zu zwei Öfen zurückzukehren. Der Rohrsegment ist aufgrund eines schwachen Preisumfelds unter Druck.
- Completion of $4 billion growth capital investments
- Strong EBITDA performance in North American Flat-Rolled segment
- BR2 facility began shipments to customers in December 2024
- Q4 adjusted EBITDA guidance below previous outlook at $150 million
- Projected Q4 net loss of ($0.29) to ($0.25) per share
- Depressed steel prices across all segments
- Weak demand and pricing environment in European operations
- $50 million in BR2-related start-up costs and ramp impacts
- Unplanned downtime due to fire at #1 Caster
Insights
“The fourth quarter marked a critical milestone towards our Best for All® future, as the team completed execution on over
Burritt continued, “Adjusted EBITDA guidance of
Fourth Quarter Adjusted EBITDA Commentary
The Flat-Rolled segment’s adjusted EBITDA is expected to be lower than the third quarter due to lower selling prices and volumes, and increased outage and maintenance activity. Despite the weak demand environment, NAFR's diverse commercial portfolio continues to provide resilience, as the team maintains a strong focus on operations and cost management.
The Mini Mill segment’s adjusted EBITDA is expected to be lower than the third quarter due to lower volumes. For the fourth quarter, we expect approximately
The European segment’s adjusted EBITDA is expected to be lower than the third quarter, largely due to the unfavorable impact of weak demand, resulting in lower volumes, average selling prices, and volume inefficiencies. The third quarter included a favorable adjustment related to the reserve for CO2 emissions, which is not expected in the fourth quarter.
The Tubular segment’s adjusted EBITDA is expected to be higher than the third quarter, primarily due to increased volume and lower costs due to the absence of outage activity.
UNITED STATES STEEL CORPORATION NON-GAAP FINANCIAL MEASURES RECONCILIATION OF ADJUSTED EBITDA GUIDANCE |
|||
(Dollars in millions) |
|||
Reconciliation to Projected Adjusted EBITDA Included in Guidance |
Q4 2024 |
||
Projected net earnings attributable to United States Steel Corporation included in guidance |
$ |
(115) |
|
Estimated income tax provision |
|
(30) |
|
Estimated net interest and other financial costs (income) |
|
|
(25) |
Estimated depreciation, depletion, and amortization |
|
250 |
|
Projected EBITDA included in guidance |
$ |
80 |
|
Estimated adjustments |
|
70 |
|
Projected adjusted EBITDA included in guidance |
$ |
150 |
|
UNITED STATES STEEL CORPORATION NON-GAAP FINANCIAL MEASURES RECONCILIATION OF ADJUSTED NET EARNINGS GUIDANCE |
|||
(Dollars in millions, except per share amounts) |
|||
Reconciliation to Projected Adjusted Net Earnings Attributable to U. S. Steel Included in Guidance |
Q4 2024 |
||
Projected net earnings attributable to United States Steel Corporation included in guidance |
|
$ |
(115) |
Estimated adjustments |
|
55 |
|
Projected adjusted net earnings attributable to United States Steel Corporation included in guidance |
$ |
(60) |
|
Reconciliation to Projected Adjusted Net Earnings Per Diluted Share Included in Guidance |
Q4 2024 |
||
Projected net earnings per diluted share included in guidance (mid-point of guidance) |
$ |
(0.51) |
|
Estimated adjustments |
|
0.24 |
|
Projected adjusted net earnings per diluted share included in guidance (mid-point of guidance) |
$ |
(0.27) |
Note: This reconciliation excludes the impact of the Company’s quarterly adjustment related to the surplus VEBA assets and certain transaction-related costs. See Note 18 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, for an explanation of the surplus VEBA assets. The excluded items are not expected to impact adjusted EBITDA.
Cautionary Note Regarding Forward-Looking Statements
This press release contains information regarding the Company that may constitute “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995 and other securities laws, that are subject to risks and uncertainties. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Generally, we have identified such forward-looking statements by using the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “target,” “forecast,” “aim,” “should,” “plan,” “goal,” “future,” “will,” “may” and similar expressions or by using future dates in connection with any discussion of, among other things, statements expressing general views about future operating or financial results, operating or financial performance, trends, events or developments that we expect or anticipate will occur in the future, anticipated cost savings, potential capital and operational cash improvements and changes in the global economic environment, anticipated capital expenditures, the construction or operation of new or existing facilities or capabilities and the costs associated with such matters, statements regarding our greenhouse gas emissions reduction goals, as well as statements regarding the proposed transaction between the Company and Nippon Steel Corporation. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements include all statements that are not historical facts, but instead represent only the Company’s beliefs regarding future goals, plans and expectations about our prospects for the future and other events, many of which, by their nature, are inherently uncertain and outside of the Company’s control. It is possible that the Company’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Management of the Company believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. In addition, forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company’s historical experience and our present expectations or projections. Risks and uncertainties include without limitation: the ability of the parties to consummate the proposed transaction between the Company and Nippon Steel Corporation, on a timely basis or at all; the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreement and plan of merger relating to the proposed transaction (the “Merger Agreement”); the risk that the parties to the Merger Agreement may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all; risks related to disruption of management time from ongoing business operations due to the proposed transaction; certain restrictions during the pendency of the proposed transaction that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the Company’s common stock; the risk of any unexpected costs or expenses resulting from the proposed transaction; the risk of any litigation relating to the proposed transaction; the risk that the proposed transaction and its announcement could have an adverse effect on the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with customers, suppliers, employees, stockholders and other business relationships and on its operating results and business generally; and the risk the pending proposed transaction could distract management of the Company. The Company directs readers to its Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and the other documents it files with the SEC for other risks associated with the Company’s future performance. These documents contain and identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements. All information in this press release is as of the date above. The Company does not undertake any duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations whether as a result of new information, future events or otherwise, except as required by law.
Note Regarding Non-GAAP Financial Measures
We present adjusted net earnings, adjusted net earnings per diluted share, earnings before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA, which are non-GAAP measures, as additional measurements to enhance the understanding of our operating performance. We believe that EBITDA, considered along with net earnings, is a relevant indicator of trends relating to our operating performance and provides management and investors with additional information for comparison of our operating results to the operating results of other companies.
Adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA are non-GAAP measures that exclude certain charges that are not part of the Company’s core operations such as restructuring or asset impairments (Adjustment Items). We present adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA to enhance the understanding of our ongoing operating performance and established trends affecting our core operations by excluding the effects of events that can obscure underlying trends. U. S. Steel’s management considers adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA as alternative measures of operating performance and not alternative measures of the Company’s liquidity and believes these measures are useful to investors by facilitating a comparison of our operating performance to the operating performance of our competitors. Additionally, the presentation of adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA provides insight into management’s view and assessment of the Company’s ongoing operating performance because management does not consider the Adjustment Items when evaluating the Company’s financial performance. Adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA should not be considered a substitute for net earnings, earnings per diluted share or other financial measures as computed in accordance with
Founded in 1901, United States Steel Corporation is a leading steel producer. With an unwavering focus on safety, the company’s customer-centric Best for All® strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products such as U. S. Steel’s proprietary XG3® advanced high-strength steel. The company also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 25.4 million net tons. U. S. Steel is headquartered in
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Corporate Communications
T – (412) 433-1300
E – media@uss.com
Emily Chieng
Investor Relations Officer
T – (412) 618-9554
E – ecchieng@uss.com
Source: United States Steel Corporation
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