United States Steel Corporation Provides Third Quarter 2024 Guidance
United States Steel (NYSE: X) has provided guidance for Q3 2024, projecting adjusted net earnings per diluted share of $0.44 to $0.48 and adjusted EBITDA of approximately $300 million. The company reports resilient domestic flat-rolled steel demand amid a bottoming steel pricing environment. U.S. Steel is progressing with strategic initiatives, including the planned start-up of Big River 2 in Q4 2024, with $40 million in related start-up and construction costs expected in Q3. The company continues to advance regulatory reviews for its pending transaction with Nippon Steel, aiming to close by year-end. Nippon Steel has committed to additional investments of $1 billion for Mon Valley Works and $300 million for Gary Works post-closing.
United States Steel (NYSE: X) ha fornito indicazioni per il terzo trimestre del 2024, prevedendo utili netti rettificati per azione diluita tra $0,44 e $0,48 e EBITDA rettificato di circa $300 milioni. L'azienda segnala una domanda interna di acciaio laminato a caldo resistente in un contesto di prezzi dell'acciaio in fase di stabilizzazione. U.S. Steel sta progredendo con le iniziative strategiche, inclusa l'avviamento programmato di Big River 2 nel quarto trimestre del 2024, con $40 milioni di costi di avviamento e costruzione previsti per il terzo trimestre. L'azienda continua a portare avanti le revisioni normative per la sua transazione in sospeso con Nippon Steel, puntando a concludere entro la fine dell'anno. Nippon Steel ha promesso investimenti aggiuntivi di $1 miliardo per Mon Valley Works e $300 milioni per Gary Works dopo la chiusura.
United States Steel (NYSE: X) ha proporcionado orientación para el tercer trimestre de 2024, proyectando ganancias netas ajustadas por acción diluida de $0.44 a $0.48 y EBITDA ajustado de aproximadamente $300 millones. La empresa informa una demanda de acero laminado en caliente resistente en medio de un entorno de precios del acero que está tocando fondo. U.S. Steel está avanzando con iniciativas estratégicas, incluyendo el inicio planificado de Big River 2 en el cuarto trimestre de 2024, con $40 millones en costos de inicio y construcción esperados en el tercer trimestre. La compañía sigue avanzando en las revisiones regulatorias para su transacción pendiente con Nippon Steel, con el objetivo de cerrar antes de fin de año. Nippon Steel se ha comprometido a inversiones adicionales de $1 mil millones para Mon Valley Works y $300 millones para Gary Works después del cierre.
유나이티드 스틸 (NYSE: X)은 2024년 3분기 전망치를 제공하며 희석 주당 조정 순이익이 $0.44에서 $0.48이고 조정 EBITDA가 약 $300 백만일 것으로 예상하고 있습니다. 회사는 철강 가격이 바닥을 치고 있는 가운데 내수 평판강 수요가 견조하다고 보고하고 있습니다. 유나이티드 스틸은 2024년 4분기 Big River 2의 계획된 시작을 포함한 전략적 이니셔티브를 진행 중이며, 3분기 중에 관련 시작 및 건설 비용으로 $40 백만이 예상됩니다. 이 회사는 연말까지 마무리할 목표로 니폰 스틸과의 보류 중인 거래를 위한 규제 검토를 진행 중입니다. 니폰 스틸은 종료 후 Mon Valley Works에 대한 추가 투자로 $10억과 Gary Works에 대한 $3억을 약속했습니다.
United States Steel (NYSE: X) a fourni des prévisions pour le troisième trimestre 2024, projetant un bénéfice net ajusté par action diluée de 0,44 $ à 0,48 $ et un EBITDA ajusté d'environ 300 millions de dollars. L'entreprise signale une demande nationale résiliente pour l'acier laminé à chaud dans un environnement de prix de l'acier en stabilisation. U.S. Steel progresse dans ses initiatives stratégiques, y compris le démarrage prévu de Big River 2 au quatrième trimestre 2024, avec 40 millions de dollars de coûts de démarrage et de construction prévus pour le troisième trimestre. L'entreprise continue d'avancer dans les examens réglementaires pour sa transaction en attente avec Nippon Steel, visant à conclure d'ici la fin de l'année. Nippon Steel s'est engagé à investir un milliard de dollars supplémentaires dans Mon Valley Works et 300 millions de dollars dans Gary Works après la clôture.
United States Steel (NYSE: X) hat eine Prognose für das 3. Quartal 2024 abgegeben und erwartet bereinigte Nettogewinne pro verwässerter Aktie von $0,44 bis $0,48 sowie bereinigtes EBITDA von etwa $300 Millionen. Das Unternehmen berichtet von einer robusten inländischen Nachfrage nach Warmbandstahl in einem sich stabilisierenden Stahlpreisumfeld. U.S. Steel verfolgt strategische Initiativen, einschließlich des geplanten Starts von Big River 2 im 4. Quartal 2024, mit $40 Millionen an damit verbundenen Start- und Baukosten, die im 3. Quartal erwartet werden. Das Unternehmen setzt die behördlichen Prüfungen für die ausstehende Transaktion mit Nippon Steel fort, mit dem Ziel, bis zum Jahresende abzuschließen. Nippon Steel hat sich verpflichtet, zusätzliche Investitionen von $1 Milliarde für Mon Valley Works und $300 Millionen für Gary Works nach dem Abschluss zu tätigen.
- Resilient domestic flat-rolled steel demand
- Strategic initiatives progressing, including Big River 2 start-up in Q4 2024
- Pending transaction with Nippon Steel advancing, with additional investment commitments
- European segment's adjusted EBITDA expected to be higher than Q2
- Challenging pricing dynamics in steel market
- Softening demand environment in Europe
- Tubular segment facing pressure from weak pricing environment
- $40 million in start-up and construction costs for Big River 2 impacting Q3 results
- Lower expected adjusted EBITDA for Flat-Rolled and Mini Mill segments compared to Q2
Insights
U.S. Steel's Q3 2024 guidance reveals a mixed financial picture. The projected adjusted EBITDA of
The company's strategic initiatives, including the Big River 2 start-up and new product lines, are promising for long-term growth but are incurring significant short-term costs. The
The pending Nippon Steel transaction and their commitment to invest over
The guidance reflects the cyclical nature of the steel industry. Domestic flat-rolled demand remains resilient, but pricing pressures are evident across segments. The European market's softness, leading to the idling of Blast Furnace #1, is concerning and may indicate broader economic challenges.
The company's strategic investments in advanced steel products, such as NGO electrical steel and Galvalume®/Galvanized coating, position it well for future demand in electric vehicles and construction. However, the short-term pain of
The potential Nippon Steel acquisition could significantly alter the competitive landscape of the U.S. steel industry, potentially leading to increased efficiency and technological advancements.
U.S. Steel's Q3 guidance indicates a bottoming steel pricing environment, which could signal a potential turnaround in the coming quarters if macroeconomic conditions improve. The company's diverse order book in North America is proving important in offsetting pricing challenges.
The Tubular segment's weak performance highlights the ongoing struggles in the energy sector, which may persist given current oil price volatility. Investors should monitor this segment closely as an indicator of broader industrial demand.
The potential Nippon Steel acquisition has garnered significant support from employees and communities, suggesting a positive outlook for local stakeholders. This could mitigate potential regulatory concerns and smooth the path for transaction approval, potentially unlocking value for shareholders.
Commenting on third quarter guidance, President and Chief Executive Officer David B. Burritt said, “Adjusted EBITDA guidance of
Commenting on the Company’s strategic initiatives, Burritt continued, “We are approaching the planned start-up of Big River 2 in the fourth quarter of 2024. For the third quarter result, we expect approximately
Burritt concluded, “We continue to progress through the
Third Quarter Adjusted EBITDA Commentary
The Flat-Rolled segment’s adjusted EBITDA is expected to be lower than the second quarter as a result of softer selling prices. However, a diverse commercial portfolio and strong focus on operations and costs continue to drive resilient financial performance.
The Mini Mill segment’s adjusted EBITDA is expected to be lower than the second quarter. Average selling prices are expected to be sequentially lower, reflecting the segment’s market-based monthly contract and spot price exposure. Pricing headwinds are expected to be partially offset by lower metallics costs. Separately, as mentioned above, approximately
The European segment’s adjusted EBITDA is expected to be higher than the second quarter, despite the challenging market environment, largely due to a favorable adjustment for CO2 allowances.
The Tubular segment’s adjusted EBITDA is expected to be lower than the second quarter, primarily due to lower selling prices.
UNITED STATES STEEL CORPORATION NON-GAAP FINANCIAL MEASURES RECONCILIATION OF ADJUSTED EBITDA GUIDANCE |
||||
(Dollars in millions) |
||||
Reconciliation to Projected Adjusted EBITDA Included in Guidance |
Q3 2024 |
|||
Projected net earnings attributable to United States Steel Corporation included in guidance |
$ |
90 |
||
Estimated income tax provision |
|
(5) |
||
Estimated net interest and other financial costs (income) |
|
(55) |
||
Estimated depreciation, depletion, and amortization |
|
230 |
||
Projected EBITDA included in guidance |
$ |
260 |
||
Estimated adjustments |
|
40 |
||
Projected adjusted EBITDA included in guidance |
$ |
300 |
||
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 | Q3 2024 |
||
| Projected net earnings attributable to United States Steel Corporation included in guidance | $ |
90 |
|
| Estimated adjustments | 25 |
||
| Projected adjusted net earnings attributable to United States Steel Corporation included in guidance | $ |
115 |
|
Reconciliation to Projected Adjusted Net Earnings Per Diluted Share Included in Guidance Q3 2024 |
Q3 2024 |
|
Projected net earnings per diluted share included in guidance (mid-point of guidance) |
$ |
0.36 |
Estimated adjustments |
|
0.10 |
Projected adjusted net earnings per diluted share included in guidance (mid-point of guidance) |
$ |
0.46 |
Note: This reconciliation excludes the impact of the Company’s quarterly adjustment related to the surplus VEBA assets. 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. This excluded item is 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 June 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
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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 22.4 million net tons. U. S. Steel is headquartered in
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Corporate Communications
T – (412) 433-1300
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Emily Chieng
Investor Relations Officer
T – (412) 618-9554
E – ecchieng@uss.com
Source: United States Steel Corporation
FAQ
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