U.S. Steel Corporation Reports First Quarter 2025 Results
United States Steel Corporation has released its financial results for the first quarter of 2025, revealing a net loss and a decline in revenue compared to the same period last year. The company, a major player in the steel industry, has faced several operational challenges and market conditions that have impacted its financial performance.
Financial Highlights
For the first quarter of 2025, U.S. Steel reported a net loss of $116 million, or $0.52 per diluted share. On an adjusted basis, the net loss was $87 million, or $0.39 per diluted share. This is a significant decline from the first quarter of 2024, where the company reported net earnings of $171 million, or $0.68 per diluted share, and adjusted net earnings of $206 million, or $0.82 per diluted share.
Adjusted EBITDA for the first quarter of 2025 was $172 million, down from $414 million in the same period last year. The company's revenue also saw a decline, with net sales of $3.727 billion compared to $4.160 billion in the first quarter of 2024.
Business and Operational Highlights
Despite the overall financial challenges, U.S. Steel's North American Flat-Rolled segment achieved an EBITDA margin of 5%, driven by a strong commercial strategy, product mix, and disciplined cost management. The Mini Mill segment recorded its highest quarter of shipments to date, with Big River 2 (BR2) ramping up towards full capacity. The European segment benefited from higher shipments and strong cost management, while the Tubular segment posted sequential gains due to stronger average selling prices.
Strategic Initiatives and Corporate Developments
U.S. Steel continues to focus on strategic initiatives to enhance its operational efficiency and market position. The company highlighted the ramp-up of BR2, which is expected to significantly contribute to future performance. Additionally, U.S. Steel is committed to reaching net-zero greenhouse gas emissions by 2050, with ongoing investments in sustainable steel solutions.
Management's Perspective
David B. Burritt, President and CEO of U.S. Steel, commented on the company's performance, emphasizing the resilience of their operations despite seasonal and market challenges. Burritt highlighted the strong performance of the Mini Mill segment and the positive feedback from customers regarding the quality of products from BR2. He also noted the company's record-setting safety performance and the expectation of improved results in the second quarter as seasonal constraints ease.
Future Outlook
Looking ahead, U.S. Steel expects second quarter adjusted EBITDA to be in the range of $375 million to $425 million. The company anticipates improved results in the North American Flat-Rolled segment as seasonal constraints ease and higher steel prices are realized. The Mini Mill segment is also expected to see better performance with increased selling prices and volumes from BR2. However, planned maintenance activities and outage costs may partially offset these gains. Overall, U.S. Steel aims to deliver positive enterprise free cash flow in the second quarter.
SEC Filing: UNITED STATES STEEL CORP [ X ] - 8-K - May. 01, 2025