US Steel Corporation issues Q1 2025 forecast
United States Steel Corporation has recently announced its first quarter 2025 financial guidance, expecting adjusted net earnings per diluted share to range from ($0.53) to ($0.49) and adjusted EBITDA to be around $125 million. The company’s President and CEO, David B. Burritt, expressed confidence in the guidance and highlighted the North American Flat-Rolled segment’s success due to its commercial strategy, operational efficiencies, and cost management.
Burritt noted that the Mini Mill segment is expected to see improvements in the first quarter with increasing volumes from Big River Steel (BRS) and Big River 2 (BR2). In Europe, although the pricing environment has slightly improved, demand remains subdued. The Tubular segment continues to face challenges from a weak pricing environment, but there is optimism for pricing improvements in the future.
Burritt also mentioned the positive feedback from customers on the product quality of shipments from BR2 and anticipates its contribution to the company’s 2025 EBITDA. With BR2 expected to reach full operating capacity and generate free cash flow this year, it is set to be a significant asset for United States Steel Corporation.
Furthermore, Burritt commended President Trump’s recent tariff announcements and emphasized the company’s bright future, thanks to the partnership with Nippon Steel. The collaboration includes investment commitments, technology transfer, and innovation, all of which will benefit U. S. Steel in the long run.
In terms of the adjusted EBITDA breakdown for different segments, the Flat-Rolled segment is expected to experience lower adjusted EBITDA in the first quarter due to seasonal logistics constraints in the mining sector. However, higher average selling prices and increased volumes are predicted to offset this impact in the following quarter.
On the other hand, the Mini Mill segment forecasts higher adjusted EBITDA in the first quarter, driven by increased shipments. The European segment anticipates improved adjusted EBITDA compared to the previous quarter, supported by volume efficiencies and favorable raw material pricing. Despite facing pressures from a challenging demand environment in Europe, the Tubular segment is expected to see higher adjusted EBITDA in the first quarter due to an increase in prime shipments and average selling prices.
In summary, United States Steel Corporation remains confident in its financial outlook for the first quarter of 2025, highlighting the strength of its various segments and the promising future ahead, particularly with the support of strategic partnerships and market developments.
