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U.S. Steel beats Q3 expectations, shares edge higher

EditorRachael Rajan
Published 01/11/2024, 07:34 am
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PITTSBURGH - United States Steel Corporation (NYSE:X) reported third quarter 2024 earnings that surpassed analyst estimates, sending shares up 0.82% in after-hours trading Thursday.

The steel producer posted adjusted earnings per share of $0.56, beating the consensus forecast of $0.41. Revenue came in at $3.85 billion, topping expectations of $3.77 billion.

U.S. Steel's third quarter adjusted EBITDA was $319 million, demonstrating "resilience in our business model despite the weaker average selling prices experienced across our operating segments," according to CEO David B. Burritt.

The company's North American Flat-Rolled segment benefited from a strong commercial strategy leveraging diverse product mix and increased contracted volumes. The Mini Mill segment delivered 11% EBITDA margins when adjusting for $40 million in one-time start-up costs for strategic projects.

For the fourth quarter, U.S. Steel expects adjusted EBITDA between $225 million and $275 million. The company anticipates slightly lower results in its North American Flat-Rolled segment due to lower lagging average selling price expectations.

"We are very pleased to announce that we achieved first coil at Big River 2 (BR2), with the Big River team expecting to begin shipments to customers during the fourth quarter," Burritt noted.

U.S. Steel continues to work towards closing its transaction with Nippon Steel Corporation by year-end. The company highlighted additional commitments from Nippon Steel, including at least $1.3 billion in investments for the Mon Valley and Gary plants.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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