U.S. Steel Guides Q1 EPS Below Street Estimate, Says Nippon Steel Merger Will Make It 'Best Steelmaker'

United States Steel Corporation X provided first-quarter FY24 guidance today.

The company expects adjusted EPS of $0.80-$0.84 (vs. consensus of $0.89) and sees adjusted EBITDA of around $425 million.

U.S. Steel expects the Flat-Rolled segment’s adjusted EBITDA to be higher Q/Q, owing to higher spot steel prices and favorable impact from fixed-priced contracts negotiated for 2024. 

The Mini Mill segment’s adjusted EBITDA is expected to nearly double the fourth quarter’s performance, with average selling prices projected to increase Q/Q meaningfully.

The company anticipates the European segment’s adjusted EBITDA will be higher Q/Q on higher steel prices, along with lower energy costs and management cost improvements.

U.S. Steel anticipates the Tubular segment’s adjusted EBITDA to be lower Q/Q due to a decline in selling prices and shipment volumes.

David B. Burri, President and Chief Executive Officer, said, “We remain focused on running our business as we make progress towards closing our transaction with Nippon Steel Corporation. Our anticipated first quarter performance is in-line with our prior outlook, reflecting healthy steel demand, strong operating performance, and continued focus from our employees on delighting our customers.” 

“We look forward to merging with Nippon Steel Corporation as the Best Steelmaker with World-leading Capabilities.”

Related: “American Steel Companies Powered By American Steel Workers” – President Biden Sets Strong Pitch Against Nippon Steel’s U.S. Steel Acquisition Bid

Last month, U.S. Steel reported fourth-quarter earnings of $0.67 per share, which beat the analyst consensus estimate of 26 cents by 157.69%. 

Price Action: X shares are trading higher by 0.41% at $39.01 on the last check Monday.

Photo by Dennis Diatel on Shutterstock