US Steel Faces Q1 Pressures, But Eyes Long-Term Gains From BR2 & Nippon Partnership

Comments
Loading...
Zinger Key Points

United States Steel Corporation X shares are trading lower premarket on Friday. On Thursday, the company guided for the first quarter of 2025 adjusted EPS loss of 53 cents – 49 cents vs. consensus loss of 30 cents.

Also, the company expects adjusted EBITDA of about $125 million in the first quarter of 2025, in line with prior first quarter outlook of $100 million – $150 million.

The company projects the Flat-Rolled segment’s adjusted EBITDA to be lower sequentially on typical seasonal logistics constraints in the mining sector, which is expected to unwind in the second quarter.

United States Steel expects higher average selling prices and higher volumes to partially offset this mining impact.

Meanwhile, the company anticipates Mini Mill segment’s adjusted EBITDA to be higher Q/Q on higher shipments.

Apart from this, the European segment’s adjusted EBITDA is expected to improve Q/Q due to an increase in shipments, volume efficiencies, and favorable raw material pricing despite the challenging demand environment in Europe.

On the other hand, the company sees Tubular segment’s adjusted EBITDA to be higher Q/Q led by an increase in prime shipments and rise in average selling prices.

President and Chief Executive Officer David B. Burritt said, ”BR2 is expected to make a significant contribution to our 2025 EBITDA, with run-rate throughput expected during the second half of 2025 and full run-rate capability in 2026.”

“We applaud President Trump’s leadership and advocacy for the American steel industry in his recent tariff announcements. We continue to assess the benefit we expect from these tariff policies.”

”Combined with the partnership with Nippon Steel, which includes investment commitments, technology transfer and innovation, U. S. Steel’s future is extremely bright.”

Investors can gain exposure to the stock via VanEck Steel ETF SLX and SPDR S&P Metals & Mining ETF XME.

Price Action: X shares are down 1.34% at $40.51 premarket at the last check Friday.

Read Next:

Image via Shutterstock.

X Logo
XUnited States Steel Corp
$40.51-1.34%

Stock Score Locked: Want to See it?

Benzinga Rankings give you vital metrics on any stock – anytime.

Reveal Full Score
Edge Rankings
Momentum75.50
Growth14.38
Quality-
Value73.39
Price Trend
Short
Medium
Long

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs

Posted In: