United States Steel Corporation’s Q4 2024 Financial Performance: Navigating Challenges
United States Steel Corporation (NYSE: X), a key player in the steel industry, reported a net loss of $89 million in the fourth quarter of 2024, equating to $0.39 per diluted share. This was an adjusted net loss of $28 million or $0.13 per diluted share, a notable drop compared to the same period last year when the company faced a net loss of $80 million or $0.36 per diluted share.
Despite the negative figures, U.S. Steel’s performance showed some positive trends. The company recorded an adjusted EBITDA of $190 million, reflecting resilience amidst weaker average selling prices and demand. However, these results came amid pressures from across its key operating segments, including North American Flat-Rolled and Tubular products.
Q4 Performance Breakdown: Key Insights
• North American Flat-Rolled Segment: This segment showed 10% EBITDA margin due to strong cost performance and a diversified product mix. The resilient commercial strategy helped buffer against a less favorable market environment.
• Mini Mill Segment: U.S. Steel made progress here, with initial shipments from the Big River 2 (BR2) mill starting in early December 2024. Although the company faced maintenance activities at the Big River Steel facility, the segment still delivered an 8% EBITDA margin after adjusting for $50 million in ramp-up costs.
• Tubular Segment: This division saw improved results, driven by higher shipments compared to the previous quarter, which helped offset weaker demand in other sectors.
Despite these efforts, the steel giant continues to face pressures from pricing and demand challenges, particularly in the European market.
2024 Full-Year Performance: A Year of Mixed Results
In the full year of 2024, U.S. Steel reported net earnings of $384 million or $1.57 per diluted share. However, this marked a significant decline from 2023, where the company had net earnings of $895 million or $3.56 per diluted share. Adjusted net earnings for 2024 were $529 million or $2.14 per diluted share, down from $1,195 million or $4.73 per diluted share in 2023.
This drop in profitability was attributed to the ongoing struggles in the steel market, including volatile steel prices and persistent challenges in demand. Despite these obstacles, U.S. Steel is focusing on strategic initiatives and expansion to improve its financial position in the coming years.
Strategic Initiatives: Focus on Big River and Mini Mill Growth
U.S. Steel’s leadership, particularly President and CEO David B. Burritt, emphasized the company’s ongoing investments in Big River Steel as a critical factor for future growth. Burritt noted that BR2 mill shipments began in December 2024 and are expected to ramp up steadily into 2025. The $4 billion investment in Big River Steel, one of the company’s most significant transformations, aims to bolster U.S. Steel's position in the market.
Customer feedback on the BR2 products has been positive, with initial shipments exceeding expectations. Burritt expressed confidence that volume growth and capability expansion in the Mini Mill segment will complement the company’s robust commercial strategy, particularly in the North American Flat-Rolled segment, which continues to perform well despite external challenges.
2025 Outlook: Expectations for a Rebound
Looking forward, U.S. Steel’s management remains cautiously optimistic about 2025. The company has provided a Q1 2025 outlook with expected adjusted EBITDA between $100 million and $150 million. The first quarter will likely see decreased results in the North American Flat-Rolled segment due to seasonal logistics constraints in the mining sector, but these pressures are expected to ease in the second quarter.
On the other hand, the Mini Mill segment is projected to show improved results as shipments from the BR2 mill continue to increase. While the European market faces continued challenges with pricing and demand, the Tubular segment should remain stable, showing results similar to the fourth quarter of 2024.
Burritt concluded, “We expect to generate positive free cash flow in 2025, thanks to the strategic growth of our Mini Mill segment and the operational strength of our North American Flat
