United States Steel 2025 Q1 Earnings Misses Targets as Net Income Declines 167.8%
Friday, May 2, 2025 5:03 am ET
27min read United States Steel (X) reported its fiscal 2025 Q1 earnings on May 01st, 2025. U.S. Steel's earnings fell short of expectations, with the company reporting a net loss of $116 million compared to a profit in the same quarter last year. The adjusted EBITDA guidance for Q2 is set between $375 million and $425 million, indicating improved operational performance. This forecast aligns with the company's anticipation of increased shipments and higher steel prices, despite ongoing maintenance affecting production volumes.
Revenue
The total revenue of united states steel decreased by 10.4% to $3.73 billion in 2025 Q1, down from $4.16 billion in 2024 Q1.
Earnings/Net Income
United States Steel swung to a loss of $0.52 per share in 2025 Q1 from a profit of $0.76 per share in 2024 Q1 (168.4% negative change). Meanwhile, the company reported a net loss of $-116 million in 2025 Q1, reflecting a 167.8% deterioration from the net income of $171 million achieved in 2024 Q1. The EPS results indicate a challenging performance compared to the previous year.
Post-Earnings Price Action Review
The earnings report metrics had a generally positive impact on United States Steel (X), with the potential for returns reaching up to 16.96% over the 30-day period post-release. However, the returns were noted to be higher for metrics related to net income and EPS rather than those tied to revenue. This suggests that investor sentiment is more strongly influenced by profitability measures than by revenue figures. The stock has shown resilience and recovery potential, even as revenue fell short of expectations, highlighting the importance of earnings and profitability in driving stock performance. Overall, the focus remains on how these metrics translate into future growth and stability for the company.
CEO Commentary
U.S. Steel President and Chief Executive Officer, David B. Burritt, expressed that the adjusted EBITDA of $172 million reflects the company's operational resilience, despite seasonal challenges in the North American Flat-Rolled segment. He highlighted a solid EBITDA margin of 5% due to effective commercial strategies and disciplined cost management. Burritt noted record shipments from the Mini Mill segment, particularly from Big River 2, which is ramping towards full capacity. He acknowledged the impact of working capital on cash balances but emphasized strong safety performance and the ability to navigate market volatility effectively.
Guidance
U.S. Steel anticipates second quarter adjusted EBITDA to range between $375 million and $425 million, with improvements expected in the North American Flat-Rolled segment as seasonal logistics constraints ease and steel prices rise. However, planned maintenance may partially offset shipment increases. The Mini Mill segment is expected to benefit from rising average selling prices and volumes, while results in Europe are predicted to remain steady amid seasonal maintenance. Overall, the company expects to generate positive enterprise free cash flow in the second quarter as working capital pressures unwind.
Additional News
In recent weeks, United States Steel has been navigating significant M&A activity as President Biden halted its acquisition by Nippon Steel over national security concerns. Despite the uncertainty, Nippon Steel has proposed further investments in U.S. Steel facilities to salvage the takeover deal. Additionally, the company's Board of Directors declared a dividend of $0.05 per share, reflecting a steady approach to shareholder returns amidst market volatility. Meanwhile, hedge fund Third Point acquired a meaningful stake in U.S. Steel, showing confidence in the company's potential for future growth and success in the steel industry.
Revenue
The total revenue of united states steel decreased by 10.4% to $3.73 billion in 2025 Q1, down from $4.16 billion in 2024 Q1.
Earnings/Net Income
United States Steel swung to a loss of $0.52 per share in 2025 Q1 from a profit of $0.76 per share in 2024 Q1 (168.4% negative change). Meanwhile, the company reported a net loss of $-116 million in 2025 Q1, reflecting a 167.8% deterioration from the net income of $171 million achieved in 2024 Q1. The EPS results indicate a challenging performance compared to the previous year.
Post-Earnings Price Action Review
The earnings report metrics had a generally positive impact on United States Steel (X), with the potential for returns reaching up to 16.96% over the 30-day period post-release. However, the returns were noted to be higher for metrics related to net income and EPS rather than those tied to revenue. This suggests that investor sentiment is more strongly influenced by profitability measures than by revenue figures. The stock has shown resilience and recovery potential, even as revenue fell short of expectations, highlighting the importance of earnings and profitability in driving stock performance. Overall, the focus remains on how these metrics translate into future growth and stability for the company.
CEO Commentary
U.S. Steel President and Chief Executive Officer, David B. Burritt, expressed that the adjusted EBITDA of $172 million reflects the company's operational resilience, despite seasonal challenges in the North American Flat-Rolled segment. He highlighted a solid EBITDA margin of 5% due to effective commercial strategies and disciplined cost management. Burritt noted record shipments from the Mini Mill segment, particularly from Big River 2, which is ramping towards full capacity. He acknowledged the impact of working capital on cash balances but emphasized strong safety performance and the ability to navigate market volatility effectively.
Guidance
U.S. Steel anticipates second quarter adjusted EBITDA to range between $375 million and $425 million, with improvements expected in the North American Flat-Rolled segment as seasonal logistics constraints ease and steel prices rise. However, planned maintenance may partially offset shipment increases. The Mini Mill segment is expected to benefit from rising average selling prices and volumes, while results in Europe are predicted to remain steady amid seasonal maintenance. Overall, the company expects to generate positive enterprise free cash flow in the second quarter as working capital pressures unwind.
Additional News
In recent weeks, United States Steel has been navigating significant M&A activity as President Biden halted its acquisition by Nippon Steel over national security concerns. Despite the uncertainty, Nippon Steel has proposed further investments in U.S. Steel facilities to salvage the takeover deal. Additionally, the company's Board of Directors declared a dividend of $0.05 per share, reflecting a steady approach to shareholder returns amidst market volatility. Meanwhile, hedge fund Third Point acquired a meaningful stake in U.S. Steel, showing confidence in the company's potential for future growth and success in the steel industry.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
