United States Steel Reports 10.4% Revenue Decline, Optimistic on Q2
2min read United States Steel Corporation (X.US) released its first-quarter 2025 financial results, showing a 10.4% year-over-year decrease in revenue to $3.73 billion, surpassing market expectations. The company reported an adjusted loss per share of $0.39, which was better than analyst estimates. Steel shipment volume slightly decreased from 3.8 million net tons to 3.76 million net tons.
The company's net loss for the first quarter of 2025 was $116 million, compared to a profit of $171 million in the same period last year. This performance was attributed to seasonal logistics constraints and a decline in steel prices. Despite these challenges, the company emphasized its operational resilience, highlighting the strength of its various business units and a positive development trajectory entering the second quarter.
David B. Burritt, the CEO of united states steel corporation, noted that despite seasonal performance declines in the North American flat-rolled steel business due to annual mining logistics limitations and lagging spot prices, the company's adjusted EBITDA for the quarter was $172 million. This figure underscores the company's operational strength and resilience.
Burritt also highlighted the company's commercial strategy, product mix, and rigorous cost management, which contributed to a 5% EBITDA margin in the North American flat-rolled steel business. The company's mini-mill operations, particularly the Big River Steel 2 (BR2) plant, performed exceptionally well. Burritt described the BR2 plant as a "paragon of innovation in American steelmaking." The mini-mill's shipment volume set a quarterly record, and despite $55 million in capacity expansion costs, the EBITDA margin reached 10%.
The company noted that its cash balance for the first quarter was at its lowest point for the year, primarily due to operational capital expenditures related to mining activities and capacity expansions at the BR2 plant. Burritt mentioned the demand from the U.S. commercial construction industry and expressed satisfaction with the increasing shipment volume from the BR2 plant, particularly the industry-leading ultra-light hot-rolled products.
For the second quarter, the company provided a more optimistic outlook, expecting adjusted EBITDA to range between $375 million and $425 million. This projection is based on the easing of seasonal constraints and an anticipated rise in steel prices. The company also expects to achieve positive free cash flow in the second quarter as operational capital expenditures decrease.
Despite the impact of $50 million in capacity expansion costs, the mini-mill operations are expected to strengthen further due to increased shipments and higher average pricing from the BR2 plant. The company's European operations are anticipated to remain stable, with seasonal maintenance costs offsetting price increases. The tubular products business is expected to perform similarly to the first quarter, as rising sales prices are offset by minor cost increases.
Burritt concluded by stating that despite market volatility, the company's focused team has successfully navigated current challenges through optimized product mixes, efficient execution, and increased shipments from the mini-mill operations. The company remains committed to its strategic initiatives and cost management efforts to drive long-term growth and profitability.
