Weak market demand weighed on US Steel (X.US) in Q4, and its Q1 profit guidance fell short of expectations.

U.S. Steel (X.US) reported its fourth-quarter 2024 earnings after the market closed on Thursday. The company reported a 15% YoY decrease in Q4 revenue to $3.51 billion, falling short of the market's expectation of $3.54 billion. Adjusted losses were $28 million, compared to $167 million in the same period last year; adjusted EPS was a loss of $0.13, missing the market's expectation of a loss of $0.11.

U.S. Steel has been dealing with weak demand for months. Looking ahead, the company expects adjusted EBITDA in the first quarter of 2025 to be between $100 million and $150 million, falling short of the market's expectation of $172 million due to the continued sluggish market.

U.S. Steel is currently focused on completing its merger with Nippon Steel. Earlier this month, former President Biden blocked Nippon Steel's $14.9 billion acquisition of U.S. Steel. U.S. Steel is challenging the decision in federal court.

But at the same time, activist investor Ancora Holdings has launched a proxy battle to force U.S. Steel to abandon the Nippon Steel deal. Ancora wants to replace U.S. Steel CEO David Burritt and its board, believing the company should prioritize domestic buyers and pursue financial and operational reforms.

U.S. Steel said its shareholders would not be well served by handing control to Ancora, noting that Ancora owns just 0.18% of the company's shares. However, Ancora said it is accumulating "substantial" shares and plans to disclose them in the future.