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United States Steel Corp Guides Q1 Loss; EBITDA at $125 Million

United States Steel Corporation (X) has announced first quarter 2025 adjusted loss per share guidance of $0.53 to $0.49. Despite this, adjusted EBITDA estimates are stable at $125 million, indicating some operational efficiency amid market challenges.

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AI Rating:   4
Adjusted Loss Per Share & Adjusted EBITDA
United States Steel Corporation has provided an adjusted loss per share guidance between $0.53 to $0.49 for the first quarter of 2025, indicating a negative outlook while also trying to manage production levels in accordance with customer demand.

The company expects its first-quarter adjusted EBITDA to be approximately $125 million, which is in line with previous estimates. This signals a degree of operational stability, particularly in the North American Flat-Rolled segment, where efforts focused on operational efficiencies and cost management are apparent.

Segment Performance
The performance expectations across the segments vary. The North American Flat-Rolled segment is experiencing a stable outlook but is expected to have lower adjusted EBITDA compared to the previous quarter due to seasonal logistics issues in mining. However, price increases and higher volumes could mitigate some of these impacts.

On a more positive note, the Mini Mill segment is projected to see sequential improvement, backed by increased shipments and an estimated $50 million ramp-related impact from expanding operations at Big River Steel (BRS) and Big River 2 (BR2). Here, pricing improvements and production volume increase should contribute to a more favorable outlook.

However, it's notable that the Tubular segment continues to encounter pressure from a weak pricing environment, although there is cautious optimism for improvements in the future. The overall demand in Europe remains subdued, which could threaten revenue in that market.

In summary, while the adjusted loss per share indicates potential financial challenges ahead, the adjusted EBITDA guidance suggests that United States Steel Corporation is managing its operations skillfully amid these pressures. The mixed signals may lead to volatility in stock prices, as investors weigh potential losses against the company's cost management strategies and segment performance improvements.
Stocks:  X