Gold prices edge up after sharp losses; US inflation data awaited
Investing.com -- United States Steel Corporation (NYSE:X) reported better-than-expected first quarter results and provided an upbeat outlook, sending shares up 1.4% in after-hours trading.
The steelmaker posted an adjusted loss of $0.39 per share for Q1 2025, narrower than analysts’ estimates of a $0.41 per share loss. Revenue came in at $3.73 billion, surpassing expectations of $3.6 billion.
While U.S. Steel swung to a net loss of $116 million in Q1 compared to a profit of $171 million a year ago, the company highlighted the resilience of its operations amid challenging market conditions. Adjusted EBITDA was $172 million for the quarter.
"Our adjusted EBITDA of $172 million highlights the strength and resilience of our operating performance, despite the seasonally low results driven by annual mining logistics constraints in our North American Flat-Rolled segment and lagging spot prices," said U.S. Steel CEO David B. Burritt.
The company provided an improved outlook for Q2, projecting adjusted EBITDA between $375 million and $425 million as seasonal constraints ease and higher steel prices flow through. U.S. Steel expects positive free cash flow in Q2 as working capital impacts begin to unwind.
Shipments from the company’s new Big River 2 mill continue to rise, with customers praising product quality. However, U.S. Steel noted approximately $50 million in ongoing ramp-up costs for the facility in Q2.
"While markets remain dynamic, our dedicated teams are successfully navigating current volatility through optimizing mix, executing with efficiency, and growing shipment volumes in our Mini Mill segment," Burritt added.
U.S. Steel’s Q1 revenue declined 10.4% YoY to $3.73 billion, while steel shipments dipped slightly to 3.76 million net tons from 3.80 million net tons last year.