United States Steel (X) Q1 2025 earnings summary

Executive summary

• Net loss of $116 million for Q1 2025 ($0.52 per share), compared to net earnings of $171 million in Q1 2024, driven by lower sales prices and volumes across most segments.

• Adjusted EBITDA was $172 million, down from $414 million in Q1 2024, reflecting seasonally low results and mining logistics constraints.

• All segments contributed positive EBITDA, but results declined year-over-year due to lagging spot prices and ramp-up costs at Big River 2.

• Mini Mill segment achieved record shipments, with Big River 2 ramping up and contributing to a 10% EBITDA margin after ramp-up impacts.

• The proposed merger with Nippon Steel remains pending, with regulatory reviews and legal challenges ongoing.

Financial highlights

• Net sales were $3.73 billion, down 10% from $4.16 billion in Q1 2024.

• Gross margin declined to 7% from 9% in Flat-Rolled, and to 2% from 29% in Mini Mill.

• Operating cash flow was $(374) million, a significant decrease from $(28) million in Q1 2024, mainly due to lower earnings and working capital changes.

• Capital expenditures totaled $359 million in Q1 2025.

• Cash and cash equivalents at quarter-end were $594–$638 million; total liquidity was $2.87 billion.

Outlook and guidance

• Q2 2025 adjusted EBITDA expected between $375 million and $425 million.

• Segment results expected to improve sequentially in Flat-Rolled, Mini Mill, and USSE due to higher prices and volumes, though some cost pressures remain.

• Section 232 steel tariffs and new trade actions are anticipated to support domestic steel industry performance.

• Management expects liquidity to be adequate for planned capital expenditures, working capital, and debt service.

• Positive enterprise free cash flow anticipated in Q2 as working capital impacts unwind.