United States Steel (X) Q2 2024 earnings summary

Executive summary

• Q2 2024 net earnings were $183M ($0.72 per diluted share), down from $477M in Q2 2023; adjusted net earnings were $211M ($0.84 per diluted share).

• Net sales for Q2 2024 were $4.12B, an 18% decrease from Q2 2023; six-month net sales were $8.28B, down 13% year-over-year.

• The pending merger with Nippon Steel received over 98% shareholder approval; all non-U.S. regulatory approvals are complete, with U.S. review ongoing and closing expected in H2 2024.

• Major capital projects, including Big River 2 (BR2), are progressing, with total expected spend revised to $3.35B and start-up targeted for Q4 2024.

• Focus remains on value, innovation, and sustainability, with commitments to employees, customers, and communities.

Financial highlights

• Q2 2024 adjusted EBITDA was $443M (margin 10.8–11%), down from $804M in Q2 2023.

• Q2 2024 EBIT was $181M; segment EBIT: Flat-Rolled $183M, Mini Mill $28M, Europe $(10)M, Tubular $29M.

• Q2 2024 diluted EPS: $0.72; adjusted diluted EPS: $0.84.

• Cash and cash equivalents at June 30, 2024: $2.03B; total liquidity: $4.26B.

• Net debt at Q2 2024: $2.2B; debt at June 30, 2024: $4.18B.

Outlook and guidance

• Q3 2024 adjusted EBITDA expected between $275M and $325M.

• Lower average selling prices anticipated across all segments; margin pressure expected.

• Mini Mill segment to include $30M in start-up costs, consistent with Q2 2024.

• No share repurchases expected before merger close due to agreement restrictions.

• BR2 construction expected to complete in Q4 2024.