United States Steel (X) Q3 2024 earnings summary

Executive summary

• Q3 2024 net earnings were $119M ($0.48 per diluted share), with adjusted net earnings of $140M ($0.56 per share), as the company progressed toward closing the $55/share Nippon Steel acquisition, which received all non-U.S. regulatory approvals and shareholder support; U.S. reviews are ongoing.

• First coil produced at Big River 2 (BR2) in October 2024, with customer shipments expected in Q4, marking a strategic milestone.

• Board of Arbitration ruled in favor of the company, resolving all labor agreement issues for the NSC transaction.

• Nippon Steel committed an additional $1.3B in growth capital, bringing total commitments to $2.7B for asset upgrades and job security.

• Q3 2024 net sales were $3.85B, down 13% year-over-year.

Financial highlights

• Q3 2024 net earnings: $119M; adjusted net earnings: $140M; adjusted EBITDA: $319M; adjusted EBITDA margin: 8%.

• Q3 2024 net sales: $3.85B (down 13% year-over-year); nine months net sales: $12.13B.

• Liquidity at September 30, 2024: $4.1B, including $1.77B in cash; net debt: $2.46B.

• Q3 2024 EBIT: $48M; segment EBIT: Flat-Rolled $106M, Mini Mill $(28)M, Europe $7M, Tubular $(4)M.

• Q3 2024 adjusted profit margin: 4%; net earnings margin: 3.1%.

Outlook and guidance

• Q4 2024 adjusted EBITDA expected between $225M and $275M.

• Flat-Rolled segment faces continued unfavorable pricing and raw material costs; Mini Mill segment expects improved results with higher prices and BR2 ramp-up, despite $25M in start-up costs.

• U.S. Steel Europe anticipates weak demand, lower prices, and higher costs; Tubular segment expects improved volumes and efficiencies.

• 2024 capital spending expected to be $2.3B; BR2 total capital spend projected at $3.6B.