A Trump victory could mean higher tariffs on foreign steel, with a key merger in limbo.Shares of U.S. steel stocks U.S. Steel (X 8.27%), Cleveland Cliffs (CLF 20.07%), and Steel Dynamics (STLD 13.76%) were rallying on Wednesday, up 8.2%, 20.1%, and 13.8%, respectively, on the day.It wasn't hard to figure out the reason for the rallies, as investors appear to believe the reelection of Donald Trump will be great news for steel stocks due to his penchant for tariffs and lower corporate taxes. Additionally, a p ...

Core Insights - United States Steel Corporation (X) reported a profit of $119 million or 48 cents for Q3 2024, a decline of approximately 60% from $299 million or $1.20 per share in the same quarter last year. Adjusted earnings per share were 56 cents, down from $1.40 a year ago, but exceeded the Zacks Consensus Estimate of 45 cents [1][2] Financial Performance - Revenues decreased by around 13% year over year to $3,853 million, surpassing the Zacks Consensus Estimate of $3,736 million [2] - Total steel shipments were 3,516,000 tons, down approximately 7% year over year, and below the estimate of 3,619,000 tons [2] Segment Highlights - **Flat-Rolled Segment**: EBIT was $106 million, down from $225 million a year ago. Shipments fell roughly 11.7% to 1,905,000 tons, with an average realized price per ton of $993, down around 4.2% year over year, exceeding the estimate of $940 [3] - **Mini Mill Segment**: Reported a loss of $28 million compared to a profit of $42 million a year ago. Shipments increased by 7.3% to 602,000 tons, with an average realized price per ton of $800, down around 11.2% year over year, lagging the estimate of $806 [4] - **U.S. Steel Europe**: Achieved a profit of $7 million, recovering from a loss of $13 million a year ago. Shipments fell around 6.2% to 899,000 tons, with an average realized price per ton of $802, down around 5.2% year over year, beating the estimate of $750 [5] - **Tubular Segment**: Posted a loss of $4 million compared to a profit of $87 million a year ago. Shipments rose roughly 5.7% to 110,000 tons, with an average realized price per ton of $1,805, down approximately 38.3% year over year, lagging the estimate of $1,886 [6] Financial Position - At the end of the quarter, cash and cash equivalents were $1,773 million, down around 45% from the prior-year quarter. Long-term debt was $4,068 million, down 1.5% [7] Outlook - U.S. Steel anticipates fourth-quarter adjusted EBITDA to be between $225 million and $275 million. The North American Flat-Rolled unit results are expected to decline modestly due to lower average selling price projections. The Mini Mill segment is expected to improve, despite $25 million in related start-up and one-time construction expenditures. European results are likely to be lower due to unfavorable CO2 allocations and weak demand and pricing. Tubular segment results are projected to be roughly flat compared to Q3 [8] Stock Performance - The company's shares have increased by 11.9% over the past year, contrasting with an 8.7% decline in the industry [9]

Merger and Corporate Actions - The Company entered into a Merger Agreement with NSC, with stockholder approval of 98.8% received on April 12, 2024, and expects to close the Merger in Q4 2024[155][158]. - There were no common stock repurchased under the share repurchase program in the nine months ended September 30, 2024, and the company does not expect to utilize the remainder of this authorization due to the Merger Agreement[207]. - The company received eleven demand letters from stockholders regarding disclosures related to a merger, which it believes are without merit[250]. Financial Performance - Net sales for Q3 2024 were $3,853 million, a decrease of 13% compared to $4,431 million in Q3 2023, with declines across all segments except for a minor increase in "Other" sales[168]. - Total earnings from reportable segments decreased by 76% to $81 million for the three months ended September 30, 2024, compared to $341 million in 2023[177]. - Net earnings attributable to United States Steel Corporation were $119 million and $473 million for the three months and nine months ended September 30, 2024, respectively, compared to $299 million and $975 million for the same periods in 2023, reflecting a decrease of 60% and 51% respectively[196]. - Total earnings before interest and income taxes for the nine months ended September 30, 2024, decreased by 63% to $383 million compared to $1,030 million in 2023[177]. - Net cash provided by operating activities was $711 million for the nine months ended September 30, 2024, down from $1,711 million in the same period in 2023, primarily due to lower net earnings and changes in working capital[198]. - Net cash used in investing activities was $1,784 million for the nine months ended September 30, 2024, compared to $1,935 million in the same period in 2023, indicating a decrease in capital expenditures[202]. - Capital expenditures for the nine months ended September 30, 2024, were $1,782 million, down from $1,939 million in the same period in 2023[203]. Segment Performance - The Flat-Rolled segment reported a 14% decrease in sales due to lower shipment volumes (255 thousand tons) and lower average realized prices ($43 per ton)[170]. - The Mini Mill segment saw a 5% decrease in sales, primarily due to lower average realized prices ($101 per ton), despite an increase in shipment volumes (41 thousand tons)[170]. - The Tubular segment experienced a 31% decrease in sales, driven by lower average realized prices ($1,122 per ton), although shipments increased by 7 thousand tons[170]. - Flat-Rolled segment earnings dropped by 53% to $106 million for the three months ended September 30, 2024, with raw steel production down 12% to 2,107 thousand metric tons[178]. - Mini Mill segment reported a loss of $28 million for the three months ended September 30, 2024, a 167% decrease from $42 million in 2023, with average realized steel price per ton down 11% to $800[182]. - USSE segment earnings increased by 154% to $7 million for the three months ended September 30, 2024, driven by lower raw material costs[187]. - Tubular segment reported a loss of $4 million for the three months ended September 30, 2024, a 105% decrease from $87 million in 2023, with average realized steel price per ton down 38% to $1,805[189]. Cost and Expenses - Selling, general and administrative expenses were $104 million for Q3 2024, down from $118 million in Q3 2023, attributed to lower profit and variable-based incentive costs[171]. - The Company recognized restructuring and other charges of $5 million for Q3 2024, compared to $18 million in Q3 2023[172]. - The cash conversion cycle increased by 5 days in the third quarter of 2024 compared to the fourth quarter of 2023, resulting in a cash conversion cycle of 24 days[199]. Capital Expenditures and Liquidity - The company finished the third quarter of 2024 with $1,773 million in cash and cash equivalents and total estimated liquidity of $4,052 million[209]. - The company expects 2024 capital spending to be $2.3 billion, with contractual commitments to acquire property, plant, and equipment totaling $830 million as of September 30, 2024[208]. Environmental and Regulatory Matters - U.S. Steel continues to monitor emerging regulations on Per- and Polyfluoroalkyl Substances (PFAS) as the U.S. EPA introduces additional regulations[223]. - U.S. Steel is currently involved in legal challenges regarding the final integrated iron and steel rule, which was signed on March 11, 2024, and published on April 3, 2024[226]. - The U.S. EPA proposed to lower the annual PM NAAQS from 12 µg/m³ to within the range of 9.0 to 10.0 µg/m³, with the final rule published on March 6, 2024[231]. - U.S. Steel continues to negotiate the resolution of a Notice of Violation regarding emissions at Granite City Works[268]. - The company received a civil penalty demand of $1.8 million from the ACHD for alleged exceedances of air standards at the Clairton plant, with ongoing appeals[272]. - A subsequent civil penalty demand of $2.2 million was received from the ACHD for alleged air standard exceedances from March 2, 2022, to November 30, 2023, also under appeal[273]. - The company faces a civil penalty demand of $4.6 million for alleged air permit violations at the Clairton plant, with a hearing scheduled for October 14, 2024[273]. - An additional civil penalty demand of $2.0 million for air permit violations from March 16, 2022, to December 31, 2023, is also under appeal, with a hearing set for October 29, 2024[273]. Market Conditions and Competition - U.S. Steel faces import competition due to global steel overcapacity, currently estimated at over 608 million net tons per year, significantly impacting operational and financial performance[233]. - U.S. imports of certain steel products are subject to a 25% tariff, with specific exemptions for certain countries and conditions[234]. - The Section 232 action has supported U.S. steel industries and U.S. Steel's investments in advanced production capabilities since its implementation in March 2018[237]. - The European Commission's safeguard on global steel imports, imposing 25% tariffs on imports exceeding TRQ limits, is set to expire in June 2026[238]. - U.S. Steel is actively defending 69 U.S. AD/CVD orders and 14 EU AD/CVD orders related to its products[239]. - In September 2024, the DOC initiated new AD/CVD investigations on U.S. imports of corrosion-resistant steel from ten countries, with preliminary determinations expected in the first half of 2025[241]. - Additional tariffs of 7.5% to 25% continue to apply to certain U.S. imports from China, including steel products, as per Section 301 of the Trade Act of 1974[242]. - U.S. Steel is participating in a Section 332 investigation assessing greenhouse gas emissions intensity of steel produced in the U.S., with a report expected in January 2025[243]. Environmental Liabilities - As of September 30, 2024, U.S. Steel's accrued liability for corrective action projects at Gary Works is approximately $23 million[262]. - U.S. Steel has an accrued liability of approximately $17 million for remediation costs at the former Geneva Works site as of September 30, 2024[264]. - The company has accrued liability of approximately $8 million as of September 30, 2024, for estimated remaining costs of remediation at the Fairfield Works facility[266]. - An accrued liability of $525,000 is reported as of September 30, 2024, for environmental issues at the South Works site[267]. - U.S. Steel estimates expenditures of $25 million to $30 million for the installation of low NOx burners at its Minnesota Ore Operations[270]. - As of September 30, 2024, approximately $3 million has been accrued for ongoing environmental studies, investigations, and remedial monitoring related to USS-UPI LLC[265]. Legal Matters - The company is involved in ongoing litigation related to asbestos, as noted in the financial statements[274].

For the quarter ended September 2024, United States Steel (X) reported revenue of $3.85 billion, down 13% over the same period last year. EPS came in at $0.56, compared to $1.40 in the year-ago quarter.The reported revenue represents a surprise of +3.13% over the Zacks Consensus Estimate of $3.74 billion. With the consensus EPS estimate being $0.45, the EPS surprise was +24.44%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall St ...

United States Steel (X) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $1.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 24.44%. A quarter ago, it was expected that this steel maker would post earnings of $0.76 per share when it actually produced earnings of $0.84, delivering a surprise of 10.53%.Over the last four quarters, the com ...

NEWS RELEASE Emily Chieng Investor Relations Officer T - (412) 618-9554 E - ecchieng@uss.com CONTACTS: Corporate Communications T - (412) 433-1300 E - media@uss.com FOR IMMEDIATE RELEASE: • Third quarter 2024 net earnings of $119 million, or $0.48 per diluted share. • Third quarter 2024 adjusted net earnings of $140 million, or $0.56 per diluted share. • Third quarter 2024 adjusted EBITDA of $319 million. PITTSBURGH, October 31, 2024 – United States Steel Corporation (NYSE: X) reported third quarter 2024 ne ...

The market expects United States Steel (X) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be re ...

United States Steel Corporation (X) has become the first steel company in the world to qualify to sell its products as ResponsibleSteel Certified Steel at its Big River facility in Osceola, AR. Big River achieved the first ResponsibleSteel Site Certification in North America in 2022 for steel that is sustainably sourced and made.ResponsibleSteel is the industry's premier worldwide multi-stakeholder standards body, offering site-level certification and, for the first time, steel certification. By reaching th ...

United States Steel Corporation (X) issued its guidance for third-quarter 2024. The company expects adjusted net earnings per share to be in the range of 44-48 cents and adjusted EBITDA to be $300 million.X’s Performance Outlook for Q3For the third quarter, the Flat-Rolled segment's adjusted EBITDA is expected to be down sequentially due to lower selling prices. However, U.S. Steel’s diverse commercial portfolio and operational efficiency are expected to help offset some of this impact.The Mini Mill segment ...

Key TakeawaysNippon Steel reportedly has been given permission by U.S. security officials to refile its plans to purchase U.S. Steel.Bloomberg said that effectively would push the review period for the $14.9 billion deal past the November elections.Politicians including President Joe Biden, Vice President Kamala Harris, and former president Donald Trump have questioned the purchase, arguing that U.S. Steel should remain American-owned. Shares of U.S. Steel (X) advanced Wednesday amid a report that Nippon St ...