Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive focuses on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Group 2 - Proactive has a strong emphasis on technology adoption to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - United States Steel is currently in a complex situation due to its agreement to be acquired by Nippon Steel for $55 per share, while trading around $38 per share, indicating potential upside for investors [2][3][4] Acquisition Situation - The acquisition by Nippon Steel has attracted interest from other potential buyers, including major domestic steel companies like Nucor and Cleveland-Cliffs, which could lead to a higher offer than $55 per share or a lower one depending on the outcome of the Nippon Steel deal [3][4] - The political implications surrounding the Nippon Steel acquisition create uncertainty about the deal's success, which could affect U.S. Steel's future [5][11] Business Model and Financial Performance - U.S. Steel primarily uses blast furnaces for steel production, a costly process that results in significant revenue and earnings volatility due to the cyclical nature of the steel industry [6][11] - The company is attempting to diversify by investing in electric arc mini-mills, which may stabilize financial performance, but it still faces challenges in competing with companies that exclusively use this technology [7][11] Investment Considerations - The current landscape suggests that U.S. Steel may not be an attractive standalone investment due to its outdated technology and lack of industry leadership, making it a less compelling option for most investors [10][11] - Despite the complexities, there remains a possibility of a sale even if the Nippon Steel deal fails, which could appeal to aggressive investors looking for special situation stocks [10][11]

Core Insights - The article discusses the expertise of Vladimir Dimitrov, CFA, who has a background in brand and intangible assets valuation, particularly in the technology, telecom, and banking sectors [1] Group 1 - Vladimir Dimitrov has worked with some of the largest global brands during his career in London [1] - He graduated from the London School of Economics and focuses on identifying reasonably priced businesses with sustainable long-term competitive advantages [1]

Core Viewpoint - Shares of steel companies Nucor Corp and United States Steel Corp are experiencing significant gains following President Trump's announcement of a 25% tariff on steel and aluminum imports [1] Group 1: Stock Performance - Nucor Corp (NUE) shares increased by 5.6% to $137.51, marking a year-to-date gain of 19.8% from a two-year low of $112.25 on January 3 [1] - United States Steel Corp (X) shares rose by 2.7% to $37.94, with a year-to-date increase of 12.1% and breaking above the $38 resistance level [1] Group 2: Options Trading Activity - Call traders are responding positively, with Nucor stock seeing four times its average intraday call volume [2] - United States Steel stock has experienced double the usual number of bullish bets during the trading session [2] - The most active options for Nucor are the March 140 call, while for United States Steel, it is the March 55 call [2]

Financial Performance - In 2024, U.S. Steel's total steel shipments reached 14.206 million tons, a decrease from 15.507 million tons in 2023, representing a decline of approximately 8.4%[26] - Net earnings attributable to U.S. Steel in 2024 were $384 million, a decrease from $895 million in 2023, primarily due to reduced earnings before taxes[359] - The income tax expense for the year ended December 31, 2024, was $54 million, down from $152 million in 2023, reflecting a decrease in earnings before taxes and a benefit of $59 million related to 2023 tax returns[357] - Net cash provided by operating activities decreased to $919 million in 2024 from $2,100 million in 2023, primarily due to lower net earnings and changes in working capital[360] - The cash conversion cycle increased by 7 days in Q4 2024 compared to Q4 2023, driven by lower average realized prices (approximately $520 million) and decreased shipments (approximately $35 million)[361] Capital Expenditures and Investments - U.S. Steel's capital expenditures for strategic projects were $1.6 billion for the year ended December 31, 2024[34] - The construction of the BR2 mini mill, with a capacity of about 3 million tons per year, was completed in October 2024, with total capital spend expected to be approximately $3.6 billion[34] - Capital expenditures for 2024 were $2,287 million, down from $2,576 million in 2023, with Mini Mill capital expenditures accounting for $1,641 million[371] - Capital expenditures for 2025 are expected to total approximately $1.0 billion, significantly lower than 2024 due to the completion of several strategic projects[380] - The company had contractual commitments to acquire property, plant, and equipment totaling $683 million as of December 31, 2024[381] Environmental Initiatives - Environmental expenditures totaled $354 million in 2024, representing approximately 2% of total costs and expenses[113] - U.S. Steel's North America operations recycled 4.8 million tons of steel scrap in 2024, contributing to high recycling rates and sustainability efforts[114] - The company aims to reduce greenhouse gas emissions intensity by 20% by 2030 and achieve net-zero emissions by 2050, based on 2018 levels[118] - U.S. Steel has pre-purchased approximately 2.22 million EU Emission Allowances totaling €161 million (approximately $167 million) to cover emissions shortfalls[123] - U. S. Steel's environmental capital expenditures accounted for 4% of total capital expenditures in 2024, 3% in 2023, and 2% in 2022[402] Market and Competitive Landscape - The global steel production in 2024 was approximately 1.88 billion metric tons, consistent with 2023, with the top five producing countries accounting for about 74% of the total[29] - In 2025, additional steelmaking capacity is expected to enter the domestic market as competitors ramp up production[33] - U.S. Steel faces significant import competition due to global steel overcapacity estimated at over 630 million net tons per year, impacting operational and financial performance[99] - The Section 232 tariffs impose a 25% tariff on certain steel imports, with specific exemptions for countries like Argentina, Brazil, South Korea, and others[100] - U.S. Steel actively defends 69 U.S. and 14 EU antidumping and countervailing duty orders to protect its products from unfair competition[105] Product Development and Innovation - The company aims to enhance its competitive advantage in low-cost iron ore by completing a direct reduced grade pellet facility at Keetac ore operations in December 2023[34] - U. S. Steel's five-year plan includes developing low-carbon, high recycled-content steel grades, enhancing sustainability for customers in various industries[39] - The verdeX sustainable steel product line, launched in 2021, contains up to 90% recycled steel and reduces carbon emissions by 70-80% compared to traditional methods[39] - In 2023, U. S. Steel began production of InduX electrical steel products, which are ultra-thin, lightweight, and recyclable, targeting electric vehicles and generators[39] - The company has research centers in Pennsylvania, Slovakia, and Texas, focusing on developing innovative steel solutions to meet customer needs[39] Debt and Liquidity - The company repaid approximately $128 million in debt in 2024, ending the year with $3.62 billion in total liquidity[58] - Total estimated liquidity as of December 31, 2024, was $3,624 million, including $1,367 million in cash and cash equivalents[382] - Net cash used in financing activities was $199 million for the twelve months ended December 31, 2024, compared to $98 million in 2023, primarily due to the absence of proceeds from long-term debt issuance[372] - The company’s total contractual obligations amounted to $16,225 million, with $6,417 million due in 2025[392] Operational Performance - U.S. Steel achieved a corporate Days Away From Work (DAFW) rate of 0.06 in 2024, significantly better than the industry benchmark of 0.60[49] - Approximately 76% of Flat-Rolled sales, 56% of Mini Mill sales, 50% of USSE sales, and 82% of Tubular sales were contract sales in 2024[42] - Annual production capability of Flat-Rolled operations includes 7.5 million tons of raw steel at Gary Works and 22.4 million tons of iron ore pellets at Minnesota Ore Operations[67] - U.S. Steel's joint ventures include Hibbing Taconite Company with a production capability of 9.0 million tons, where U.S. Steel's share is 1.3 million tons[69] - Mini Mill operations at Big River Steel and Big River Steel 2 have a combined annual production capability of 6.3 million tons of raw steel[71] Regulatory and Compliance Issues - The U.S. EPA proposed a revised iron and steel rule on July 31, 2023, with finalization expected in 2024, which may have material impacts on U.S. Steel's operations[134] - The U.S. EPA's final rule on PM NAAQS significantly lowers the primary annual PM standard from 12 µg/m³ to 9.0 µg/m³, with ongoing litigation regarding its implementation[140] - U.S. Steel filed petitions for reconsideration and review regarding several environmental rules, indicating potential operational impacts that are currently not estimable[136][139] - The ongoing Russia-Ukraine conflict is affecting the legislative process related to emerging environmental regulations, creating uncertainty for U.S. Steel's operations[130] - U.S. Steel is exploring innovative steelmaking technologies to produce low greenhouse gas emissions intensity products[119]

Core Viewpoint - United States Steel Corporation reported a loss of $89 million or 39 cents per share for Q4 2024, which is a decline from a loss of $80 million or 36 cents per share in the same quarter last year. The adjusted loss per share was 13 cents, significantly lower than the earnings of 67 cents a year ago, but better than the Zacks Consensus Estimate of a loss of 25 cents [1][2]. Financial Performance - Revenues decreased by approximately 15% year over year to $3,509 million, surpassing the Zacks Consensus Estimate of $3,476.4 million [2]. - Total steel shipments were 3,296,000 tons, down around 13% year over year, and below the estimate of 3,341,000 tons [2]. Segment Highlights - **Flat-Rolled Segment**: Recorded a profit of $222 million, up from $128 million a year ago. Shipments fell roughly 9% year over year to 1,846,000 tons, with an average realized price per ton of $956, down around 2% year over year, exceeding the estimate of $925 [3]. - **Mini Mill Segment**: Reported a loss of $8 million compared to a profit of $74 million in the previous year. Shipments were 575,000 tons, down around 7%, with an average realized price per ton of $789, down around 2% year over year, ahead of the estimate of $779 [4]. - **U.S. Steel Europe**: Posted a loss of $35 million against a profit of $3 million in the year-ago quarter. Shipments fell around 28% to 732,000 tons, with an average realized price per ton of $751, down around 2% year over year, below the estimate of $776 [5]. - **Tubular Segment**: Reported a profit of $15 million, down from $126 million a year ago. Shipments rose roughly 8% to 143,000 tons, with an average realized price per ton of $1,539, down roughly 36% year over year, lagging the estimate of $1,724 [6]. Financial Position - At the end of 2024, the company's cash and cash equivalents were $1,367 million, a decrease of around 54% from the prior-year quarter. Long-term debt remained flat year over year at $4,078 million [7]. Outlook - U.S. Steel anticipates first-quarter 2025 adjusted EBITDA in the range of $100-$150 million. The Flat-Rolled segment is expected to decline due to logistics constraints, while the Mini Mill segment is projected to improve with higher shipments from the BR2 mill. Results in Europe are expected to modestly improve despite ongoing pricing and demand challenges, and the Tubular segment is expected to remain consistent with Q4 results [8]. Stock Performance - The company's shares have declined by 22% over the past year, compared to a 24.5% decline in the Zacks Steel Producers industry [9].

Group 1 - U.S. Steel reported a quarterly loss of $0.13 per share, better than the Zacks Consensus Estimate of a loss of $0.25, and compared to earnings of $0.67 per share a year ago, representing an earnings surprise of 48% [1] - The company posted revenues of $3.51 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.94%, but down from $4.14 billion year-over-year [2] - U.S. Steel has surpassed consensus EPS estimates three times over the last four quarters, and has also topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has gained approximately 7.5% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $3.86 billion, and for the current fiscal year, it is $2.01 on revenues of $16.44 billion [7] Group 3 - The Zacks Industry Rank indicates that the Steel - Producers industry is currently in the bottom 30% of over 250 Zacks industries, which may negatively impact stock performance [8] - Another company in the same industry, Olympic Steel, is expected to report a quarterly earnings of $0.07 per share, reflecting a year-over-year decline of 80.6%, with revenues projected at $448.6 million, down 8.3% from the previous year [9][10]

Financial Performance - Fourth quarter 2024 net loss was $89 million, or $0.39 per diluted share, compared to a net loss of $80 million, or $0.36 per diluted share in Q4 2023[2] - Full-year 2024 net earnings were $384 million, or $1.57 per diluted share, down from $895 million, or $3.56 per diluted share in 2023[3] - Net earnings for the twelve months ended December 31, 2024, were $384 million, a decrease from $895 million in 2023, representing a decline of 57.1%[14] - The adjusted net loss for the twelve months ended December 31, 2024, was $(28) million, compared to adjusted net earnings of $1,195 million in 2023[19] - The company reported a net earnings margin of (3)% for the three months ended December 31, 2024, compared to 2% in 2023[21] EBITDA and Cash Flow - Fourth quarter 2024 adjusted EBITDA was $190 million, while full-year adjusted EBITDA was $1,366 million, compared to $2,139 million in 2023[5] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $1,366 million, down from $2,139 million in 2023, a decline of 36.1%[21] - Free cash flow for 2024 was negative at $(1,357) million, compared to $(1,357) million in 2023[23] - Net cash provided by operating activities decreased to $919 million in 2024 from $2,100 million in 2023, a decline of 56.3%[14] Segment Performance - The North American Flat-Rolled segment achieved a 10% EBITDA margin, supported by a resilient commercial strategy and diverse product mix[4] - Mini Mill segment delivered an 8% EBITDA margin after adjusting for $50 million in construction and ramp-up costs[7] Production and Shipments - Total steel shipments in Q4 2024 were 3,296 thousand net tons, down from 3,807 thousand net tons in Q4 2023[11] - Average realized price for Flat-Rolled products decreased to $956 per net ton in Q4 2024 from $978 per net ton in Q4 2023[11] - United States Steel Corporation has an annual raw steelmaking capability of 25.4 million net tons[31] Future Outlook - The company expects first quarter 2025 adjusted EBITDA to be in the range of $100 million to $150 million[8] - The company anticipates generating positive free cash flow in 2025, driven by volume and capability growth in the Mini Mill segment[7] Customer and Product Focus - Customer feedback on the new Big River 2 mill product quality has been excellent, with deliveries commencing in early December 2024[7] - The company focuses on high value-added steel products, including proprietary XG3 advanced high-strength steel[31] - U.S. Steel serves multiple industries, including automotive, construction, and packaging[31] - The company emphasizes innovation and a customer-centric strategy for sustainable growth[31] Financial Position - Total current assets decreased to $5,232 million in 2024 from $6,943 million in 2023, a decrease of 24.6%[16] - Cash and cash equivalents at the end of the period were $1,413 million, down from $2,988 million in 2023, a decrease of 52.7%[14] - Long-term debt remained relatively stable at $4,078 million in 2024 compared to $4,080 million in 2023[16] Charges and Operational Adjustments - The company recognized $230 million in charges for the indefinite idling of the iron and steel making processes at Granite City Works during the three months ended December 31, 2023[19]

Core Viewpoint - United States Steel Corporation (X) is expected to report its fourth-quarter 2024 results on January 30, with indications of weaker performance due to declining selling prices and demand [1][2]. Financial Performance - U.S. Steel has surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 50.4% [2]. - The consensus estimate for fourth-quarter revenues is $3,476.4 million, reflecting a year-over-year decline of 16.1% [7]. - The expected earnings for the fourth quarter are pegged at a loss of 25 cents, with an Earnings ESP of +1.33% [5]. Market Conditions - U.S. Steel's shares have decreased by 24.5% over the past year, closely aligning with the Zacks Steel Producers industry's decline of 24.6% [3]. - Steel prices have dropped significantly, with benchmark hot-rolled coil (HRC) prices falling over 40% from $1,200 per short ton at the beginning of 2024 [11]. - Current HRC prices are around $700 per short ton, indicating a challenging market environment [12]. Segment Performance - The Flat-Rolled segment is expected to be negatively impacted by lower selling prices and volumes, while the Mini Mill segment faces challenges from weaker volumes and ramp-related costs [14]. - The Tubular segment may benefit from higher volumes and lower costs [14]. - Average realized prices per ton for various segments are projected to decline, with the Flat-Rolled unit at $925 (down 6.8%), Mini Mill at $779 (down 2.6%), European segment at $776 (down 3.2%), and Tubular segment at $1,724 (down 4.5%) [15]. Guidance and Outlook - U.S. Steel has lowered its adjusted EBITDA guidance for the fourth quarter to approximately $150 million from a previous estimate of $225-$275 million due to ongoing pressure on steel prices and costs related to ramping up production at its new mill [13].

Group 1: US Steel and Nippon Steel Acquisition - The proposed acquisition of US Steel by Nippon Steel was blocked by the Biden administration due to national security concerns, leading to a lawsuit from both companies against the administration [3][4][8] - US Steel's market capitalization has significantly decreased from $20 billion in 2008 to around $8 billion today, reflecting challenges in the steel industry, including competition from lower-cost producers and cyclical economic conditions [5][7] - The acquisition deal was valued at over $14 billion, with US Steel shares experiencing a jump of 6-8% following Cleveland-Cliffs' competing cash offer [8][9] Group 2: Cleveland-Cliffs and Market Dynamics - Cleveland-Cliffs, the second-largest steel producer in the US, is considering an all-cash offer for US Steel, which has led to speculation about a potential bidding war [8][9] - The CEO of Cleveland-Cliffs, Lourenco Goncalves, is known for his bombastic commentary and has been compared to Elon Musk, raising questions about how CEO personality impacts investment decisions [9][10] - The competitive landscape in the steel industry is characterized by high input costs, regulatory challenges, and trade disputes, making it a difficult market for companies like US Steel and Cleveland-Cliffs [7][12] Group 3: TikTok and Potential Buyers - The US Supreme Court is expected to uphold a law that could force a sale or ban of TikTok in the US, a unique situation where the government mandates a foreign company to comply with local regulations [13][14] - TikTok's ad revenue is projected at around $11 billion annually, which could significantly benefit companies like Meta and Google if TikTok is banned [14] - Various potential buyers for TikTok have emerged, including Kevin O'Leary and Elon Musk, with valuations for TikTok estimated between $80 billion and $100 billion [15][16]