U. S. Steel-United States Steel Provides Guidance, Expects Loss for Q1

Group 1: Financial Guidance and Performance - United States Steel Corporation (X) has provided guidance for adjusted earnings per share for Q1 2025, projecting a loss between 53 cents and 49 cents, with adjusted EBITDA expected to be around $125 million [1] - The company’s shares have gained 1.6% over the past year, contrasting with a 21.8% decline in the Zacks Steel Producers industry [3] Group 2: Segment Performance - The North American Flat-Rolled segment is performing well due to its commercial strategy and focus on operational efficiency and cost management [2] - The Mini Mill segment is anticipated to show sequential growth driven by increased volumes from Big River Steel (BRS) and Big River 2 (BR2) [2] - The Tubular segment continues to face challenges from a weak pricing environment, but there is optimism for future pricing improvements [2] Group 3: Product Quality and Future Outlook - Strong customer feedback has been received regarding the product quality of BR2 shipments, which is progressing towards full operational capacity and generating free cash flow this year [3] - BR2 is expected to be a key contributor to the company's 2025 EBITDA, with run-rate throughput anticipated in the second half of 2025 and full capability expected by 2026 [3] Group 4: Competitive Positioning - U.S. Steel currently holds a Zacks Rank 3 (Hold), while better-ranked stocks in the basic materials sector include Carpenter Technology Corporation (CRS), CSW Industrials Inc. (CSWI), and Axalta Coating Systems Ltd. (AXTA) [4] - Carpenter Technology has a Zacks Rank 2 (Buy) and has exceeded the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 15.7% [4] - CSW Industrials has a current fiscal-year earnings estimate of$ 8.50 and has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings surprise of 10.1% [5] - Axalta Coating Systems, with a Zacks Rank 1, has consistently beaten consensus estimates, delivering an average earnings surprise of approximately 16.3% [6]