United States Steel Corporation Reports Fourth Quarter and Full-Year 2024 Results

PITTSBURGH--(BUSINESS WIRE)--United States Steel Corporation (NYSE: X) reported fourth quarter 2024 net loss of $89 million, or $0.39 per diluted share and adjusted net loss was $28 million, or $0.13 per diluted share. This compares to fourth quarter 2023 net loss of $80 million, or $0.36 per diluted share, and adjusted net earnings for the fourth quarter 2023 of $167 million, or $0.67 per diluted share. Full-year 2024 net earnings was $384 million, or $1.57 per diluted share, and adjusted net earnings was $529 million, or $2.14 per diluted share. This compares to full-year 2023 net earnings of $895 million, or $3.56 per diluted share, and adjusted net earnings for 2023 of $1,195 million, or $4.73 per diluted share. Commenting on the Company’s fourth quarter performance, U. S. Steel President and Chief Executive Officer, David B. Burritt said, “Our fourth quarter adjusted EBITDA of $190 million demonstrates continued strong performance amidst a sequentially weaker average selling price and demand environment across all our operating segments. Our results included better than expected cost performance in the North American Flat-Rolled segment and improved volumes in the Mini Mill segment later in the quarter. The North American Flat-Rolled segment generated 10% EBITDA margin, benefiting from a resilient commercial strategy, diverse product mix and continued focus on cost control. Our Mini Mill segment included initial shipments from our new, state-of-the-art Big River 2 (“BR2”) mill, which partially offset the impact of planned maintenance activity at Big River Steel during the quarter. When adjusting for $50 million in construction and ramp-up costs for strategic projects at Big River, the Mini Mill segment delivered 8% EBITDA margin. USSE earnings were pressured by continuing challenges in the pricing and demand environment. Tubular earnings were stronger sequentially in the fourth quarter driven by higher shipments.” Commenting on the Company’s strategic initiatives, Burritt continued, “We are very pleased to see deliveries to customers from BR2 commence in early December and continue to see a steady ramp up in shipments into the first quarter. Customer feedback on BR2 product quality has been excellent and we thank our Big River team for safely delivering approximately $4 billion of transformational growth investments. Looking ahead, we expect to generate positive free cash flow in 2025, as volume and capability growth in our Mini Mill segment complements the resilient commercial strategy and operational strength our North American Flat Rolled segment continues to deliver.” Q1 2025 Outlook We expect first quarter adjusted EBITDA in the range of $100 million and $150 million. Our North American Flat-Rolled segment results are expected to decrease, primarily driven by seasonal logistics constraints in the mining sector, which will unwind in the second quarter. We expect this to be partially offset by resiliency in our commercial strategy. We expect an improvement in Mini Mill segment results reflecting the increase in shipments from BR2, even after accounting for approximately $50 million of ramp-up costs. In Europe, we expect results to slightly improve but still face pressures from challenging pricing and demand conditions. Our Tubular segment results should be largely consistent with the fourth quarter. Earnings Highlights Three Months Ended December 31, Twelve Months Ended December 31, (Dollars in millions, except per share amounts) 2024 2023 2024 2023 Net Sales $ 3,509 $ 4,144 $ 15,640 $ 18,053 Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) Flat-Rolled $ 222 $ 128 $ 934 $ 1,023 Mini Mill (8 ) 74 233 383 U. S. Steel Europe (35 ) 3 71 98 Tubular 15 126 135 638 Other (4 ) (1 ) (7 ) (3 ) Depreciation, depletion and amortization (251 ) (241 ) (913 ) (916 ) Total segment (loss) earnings before interest and income taxes $ (61 ) $ 89 $ 453 $ 1,223 Other items not allocated to segments (82 ) (320 ) (213 ) (424 ) (Loss) earnings before interest and income taxes $ (143 ) $ (231 ) $ 240 $ 799 Net interest and other financial benefits (24 ) (66 ) (198 ) (248 ) Income tax (benefit) expense (30 ) (85 ) 54 152 Net (loss) earnings $ (89 ) $ (80 ) $ 384 $ 895 (Loss) earnings per diluted share $ (0.39 ) $ (0.36 ) $ 1.57 $ 3.56 Adjusted net (loss) earnings (a) $ (28 ) $ 167 $ 529 $ 1,195 Adjusted net (loss) earnings per diluted share (a) $ (0.13 ) $ 0.67 $ 2.14 $ 4.73 Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) (a) $ 190 $ 330 $ 1,366 $ 2,139 (a) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts. UNITED STATES STEEL CORPORATION PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited) Quarter Ended Year Ended December 31, December 31, 2024 2023 2024 2023 OPERATING STATISTICS Average realized price: ($/net ton unless otherwise noted) (a) Flat-Rolled 956 978 1,013 1,030 Mini Mill 789 807 857 875 U. S. Steel Europe 751 770 805 873 U. S. Steel Europe (€/net ton) 702 716 743 807 Tubular 1,539 2,390 1,905 3,137 Steel shipments (thousands of net tons): (a) Flat-Rolled 1,846 2,034 7,845 8,706 Mini Mill 575 617 2,307 2,424 U. S. Steel Europe 732 1,024 3,578 3,899 Tubular 143 132 476 478 Total Steel Shipments 3,296 3,807 14,206 15,507 Intersegment steel (unless otherwise noted) shipments (thousands of net tons): Mini Mill to Flat-Rolled 63 79 351 449 Flat-Rolled to Mini Mill 1 2 4 4 Flat-Rolled to Mini Mill (pig iron) 105 103 353 313 Flat-Rolled to USSE (coal) — 242 258 874 Raw steel production (thousands of net tons): Flat-Rolled 2,099 2,087 8,389 9,399 Mini Mill 664 752 2,838 2,953 U. S. Steel Europe 803 1,100 3,832 4,395 Tubular 153 157 575 568 Raw steel capability utilization: (b) Flat-Rolled 63 % 63 % 63 % 71 % Mini Mill (c) 61 % 89 % 80 % 89 % U. S. Steel Europe 64 % 87 % 77 % 88 % Tubular 68 % 69 % 64 % 63 % CAPITAL EXPENDITURES (dollars in millions) Flat-Rolled 117 161 495 536 Mini Mill 339 425 1,641 1,899 U. S. Steel Europe 36 43 118 109 Tubular 13 8 33 32 Other Businesses — — — — Total 505 637 2,287 2,576 (a) Excludes intersegment shipments. (b) Based on annual raw steel production capability of 13.2 million net tons for Flat-Rolled, 3.3 million net tons for Mini Mill, 5.0 million net tons for U. S. Steel Europe and 0.9 million net tons for Tubular through the third quarter of 2024, and 6.3 million net tons for Mini Mill during the fourth quarter of 2024. (c) Now includes the capacity of BR2 which produced first coil in October and delivered first customer shipments in December. BRS operated at 75% utilization during the quarter, which includes the impact of planned outage. UNITED STATES STEEL CORPORATION CONDENSED STATEMENT OF OPERATIONS (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, (Dollars in millions, except per share amounts) 2024 2023 2024 2023 Net Sales $ 3,509 $ 4,144 $ 15,640 $ 18,053 Operating expenses (income): Cost of sales 3,318 3,851 14,060 15,803 Selling, general and administrative expenses 107 181 435 501 Depreciation, depletion and amortization 251 241 913 916 Earnings from investees (36 ) (39 ) (112 ) (115 ) Asset impairment charges — 125 19 129 Restructuring and other charges (3 ) 15 8 36 Other losses (gains), net 15 1 77 (16 ) Total operating expenses 3,652 4,375 15,400 17,254 (Loss) earnings before interest and income taxes (143 ) (231 ) 240 799 Net interest and other financial benefits (24 ) (66 ) (198 ) (248 ) (Loss) earnings before income taxes (119 ) (165 ) 438 1,047 Income tax (benefit) expense (30 ) (85 ) 54 152 Net (loss) earnings (89 ) (80 ) 384 895 Less: Net earnings attributable to noncontrolling interests — — — — Net (loss) earnings attributable to United States Steel Corporation $ (89 ) $ (80 ) $ 384 $ 895 COMMON STOCK DATA: Net (loss) earnings per share attributable to United States Steel Corporation Stockholders Basic $ (0.39 ) $ (0.36 ) $ 1.71 $ 3.98 Diluted $ (0.39 ) $ (0.36 ) $ 1.57 $ 3.56 Weighted average shares, in thousands Basic 225,173 223,130 224,817 224,761 Diluted 225,173 223,130 254,004 255,360 Dividends paid per common share 0.05 0.05 0.20 0.20 UNITED STATES STEEL CORPORATION CONDENSED CASH FLOW STATEMENT (Unaudited) (Dollars in millions) Twelve Months Ended December 31, 2024 Twelve Months Ended December 31, 2023 Increase (decrease) in cash, cash equivalents and restricted cash Operating activities: Net earnings $ 384 $ 895 Depreciation, depletion and amortization 913 916 Asset impairment charges 19 129 Restructuring and other charges 8 36 Loss on debt extinguishment 2 — Pensions and other post-retirement benefits (133 ) (157 ) Active employee benefit investments 65 32 Deferred income taxes 113 97 Working capital changes (182 ) 385 Income taxes receivable/payable (126 ) (27 ) Other operating activities (144 ) (206 ) Net cash provided by operating activities 919 2,100 Investing activities: Capital expenditures (2,287 ) (2,576 ) Proceeds from sale of assets 5 8 Other investing activities 6 — Net cash used in investing activities (2,276 ) (2,568 ) Financing activities: Issuance of long-term debt, net of financing costs — 241 Repayment of long-term debt (128 ) (89 ) Common stock repurchased — (175 ) Other financing activities (71 ) (75 ) Net cash used in financing activities (199 ) (98 ) Effect of exchange rate changes on cash (19 ) 15 Net decrease in cash, cash equivalents and restricted cash (1,575 ) (551 ) Cash, cash equivalents and restricted cash at beginning of year 2,988 3,539 Cash, cash equivalents and restricted cash at end of period $ 1,413 $ 2,988 UNITED STATES STEEL CORPORATION CONDENSED BALANCE SHEET (Unaudited) December 31, December 31, (Dollars in millions) 2024 2023 Cash and cash equivalents $ 1,367 $ 2,948 Receivables, net 1,398 1,548 Inventories 2,168 2,128 Other current assets 299 319 Total current assets 5,232 6,943 Operating lease assets 72 109 Property, plant and equipment, net 11,973 10,393 Investments and long-term receivables, net 757 761 Intangibles, net 416 436 Goodwill 920 920 Other noncurrent assets 865 889 Total assets $ 20,235 $ 20,451 Accounts payable and other accrued liabilities 2,747 3,028 Payroll and benefits payable 295 442 Short-term debt and current maturities of long-term debt 95 142 Other current liabilities 236 336 Total current liabilities 3,373 3,948 Noncurrent operating lease liabilities 44 73 Long-term debt, less unamortized discount and debt issuance costs 4,078 4,080 Employee benefits 117 126 Deferred income tax liabilities 657 587 Other long-term liabilities 526 497 United States Steel Corporation stockholders' equity 11,347 11,047 Noncontrolling interests 93 93 Total liabilities and stockholders' equity $ 20,235 $ 20,451 UNITED STATES STEEL CORPORATION NON-GAAP FINANCIAL MEASURES RECONCILIATION OF ADJUSTED NET (LOSS) EARNINGS Three Months Ended December 31, Twelve Months Ended December 31, (In millions of dollars) 2024 2023 2024 2023 Net (loss) earnings and diluted net earnings per share attributable to United States Steel Corporation, as reported $ (89 ) $ (0.39 ) $ (80 ) $ (0.36 ) $ 384 $ 1.57 $ 895 $ 3.56 Restructuring and other charges (3 ) 15 8 36 Stock-based compensation expense 14 14 51 51 Asset impairment charges (a) — 123 19 127 VEBA asset surplus adjustment (4 ) (7 ) (25 ) (43 ) Environmental remediation charges 14 — 18 11 Strategic alternatives review process costs 31 63 90 79 Granite City idling costs (a) 11 107 11 121 Other charges, net 15 10 16 12 Adjusted pre-tax net (loss) earnings to United States Steel Corporation (11 ) 245 572 1,289 Tax impact of adjusted items (b) (17 ) (78 ) (43 ) (94 ) Adjusted net (loss) earnings and diluted net earnings per share attributable to United States Steel Corporation $ (28 ) $ (0.13 ) $ 167 $ 0.67 $ 529 $ 2.14 $ 1,195 $ 4.73 Weighted average diluted ordinary shares outstanding, in millions 225.2 254.5 254.0 255.4 (b) During the three months ended December 31, 2023, the Company recognized charges of $230 million for the indefinite idling of the iron and steel making processes at Granite City Works. This amount includes asset impairment charges of $123 million and other costs of $107 million primarily for take-or-pay commitments and employee-related costs. (b) The tax impact of adjusted items for the three months and twelve months ended December 31, 2024 and 2023, is calculated using a blended tax rate of 24% for domestic items and 21% for USSE items. UNITED STATES STEEL CORPORATION NON-GAAP FINANCIAL MEASURES RECONCILIATION OF ADJUSTED EBITDA Three Months Ended December 31, Twelve Months Ended December 31, (Dollars in millions) 2024 2023 2024 2023 Reconciliation to Adjusted EBITDA Net (loss) earnings attributable to United States Steel Corporation $ (89 ) $ (80 ) $ 384 $ 895 Income tax (benefit) expense (30 ) (85 ) 54 152 Net interest and other financial benefits (24 ) (66 ) (198 ) (248 ) Depreciation, depletion and amortization expense 251 241 913 916 EBITDA 108 10 1,153 1,715 Restructuring and other charges (3 ) 15 8 36 Stock-based compensation expense 14 14 51 51 Asset impairment charges (a) — 123 19 127 Environmental remediation charges 14 — 18 11 Strategic alternatives review process costs 31 63 90 79 Granite City idling costs (a) 11 107 11 121 Other charges, net 15 (2 ) 16 (1 ) Adjusted EBITDA $ 190 $ 330 $ 1,366 $ 2,139 Net earnings margin (b) (3 )% (2 )% 2 % 5 % Adjusted EBITDA margin (b) 5 % 8 % 9 % 12 % (a) During the three months ended December 31, 2023, the Company recognized charges of $230 million for the indefinite idling of the iron and steel making processes at Granite City Works. This amount includes asset impairment charges of $123 million and other costs of $107 million primarily for take-or-pay commitments and employee-related costs. (b) The net earnings and adjusted EBITDA margins represent net earnings or adjusted EBITDA divided by net sales. UNITED STATES STEEL CORPORATION NON-GAAP FINANCIAL MEASURES RECONCILIATION OF PAST TWELVE MONTHS OF FREE AND INVESTABLE CASH FLOW 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Total of the (Dollars in millions) 2024 2024 2024 2024 Four Quarters Net cash (used) provided by operating activities $ (28 ) $ 474 $ 265 $ 208 $ 919 Net cash used in investing activities (645 ) (630 ) (509 ) (492 ) (2,276 ) Free cash flow (673 ) (156 ) (244 ) (284 ) (1,357 ) Strategic capital expenditures 468 468 346 312 1,594 Investable free cash flow $ (205 ) $ 312 $ 102 $ 28 $ 237 We present adjusted net earnings, adjusted net earnings per diluted share, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP measures, as additional measurements to enhance the understanding of our operating performance. We believe that EBITDA, considered along with net earnings, is a relevant indicator of trends relating to our operating performance and provides management and investors with additional information for comparison of our operating results to the operating results of other companies. Adjusted net earnings and adjusted net earnings per diluted share are non-GAAP measures that exclude the effects of items that include: restructuring and other charges, stock-based compensation expense, asset impairment charges, VEBA asset surplus adjustment, environmental remediation charges, strategic alternatives review process costs, Granite City idling costs, tax impact of adjusted items and other charges, net (Adjustment Items). Adjusted EBITDA and adjusted EBITDA margins are also non-GAAP measures that exclude the effects of certain Adjustment Items. We present adjusted net earnings, adjusted net earnings per diluted share, adjusted EBITDA and adjusted EBITDA margin to enhance the understanding of our ongoing operating performance and established trends affecting our core operations by excluding the effects of events that can obscure underlying trends. U. S. Steel's management considers adjusted net earnings, adjusted net earnings per diluted share, adjusted EBITDA, and adjusted EBITDA margin as alternative measures of operating performance and not alternative measures of the Company's liquidity. U. S. Steel’s management considers adjusted net earnings, adjusted net earnings per diluted share, adjusted EBITDA, and adjusted EBITDA margin useful to investors by facilitating a comparison of our operating performance to the operating performance of our competitors. Additionally, the presentation of adjusted net earnings, adjusted net earnings per diluted share, adjusted EBITDA, and adjusted EBITDA margin provides insight into management’s view and assessment of the Company’s ongoing operating performance because management does not consider the Adjustment Items when evaluating the Company’s financial performance. Adjusted net earnings, adjusted net earnings per diluted share, adjusted EBITDA, and adjusted EBITDA margin should not be considered a substitute for net earnings, earnings per diluted share or other financial measures as computed in accordance with U.S. GAAP and are not necessarily comparable to similarly titled measures used by other companies. We also present free cash flow, a non-GAAP measure of cash generated from operations after any investing activity and investable free cash flow, a non-GAAP measure of cash generated from operations after any investing activity adjusted for strategic capital expenditures. We believe that free cash flow and investable free cash flow provide further insight into the Company's overall utilization of cash. A condensed consolidated statement of operations (unaudited), condensed consolidated cash flow statement (unaudited), condensed consolidated balance sheet (unaudited) and preliminary supplemental statistics (unaudited) for U. S. Steel are attached. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This release contains information regarding the Company that may constitute "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 and other securities laws, that are subject to risks and uncertainties. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Generally, we have identified such forward-looking statements by using the words "believe," "expect," "intend," "estimate," "anticipate," "project," "target," "forecast," "aim," "should," "plan," "goal," "future," "will," "may" and similar expressions or by using future dates in connection with any discussion of, among other things, statements expressing general views about future operating or financial results, operating or financial performance, trends, events or developments that we expect or anticipate will occur in the future, anticipated cost savings, potential capital and operational cash improvements and changes in the global economic environment, anticipated capital expenditures, the construction or operation of new or existing facilities or capabilities and the costs associated with such matters, statements regarding our greenhouse gas emissions reduction goals, as well as statements regarding the merger between the Company and Nippon Steel Corporation (the "Merger"), including the timing of the completion of the Merger. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements include all statements that are not historical facts, but instead represent only the Company's beliefs regarding future goals, plans and expectations about our prospects for the future and other events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Management of the Company believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. In addition, forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company's historical experience and our present expectations or projections. Risks and uncertainties include without limitation: the ability of the parties to consummate the Merger on a timely basis or at all; the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreement and plan of merger relating to the Merger (the "Merger Agreement"); risks arising from litigation related to the Merger, either brought by or against the parties; the risk that the parties to the Merger Agreement may not be able to satisfy the conditions to the Merger in a timely manner or at all; risks related to disruption of management time from ongoing business operations due to the Merger and related litigation; certain restrictions during the pendency of the Merger that may impact the Company's ability to pursue certain business opportunities or strategic transactions; the risk that any announcements relating to the Merger could have adverse effects on the market price of the Company's common stock; the risk of any unexpected costs or expenses resulting from the Merger; the risk that the Merger and its announcement could have an adverse effect on the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with customers, suppliers, employees, stockholders and other business relationships and on its operating results and business generally; and the risk the pending Merger could distract management of the Company. The Company directs readers to its Annual Report on Form 10-K for the year ended December 31, 2023, the quarterly report on Form 10-Q for the quarter ended September 30, 2024, and the other documents it files with the SEC for other risks associated with the Company's future performance. These documents contain and identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements. All information in this report is as of the date above. The Company does not undertake any duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations whether as a result of new information, future events or otherwise, except as required by law. ### Founded in 1901, United States Steel Corporation is a leading steel producer. With an unwavering focus on safety, the Company’s customer-centric Best for All® strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products such as U. S. Steel’s proprietary XG3® advanced high-strength steel. The Company also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 25.4 million net tons. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe. For more information, please visit www.ussteel.com. ©2025 U. S. Steel All Rights Reserved www.ussteel.com United States Steel Corporation

United States Steel Corporation Reports Fourth Quarter and Full-Year 2024 Results

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