U.S. Steel sees Q2 adjusted EPS 76c-80c, consensus 83c

Sees Q2 adjusted EBITDA $425M. Commenting on second quarter guidance, president and CEO David Burritt said, “We continue to run our business safely as we make progress towards closing our transaction with Nippon Steel Corporation. Adjusted EBITDA guidance of $425 million is at the lower end of our prior second quarter outlook and reflects stable domestic flat-rolled steel end-use demand despite a dynamic spot steel pricing environment. In Europe, we recently restarted our temporarily idled blast furnace in response to improving customer demand. As expected, challenging market conditions are negatively impacting the Tubular segment’s performance. The Big River Steel dual Galvalume(R) / Galvanized coating line came online in the second quarter, and we continue to progress towards the planned start-up of Big River 2 in the second half of 2024, with approximately $30 million of related start-up and one-time construction costs for both projects included in our second quarter adjusted EBITDA guidance. Our new state-of-the-art Big River 2 mini mill will provide complementary capabilities to the existing Big River Steel campus. Both mini mills, along with electrical steels from our new non-grain oriented (NGO) finishing line, will increase our capability to provide the sustainable steels that are increasingly in demand from an expanding group of end-markets. This quarter, we achieved significant milestones as we progress towards closing the transaction with Nippon Steel Corporation, obtaining overwhelming approval by our shareholders and the receipt of all non-U.S. regulatory approvals. We continue to work towards the remaining U. S. regulatory approvals, and look forward to closing the transaction that will bring advanced technologies to U. S. Steel to support a stronger domestic steel industry with enhanced competition and will strengthen national security, economic security and job security.”