United States Steel shares fall on lower guidance

Investing.com — United States Steel Corporation (NYSE:) shares fell 5% following the company’s updated fourth quarter guidance, which fell short of market expectations. The steelmaker today projected fourth quarter 2024 adjusted net earnings per diluted share to range between a loss of $0.29 to $0.25, significantly below the consensus estimate of $0.24 earnings per share. Additionally, the company anticipates adjusted EBITDA of approximately $150 million, a figure that also misses the consensus of $261.7 million.

The downward revision reflects a challenging period for the company, as President and CEO David B. Burritt cited “a critical milestone towards our Best for All® future” with the completion of over $4 billion in growth capital investments, including the start of shipments from the newly completed Big River 2 (BR2) facility in December. However, the company’s fourth quarter has been impacted by lower steel prices and costs associated with the BR2 ramp-up.

Despite these pressures, the North American Flat-Rolled segment continues to perform well due to its strong commercial strategy and diverse product mix. In Europe, however, demand and pricing have remained weak, and the company has had to manage production challenges following a fire at the #1 Caster, temporarily increasing blast furnace operations. The Tubular segment also faces difficulties due to a weak pricing environment.

This update provides insight into the challenges facing United States Steel as it navigates a complex market landscape, with the company’s stock reflecting investor concerns over the immediate financial outlook.

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