United States Steel Corporation Reports $116 Million Net Loss in Q1 2025

United States Steel Corporation reported a net loss of $116 million for the first quarter of 2025, a significant decline from the net earnings of $171 million recorded in the same period of 2024. This loss translates to a basic and diluted loss per share of $0.52, compared to earnings per share of $0.76 and $0.68, respectively, in the prior year. The company's total net sales for the quarter were $3.727 billion, down 10% from $4.160 billion in the first quarter of 2024. The decrease in revenue was attributed to lower average realized prices across all product segments and reduced shipment volumes.

In terms of segment performance, the North American Flat-Rolled segment saw a revenue decline of 8%, generating $2.189 billion compared to $2.391 billion in the previous year. The Mini Mill segment reported an increase in sales to $627 million, up 8% from $578 million, primarily due to higher shipment volumes. However, the U.S. Steel Europe (USSE) segment experienced a 28% drop in revenue to $659 million, while the Tubular segment's sales fell 8% to $248 million. Overall, all segments reported decreased earnings before interest, taxes, depreciation, and amortization (EBITDA), with the Flat-Rolled segment's EBITDA falling by 33% to $104 million.

The company’s operational metrics reflected challenges in the market, with total steel shipments decreasing across most product lines. The Flat-Rolled segment faced higher energy costs and unfavorable raw material pricing, while the Mini Mill segment's results were impacted by increased costs associated with the ramp-up of the Big River 2 facility. U.S. Steel's cash flow from operating activities was negative, amounting to $374 million, compared to a cash outflow of $28 million in the same quarter of 2024, primarily due to lower net earnings and changes in working capital.

Strategically, U.S. Steel is navigating a complex landscape, including a pending merger with Nippon Steel Corporation, which has faced regulatory scrutiny. The merger agreement, approved by shareholders, is currently under review by the Committee on Foreign Investment in the United States (CFIUS) following a presidential order blocking the transaction. The company is also involved in various legal proceedings, including antitrust lawsuits and environmental remediation efforts. Looking ahead, U.S. Steel anticipates that trade policy changes, including tariffs on steel imports, may provide some support to the domestic steel industry, although the overall market conditions remain challenging.