United States Steel Corporation · NYSE:X
United States Steel — Q4 2024 Earnings Presentation
44 slides from United States Steel's earnings presentation, Jan 30, 2025
Slide 1: Earnings Presentation Fourth Quarter and Full Year 2024
1 EARNINGS PRESENTATION FOURTH QUARTER AND FULL YEAR 2024 Januar y 30, 2025
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS This presentation 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 in
Slide 3: Explanation of Use of Non-GAAP Measures
3 EXPLANATION OF USE OF NON-GAAP MEASURES We present adjusted net earnings (loss), adjusted net earnings (loss) margin, adjusted net earnings (loss) per diluted share, earnings (loss) before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, adjusted EBITDA margin and adjusted
Slide 4: Summary: On the Path to Delivering $55 Per Share
4 SUMMARY: ON THE PATH TO DELIVERING $55 PER SHARE Current Landscape Strong 2024 performance despite challenging macro environment Committed to closing the transaction with Nippon Steel Corporation by jointly taking legal action Strategic projects ramping in 2025 Challenges Successfully navigating a
Slide 5: NSC & U. S. Steel: Continued Commitment to Closing the Transaction
5 NSC & U. S. STEEL: CONTINUED COMMITMENT TO CLOSING THE TRANSACTION Nippon Steel and U. S. Steel, together, filed multiple lawsuits in response to wrongful interference with the proposed acquisition of U. S. Steel. This transaction stands to benefit the entire American domestic steel industry and a
Slide 6: Mini Mill Spotlight
6 MINI MILL SPOTLIGHT
Slide 7: Mini Mill Facilities
7 Mini Mill Facilities: F A C I L I T Y H I G H L I G H T S I N D U S T R Y - L E A D I N G P R O D U C T I V I T Y C A R B O N I M P A C T 3.0 MNT capability per year two EAFs3.3 MNT capability per year two EAFs 1 Endless casting & rolling line Light gauge / wide; ideal for auto end-market Best-in-
Slide 8: Mini Mill: Enhancing the Mini Mill Segment's Earnings Profile
8 Product mix1 3rd party shipments Coated 30% 55% 25% 15% Hot rolled coil Cold rolled coil 2 0 2 4 2 Coated 40% 15% 40% Hot rolled coil Cold rolled coil F U T U R E P R O D U C T M I X 3 NGO 5% Higher through- cycle margin product mix Enhancing our earnings profile Increasing mix of value- added pro
Slide 9: Mini Mill: BR2 Ramping Towards Free Cash Flow Generation
9 MINI MILL: BR2 RAMPING TOWARDS FREE CASH FLOW GENERATION Construction of Big River 2 commenced June 2022 First heats produced through EAF 3 and 4 First ESP1 coil produced October 2024 First prime tons shipped to customers First PGL3 product produced December 2024 CGL34 line commissioning commenced
Slide 10: Mini Mill: North America's Most Technologically Advanced Steel Mill
10 Pickling and Galvanizing LinePickling Line and Tandem Cold Mill MINI MILL: NORTH AMERICA'S MOST TECHNOLOGICALLY ADVANCED STEEL MILL
Slide 11: >$4 Billion of Strategic Growth Capex Now Behind Us
11 >$4 BILLION OF STRATEGIC GROWTH CAPEX NOW BEHIND US 2 0 2 5 2 0 2 6 + EAF Steelmaking Shipments EBITDA Contribution FCF Contribution >$4 billion of strategic growth capex now behind us, as construction of Big River 2, CGL2, NGO, DR Pellet, Gary Pig has concluded Looking forward to the free cash f
Slide 12: Financial Performance
12 FINANCIAL PERFORMANCE
Slide 13: Q4 2024 Financial Performance: Summary
13 Q4 2024 FINANCIAL PERFORMANCE: SUMMARY $190M Adjusted EBITDA ~5% adjusted EBITDA margin Fourth quarter performance ($89M) Reported Net Earnings (Loss) ($0.39) per diluted share Note: For reconciliation of non-GAAP amounts, see Appendix. ($28M) Adjusted Net Earnings (Loss) ($0.13) per diluted shar
Slide 14: Q4 2024 Financial Performance: Continues to Demonstrate Strength
14 Q4 2024 FINANCIAL PERFORMANCE: CONTINUES TO DEMONSTRATE STRENGTH Resilience in our business model despite a sequentially weaker market environment Million Adjusted EBITDA $190 North American Flat-Rolled Segment NAFR EBITDA margin for Q4 2024 was 10%; benefiting from a resilient commercial strateg
Slide 15: Q1 2025 Outlook: $100 to $150 Million Adjusted EBITDA
15 Q1 2025 OUTLOOK: $100 TO $150 MILLION ADJUSTED EBITDA North American Flat-Rolled Mini Mill1 U. S. Steel Europe Tubular Raw Materials Unfavorable raw material pricing expected Operating Costs Unfavorable impact expected from higher energy pricing and increased spending Commercial Unfavorable impac
Slide 16: 2024 Fourth Quarter and Full Year Update
16 2024 F O U R T H Q U A R T E R A N D F U L L Y E A R U P D A T E
Slide 17: We Remain Focused on Industry Leading Safety Performance
17 0.05 0.06 2024 OSHA Days Away from Work – U. S. Steel2 BLS - Iron & Steel: 0.60 Benchmark1: Industry leading performance 1 Bureau of Labor Statistics – Iron & Steel 2023 data. 2 Occupational Safety and Health Administration (OSHA) Days Away from Work is defined as number of days away cases x 200,
Slide 18: Financial Updates (Quarterly)
18 FINANCIAL UPDATES Reported Net Earnings (Loss) Adjusted Net Earnings (Loss)1 Segment EBIT2 Adjusted EBITDA3 Profit Margin: $ Millions $ Millions $ Millions $ Millions Adjusted EBITDA Margin:3 Segment EBIT Margin:2 Note: For reconciliation of non-GAAP amounts, see Appendix. 1 Earnings (loss) exclu
Slide 19: Financial Updates (Annual)
19 FINANCIAL UPDATES Reported Net Earnings (Loss) Adjusted Net Earnings (Loss)1 Segment EBIT2 Adjusted EBITDA3 Profit Margin: $ Millions $ Millions $ Millions $ Millions Adjusted EBITDA Margin:3 Segment EBIT Margin:2 Adjusted Profit Margin1: -$1,165 $4,174 $2,524 $895 $384 FY 2020 FY 2021 FY 2022 FY
Slide 20: Key Operating Statistics Trends by Segment (Quarterly)
20 KEY OPERATING STATISTICS TRENDS BY SEGMENT Flat-Rolled Operating Statistics Mini Mill Operating Statistics U. S. Steel Europe (USSE) Operating Statistics Tubular Operating Statistics1 Shipments: in 000s, net tons Production: in 000s, net tons Average Selling Price: $ / net ton Shipments: in 000s,
Slide 21: Key Operating Statistics Trends by Segment (Annual)
21 KEY OPERATING STATISTICS TRENDS BY SEGMENT Flat-Rolled Operating Statistics Mini Mill Operating Statistics U. S. Steel Europe (USSE) Operating Statistics Tubular Operating Statistics2 Shipments: in 000s, net tons Production: in 000s, net tons Average Selling Price: $ / net ton Shipments: in 000s,
Slide 22: EBITDA Trends by Segment (Quarterly)
22 EBITDA TRENDS BY SEGMENT EBITDA Margin: EBITDA Margin: EBITDA Margin: Note: For reconciliation of non-GAAP amounts, see Appendix. 1 Q4 2023 North American Flat-Rolled segment includes the impact of construction and related start-up costs of approximately $10 million related to the DR-grade pellet
Slide 23: EBITDA Trends by Segment (Annual)
23 EBITDA TRENDS BY SEGMENT EBITDA Margin: EBITDA Margin: EBITDA Margin: EBITDA Margin: -$100 $3,176 $2,507 $1,023 $934 FY 2020 FY 2021 FY 2022 FY 20231 FY 2024 $1,357 $639 $383 $233 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 $106 $1,073 $529 $98 $71 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 -$140 $48 $5
Slide 24: Flat-Rolled Segment EBITDA Change Analysis
24 $ Millions, Q3 2024 vs. Q4 2024 FLAT-ROLLED SEGMENT EBITDA CHANGE ANALYSIS $128 $222$13 $104 Q4 2023 ($24) Commercial $1 Raw Materials Operating Costs Other Q4 2024 $ Millions, Q4 2023 vs. Q4 2024 $246 $222 $11 $12 $17 Q3 2024 ($64) Commercial Raw Materials Operating Costs Other Q4 2024 Commercia
Slide 25: Mini Mill Segment EBITDA Change Analysis
25 $ Millions, Q3 2024 vs. Q4 2024 MINI MILL SEGMENT EBITDA CHANGE ANALYSIS $74 ($8) Q4 2023 Commercial Raw Materials Operating Costs Other Q4 2024 ($23) ($13) ($6) ($40) $ Millions, Q4 2023 vs. Q4 2024 $22 ($8) Q3 2024 Commercial Raw Materials Operating Costs Other Q4 2024 ($15) ($4) ($1) ($10) Com
Slide 26: U. S. Steel Europe Segment EBITDA Change Analysis
26 $ Millions, Q3 2024 vs. Q4 2024 U. S. STEEL EUROPE SEGMENT EBITDA CHANGE ANALYSIS $3 ($35) ($10) ($6) Q4 2023 Commercial Raw Materials Operating Costs Other Q4 2024 ($42) $20 $ Millions, Q4 2023 vs. Q4 2024 $39 ($35) ($24) Q3 2024 Commercial Raw Materials Operating Costs Other Q4 2024 ($53) $1 $2
Slide 27: Tubular Segment EBITDA Change Analysis
27 $ Millions, Q3 2024 vs. Q4 2024 TUBULAR SEGMENT EBITDA CHANGE ANALYSIS $126 $15 Q4 2023 ($86) Commercial $4 Raw Materials ($24) Operating Costs ($5) Other Q4 2024 $ Millions, Q4 2023 vs. Q4 2024 $9 $15 $5 $4 Q3 2024 Commercial ($1) Raw Materials ($2) Operating Costs Other Q4 2024 Commercial The u
Slide 28: Asset Footprint and Capability by Facility
28 Minntac M I N I M I L L T U B U L A R Clairton Keetac BF #4 BF #6 BF #8 BF #14 BF ‘A’ BF ‘B’ N O R T H A M E R I C A N F L A T - R O L L E D BF #1 BF #3 EAF #1 EAF #2 BF #1 BF #3BF #2 Seamless Pipe #1 ERW #2 ERW EAF Steelmaking / Seamless Pipe Indefinitely IdledOperating 1 Raw steel capability, e
Slide 29: Cash and Liquidity
29 CASH AND LIQUIDITY Note: For reconciliation of non-GAAP amounts, see Appendix. $138 $4,090 $3,505 $2,100 $919 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 $1,985 $2,522 $3,504 $2,948 $1,367 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 $3,153 $4,971 $5,925 $5,174 $3,624 FY 2020 FY 2021 FY 2022 FY 2023 FY 20
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Slide 31: Supplemental Information: 2024 Shipments by Product Mix
31 SUPPLEMENTAL INFORMATION HRC (25%) CRC (50%) Coated (20%) Tin (5%) HRC (55%) CRC (15%) Coated (30%) HRC (60%) CRC (10%) Coated (20%) Tin (5%) Seamless (90%) Flat-Rolled Mini Mill2,3 U. S. Steel Europe Tubular2024 Shipments by product mix1 1 Rounded to the nearest 5%. 2 Includes NGO shipments; how
Slide 32: Supplemental Information: 2024 Revenue by Product Mix
32 SUPPLEMENTAL INFORMATION HRC (20%) CRC (45%) Coated (25%) Tin (10%) HRC (50%) CRC (15%) Coated (35%) HRC (50%) CRC (10%) Coated (25%) Tin (10%) Seamless (95%) Flat-Rolled Mini Mill2 U. S. Steel Europe Tubular2024 Revenue by product mix1 1 Rounded to the nearest 5%. 2 Includes NGO revenue; due to
Slide 33: Supplemental Information: 2024 Shipments by Major Market
33 SUPPLEMENTAL INFORMATION Service Centers (13%) Converters (24%) Auto (43%) Construction (7%) Oil & Gas (98%) Flat-Rolled Mini Mill U. S. Steel Europe Tubular2024 Shipments by major market Packaging (5%) Appliance & Electrical (6%) Other (2%) Service Centers (41%) Converters (29%) Auto (1%) Constr
Slide 34: Supplemental Information: Contract / Spot Mix by Segment
34 SUPPLEMENTAL INFORMATION Firm (28%) Market based quarterly (32%) Market based monthly (16%) Spot (24%) Firm (3%) Cost based (9%) Market based quarterly (5%) Market based monthly (39%) Spot (44%) Firm (32%) Cost based (2%) Market based quarterly (1%) Market based monthly (15%) Spot (50%) Program (
Slide 35: Supplemental Information: Blast Furnace Cost Structure
35 SUPPLEMENTAL INFORMATION Cost structure: Blast furnace steelmaking illustrative Coke (~35%) Natural Gas (~5%) Scrap (~30%) Raw Material Costs1 Iron ore (~30%) Key Inputs Ratio1 Pricing Convention Iron Ore 1.3 tons of pellets / ton of raw steel x raw steel volume (million tons) x iron ore price as
Slide 36: Supplemental Information: Electric Arc Furnace Cost Structure
36 SUPPLEMENTAL INFORMATION Cost structure: Electric arc furnace steelmaking illustrative Prime Scrap (~30%) Pig Iron (~25%) HBI / DRI (~10%) Raw Material Costs Obsolete Scrap (~35%) Key Inputs Ratio Pricing Convention Scrap 0.8 tons of scrap / ton of raw steel x raw steel volume (million tons) x sc
Slide 37: Reconciliation Table: Segment EBITDA (Quarterly)
37 RECONCILIATION TABLE Flat-Rolled ($ millions) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Segment earnings (loss) before interest and income taxes ($31) $34 $183 $106 $76 Depreciation 159 122 127 140 146 Flat-Rolled Segment EBITDA $128 $156 $310 $246 $222 Segment EBIT Margin1 (1%) 1% 7% 4% 3% Segment
Slide 38: Reconciliation Table: Segment EBITDA (Annual)
38 RECONCILIATION TABLE Flat-Rolled ($ millions) 2020 2021 2022 2023 2024 Segment earnings (loss) before interest and income taxes ($596) $2,685 $2,008 $418 $399 Depreciation 496 491 499 605 535 Flat-Rolled Segment EBITDA ($100) $3,176 $2,507 $1,023 $934 Tubular ($ millions) 2020 2021 2022 2023 2024
Slide 39: Supplemental Information: Big River Steel LLC Summary Table
39 SUPPLEMENTAL INFORMATION Big River Steel LLC1 Summary Table Customer Sales Intersegment Sales Net Sales EBIT2 $476M $60M $536M ($9M) Income Statement $ Millions Q4 2024 Cash and cash equivalents Total Assets 2029 Senior secured notes Environmental revenue bonds Financial leases and all other obli
Slide 40: Reconciliation Table: Net Debt
40 RECONCILIATION TABLE Short-term debt and current maturities of long-term debt Long-term debt, less unamortized discount and debt issuance costs Net Debt $ millions YE 2023YE 2022YE 2021YE 2020 $192 $4,695 $28 $3,863 $63 $3,914 $142 $4,080 Total Debt $4,222$3,977$3,891$4,887 Less: Cash and cash eq
Slide 41: Reconciliation Table: Adjusted Net Earnings (Loss)
41 RECONCILIATION TABLE Adjusted Net Earnings (Loss) 1 The tax impact of the adjusted items in 2023 and 2024 is calculated for U.S. domestic items using a blended tax rate of 24% and for USSE items 21%. 2 The net earnings (loss) and adjusted net earnings (loss) margins represent net earnings (loss)
Slide 42: Reconciliation Table: Adjusted EBITDA
42 RECONCILIATION TABLE $ Millions Adjusted EBITDA Adjusted EBITDA Q4 2023 $330 Reported net earnings (loss) attributable to U. S. Steel Income tax expense Net interest and other financial costs Depreciation, depletion and amortization expense EBITDA Asset impairment charges Restructuring and other
Slide 43: Investor Relations
43 Emily Chieng Investor Relations Officer ecchieng@uss.com 412-618-9554 Alana Blatz Manager – Investor Relations agblatz@uss.com 412-303-6521 INVESTOR RELATIONS
Slide 44: United States Steel Corporation
ss) United States Steel Corporation