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Research Alert: U.s. Steel Q1 Margin Compression Overshadows Top-line Beat
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Research Alert: U.s. Steel Q1 Margin Compression Overshadows Top-line Beat
May 25, 2025 11:57 PM

11:40 PM EDT, 05/01/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

U.S. Steel reported Q1 2025 adj. loss per share of $0.39 (vs. $0.82 EPS prior year) but beat consensus by $0.08, while Q1 adjusted EBITDA of $172M fell 59% Y/Y on lower selling prices and reduced demand. The North American Flat-Rolled segment showed resilience with 5% EBITDA margin despite seasonal mining constraints, while Mini Mill segment struggled with 10% margins (down meaningfully Y/Y) due to $55M in Big River 2 ramp-up costs. Management expects Q2 2025 adjusted EBITDA to improve to $375M-$425M, driven by easing seasonal constraints in Flat-Rolled and higher prices and volumes from BR2. However, we note that planned maintenance activities and outage costs are likely to partially offset these anticipated improvements, suggesting a gradual rather than rapid recovery in operational performance.

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