Steel Mills
U.S. Steel anticipates a loss in first quarter
Written by Stephanie Ritenbaugh
March 20, 2025
U.S. Steel expects to post a net loss of $145 million in the first quarter, according to guidance released Thursday.
First-quarter EBITDA is expected to be about $125 million, in line with its prior outlook, the Pittsburgh-based steelmaker said.
US operations
David Burritt, president and CEO, said the company’s mini mill segment should see a “sequential improvement based on increasing volumes from both Big River Steel (BRS) and Big River 2 (BR2).”
The company expects about $50 million in ramp-up-related impact from BR2.
“BR2 is expected to make a significant contribution to our 2025 EBITDA, with run-rate throughput expected during the second half of 2025 and full run-rate capability in 2026,” Burritt said.
While the tubular segment continues to face pressure from the lagged impacts of weak prices, that segment’s adjusted EBITDA is expected to be higher than the fourth quarter due to an increase in prime shipments and higher average selling prices.
The flat-rolled segment’s adjusted EBITDA is expected to be lower than the previous quarter due to seasonality in the mining sector, which the company expects will unwind in the second quarter. Higher average selling prices and increased volumes will partially offset the mining impact, the company said.
European operations
The European segment is expected to improve on increasing shipments, volume efficiencies, and favorable raw material pricing. Yet, the sector will continue to face pressures from a challenging demand environment in Europe, the company said.
“In Europe, the pricing environment has slightly improved, however demand remains subdued. We continue to manage our production levels in line with our customers’ demand and our planned maintenance schedules,” Burritt said.
Stephanie Ritenbaugh
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