Analysis
August 4, 2026
A bright spot for Nippon, U.S. Steel reports profitable second quarter
Written by Laura Miller
United States Steel Corp.
| Second quarter ended June 30 | 2026 | 2025 | % Change |
|---|---|---|---|
| Net sales | $4,939 | $4,226 | 16.9% |
| Net income (loss) | $123 | ($1,232) | 110.0% |
| Six months ended June 30 | |||
| Net sales | $7,925 | $6,797 | 16.6% |
| Net income (loss) | $72 | ($1,348) | 105.3% |
U.S. Steel reported stronger second-quarter results, with higher sales, a return to profitability, and record operating performance across key assets.
Net sales rose to $4.939 billion, up from $4.226 billion a year earlier. Net earnings attributable to USS reached $123 million, compared with a $1.232 billion loss in last year’s quarter.
The company cited record production at its endless strip production (ESP) line and hot-strip mill, along with sharply lower rerun rates driven by AI optimization.
Flat-Rolled results
Flat-Rolled segment EBITDA increased to $222 million, up 36% from $163 million a year earlier. Shipments rose 11% year over year to 2.131 million tons.
High average prices and stronger demand supported results. Costs were higher due to alloys, zinc, transportation, labor, outage spending, and energy.
Mini Mill results
Mini Mill segment EBITDA fell to $101 million, down from $278 million a year earlier. Shipments climbed 43% to 1.196 million tons from 838,000 tons last year. Lower metallics costs helped offset higher operating spending.
The company said Big River 2 shipped about 541,000 tons in the quarter, contributing to operational momentum. The mill achieved a record monthly output of 204,000 tons in June.
Gary Works reline, HSM upgrade wrapping up
In an earnings presentation, USS revealed the 100-day outage to reline the Gary Works Blast Furnace #14, which began in May, remains on schedule to conclude this month.
Nippon also said in its presentation the $230 million hot-strip mill upgrade at Gary Works is scheduled for completion by September.
Nippon Steel
U.S. Steel said early value creation is emerging from its partnership with parent company Nippon Steel as the companies begin deploying $14 billion in growth capital. The partnership will reposition the company in the US market, it said, noting it is “becoming a fundamentally different company.”
In Nippon Steel’s latest financial report, it forecasted U.S. Steel to remain “the primary earnings driver of the Group” for the remainder of the company’s fiscal year.
It noted growing demand for high-grade steel in the US market, supported by tariff policies which are expected to shift direct and indirect steel imports to domestic steelmaking.
Nippon also issued an upward revision to its earnings forecast. The Japanese steel company cited “improvement of profitability of U.S. Steel supported by higher steel market prices in the US and by realizing measures to improve profitability, and an increase in inventory valuation impact, etc.”
