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US Steel (NYSE:X) -1.2% pre-market Monday after forecasting Q1 adjusted earnings below analyst consensus, saying it expects Q1 adjusted net earnings of $0.80-$0.84/share, compared with $0.89 analyst consensus estimate, and Q1 adjusted EBITDA of ~$425M.
The company said higher spot steel prices should be reflected in the segment’s average selling prices in Q1, further supported by the favorable impact from fixed-priced contracts negotiated for 2024, partially offset by typical Q1 seasonal mining operations headwinds.
US Steel (X) also expects the Mini Mill segment’s Q1 adjusted EBITDA will nearly double Q4’s performance, as average selling prices are seen meaningfully increasing Q/Q to reflect the segment’s majority market-based monthly contract and spot price exposure.
The company expects the European segment’s Q1 adjusted EBITDA will be higher than Q4, while the Tubular segment’s Q1 adjusted EBITDA is expected to be lower than Q4.
US Steel (X) also said it remains focused on running its business as it moves towards closing its transaction with Nippon Steel (OTCPK:NISTF) (OTCPK:NPSCY); the company disclosed Friday night that it expects its acquisition by Nippon Steel will close “later this year.”
