United States Steel Corporation Provides Second Quarter 2021 Guidance

United States Steel Corporation (NYSE: X) today provided second quarter 2021 guidance. Second quarter 2021 adjusted EBITDA is expected to be approximately $1.2 billion. Second quarter 2021 adjusted net income is expected to be approximately $880 million and excludes impacts primarily related to certain restructuring and asset impairment charges. The Company expects second quarter 2021 adjusted diluted earnings per share to be approximately $3.08.

“Higher steel prices and strong flat-rolled steel demand coupled with well-run operations are expected to deliver adjusted EBITDA that more than doubles our first quarter performance,” commented U. S. Steel President and Chief Executive Officer David B. Burritt. “Continued strong demand and low steel inventories are empowering today’s ongoing market improvements. These market fundamentals are showing no signs of slowing down and have us increasingly confident of another strong year in 2022.”

Burritt continued, "As a result, we recently announced a new sustainable non-grain oriented electrical steel line investment at Big River Steel. This technologically advanced electrical steel line is expected to be funded by cash generated from Big River Steel’s robust profitability and cash flow. We continue to evaluate opportunities to accelerate our transition to a Best for All℠ future while executing our near-term priority to strengthen our balance sheet.”

U. S. Steel to Fully Redeem Senior Notes Due 2025

U. S. Steel notified the trustee that it has elected to fully redeem and pay the approximately $718 million aggregate principal amount of its outstanding 6.875% Senior Notes due 2025 (the “Notes”). Pursuant to the indenture, the Notes will be redeemed with cash on hand at a price equal to 101.719% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date of August 15, 2021.

Today’s announcement is in addition to the aggregate principal debt repayment of approximately $1.5 billion year to date, excluding the impact of the Big River Steel debt assumed in connection with the acquisition.

Adjusted EBITDA Commentary

The Flat-rolled segment is expected to generate more than double first quarter’s EBITDA. Higher steel selling prices continue to be reflected in our adjustable contracts and spot selling prices. Additionally, the absence of seasonal mining headwinds from the first quarter are also expected to contribute to higher EBITDA performance, quarter-over-quarter.