US Steel reported third quarter 2023 adjusted net earnings per diluted share guidance of $1.10 to $1.15. Comparatively, the company reported second quarter 2023 adjusted net earnings of $1.92 per diluted share.
In a press release, the company said the Flat-Rolled segment’s adjusted EBITDA is expected to be broadly in-line with the second quarter. While spot prices declined sequentially, average selling prices are expected to be slightly higher than previously anticipated on the July earnings call, the company said, which is a “key driver to the better-than-expected performance in this segment.” Additionally, the company said the segment’s “diverse customer base has kept its order book resilient.”
The company said its Mini Mill segment's adjusted EBITDA is expected to be lower than the second quarter. While selling prices moderated during the quarter, the company said segment results are expected to reflect better customer volume performance than previously anticipated and benefit from lower raw material costs. The company added that EBITDA margins are expected to remain “resilient in the low-to-mid teens.”
US Steel’s Tubular segment’s adjusted EBITDA is expected to be lower than the second quarter, although remain well above historical levels, the company said, adding that softer market prices and demand as distributor inventory rebalances are expected to be the primary drivers of sequentially weaker EBITDA.