US Steel Corp. provided third quarter 2021 guidance, indicating adjusted EBITDA is expected to be approximately $2.0 billion. This compares to second quarter 2021 adjusted EBITDA of approximately $1.3 billion.
In a press release, the company said its Flat-rolled segment is expected to deliver record EBITDA and EBITDA margin in the third quarter driven by the increased flow-through of higher steel selling prices into adjusted contracts and spot selling prices and continued strong customer demand.
The Mini Mill segment continues to set records as well, the company said. Third quarter EBITDA and EBITDA margin are expected to surpass last quarter’s records reflecting higher steel selling prices and continued operating efficiencies.
The company said its Tubular segment is also expected to continue its upward trajectory, as the benefit of higher prices and increased volumes are partially offset by higher scrap input costs.
“We expect the third quarter to be a quarter of records for US Steel. Supported by strong reliability and quality performance, sustained customer demand, and continued increases in steel selling prices, we expect our Best for All business model to generate record quarterly adjusted EBITDA and EBITDA margins, demonstrating the power of our strategy,” commented US Steel President and Chief Executive Officer David B. Burritt. “We remain bullish that market fundamentals will support a stronger for longer steel market and we’ve accelerated the pace of deleveraging to clear the path to transitioning to our Best for All future faster. Our best days are ahead.”