X - Earnings call 3 2023 | United States Steel Corporation

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Operator

Good morning, everyone, and welcome to United States Steel Corporation's Third Quarter 2023 Earnings Conference Call and Webcast.

As a reminder, today's call is being recorded.

I'll now hand the call over to Kevin Lewis, Vice President of Finance.

Kevin Lewis

Thank you, Tommy. Good morning, and thank you for joining our third quarter 2023 earnings call.

call today's on me is U.S. Joining and CFO, Jessica President Strategy Sustainability CEO, President Dave and President and Fruehauf. Rich Vice Senior Officer, Graziano; Chief Burritt; and Steel and Vice Senior

we the joined the also look mining. would welcome She our tremendous know to Emily like Relations Investor take experience new time U.S. I many chance sell-side had to opportunity I from analyst as Steel already covering her to her Emily to the Chieng. Officer. meet brings and Investor engagement metals role, recently continued you as and forward your and with in Emily of her team. Relations a

This can the page morning, prepared under today's on slides section. Investor remarks. accompany Relations be Overview we These the posted to found U.S. Steel

that to me on risks start, number provided vary statements some Before include this results future subject call based and materially. that filings, as are in you may are we a information and let our remind forward-looking SEC described and may actual uncertainties of certain assumptions during

as with events the no Forward-looking along issued duty yesterday, we made remarks update today, today, that are to them we in press as undertake release unfold. of statements our and actual

to like With that, call Burritt, U.S. over to President the I would and will on turn Slide conference begin Steel who Dave CEO, X.

David Burritt

this appreciate Thank you, to Kevin, continued discussion. interest your you We U.S. and all in and us. to good forward morning's morning joining Steel look of

this Ukraine, in we Middle as Maine. But we earlier saddened events are begin, week the recent deeply East or by in

to those Our impacted thoughts by out and tragedies. prayers go these

being interest U.S. to projected will we shape business today, focus have on opportunity high Steel have to enthusiasm that is call, the by we will the bridge key hope continued stockholder the the higher Jess to for of our XXXX. level alternatives for light performance quarter than our we'd process; EBITDA what the strategic third from that third, discuss a come morning, Street and currently review second, maximizing today strong Throughout expected messages this like in we to as we results; hear But believe market the you'll has commentary: first, The in the value. of X

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are and value. the finally down After unlock CapEx the cash collect years stockholder of coming investment, heavy mountain and ready of bounty flow free to we

in strategy today XXXX, volatile actions Even of All forward taking in Best invest are in that will projects face drive as our our for we reshape and footprint market necessary strategic we the conditions.

fixed our last recently a and truly Works. in made tough a temporarily was but it say September to related decision City have I idle it to we at difficult reducing when one. operating this furnace had the decisions costs make was difficult We some necessary to Granite blast decision, was,

book conditions. order the fourth uncertain us we our market With we remain in the demand. melt enabling impacting manage nimble, worker maintain the to We quarter, that in is ensure with line profitability auto as strike acted through capacity to

over Now let's go XXXX the expectations. turn who and things to will financials Jess over Jess?

Jessica Graziano

on good Thanks, morning and Dave, call. the to everyone

net stronger the quarter the I'll performance a $X.XX with expected certain Slide onetime or we'll per $XXX $XXX of adjusted $X.XX of quarter. share. earnings Adjusting with of adjusted items, EBITDA net for $X.XX performance at large pleased very share. part million start across $XXX We X better EPS our from diluted were Both where adjusted pick were in third on than were per segment. and up or with NAFR million third look million earnings

million. cash generated quarter. investable the CapEx consider third a to the $XXX cash related in that flow our free Free flow million million strategic in spent positive I'll we the was business during robust note $XXX in-flight in you quarter $XXX projects, When a

billion $X.X liquidity, balance of $X.X The shape. continues We of ended billion cash. with be total including to the sheet excellent quarter in

Our million are review. the XX at alternatives buy have remained on leverage $XXX Buybacks And low result million a very on Xx debt authorized to we to as $XXX adjusted to a date, at program. pause left September strategic of EBITDA. our

minutes on QX a segments Now Slide within the spend let's X. few on

a from that's HRC lower selling environment $XXX sequentially proportion Despite segment in higher-value strong with in in driven quarter. Flat-Rolled a we by mix line prices, a with benefits higher-than-expected the million, and of quarter third QX, Our greater average sequentially EBITDA QX performance. realized of sold products delivered

The tailwinds, raw and alloy was costs. also purchased scrap by outside third quarter helped material including lower

the lower We also benefited during cost from and mining-related fixed quarter. reductions costs

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would I in costs Mini margin EBITDA results Adjusting at projects expenses, is anticipated quarter was And in for $XX start-up those for Big nonrecurring line in-flight which this Mill million with will XX% River. about of our quarter have The included the note segment Big QX, that expectations. River margin EBITDA been for XX%.

our $XX topline million in Europe. experienced lower delivered of European EBITDA and in business, We impacting volumes third the we prices quarter. the to Moving declining

August one incurred We related on in furnaces. also blast our to planned costs of outage the

Tubular third to historically healthy EBITDA The a segment continued for at margin. high XX% $XX the of million deliver very quarter

expected lower our in we July was decrease call slow QX sequential and The shipments by reduction a for versus in Tubular. we primarily You'll recall in QX. average that earnings realized back driven mentioned in to EBITDA that on results prices

minutes few XXXX up outlook for my before prepared quarter. context Later, remarks expectations. customary fourth that, But our I'll do spend I'll I providing the a around with wrap

of the us of closer benefits to all as assessing our projects As year, wind starts completion. important Dave is We're generating timing and begin down. year in-flight spending and cash mentioned, flow of the to for get will capital at project EBITDA for strategically portion as we strategic least XXXX an those our a

we we that to fixed also and, These savings expect We are actions projects some continuous identified with from in mills in generate our improvement completed and costs in taking mines. cases, we've still assumptive so and XXXX models. are the But subject numbers noticed current provide together analyst to year, as for guidance. and change, sizable a quarterly pulled to we'll to forecast continue gap

to expect we that be see. changes to we highlight helpful, to year-over-year So wanted

strategic on couple by I progress you showing X Slide years. want to the last -- made start the of over project

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Next River track or line for mid-XXXX. up GALV in which is on at Big our continuous start-up remains CGLX,

is in progressing as pellet also on offtake facility start-up. we in DR-grade Our completing our in fourth for and XXXX midst track is a speak, Minnesota, quarter agreements. We're negotiations installation, Minnesota equipment team for the commercial of

progressing the picture is bounds. X presentation. our Clearly, thousand a Slide worth is by and on a in River beautiful is site. And look X finally, photos a leaps words. It a at Take investor Big

So see earnings point getting as is footprint value Once increased capital we complete, of support and improving decreasing free using to considerable X, stability, next generation you unlock. intensity Dave's cash Slide can analogy, other on our year. investment towards mountain period the of are the flow this will side the

On to we behind help some gap bridge XX, XXXX. will the pieces the provide that Slide detail together to want

as Now shake around let's XXXX billion baseline, out start EBITDA. we're with adjusted expecting of will $X at our which

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ton Flat-Rolled we and prices about of consensus average material anticipate And of XXXX. on cost Next, raw from impacts $XXX million roughly steel headwinds, offset costs. American $XXX we segment. That's foreign on reductions lower are certain primarily focused in implementing estimates cost by HRC from benefits exchange per the sell-side finally, primarily fixed partially within based tailwinds North

-- reflect in the impacts other all those of bucket million. some And $XXX of is reflected

Taken together, to in XXXX similar least EBITDA a XXXX. we at performance feel comfortable projecting with of level compared

Now Slide that on these We XXXX on to range. from $XXX project the it's $XXX underappreciated in together make remain minutes up contributions the million worth in spending few projects XX strategic the many the of analyst million in a believe XXXX contributions models.

Let's Gary start the machine. with Pig

approximate of to ton Gary from came this XXXX. schedule under third-party purchases. QX online pig $XX and Using remember, per may relative cost budget you in ahead iron As provides advantage an

We year. expect benefit the million see full $XX to EBITDA of next

the uplift Moving our to the XXXX NGO way line, we incremental timing of expect for of the to up of are deliver Depending dual-coating start-up, half a On line track that EBITDA on as $XX million to mix. $XX in second optimize product XXXX to benefit on EBITDA exact million million XXXX. and ramp an it's CGLX, anticipating in start-up on $XXX full in our we $XX the we or EBITDA. million

half $XXX expecting not to that in EBITDA an the million $XX timing of to additional Depending exact million start-up year, did we finally, of of XXXX. deliver back the have BRX. in on the And the we're

provide we've to we deliver in last a Starting XXXX on made for line impact Slide billion improvements of approximately segment of in and billion $X American believe wanted so off like over you North Flat-Rolled this XX. for with when believe EBITDA recent the investments through cycle few Flat-Rolled We can we view with XXXX. segment the That's business, our consider years. the or segment looks $X the

it's keep and lot we only We've better. value getting going generated our segment, Mini in a the being Mill to talked about think

to River its hits in X billion XXXX a the neighborhood We run $XXX of $X.X projected Big expect million, in XXXX as on rate. way EBITDA of adjusted EBITDA

savings tailwinds, together to $XXX and million topline actioned expected continue chain. which of Europe, that's EBITDA supply a about deliver from with in We've cost XXXX, should impacts be energy in an extended from offsetting challenged to going

is strong to a now in And connections Tubular finally, resilient and transformation. production a structural commodity benefit the seen and recently and Tubular, true We've from continued commercial cycles a a and that vulnerable inconsistent proprietary was in-sourced structure, was rounds cost What backdrop. generating EBITDA. improvement material segment

current XXXX Our about Tubular estimates of will EBITDA. contribute see million $XXX for

look at flow on Slide the take free Let's cash profile a XX.

the profile fundamentally over Our XX changed has years. free cash last flow

in our transformed the consider projects requirements, is flow ramp-up the our Our things: average cash strategic the breakeven from period has gone decline free capital could what frame. X intensity annual it's to generation in we about of as Again, essentially $X you to driving XXXX our of our in average the the strategic and XXXX decrease footprint. flow in CapEx cash estimate XXXX what free billion time XXXX to outlook,

As you the our to priorities. checking balance strategy on the allocation strengthen has and can see our invest stockholders, flexibility our to in us each this sheet, capital XX, on of capital Slide afforded return box

we will say, As strategic We're as while continue maintained to projects, assess business steel. currently as I buyback to continue quarterly on to our we pause, earlier, and is, balance program discussed And generate a the excess sheet like strong our returns capital cash. as is we will given dividend. our advancing have appropriate our

I'll view quarter, sequentially headwind wrap lower up quarter. with third. versus EBITDA we the the Pricing be segments our a the in the current will expect quarter in fourth the across and of fourth

in segment a pricing expect Flat-Rolled quarter. that's planned in maintenance reflecting from volumes. costs is and and prices lower in associated decreased sequential volumes We occurring part spot EBITDA, fourth due and lower decline the to This the

Mill results, sequential EBITDA. to from and are the items a metallics partially to steel be planned quarter lower we impact segment, expected offset lower These prices maintenance In lower driving outage Mini expect costs. fourth

QX returning material lower sequentially finally, quarter. spending lower to we reflects pricing average performance with EBITDA levels. prices, absence of as we offset raw In shipments during also expect our partially Europe, broadly and the That EBITDA QX offset outage And at consistent headwinds Tubular more operations. normalized the costs selling decreased we to be planned expect to expect by

we and expect quarter fourth $XXX adjusted together, Taken $XXX be million EBITDA million. between to

you Now bottoms-up mix any team integrated slides on a detailed we've Mini included I to take our before cost I to in pricing includes reach can appendix always Dave, back the and invite a out website. turn Investor on do assumptions And information for product analysis business. of want segments questions Relations refreshed you the have. to it look Mill and breakdown The of our course, you may at and with presentation the to this

So that, back to your it before turn with Dave? I'll Dave take we Q&A.

David Burritt

Thanks, Jess.

move Q&A, for we process. to provide an opportunity update Before alternatives strategic to I'd the the stockholders like thank review on to the

we in information are interest and going we and we your excited keep give. the Steel provided on ask We to be that kindly flattered our you and robust all performance, for more the We especially which of stockholders. happy discuss. to excited But will our questions U.S. by than have financial operational focused are

Q&A. open the let's for line up Kevin,

Kevin Lewis

of Okay. our with But we've adequately question course, our Thank today, you, our addressed Technologies. a And Dave. believe of from institutional know, as retail submitted we prepared remarks. calls platform, Say we investors you typically and many begin these in

will So the line the I for open questions. to now operator ask

Operator

[Operator Instructions] first with Peterson with line on Bill JPMorgan. And the our question from we'll proceed

William Peterson

guidance can sort or energy, little you want then also, on labor underlying clarify, side? putting on out you're cost inflation you're any around input other EBITDA. Interesting illustrative just I bit costs, $XXX, guess, or give to more detail the a of sure. HRC the And to make the just I things using 'XX assumptions on

Jessica Graziano

give have that Mini bit segment. on around contracts. our in are just I'll sold contracts, experience NAFR And And quarterly couple XX% and start it, a fixed-price little sensitivity so less things, that we first going what spot that's some shipments given $XXX HRC going of $XXX, both the of our there. little to of market-based is off, to Bill, are price exhibit behind than right, would particularly volatility movements. the right, color are ones, then we so clearly, Mill A a I'll using

plays that for NAFR. of billion for some So expecting the $X estimates through we're our that

and costs see tailwind you tailwind with right? when sort will We coal a that the do competitive costs, commodity to are And number. lower coal. of our a prices, when coal a benefit we we we a in expected be together, than that XXXX base be coal competition we abilities, to have advantage we in off So cost in across about think believe that looking start So a going we're put in right? believe out blending that's

into materials, commodity, much will in We as us well. also by believe but more for whole materials be the raw we're raw year not a to go detail tailwind a as going

NAFR, $XXX million that in well. then as of that we're right, And driver a seeing cost number for significant is annualized benefits, XXXX that

the about tons of additional As on are far increase started. the when in and line expected, in right, lines, see additional Mini particularly shipments do about of depending of River, terms the as and the timing we right, that Big you impact when shipments NGO CGLX XXX,XXX those get River Mill, add the the an Big the think from

out about We number within Mill, the as $XXX we those coming right, think benefit the of running, product do specifically. mix do also and the portfolio to We in the the and up bringing additional from NGO also Pig that's metallics that in Gary and benefit CGL continued Mini million see through benefit playing see value-added lines better cost.

a question. puts takes Bill, think you'd those more within the I if numbers. of something gives some specific, level high So of there's biggest probably a and If that second ask

William Peterson

guideposts looking ask Yes, a terms in you you're guess, I prices about, for market I asset that what improve recent But before looking turn here good at to on. that's back a -- kind to what back we've on? to Wanted weeks. be are you're seen environment turn of signposts in overview. mean grants the or no, of

David Burritt

this I'll make -- maybe Yes, just is Dave.

from are. I'll then and key And got turn it nimble update us The to we've certainly, the to few the is a be comments, make for to Just UAW you. market to the dynamics heard Jess, negotiations respond clearly we But Jess, outstanding. positive could. Stellantis you General maybe, watching go the as by. sign. remain And a we're a Motors if closely clearly you with give something more It's days little just is Ford color, and and whatever

Jessica Graziano

Sure, Thank you. Dave.

just a So right? we the for and mentioned, XX% to are makes the between Auto about strike UAW. positive Flat-Rolled of segment. GM to the Stellantis it's settling the happens, and clearly, Dave outcome see still up see of watching as Ford what But both

And exposure we so we Granite have decision while the not strike take into on of did to impacted, also been consideration temporarily City. other to have impact the the idle transplants, which

use So the or a book through whether as or ultimately most on on and the be to reaccelerate book, of an that this footprint we to turn quarter, at and the we too the making we make the early that decide -- order just Granite update and then to look it's back to get point It's able City we're really not decision to not on. give efficient on whether guide see that. on right, activity decide going to focus ultimately order as use

Operator

with line proceed the Alex question on with is Citi. our the we'll Hacking And It of from next line.

Alexander Hacking

So River, guys marketplace. the those that not represent I incremental One guess, that Big first was I new mill. -- tons think necessarily said you that into that the question would announced, on

is? approach year, will demand is next the how approach we that and of more you see start-up mill take still the a of strategy? As market-based that Or

David Burritt

the one on going align that's But some I the next today and the next providing course, going color. got Alex. Jess tracking yes, year. Jess, And market River in of we value the additional you on the half to say say, towards be I'd second EBITDA, that Well, obviously more obviously, on year. to is reasons with opportunity that to driver of be XXXX. this we're I We're focused start-up, progressing think is incremental well. tremendous think to Big XXXX And maybe happening is to that. EBITDA generating

Jessica Graziano

sure think the a for always similar -- as we to the in and terms about footprint. footprint City, the going incremental balanced conversation to think book, the just make with had way to Yes, you is similar at on our right? we're going I think of Granite I think impact as order which capacity we're we We're that volumes, about it's it's our look

XXXX today. going we're not Now beyond

early online from expect So as able other Big BRX any right? market about right, we the look at specifically too bring in and X will volumes that to we make it's decisions be changes to XXXX, kind come level the we'll we footprint what future, into as see, of we of the align start far are to to how we River seeing conversation in ones the to real-time our have the to our really limiting the and obviously, those across with for we that. today footprint We're to best we market, visibility But we're what that as as decisions XXXX. make continue do talk

Alexander Hacking

done Okay. my And XXXX, then the is a in CapEx follow-up. no that XXXX. and I all in have notes strategic there's carryover into Is correct? that

Jessica Graziano

timing. a bit of little There's

of into completed cash XXXX, million looking would outlay, maybe it million $XXX commitments, outlay of some flow going be I mean, cash nothing XXXX. by The really material. $XX bulk we're it, is but -- not to at, it now, call all right almost So let's of that to

Operator

with Carlos Stanley. next on our question Alba from the get line We'll Morgan De

Carlos de Alba

this or news flat oil per coal prices that $XXX about is by U.S. prices saw morning Steel increasing we Just ton.

you confirm this this if you're to could supports ahead -- color What with the you decision wanted offer? Just or maybe see what can it? indeed if marketplace you going in that

David Burritt

obviously, full course. for I I'd And say, quarter. order a confirm of got that, we this book yes,

sense each of drivers go the across real But a our of drivers And in of through the one these lot will quickly next a year. first I'll maybe, up X of them different lot of that here increases Kevin, seeing show just a will give quarter we're segments. likely So to operating are. those to come what price ask you

Kevin Lewis

do Yes. Thanks, Happy that. to Dave.

the by that that mentioned, So out We XXXX. and believe be we strength this the conclude earlier as $XXX momentum Dave we're price here order as a week. book in were continued calendar ton very it's supported year seeing to a much increase the we with continues built

end itself the support stoppage, by the you and think automotive through been that it's our we rectify of know with will So hopefully, continue automotive, term UAW about impacted the short at demand work light will in to but we think tunnel, portfolio. some

We through exposure unique diverse portfolio. product have and a our end-market

through from So inquiries the seeing in is has I track fourth from its think appliances. and ever and we energy to point, to Construction our on quarter. vantage in increase activity year stable and line achieve of in activity been increase, Appliance best order pipe sector service and center third we're order activity, benefited levels higher beginning remains markets. strong,

and think excited momentum low pricing inventories with about announced increase we week. the continued that is So the markets, real demand we strong diverse end and through our this certainly

In versus the higher do expect Europe, third we quarter. volumes

X all operating have quarter. blast Europe. We the a We planned did have outage X-month in for furnaces

probably we while So will X would demand it, blast all how sluggish be in remains run is furnaces. a still to call position we

strong, remain we've Tubular, tick see then up. shipments. from QX reduced quite improving. throughout elevated. gas are rig certainly oil in we improved have Imports obviously And They declined -- peak still markets and levels, with system, remain the and seen but counts inventories And

in in XXXX. position starting positive all, and think I in flow we're to momentum a to built, to continue see that and put to start expect we QX a good us all be very through So to begin

Carlos de Alba

And then just another question.

time whether increase or well to are you returns timing of on as you flow to free framework your EBITDA with a cash either to would -- is any the budget, projects and transformation capital well dividend to CapEx or a shareholders make links ahead your and decision capital that when minus that sustaining or that or buybacks money advanced on flows in sort cash Given to on establish shareholders and/or metric? some or there allocation

David Burritt

cash, capital about is Carlos, little going staying talk that. you with will, if maybe seen the But Yes. bit we're more Jess, priority question. dividend the you and to a for be our and you've process, allocation specifically

Jessica Graziano

right? would that's as checking Sure. our right, with contrary, the we far the I we But Well, conversation we've Sure, as process, right, appropriate, when mean, on priorities we review business and prepared absolutely. capital as been I framework. mentioned with boxes across what's our as not alternatives it's as day. the next, we manage right, I a aren't that Board, have if strategic those in every mean allocation prioritizing continue remarks, that

Board if a And Right will engaged process. as have, and in the and on fair with process. focus appropriate. again, and fully allocation be conversation something capital and when priorities completing is buybacks on now, and adequate committed we'll the to is dividend that The

appreciate I the question. So

It's tremendous in, clear free Best where think us, the about right, we says, unlock as as we as point, we cash are a that is there to for All coming your of for that's Dave process, that with and side being So we'll get have as mountain of to clearly, that what best to we on CapEx, are cash. other the on cash, stewards the on flow do appropriate conversations focused the right?

David Burritt

here. heard us We're value. you a the stockholder strategic And of focused delayed, put reasons, have Jess's good on program really very we lot on place clearly right, what's value, process has maximizing in confidentiality and going unleashing the lots on buyback because about of was for remarks a frankly, stock information for

can't actually that do program. So we

can environment. principles. fact, the you we stockholder on or in within And time The jobs obviously. value. every -- meet our will this, we this, conduct, fiduciary our great through we get Because duties maximize to code Board value make to to of count Steel got this us we've maximize decision talk in stockholder on about a So our

other So our strategic talk some we're through But priorities and doing to value. we that then alternative this getting are that, issues. maximizing committed process can about and of these

Operator

from next Paribas. We'll our proceed with on the Exane Tristan question from Gresser BNP is line

Tristan Gresser

again operate like you one poor looks The market first the is It Europe. despite conditions. on full

down understood pretty all indicators And guide also, don't So year. look at for negative. the demand, spot you anticipate the capacity and if shutting quarter-on-quarter, margins there, like I last stable EBITDA I you but furnace are if maybe there correctly, cuts

last So it a my is as more year? why bad why as first And not That's question. is constructive your message this year year? last versus bit

Kevin Lewis

was you're flat guiding some Kevin. look start level XQ. is fourth really are in to done the right, we'll for being then obviously, themselves fourth of of performance. a this quarter, and quarter, in that There moving reverse some the that's If we're third at quarter Tristan, work and the the kind we pieces, impact quarter-over-quarter Europe, significant outage to of uniquely that

third volumes. of production. XX,XXX higher order Order really incremental that X quarter-over-quarter of the expect quarter. shipments we'll furnaces maybe do XX,XXX tons blast and somewhere see versus fourth generate of to worth that And quarter an the have magnitude, book supports sequentially in between We

deliver as that a the we EBITDA operating in tailwinds, focus position some continued the with We efficiencies to raw are quarter-on-quarter. in will proceeds quarter. seeing of soften, business Slovakia our mentioned, in think costs, generate be be to into quarter able fourth you the But on stable we will the material in fourth

David Burritt

also EU There's is is and are extraordinarily in But keep fall last the business run. just to where we These well no think very to expected how very, to X%, the it's well. demand has steel X%. Europe doubt today. year, that more like know expected rebound operations this mind been guys run This I challenged

strong, challenged our what in It's how been it But to into the business So not transfers have numbers that the we'll frankly, all of past. short next has through year, is as it this as sure a see. in term. for

Tristan Gresser

least me clear EBITDA brings demand we That's expectations some is much at to I a business upfront mean, year. I follow-up in $XXX right. and demand. actually mean what quick are million the levels. next rebound there the for see the would COVID it All pretty for

in are of on conservative So is that structurally really business there is something shape just first Or will there? the you out year different? how the half being the

Kevin Lewis

some this the XXXX versus in think we me to speak expect So see about that to let of if segment. we XXXX, changes in favorable performance

this with we outage of in idled running in XXXX. for X-month energy Recall, expect XXXX. XXXX We to increased throughout year year, year. the calendar us be should the the furnaces X shipment that blast once furnace volume plus First, an have versus a did to third see we start again had quarter tailwind do

change. year-on-year a that's So

We gives some see XXXX stable a sequentially sight barometer a coking costs ore as all the headwinds, together of of will coal of to COX that year-over-year on likely with flat for well FX basis. pellets iron line IODEX costs. kind versus some being raw higher that's us taken material in But and or as labor EBITDA as our as whether as well using

Tristan Gresser

COX That's you into costs fair. on a year? quick And big is next a mentioned, All hike right. that just one just

Kevin Lewis

should level headwind. a you now year-on-year be certainly assess of don't think an a I we're in right will year-on-year think absolute headwind. change. to as a But It it about value, the position

Tristan Gresser

all All that right. a That's very clear. given capital on And was maybe question, second process Europe and aside. more putting bit is the strategic allocation that my

kind view Is be for point management? River the a X really the would River pause I that on is in Or seems XXXX a value. there bit shareholder the XXXX, think of reward the from shareholders Big X time strategy and maximizing Big looking growth is plan after after in the It X? do expect What Big River of growth a off and bit is the future? some of you what somewhere strategy that more?

Jessica Graziano

say I you're I have on just greedy you to call. XXXX. a gave little this getting

very that Now expect about than listen, go we we're that now, further right are far we on the the impacts like, with comfortable comfortable to XXXX. going we're with but We not not that We're today. talking going path going see look feel of call to very what this financial right? for

David Burritt

any didn't more. good thing him we asking XXXX. a be for He'd That's give

Tristan Gresser

That's that's from additional fair. all appreciate And the No, disclosure me. provided. you I

Operator

our Gordon GLJ Research. Johnson to from get We'll line with on next question the

Gordon Johnson

Congrats on results. the

for been a mean Just a question lot of me. I asked. quick have the questions

a can ask I couple. maybe So

some service some prices there's made up. have some I So and purchases of until built, been the the could you guys it inventory from And in been distributors that any have could lull in not, given are centers some like seems heard now, inventory concerns up see that potentially elaborate? the buying of concerns that? a some you seen if addressed. Have Midwest of you

Kevin Lewis

the third inventories say low side, service would I quarter. Kevin. is as centers This ended the at Gordon. inventory on we Sure, were Yes.

I X.X around the average. somewhere well below think was which months hand, of XX-year inventory on it is

think some will demand in buyers already we UAW, sidelines bring that actually better entering order entry to picture as recovery see, So have, off resolution to rates. start the the a and with we XXXX, some the into of

we're the some some good demand. think I resolved optimistic and fully becomes least resolved, uncertainty term in that provide of quite that will near at So the more more

Gordon Johnson

could. I if more, One

the $XXX guys you assuming are the guys in be for guide, there? at being XXXX conservative is $XXX. You Could little curve but a currently

Kevin Lewis

Obviously, right fixed -- market mix as out, level steel to commercial the contract, extent we'll and around Obviously, our is of move. environment. whether to currently kicked Gordon, on market pointed at results believe that mix will Obviously, the operations extremely regardless right we prices and curve volumes, place, reflected as you well we a be perspective And to right significantly. monthly index, a exposure, has of end in continue our out focused expectations the $XXX. recently, wanted sell-side in -- of from the the the just having that's be forward spot align to strategy results of pricing running optimize the fluctuate

it didn't but our outlook at So juncture. we XXXX momentum for in seeing, that do this that you're see necessarily we same include

But comments. pass some to she's got Jess additional I'll if over it

Jessica Graziano

Yes.

to think we if slide wanted still to So our be the are helpful you we numbers and assumptive, to saw, Just where the going perspective, about these walk, right? that's move, in all the show takes on that underscore, the right, that's bridging the puts topline gap we from market and across base. happens cost right? what other within That's $XXX XXXX, to and in the have the both in million, of going

So if XXXX for we business we're of kind that will. in going But level have right, and visibility comfortable making to look same feel the that experience right now, ballpark that we you the that the -- are clear of we all the as likely same bucket, the in puts in will XXXX. takes expect

Operator

line to question our Stanley. get Carlos from We'll from Instructions] Morgan [Operator De Alba on the next

Carlos de Alba

be details Any no you it. so to I Dave, no on comments said And the have process. color about than risk one, I'm a completed board other But just sense of or going year? Like process a what helpful. early timing? heard will the the seriously? is I this on will it there is That this extremely that be year next very would taking be

David Burritt

the details what's my just provide strategic really Carlos, I'd to further earlier make been you just beyond not on alternative able that any to said. process I already want Well, say comments sure we're heard

it rigorous stated also a interest. flattered on I many we're by stockholder was there additional not highly earlier, said focused As right? updates then. serious then, fair running maximizing And we're and interest you just very that going give assured, bidders, we're a value, credible robust, details. And and we'll Rest is but remain until be appropriate, provide able the it's not We to before to process. from when

Operator

closing Burritt, I'll final back turn for question. it the CEO, Dave Steel -- back to to that U.S. comments. And now was over

David Burritt

Steel. discussion. as you this Thank your value. Thank U.S. on to available us we our always, and We're you your honored by our interest progress alternative appreciate to truly everyone appreciate your the morning We the stockholders. as stockholder We you, with to best steel for maximize and feedback as well process for strategic Thank you with joining engagement help solutions you fulfill to customers. needs anywhere. partner serving to and our you with

employees we U.S. Steel it enabling if who Of weren't course, there our much the be in single interest wouldn't success are so every incredible for have day.

your employees hard are commitment innovation, new thank you and work, truly So the Steel U.S. your heights. safety you industry the the best in to are to taking to everywhere. your We're Steel guys truly first -- U.S. in

Steel, U.S. each these stakeholders. we of At value

planet are for to that We not deliver pleased but the for as steel differentiated solutions are best well. people, only

let's safely. work to Now get back

Operator

participation, We you. day, ask conference thank you good please disconnect Have today. you for your That call everyone. for lines. and does conclude the a Thank we your

United States Steel (X) 27 Oct 232023 Q3 Earnings call transcript