U.S. Steel Secures Certification for ResponsibleSteel Certified Steel
United States Steel Corporation X has become the first steel company in the world to qualify to sell its products as ResponsibleSteel Certified Steel at its Big River facility in Osceola, AR. Big River achieved the first ResponsibleSteel Site Certification in North America in 2022 for steel that is sustainably sourced and made.
ResponsibleSteel is the industry's premier worldwide multi-stakeholder standards body, offering site-level certification and, for the first time, steel certification. By reaching the Certified Steel standard, U.S. Steel's Big River facility demonstrates its commitment to environmental causes as well as providing lucrative solutions for stakeholders.
The stringent requirements for ResponsibleSteel Certified Steel establish a new gold standard for responsible steel manufacture on a worldwide scale. This accreditation reassures consumers and stakeholders that Big River is on track to achieve near-zero emissions and showcases that U.S. Steel uses responsible practices throughout its supply chain. Being the first steel firm in the world to earn this certification highlights its unwavering commitment to building a more sustainable steel sector in the United States and around the globe.
U.S. Steel is displaying leadership by delivering Certified Steel, which allows steel manufacturers and suppliers to analyze their sustainability progress against a comprehensive, verifiable worldwide benchmark. The Standard is designed not just to stimulate decarbonization at the site but also to promote responsible procurement and a thorough supply chain ESG analysis.
It promotes tracking and transparency throughout the steel supply chain, from input materials to finished products, ensuring that ESG measures are included at every level. With four Progress Levels specified, businesses are guided to improve responsible sourcing and decarbonization until full supply chain transparency and near-zero emissions are reached. U.S. Steel has gained Progress Level 1 certification, demonstrating its consistent commitment to an integrated approach to sustainability.
Shares of U.S. Steel have gained 21.1% over the past year against a 4.8% decline of its industry.
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The company recently issued its guidance for third-quarter 2024. It expects adjusted net earnings per share to be in the range of 44-48 cents and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be around $300 million.
For the third quarter, the Flat-Rolled segment's adjusted EBITDA is expected to be down sequentially due to lower selling prices. However, U.S. Steel’s diverse commercial portfolio and operational efficiency are expected to help offset some of this impact. The Mini Mill segment is also likely to report lower adjusted EBITDA sequentially, reflecting declining selling prices, although lower metallic costs may provide some relief. The European segment’s adjusted EBITDA is projected to improve due to favorable CO2 allowance adjustments despite ongoing market challenges. The Tubular segment is expected to see a drop in adjusted EBITDA due to lower selling prices.
Despite a challenging pricing environment, U.S. Steel noted continued strength in domestic flat-rolled steel demand. The company’s guidance reflects that while pricing pressures persist, these challenges are being mitigated by a well-balanced and diversified order book in the North American Flat-Rolled segment.
United States Steel Corporation Price and Consensus
United States Steel Corporation price-consensus-chart | United States Steel Corporation Quote
Zacks Rank & Key Picks
X currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Eldorado Gold Corporation EGO and Hawkins, Inc. HWKN.
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 111.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.40 per share, indicating a year-over-year rise of 145.6%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 71.6% in the past year.
The Zacks Consensus Estimate for Hawkins’ current fiscal-year earnings is pegged at $4.14, indicating a rise of 15.3% from year-ago levels. The Zacks Consensus Estimate for HWKN’s current fiscal-year earnings has increased 12.8% in the past 60 days. HWKN, a Zacks Rank #2 (Buy) stock, has rallied around 99.1% in the past year.
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