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CONTACTS:
Arista Joyner
Manager
Corporate Communications
T - (412) 433-3994
E - AEjoyner@uss.com
Kevin Lewis
Vice President
Finance
T - (412) 433-6935
E - KLewis@uss.com




NEWS RELEASE


FOR IMMEDIATE RELEASE:

U. S. Steel Delivers Strong First Quarter 2023; Best for All® Strategy On-Track

First quarter 2023 net earnings of $199 million, or $0.78 per diluted share
First quarter 2023 adjusted net earnings of $195 million, or $0.77 per diluted share
First quarter 2023 adjusted EBITDA of $427 million

PITTSBURGH, April 27, 2023 – United States Steel Corporation (NYSE: X) reported first quarter 2023 net earnings of $199 million, or $0.78 per diluted share. Adjusted net earnings was $195 million, or $0.77 per diluted share and excludes stock-based compensation expense of $8 million, net of taxes, or $0.03 per diluted share that had previously been reported in the North American Flat-Rolled segment and other one-time items detailed in the reconciliation of adjusted net earnings table. The exclusion of stock-based compensation expense was not contemplated at the time of our March 16, 2023 guidance press release. This compares to first quarter 2022 net earnings of $882 million, or $3.02 per diluted share. Adjusted net earnings for the first quarter 2022 was $910 million, or $3.11 per diluted share and excluded the impact of one-time items detailed in the reconciliation of adjusted net earnings table.
Commenting on the first quarter's performance, U. S. Steel President and Chief Executive Officer David B. Burritt said, “We delivered another strong quarter. Each of our operating segments exceeded expectations. We generated positive investable free cash flow of $25 million before supporting $582 million of high return strategic capital expenditures and continued direct returns in the quarter.”
Burritt continued, “Our focus on being the best partner for our customers through best operations has amplified the benefits of an improved market and more market share gains that we expect to continue through 2023. This momentum is expected to deliver even stronger second quarter results from higher steel prices."




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Burritt concluded, “In spite of inflationary pressures, we are pleased to report our strategic projects are on-track to meet or improve upon key milestones each quarter and deliver returns well above our weighted average cost of capital. We’ve begun cold commissioning critical components of our new non-grain oriented electrical steel line at Big River Steel to produce the first coil as planned later this summer. Big River 2, our new mini mill with even more capabilities, and our new galvanize/GALVALUME® line, remain on-track for 2024. Together, with our current Big River Steel footprint, we are creating the next generation of sustainable mini mill steelmaking in the U.S. and transforming our business model to generate more consistent cash flow to continue capability building and higher returns for our investors.”
Earnings Highlights
Three Months Ended March 31,
(Dollars in millions, except per share amounts)20232022
Net Sales$4,470 $5,234 
Segment earnings (loss) before interest and income taxes
     Flat-Rolled$(7)$529 
     Mini Mill12 278 
     U. S. Steel Europe(34)264 
     Tubular232 77 
     Other
Total segment earnings before interest and income taxes$206 $1,155 
Other items not allocated to segments(17)(37)
Earnings before interest and income taxes$189 $1,118 
Net interest and other financial benefits(61)(10)
Income tax expense51 246 
Net earnings$199 $882 
Earnings per diluted share$0.78 $3.02 
Adjusted net earnings (a)
$195 $910 
Adjusted net earnings per diluted share (a)
$0.77 $3.11 
Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) (b)
$427 $1,353 
(a) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts. The prior year was retroactively adjusted to reflect the reclassification of stock-based compensation expense.
*****
The Company will conduct a conference call on the first quarter earnings on Friday, April 28, 2023, at 8:30 a.m. Eastern. To listen to the webcast of the conference call and to access the Company's slide presentation, visit the U. S. Steel website, www.ussteel.com, and click on the “Investors” section. Replay will be available on the website after 10:30 a.m. on April 28, 2023.

©2023 U. S. Steel All Rights Reserved www.ussteel.com United States Steel Corporation


News Release
UNITED STATES STEEL CORPORATION
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)
Three Months Ended March 31,
20232022
OPERATING STATISTICS
Average realized price: ($/net ton unless otherwise noted) (a)
Flat-Rolled1,012 1,368 
Mini Mill794 1,372 
U. S. Steel Europe909 1,109 
U. S. Steel Europe (€/net ton)847 988 
Tubular3,757 2,349 
Steel shipments (thousands of net tons): (a)
Flat-Rolled2,278 1,947 
Mini Mill659 507 
U. S. Steel Europe883 1,110 
Tubular131 128 
    Total steel shipments3,951 3,692 
Intersegment steel (unless otherwise noted) shipments (thousands of net tons):
Mini Mill to Flat-Rolled83 89 
Flat-Rolled to Mini Mill (pig iron)29 — 
Raw steel production (thousands of net tons):
Flat-Rolled2,393 2,205 
Mini Mill759 601 
U. S. Steel Europe1,092 1,088 
Tubular171 156 
Raw steel capability utilization: (b)
Flat-Rolled74 %68 %
Mini Mill93 %74 %
U. S. Steel Europe89 %88 %
Tubular77 %70 %
CAPITAL EXPENDITURES (dollars in millions)
Flat-Rolled 139 117 
Mini Mill563 211 
U. S. Steel Europe26 17 
Tubular12 
Other Businesses— — 
   Total$740 $349 
(a) Excludes intersegment shipments.
(b) Based on annual raw steel production capability of 13.2 million net tons for Flat-Rolled, 3.3 million for Mini Mill, 5.0 million net tons for U. S. Steel Europe and 0.9 million for Tubular.

©2023 U. S. Steel All Rights Reserved www.ussteel.com United States Steel Corporation


News Release
UNITED STATES STEEL CORPORATION
CONDENSED STATEMENT OF OPERATIONS (Unaudited)
Three Months Ended March 31,
(Dollars in millions, except per share amounts)20232022
Net Sales$4,470 $5,234 
Operating expenses (income):
Cost of sales3,953 3,823 
Selling, general and administrative expenses99 117 
Depreciation, depletion and amortization221 198 
Loss (earnings) from investees13 (36)
Asset impairment charges
Restructuring and other charges17 
Net gains on sale of assets(2)(2)
Other gains, net(8)(7)
Total operating expenses4,281 4,116 
Earnings before interest and income taxes189 1,118 
Net interest and other financial benefits(61)(10)
Earnings before income taxes250 1,128 
Income tax expense51 246 
Net earnings199 882 
Less: Net earnings attributable to noncontrolling interests— — 
Net earnings attributable to United States Steel Corporation$199 $882 
COMMON STOCK DATA:
Net earnings per share attributable to United States Steel Corporation Stockholders
        Basic$0.87 $3.37 
        Diluted$0.78 $3.02 
    Weighted average shares, in thousands
        Basic227,332 261,453 
        Diluted257,447 293,267 
    Dividends paid per common share$0.05 $0.05 

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News Release
UNITED STATES STEEL CORPORATION
CONDENSED CASH FLOW STATEMENT (Unaudited)
Three Months Ended March 31,
(Dollars in millions)20232022
Increase (decrease) in cash, cash equivalents and restricted cash
Operating activities:
Net earnings$199 $882 
Depreciation, depletion and amortization221 198 
Restructuring and other charges17 
Pensions and other postretirement benefits(41)(60)
Deferred income taxes38 121 
Working capital changes(47)(462)
Income taxes receivable/payable10 140 
Other operating activities(200)(65)
Net cash provided by operating activities181 771 
Investing activities:
Capital expenditures(740)(349)
Proceeds from sale of assets
Other investing activities— (7)
Net cash used in investing activities(738)(352)
Financing activities:
Issuance of long-term debt, net of financing costs— 
Repayment of long-term debt(10)(6)
Common stock repurchased(75)(123)
Proceeds from government incentives— 82 
Other financing activities(32)(28)
Net cash used in financing activities(117)(71)
Effect of exchange rate changes on cash(7)
Net increase in cash, cash equivalents and restricted cash(666)341 
Cash, cash equivalents and restricted cash at beginning of year3,539 2,600 
Cash, cash equivalents and restricted cash at end of period$2,873 $2,941 

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News Release
UNITED STATES STEEL CORPORATION
CONDENSED BALANCE SHEET (Unaudited)
March 31,December 31,
(Dollars in millions)20232022
Cash and cash equivalents$2,837 $3,504 
Receivables, net1,808 1,635 
Inventories2,541 2,359 
Other current assets362 368 
Total current assets7,548 7,866 
Operating lease assets134 146 
Property, plant and equipment, net8,875 8,492 
Investments and long-term receivables, net830 840 
Intangible, net467 478 
Goodwill920 920 
Other noncurrent assets766 716 
Total assets$19,540 $19,458 
Accounts payable and other accrued liabilities3,175 3,016 
Payroll and benefits payable388 493 
Short-term debt and current maturities of long-term debt91 63 
Other current liabilities361 387 
Total current liabilities4,015 3,959 
Noncurrent operating lease liabilities95 105 
Long-term debt, less unamortized discount and debt issuance costs3,901 3,914 
Employee benefits146 209 
Deferred income tax liabilities479 456 
Other long-term liabilities509 504 
United States Steel Corporation stockholders' equity10,302 10,218 
Noncontrolling interests93 93 
Total liabilities and stockholders' equity$19,540 $19,458 








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News Release
UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED NET EARNINGS
Three Months Ended March 31,
(In millions of dollars)20232022
Net earnings and diluted net earnings per share attributable to United States Steel Corporation, as reported$199 $0.78 $882 $3.02 
Restructuring and other charges17 
Stock-based compensation expense (a)
11 16 
VEBA asset surplus adjustment(22)— 
Other charges, net
Adjusted pre-tax net earnings to United States Steel Corporation194 919 
Tax impact of adjusted items (b)
(9)
Adjusted net earnings and diluted net earnings per share attributable to United States Steel Corporation$195 $0.77 $910 $3.11 
Weight average diluted ordinary shares outstanding, in millions257.4 293.3 
(a) The prior year was retroactively adjusted to reflect the reclassification of stock-based compensation expense. The adjustment was $8 million and $12 million, net of taxes, for the three months ended March 31, 2023 and 2022, respectively.
(b) The tax impact of adjusted items for the three months ended March 31, 2023 is calculated using a blended tax rate of 24%. The tax impact of adjusted items for the three months ended March 31, 2022 is calculated using a blended tax rate of 25%.
Note: The reported net earnings attributable to U. S. Steel for the three months ended March 31, 2022 includes an income tax benefit of $7 million from the reversal of net valuation allowances. The item was presented as an adjustment to arrive at adjusted net earnings attributable to U. S. Steel in the prior period presentation. The reconciliation for the three months ended March 31, 2022 presented above has been recast to reflect the removal of the adjustment in accordance with Securities and Exchange Commission guidance.

UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA
Three Months Ended March 31,
(Dollars in millions)20232022
Reconciliation to Adjusted EBITDA
Net earnings attributable to United States Steel Corporation$199 $882 
Income tax expense51 246 
Net interest and other financial benefits(61)(10)
Depreciation, depletion and amortization expense221 198 
EBITDA410 1,316 
Restructuring and other charges17 
Stock-based compensation expense (a)
11 16 
Other charges, net
Adjusted EBITDA$427 $1,353 
(a) The prior year was retroactively adjusted to reflect the reclassification of stock-based compensation expense.

UNITED STATES STEEL CORPORATION
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF PAST TWELVE MONTHS OF FREE AND INVESTABLE CASH FLOW
2nd3rd4th1st
QuarterQuarterQuarterQuarterTotal of the
(Dollars in millions)2022202220222023Four Quarters
Net cash provided by operating activities$905 $1,074 $755 $181 $2,915 
Net cash used in investing activities(250)(463)(614)(738)(2,065)
Free cash flow655 611 141 (557)850 
Strategic capital expenditures171 330 479 582 $1,562 
Investable free cash flow$826 $941 $620 $25 $2,412 


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News Release
    We present adjusted net earnings, adjusted net earnings per diluted share, earnings before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA, which are non-GAAP measures, as additional measurements to enhance the understanding of our operating performance. We believe that EBITDA, considered along with net earnings, is a relevant indicator of trends relating to our operating performance and provides management and investors with additional information for comparison of our operating results to the operating results of other companies.
Adjusted net earnings and adjusted net earnings per diluted share are non-GAAP measures that exclude the effects of items that include: restructuring and other charges, stock-based compensation expense, VEBA asset surplus adjustment, tax impact of adjusted items and other charges, net (Adjustment Items). Adjusted EBITDA is also a non-GAAP measure that excludes the effects of certain Adjustment Items. We present adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA to enhance the understanding of our ongoing operating performance and established trends affecting our core operations by excluding the effects of events that can obscure underlying trends. U. S. Steel's management considers adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA as alternative measures of operating performance and not alternative measures of the Company's liquidity. U. S. Steel’s management considers adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA useful to investors by facilitating a comparison of our operating performance to the operating performance of our competitors. Additionally, the presentation of adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA provides insight into management’s view and assessment of the Company’s ongoing operating performance because management does not consider the Adjustment Items when evaluating the Company’s financial performance. Adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA should not be considered a substitute for net earnings, earnings per diluted share or other financial measures as computed in accordance with U.S. GAAP and is not necessarily comparable to similarly titled measures used by other companies.
We also present free cash flow, a non-GAAP measure of cash generated from operations after any investing activity and investable free cash flow, a non-GAAP measure of cash generated from operations, after any investing activity adjusted for strategic capital expenditures. We believe that free and investable cash flow provides further insight into the Company's overall utilization of cash. A condensed consolidated statement of operations (unaudited), condensed consolidated cash flow statement (unaudited), condensed consolidated balance sheet (unaudited) and preliminary supplemental statistics (unaudited) for
U. S. Steel are attached.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
    This release contains information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Generally, we have identified such forward-looking statements by using the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “target,” “forecast,” “aim,” “should,” “plan,” “goal,” “future,” “will,” “may,” and similar expressions or by using future dates in connection with any discussion of, among other things, the construction or operation of new or existing facilities or operating capabilities, the timing, size and form of share repurchase transactions, operating or financial performance, trends, events or developments that we expect or anticipate will occur in the future, statements relating to volume changes, share of sales and earnings per share changes, anticipated cost savings, potential capital and operational cash improvements, changes in the global economic environment, including supply and demand conditions, inflation, interest rates, supply chain disruptions and changes in prices for our products, international trade duties and other aspects of international trade policy, statements regarding our future strategies, products and innovations, statements regarding our greenhouse gas emissions reduction goals, statements regarding existing or new regulations and statements expressing general views about future operating results. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements are not historical facts, but instead represent only the Company’s beliefs regarding future events, many of

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which, by their nature, are inherently uncertain and outside of the Company’s control. It is possible that the Company’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Management believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. Our Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our Company's historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, the risks and uncertainties described in “Item 1A. Risk Factors” in our Annual report on Form 10-K for the year ended December 31, 2022 and those described from time to time in our future reports filed with the Securities and Exchange Commission.
References to “U. S. Steel,” “the Company,” “we,” “us,” and “our” refer to United States Steel Corporation and its consolidated subsidiaries, and references to “Big River Steel” refer to Big River Steel Holdings LLC and its direct and indirect subsidiaries unless otherwise indicated by the context.
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2023-014
Founded in 1901, United States Steel Corporation is a leading steel producer. With an unwavering focus on safety, the Company’s customer-centric Best for All® strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products such as U. S. Steel’s proprietary XG3® advanced high-strength steel. The Company also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 22.4 million net tons. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe. For more information, please visit www.ussteel.com.


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