United States Steel (X) 28 Apr 232023 Q1 Earnings call transcript

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

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

I will now hand the call over to Kevin Lewis, Vice President, Finance.

Good morning, and thank you for joining our first quarter 2023 earnings call.Joining me on today's call is U.S. Steel President and CEO, Dave Burritt; Senior Vice President and CFO, Jessica Graziano; and Senior Vice President and Chief Strategy and Sustainability Officer, Rich Fruehauf.

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

You'll materials, including now streamlined enterprise and our slides. by financial morning, we've the can data. level this in be note They found additional posted accompanied business today's that call presentation earnings

also operational disclosures. regular financial data posted and our which segment we with includes yesterday Our packet, our earnings release,

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

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

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

morning and customer everyone that us stockholder performance safety staying delivered Thank people, focus. matter, you, U.S. the engagement to and our We on all environment the joining financials, strong appreciate the are Kevin, in quarter, today. first your another a in Steel. strong truly with continued we good with things and We and

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are We current steel, already veterans of Europe. electrical in with production

budget. proven record construction that NGO Our to on to this milestones track remain executed line time and States. on allows us We've project and United the expertise bring and on major

critical of see the line. On commissioning cold of Slide XX, components ongoing you can the

section, of work, systems instance, mill For cold furnaces. critical the the power is hydraulic cold the cleaning and We're great NGO instance, substrate that cleaning line. is to we're we're before commissioning making line. progress. and entering The the cold the commissioning reversing essential the This will for prepare also section

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to project This strategy. a opportunity us It's for across tremendous metallic benefits significant U.S. to unlock our key is footprint. entire Steel's

efficiencies also in mini we flexibility our to rate our in investment Our fuel the a benefited savings ahead This operational from months in and surety vulnerable mills. market of shocks. schedule. existing that first quarter U.S. as pig Gary project repurposing of chain creates to supply iron know It's an supply of Works and tremendous creativity, is facility unlock value facilities the started several example Steel's

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we So the we're exceptionally bottom line doing what say, we're well. telling it we're doing and doing, you is what this. We're

higher year-end, today, the XX% hot-rolled per Let's are prices selling over steel market raw uncertainty, the Slide supported reflecting of cost higher coil well backdrop demand. Spot dynamics. XX. are move steel back to prices remains ton healthy as especially like half in material The healthy. as Despite year, healthy scrap over macroeconomic market customer the by since $X,XXX inputs, up

meet a manufacturing strong hold, including natural domestic In supported the market addition, taking to resources, improvement in capabilities green supporting demand, to appears policy customer be diverse and by abundant environment domestically energy. steel domestic

can aligns the model control. and market the business things we headed, we're focused with Our is on domestic where

positioning the Our capabilities customers. steelmaking for of made in mined, at provide our and diverse our integrated mini melted and manufacturing the is domestic combines resurgence. us steel mill U.S.A., And footprint the and heart steelmaking

steel natural increasingly will believe production. lowest of demand. be iron our the the with access to mini We're also sheet ore resources mill mini Minnesota makers iron -- ore with the few and Northern in one in steel is We our only cost own one and

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and ups competitive in against At the and markets. diversity us diversity that downs economy. know hedge a a suppliers This serve also That Steel, diversity the many to we we workforce, our means the applies provides Again, of the sectors order book diversity the our various U.S. our is of diversity advantage. customers. of our of balanced strategic

diversity our customers leverage create we Instead, value and risk. important auto concentration other to to vulnerable construction manufacturers, appliance energy for and aren't We OEMs, partners.

welcome to continue and customers We commercial markets new new into volumes, our new pipeline.

to markets turning on Now end customer XX. Slide specific

we nearly the in book and quarter markets. for up, light by X% and up encouraged example. see today balanced are We the before the last Take vehicle order key automotive, that. XX% sales trending are trends QX versus end up quarter versus

auto We additional X expect in million sales XXXX. an versus XXXX

Appliance performance. coming robust, after encouraging roughly record expected with only be appliance outdone particularly in year-over-year. sales to XXXX ever, second by are flat rates best XXXX XXXX's were years off appliance also the production X production. This is

markets, peaks it off XXXX, at their but counts late are remain healthy energy levels. stable. In Rig remains of

Service for Eagle because deeper, well. This an of flat-rolled were center dig average Ford, the end strategic If above XX% statistics layer steel shipments rig in are center basis, counts indicator up strong a is important unchanged. as year-over-year and suggests QX like it the users demand like are strong. service volumes. about remains relatively a you seasonal Permian,

in the We're customer what melt capacity key with statistics is to we to by continue market in ensure and encouraged order book see line end our monitor demand.

into the still of to know into marketplace. we the second risks. coming inch face but risk foreign Lead year, visibility of low-cost are face limited robust, while lower times, half have we the steel beginning the We that and

this. we know But also

We have resilience business and our into built plan. flexibility, optionality

can we way a just in to what potential ago. the and We economy weather are are poised downturn in focused a few controlling we control, on a years weren't we

to company, we Perhaps see the now excitement, excitement about Throughout feeling continuing why returns. an reward with you exciting future, stockholders excitement about execution at and direct our it's time about are our excitement U.S. Steel.

points, we're stock. demonstrate reflect will multiple re-rating a proof of we strategic increasingly confident our As our

future to continued for over focused best the by steel Let perhaps financials. our getting focused me over summarize EBITDA the go on for on best and before Jess? profitable valuation, investors. it in more environmental hand create the being I improvement anything, to customers to best, Jess focus record operations our best best solutions partners safety multiple and enabled to on and than We're faster. excellence, a expansion And we're potential

everyone, morning. Thanks, this joining morning's Dave, XX. us Slide this for thank on you, and I'll remarks continue

a as in the than the delivered quarter $X.X of expected, at of that million by approximately quarter of improved backdrop was revenue. team supported margin billion that first about Adjusted a Our solid quarter EBITDA first better market on EBITDA $XXX an XX% progressed. came

that for know, you As than Flat-Rolled the segments, demand revenues and expect through in momentum will guided European our higher continue million to the the quarter adjusted and our end. March from second pricing stronger large into XX, was we in EBITDA quarter on $XXX better quarter. we part, came which And on

beginning American was stock-based which which previously EBITDA approximately million towards release. adjusted made end We've EBITDA not of $XXX recorded a North a Take was at $XX reporting yesterday's more Flat-Rolled press our the of compensation, of the release mid-March for that QX million the for mention information. change reconciliations stock-based I'll adjusted segment. in that in look in contemplated comp, with excludes press

cash. about talk Let's

to the As where for The the significant a a to year's of returns. we've is on great investing most is that with flow. we be has deployed this cash way will strategic capital are your initiatives you of amount towards shared operating the of part earlier. future where will for know, And being in balance a spending covered this prefunded cash growth pictures these sheet, initiatives year for we see and continue Dave while the been you spend completion offset

our medical spent In flow. the flow use CapEx $XX able of the approximately needs cash to investable of quarter new of to first the we're offset after with collective investments employees our represented operating Also, million million the expenses were portion a we the the If quarter, recall million, we generated $XXX free by generated in OPEB all met. cash active bargaining direct in of overfunded strategic $XXX of year. we incurred exclude sustaining agreement, a cash as

funds. impact medical while reduces these accessing So for in that quarter, the these cash offset by EBITDA on is expenses change the

medical end The In available this expenses, the steel. total we available $XX QX, about $XX offset about That's of on cash active to the million cover million million with offset to year. of these pace quarter agreement. X-year and remains healthy funds was the robust sheet $X.X strong first a over expenses $X.X as a liquidity billion, at balance was Cash of the billion. $XXX

trailing incredibly Our to is leverage low, That XX range EBITDA. significantly remains our gross at X.Xx. than X to months adjusted better of targeted X.Xx debt through-cycle

with go first the component left We to capital approach the $XX in on stock we $XX and In you included a million current Our our returns authorization cash includes of focus repurchases. allocation our strategy. with quarter, in framework. on million dividends remain direct in to to million our completing committed investing $XXX to and program. returns a direct as continue remains unchanged, line of allocate to That best-for-all

complete XXXX. We to program in expect the

is for best-for-all generating investors. Our strategy value on focused

generating So we of material a center resilient can capital both is that returns. allocation growth at free cash and framework know that flow and deliver the

billion cash that of by XXXX. free over We for segment lean, are free green as also position today, cycle large machine. the produce cash that annual the ability investments making $X part, our flow the engine to with know a cash mill mini flow, expected through in we That's will

the part. see per sustaining requires better per lean significantly assets. by ton Mill On legacy On capital than per required segment CapEx the Slide approximately our only $XX better XX, the our That's $XX ton of you'll some of intensity, highlights. Mini year,

On with our lower are better That's the our produce electric customers XX% up to green furnaces are intensity, to blast These steel greenhouse gas XX% part. emissions green arc the steelmaking. than increasingly carbon traditional our requesting. furnace steels

value move mix And River best-in-class in to resiliency, Big product finishing up we're on better and the at earnings capabilities investing chain.

example, expand was mix XX% margins. in River reach tons XXXX, Once value-add cold-rolled XXXX plus by finishing For mix about Mill about segment's should to Big XX%. X Mini drive the XX% rate this run and coated EBITDA and of and the investments

rate, Once have $X.X This segment pricing approximately we expected That's earnings resilient HRC reach EBITDA to a investments low environment. cash Mini part. annual just run a billion $XXX the didn't machine Mill of is in a these through-cycle power is conservative few ago. years generate the

the first mining versus segment, move change and Flat-Rolled most Let's of commercial decision results slide typical and QX and the times These as quarter. our restart next look demand tailwinds to In the environment be more throughout in EBITDA performance to in Flat-Rolled supporting pricing delayed average the our our at the seasonal quarter, QX in improved lead prices at selling segment a in Works. to are extended segment, Valley Gary headwinds reflected lower XXXX. our take expected The QX. furnaces realization blast Mon for fully now contributed

our quarter. prices a results high-priced by cycled big raw iron remaining in driver we were These middle Mill the In as were normalized for quarter. segment, the results higher pig costs of the rising Mini spot helped through of material

Over QX's will blast prices blast of spot from quarter, in improving and than order levels and Similar EBITDA in first to more States, at Europe. we in All Slovakia. benefits the segment that results. apparent furnaces the restarted will in positive quarter in with the I built to higher costs favorable material of March more lower efficiencies in more for much note utilization be February and raw running book seen offset what in furnaces and are recently over generating Europe, the we've these three response running commercial prices. two an

post Tubular segment Our results. continues strong to

in pipe with and consecutive Fairfield mill semi-premium through remains in-sourced positioned alignment connections given to The out. EBITDA improvements. customers. rounds seamless of premium, marked seamless segment basins of a incremental to ran flow the and quarter QX strategic API-grade first and production, for continued the full prices better serve tenth quarter Higher The well suite pipe to QX

Looking second the quarter. manifest forward have over to favorable should pricing first QX, demand quarter been building healthy impacts that in a and

estimate of million adjusted $XXX current second Our the range is EBITDA million. quarter of to $XXX for the in

expect expected apparent to segment. selling better, results are X.Xx segment's in margin Mini Higher than dollar EBITDA QX. be QX. XX% support XX% or of average in will strength approximately and versus our price EBITDA in versus particularly more QX is expected prices The we The QX growth to increase Mill

should Our seasonal higher improvement earnings EBITDA and through as as to Flat-Rolled meaningful well see continue headwinds flow segment prices to dissipate. mining

European should deliver increasingly in In selling as reflected order in prices Slovakia, our EBITDA QX improving segment average the positive dynamics market strengthening segment's and the the are book.

end-user Tubular, strong. demand remains In

However, softer performance. inventory XXXX, expected QX pricing levels are to off impact from import elevated high continued rebalancing QX levels and customer

And back turn I'll with Dave, to you. that, it

Thank you, Jess.

XX. Before we our on remarks recap for line let open questions, Slide me the your prepared

on progressing best-for-all strategy. are our We

are strategic Our projects literally. taking shape

really of our must You amazing. Construction X, underway. Big are It's what's our see coating NGO River being built. and line line well

machine is River. iron Big supplying already Our to Gary pig

meaningful time making are progress sustainability, for our on and long-term and we're business on environmental doing financial it in We and transforming budget.

We strong are the seeing first backdrop a in performance had quarter. healthy QX and for market financial

resilient report in even with markets. to sheet, order book and strong expect balance July strategic We a balanced better end things

we is for I we are for are from you, a planet and truly operating to steel, and means grateful of support. bullish strength. it are best have for We interest our all, stockholders. your for employees, on and what for be U.S. say, for customers, position to This

Kevin, let's Q&A. move to

Dave. you, Thank

-- with is Our from first from one of the Dave, first received our several would like questions your thoughts that? today investors Dave, to how And line to on few uncertainty. feel on come positioned U.S. Say start you Technologies. pre-submitted navigate we questions

on kind me one. of Yes, consciousness you give stream of a bit a Kevin, little just let this of

you, I of think question. really this we've hopefully, But it's explained but me very a let good be to most clear.

are NGO We're say our strategy positioned. startup because believe ever say the And on meeting well on before, the could summer. budget, -- we've made and line stronger progress very that we this on of we really we good I than can we're confidently time, do milestones, today

is let's face going be mean to I line great. that it, NGO

had electrical Let's years of face XX experience Europe. in it, we've steel

that got goes that we've sure share to So and capability make well.

market, We performance. have steel market talked a it up book expected U.S. that diverse dynamics, and order domestic shows And QX book, the stronger financial healthy better a backdrop, healthy with about. balanced the steel market, trends market this order diverse improved in I

And share. happen, market half. to know certainty don't the sure, frankly, We we're going frankly, in gaining with what's second for

a The continue soft Is second stuff. quarter rates a risk? that There's to landing? go looks very good. there Will up? geopolitical be Will all it

we think I be can a as well than being We're very that's what That storm it soft this. could very confident case. matter that happen. to and we'll again, feel could able said, before, stronger say weather ever the landing many But the no people be

that The execute. got execute, execute, Key that. we're for and us got We've doing is to execute, we've to

doing in to I In really feel time, strategic very fact, going confident strategy, projects we're word safely. here and a and that's where key and that for we're XXXX, us all about headed, be we're executing our positive it on these

Great. Dave. Thank you,

sustainability question please last view U.S. share other your green Inflation to and related initiatives, from question? second various Infrastructure Say here some and Act, thoughts and Technologies the for funded was our of Act initiatives given would Our domestically. decarbonization, strategy Reduction unique that you Rich, opportunities on Steel related by question

for Well, it's obviously great our relevant Kevin. and a business. Certainly, question

said a has essential Dave As time, change. to addressing long private are partnerships climate public for

transformation. are assist very administration's the to We pleased green with country's with this commitment

CEOs and discuss Biden other with Dave met fact, the to opportunities. administration exciting recently In these

about thing legislative funding. the there can So where grant project was Reduction Congress they a Act, including is projects billion is basis, thinking industrial when steel law. of interesting government and looked kind that that language, iron the $X.X about projects under available XX-XX at for which partner the mentioned on the the green kind we've for on pass industrial specifically decarbonization. federal There's Inflation of And are programs that

evaluate parties, in So options. including going to with we third hydrogen. a hub looking applications And bipartisan government we're hydrogen things decarbonization, to There's electrification. projects pursue the at for continue under funding or law partnerships, like -- infrastructure the of certainly for potential number

about line. operational or NGO the other talked Dave benefits. Very opportunities, exciting

infrastructure bipartisan onshoring for a between So us. talked we about, of boom Dave the and lot IRA, that law, the Jess the see opportunities

wind together create as programs are say, value. sustainability for to not And woven our I'd have all just to up, stockholder long and a They're we time, separate. strategy

Thank Great. please again, questions. thanks, started you, for and the Rich, Dave, us two this At operator, those you on questions? for time, could queue getting line

[Operator Instructions].

Our Chieng first with Sachs. Goldman comes Emily question from

question just around My first is Big River Steel.

So there's clearly a lot that's in short of growth coming happening online here order.

So In between I wanted conversations the mix evolved? marketing to as assumptions spot index-linked the automotive with to through how going product words, about be underlying your views margin, cycle contracted target thought the volumes volumes forward? XX% OEMs and your a thinking we have And get differently? or your should with around other potential EBITDA that what's

quarter. it's start continued -- news. then That's forward segment I'll plus margins of the saw all-good I'll markets. and Again, drivers rolling from as Maybe biggest that, those the pass second to Mini And forward in key know. uplift, the the you we in are continuing The Mill highlighting in demand it. rolling the prices where the XX%

markets, geographically with includes that very it's about And and future. some think big key the River business and nobody steel Big to have steel. able think we the that the remember opening more be a book capability of that us for we is up their when well lot get this -- positioned that EV will is else strategic I motors as continues. things of of provide projects, opportunity here the to pipe course, of tube, in And we particularly the a it with into

about really then feel we pricing. also the good And So this.

question a about maybe to little bit So more your Kevin, specific contracts.

sure, Yes, Dave.

project Gary mill up NGO desire strength mini mills, or we're to pick additional offer to described. exposed take with footprint, believe a produced our their very grades like if automotive through advanced more have grades broader most can position Emily, unique that make AHSS difficult grades. the auto only from we differentiated the in you you sustainably just the the that the continued OEM's integrated me not Works, with Let domestic in that automotive And high consideration, in very, and steel market the

lower it coming market combine capability. then to with can we year up, the this the mill production, NGO just automotive So bring intensity, carbon and mini

So diversity that production have in if to think automotive value-added that continue to we believe mix automotive are we're from higher. forward, at you position steel we a about building, we the tremendously Big the going portfolio breadth the market push and a good of earn in the perspective share River

recently Award like the And accolades Mercedes and years other announced partnership River Supplier Big we've General with that's Motors, evidenced, just that received from Sustainability a X.X ago.

with So the from I volumes and to urgency great think Big Arkansas. as to their with our autos real outlet customer volumes to attractive continue automotive for market move success an be and continues the River, OCL, qualifications continue want to

is I really a overall tons value-add online more as Big finishing River. the what in like point that going about the and think build one on add remarks comment to for and it's the made to on prepared to look I'll move mix to lines coming that, we portfolio

ultimately let's that call continue on, mix, we fixed and contract we through kind have XX-plus-percent will question also your combined on see that moving cycle. provide or will of campus contract, in in right, we a to terms of type that believe impact at River the The -- resilient that of it, spot generating believe will be Big way to the margins that

mix, is value-add in all but we that well. those contract mix think consider part the of the it portfolio to of sort need tons I So not just as a

the equation then. Okay. That makes a side on lot flip of follow-up the sense. A of

know feels segment the remains on I that a portfolio? muted in in that I more terms But us what's USSE, U.S. U.S. mean the is of asset been and to Can recently. a remind core whether Just within you stance the compared assets outlook, more your little the have around bit what restarted that happening growth Steel

furnaces Well, running with got quarter. in USSE stronger to is a exist there. the you full we number Steel just long has second quarter expect now, out for been a vital and the time. part the stronger We blast all in saw of profitability first very three And U.S.

making So in very that can't through who things get all business the war our just and people And while that job with is the USSK healthy. folks the door I Ukraine the business are running in are the about done say well enough and right sure suffering for tragedy. they and help making support great next providing this

I I the business supply the and and to conditions have, said, higher continue improving They're supported quarter. a very been it's I'd good profitability, monitor, prices. This And saw is first in we QX into that continue by over address, guess, with We say, a as good. tight roll we to expected. you

It's integrated the the mill records. of fact, one safety superior always not has if in certainly best the and best

they I recordable. XXX like something OSHA without days went think an

this few this So pretty asset. be It's of headed booming And obviously, support think would look with short key sale conditions part have U.S. But with be always I at, at that meanwhile, is could likely team. is and to been steel able happy a is Everything everything get, to years. able we our for in all it's we're time. But business to the we're a the deliver. where right. environment the

with BNP question next Gresser from comes Paribas Our Tristan Exane.

follow-up USSE. on one a The is first

not with at you reason Looking at expect a strong in be the you they're further the not now running. coming that Europe, QX? in energy at we all normalized on there prices moment. spot reach you volumes? margin to in side, there Are guidance, And relief mark of three-blast about to able terms should any be break any able maybe furnace really X-million-ton cost you level we have should QX the look Do Because to going the if -- margins the off? is also, really, why

is Yes. Kevin. This Tristan. Thanks,

blast So are In quarter, operational three the quarter. furnaces second the volume million These have to give just shipments above correct, -- X tons you're fully the us do in That we good tailwinds. to push some right? opportunity more obviously here. we believe

levels. see quarter. to certainly would We muted, Maybe margins bit still also begin more in positive but more the a normalized approach

and quarter EBITDA $XX the and of all it's when think from done, that the the generate benefit I you over could European So see described. said business just million dynamics we in

on And could more tubular All just moving I guidance up other think, I helpful. part, right. the That's the the then, follow of side. to on really if

of yes, market and the on price give demand heavily on side? late. you quite latest fallen the update What's conditions So us has can

it is level, gave now assume upside the QX, peak strong just Mini on kind strong fair the the into group Mill to square to you strong of Europe, you with volumes? at level, a have and reached Flat-Rolled? guidance you on Or looking And see EBITDA further trying

half second us tubular very off. a a has to spot expect we been and Well, be bright bit for here,

still As we shipments. good prices at with inventory but rebalancing And down, very said, having peaked. are they're lower probably levels,

and And But the customers just with energy we strategic serving structure serving XXXX. the that cost and say there. we're the good have through market a I'll well. It's there new a products, basins that's strategic focus is us premium very

our that for made few the recall, ago. we business. in assets place EAF difference years revitalized a we real And You a that put

difficult, think be very these it a markets And more I may opportunities Haynesville, really feel the whether all good have going we be pretty us. -- Eagle Permian, for good is -- but this visibility bit; beyond XXXX. be Ford, in shape. Marcellus good And off we're while year about So to quarter the second or

from with comes Alex question next Citi. Hacking Our

Yes, everyone.

long the up that NGO to required, On of certification what's you the estimate get new it how to process takes line, capacity? given your

we expect end good this as we the to we be Well, position go enter And through run commissioning thing of in this at a should XXXX. year. rate

I the running that know at years. steels is USSK mentioned, think electrical we've people XX and thing hope been this, for people I I

this folks in there, think to thin, pretty this. the able which it's go, X.X X.X millimeters We're collaboration to have is make capability to we great the with remarkable the have capability. I and tons we So XXX,XXX

full So Obviously, we XXXX. you we'll got feel really to be as good and up through being we get commissioning, able running. but do rate to this run some about thing at get

in on Or Bs, XQ I your Okay. some of that assume underlying restocking view? you But demand? extremely is there underlying I primarily demand strong. And mean the your restarted you've this your Does then shipments, curious obviously, that sustainable view. X would as U.S., given element see there? in reflect kind that

higher -- business. push with a to else is Well, for and pass flat-rolled I'd this in it spot that then can what I results second somebody color. think quarter, will I more But really some good we're in say the and

Customer demand healthy. is

good appliance lead about If you markets the time, and like weeks XX% industry, auto across key think it, centers. X in utilization demand and service

And move so balanced second we find the into this quarter. really in as really that do have we shape we I ourselves portfolio, very And healthy backdrop. good our with think

volume the lead moved through, Alex, what's as right? at and levels some the started is is is But right, you actually demand there, and the has What really destocking see year, that inventory think frankly, definitely did extending I'll the been strong. they've we been about that's inventory as we moving through customers as encouraging been times, add

And be again, in stronger continue lead times. those extended we will given to expect QX

very So see is we rebuild, at through. be going minimum, of inventory sort a have of okay, well, the that to to year, an moving encouraged the this beginning been thought, at but volume

[Operator Instructions].

question Carlos Morgan next Stanley. comes Alba with from Our De

coming the market beyond also little may bit at It Lead been Just be of plateau quarter. of prices down as pricing some a maybe also press. expanding. second outlook, so. seems a regarding and the a some prices by reported times least, that the bit declines week little spreads have oil late, Import or industry with the

down seating seem mentioned, pricing as here. quarter maybe in So may it now. and maybe we you from that the I how reached the obviously, a strong mean we right here see do U.S.? come you But beyond peak suggests demand, prices the does for a outlook that little the second is different have

be will thoughts appreciated. Your

for you that, Carlos. Thank Yes.

U.S. eye the doubt no imports on potential here a headed. reiterate, threat, our that and that we're strength we close operations -- are where keeping is term, and The Near There's we're all market the -- I given love are where we are those think market. we book diverse back the humming. in of half order risks. the like we support and year today,

I We to no with balance where have us, about to going to know we happening in don't remains. soft a terms ability felt matter adapt. of what's we're landing. adjust, sheet. But are uncertainty never before, said Macro we're nimble, what inflation, going the I've as be and And better rates happens, for there, our the

to matter our get no And projects completed. ugly how we're strategic it going gets;

improvements This where where So the excited. we're our The is headed. business stronger is we're in model structural term, sector longer really ever. than that are coming,

again, strongly chip projects incremental for all said NGO, think there's the new a steel. these And the things demand earlier, we build, that what Reduction about X% you when drivers, infrastructure have, like like the we play And set, Act, the Inflation the growth.

are the again worth noting that it's the able with further to making thinnest be means cars And this drive we're NGO. going ours. And to that

high-strength So steels. lighter safer and advanced and

seeing I think we're there. that it's X% growth

future we faster. when be it. manage on to we right future but when the time, do some And So need is going proven economy along getting way, we're there and we've to got bumps may place, transition. to in the the can the projects bright. believe these the is we There we've get I But that it incredibly be

producing how so material Or running, in the Do maybe on process need products up can delivering get customers? just to time as timing? Right. line. Can the some ahead to electrical And and certification of the it provide color you the line in to steps can goes expedites you terms start following you then and take once start of you are to up steel certified? you

live can wish we have we've Well, I it. that actually it proven demonstrates Yes. a of because you be make steel that here thin and piece we could

And in Europe, River They of time going because Europe very and travel partner lot and work a feel back in a extraordinarily is we our to have optimistic Big well. folks folks The spent we forth. that this. on

tell preparedness. in know based facilities, sure I'll And how not just folks, runs productivity just is well. to River here build Big recently. make -- get the of it journey record this all-time they of lot had also upon these And you, a but that So terms

to So know when the facilities. it. we product to need we know And is ready make to how -- that run go they how these they sure feel

to So piece a that going commissioning we're see hold have what our through hands like. been steel that looks of process, able in and already

it. about excited pretty So

able pretty bullish we're on get cardless get fully this -- again, budget capability that and we'll to and be on tons soon, through it sometime It's done the XXX,XXX XXXX. our get commissioned to time,

your Mr. continue the will presentation to your call back with Burritt, turn over closing or you. I Please now remarks.

July quarter, company our you interest second in look for forward performance with Thank we We're our strategy. stronger about to even you first your again our the strong an and quarter. and in pleased in again updating

in everything key At do. mind U.S. we Steel, keep stakeholders our in we

our thank delivering solutions. our and for our stockholders. and employees, you Our of plant, steel our employees, you, course, profitable our sustainable customers and, To customers working safely for quality

the You U.S. are lifeblood of Steel.

you thank customers, continued for our To partnership. your

the Your the steel support motivates us make Steel company steel to every solutions and day to need. U.S. provide with you best you

value in you to today. market We best one believe stockholder of is our stockholders. the opportunities And for thank steel U.S. creation Steel the

flow are our on free together. our We the of engine creating to faster on way aspect strategy, look to forward We are and multiple to every getting cash best-for-all delivering well that expansion. our supports future EBITDA

work safely. get back to let's Now

and for We you the your you That disconnect does please lines. conference conclude today. we thank call your participation, for that ask