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Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING

v3.25.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract] Ìý
SEGMENT REPORTING
NOTE 5 - SEGMENT REPORTING
We are vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. We are organized into four operating segments based on our differentiated products – Steelmaking, Tubular, Tooling and Stamping, and European ÈÕº«Èý¼¶Æ¬. We have one reportable segment – Steelmaking. The operating segment results of our Tubular, Tooling and Stamping, and European ÈÕº«Èý¼¶Æ¬ that do not constitute reportable segments are combined and disclosed in the Other Businesses category. Our Steelmaking segment operates as a leading North America-based steel producer with focus on value-added sheet products, primarily serving the automotive, infrastructure and manufacturing, and distributors and converters markets. Our Other Businesses primarily include the operating segments that provide customer solutions with carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components, and complex assemblies. All intersegment transactions were eliminated in consolidation. Corporate assets and capital additions are primarily related to and support the operations of the Steelmaking segment and therefore have been incorporated within the Steelmaking segment total assets and capital additions below. We allocate Corporate Selling, general and administrative expenses to our operating segments.
Our CODM, Lourenco Goncalves, Chairman, President and CEO, evaluates performance on an operating segment basis, as well as a consolidated basis, based on Adjusted EBITDA, which is a non-GAAP measure. This measure is used by our CODM, management, investors, lenders and other external users of our financial statements to assess our operating performance and to compare operating performance to other companies in the steel industry. In addition, our CODM believes Adjusted EBITDA is a useful measure to assess the earnings power of the business without the impact of capital structure and can be used to assess our ability to service debt and fund future capital expenditures in the business.
The following tables provide our results by segment as well as a reconciliation from consolidated Adjusted EBITDA to our consolidated Net income (loss):
Three Months Ended March 31, 2025
(In millions) Steelmaking Other Businesses Eliminations Total
Revenues $ 4,495Ìý $ 162Ìý $ (28) $ 4,629Ìý
Cost of goods sold (4,895) (153) 28Ìý (5,020)
Selling, general and administrative expenses (126) (7) —Ìý (133)
Net periodic benefit credits other than service cost component 57Ìý —Ìý —Ìý 57Ìý
Excluding depreciation, depletion and amortization 274Ìý 8Ìý —Ìý 282Ìý
Other segment items1
11Ìý —Ìý —Ìý 11Ìý
Total Adjusted EBITDA $ (184) $ 10Ìý $ —Ìý $ (174)
Interest expense, net (140)
Income tax benefit 147Ìý
Depreciation, depletion and amortization (282)
EBITDA from noncontrolling interests2
18Ìý
Weirton indefinite idle (3)
Idled facilities employment charges (41)
Changes in fair value of derivatives, net (9)
Amortization of inventory step-up 7Ìý
Other, net (6)
Net loss $ (483)
Capital Additions $ 123Ìý $ 6Ìý $ —Ìý $ 129Ìý
1 Other segment items primarily consists of the exclusion of EBITDA of noncontrolling interests and idled facilities employment charges from Adjusted EBITDA and the inclusion of items within Miscellaneous – net and Other non-operating income (loss).
2 EBITDA of noncontrolling interests includes net income attributable to noncontrolling interests of $12 million and the exclusion of depreciation, depletion, and amortization of $6 million.
Three Months Ended March 31, 2024
(In millions) Steelmaking Other Businesses Eliminations Total
Revenues $ 5,053Ìý $ 172Ìý $ (26) $ 5,199Ìý
Cost of goods sold (4,785) (157) 28Ìý (4,914)
Selling, general and administrative expenses (125) (7) —Ìý (132)
Net periodic benefit credits other than service cost component 60Ìý —Ìý —Ìý 60Ìý
Excluding depreciation, depletion and amortization 222Ìý 8Ìý —Ìý 230Ìý
Other segment items1
(30) 1Ìý —Ìý (29)
Total Adjusted EBITDA $ 395Ìý $ 17Ìý $ 2Ìý $ 414Ìý
Interest expense, net (64)
Income tax benefit 8Ìý
Depreciation, depletion and amortization (230)
EBITDA from noncontrolling interests2
21Ìý
Weirton indefinite idle (177)
Loss on extinguishment of debt (21)
Other, net (4)
Net loss $ (53)
Capital Additions $ 156Ìý $ 1Ìý $ —Ìý $ 157Ìý
1 Other segment items primarily consists of the exclusion of EBITDA of noncontrolling interests from Adjusted EBITDA and the inclusion of items within Miscellaneous – net and Other non-operating income (loss).
2 EBITDA of noncontrolling interests includes net income attributable to noncontrolling interests of $14 million and the exclusion of depreciation, depletion, and amortization of $7 million.
The following summarizes our assets by segment:
(In millions) March 31,
2025		 December 31,
2024
Assets:
Steelmaking $ 20,200Ìý $ 20,327Ìý
Other Businesses 636Ìý 620Ìý
Total segment assets $ 20,836Ìý $ 20,947Ìý