United States Steel Corporation (NYSE: X) has seen its stock decline following the announcement of a weaker-than-expected fourth-quarter outlook. The company has projected an adjusted net loss per diluted share between $0.29 and $0.25, with an adjusted EBITDA of approximately $150 million. This guidance has fallen short of previous expectations, leading to a drop in the company's stock price.

The challenges faced by U.S. Steel are multifaceted. Depressed steel prices have been a significant factor, affecting all segments of the company's operations. The North American Flat-Rolled segment, while maintaining strong EBITDA through a robust commercial strategy and diverse product mix, is still impacted by lower selling prices and volumes. The European segment is grappling with weak demand and pricing, compounded by operational disruptions due to a fire at the #1 Caster, which has necessitated the temporary operation of three blast furnaces.

Despite these challenges, U.S. Steel has completed over $4 billion in growth capital investments, with the Big River 2 (BR2) facility achieving its first coil production on October 31, 2024. However, the ramp-up costs associated with BR2 have added pressure to the company's financials, with approximately $50 million in start-up and ramp-related costs expected in the fourth quarter.

The company's Tubular segment is expected to perform better than the previous quarter, primarily due to increased volume and lower costs from the absence of outage activity. However, the overall market conditions remain challenging, with the steel industry experiencing a cyclical downturn.

U.S. Steel's stock has reacted to this news, with shares trading down 4.54% in after-hours trading, reflecting investor concerns over the company's near-term profitability and market conditions. The company is set to report its full fourth-quarter financial results at the end of January, with analysts currently expecting revenue of $3.69 billion.

As U.S. Steel navigates these challenges, the focus remains on optimizing operations and managing costs to weather the current market environment. The company's strategic investments in growth and innovation are aimed at positioning it for long-term success, despite the immediate pressures.