United States Steel Corporation (X): Business Model Canvas [Dec-2025 Updated]

You're looking at United States Steel Corporation right after its $14.9 billion sale to Nippon Steel in June 2025, which is a total game-changer for its business model. Honestly, analyzing this company now means mapping how it balances its massive, traditional blast furnaces with the new, sustainable focus driven by the $11 billion capital injection. We need to see how this dual approach-from legacy production to the ramping Big River 2 EAF-supports its trailing twelve months sales of about $15.20 billion as of November 2025. Dive into the nine building blocks below to see the precise structure of this newly configured steel giant.

United States Steel Corporation (X) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships United States Steel Corporation (X) has locked in as of late 2025, especially following the finalization of the Nippon Steel partnership. These aren't just vendor agreements; they are structural pillars supporting the company's new capital plan and market positioning. Honestly, the level of government and strategic partner involvement is quite unique right now.

Nippon Steel Corporation

Nippon Steel Corporation is the new parent, and the terms of that 'historic partnership,' finalized in June 2025, are central to United States Steel Corporation (X)'s immediate future. Nippon Steel committed to an $11 billion investment across United States Steel Corporation (X)'s business segments, with the deployment targeted by the end of 2028. This capital is aimed at modernizing facilities, including upgrades to blast furnaces, electric arc furnaces, and mini mills. The overall transaction value was nearly $15 billion. The plan projects unlocking approximately $2.5 billion in savings from capital investments and another $500 million from operational efficiencies. The combined entity is now the world's fourth-largest steelmaker, with Nippon Steel's global crude steel production capacity expected to reach 86 million tons, moving toward a goal of 100 million tons. This partnership is also designed to protect and create more than 100,000 jobs nationwide in the United States.

U.S. Government

The U.S. Government holds a significant, non-economic 'golden share' following the deal's approval in June 2025. This share grants the sitting U.S. President the authority to appoint one of the three independent directors to the board and veto power over the other two choices. The government has already exercised this authority, blocking United States Steel Corporation (X)'s plan to cease production at Granite City Works in Illinois in September 2025. Key decisions requiring presidential consent include transferring production or jobs outside the U.S., idling plants, and changing raw material sourcing. The takeover deal itself was valued at $14.1 billion.

United Steelworkers (USW) Union

The United Steelworkers (USW) is the key labor partner, and Nippon Steel pledged to honor all existing agreements. The union's current labor contract with United States Steel Corporation (X) is set to expire on September 1, 2026. United States Steel Corporation (X)'s largest facility, Gary Works in Indiana, employs around 4,000 workers. The USW is actively focused on ensuring Nippon Steel adheres to the promised investment commitments.

BMW and Low Carbon Footprint Steel Sourcing

United States Steel Corporation (X) is advancing lower-emission steel solutions, a key area for strategic partnerships. The company is developing its proprietary verdeX® steel, which is produced with 70-80% lower CO2 emissions compared to traditional blast furnace production and features up to 90% recycled content. While the outline specifies BMW, recent public data highlights supply agreements for this low-carbon product with General Motors (GM). The commitment is to provide 'higher value, lower emission steel solutions'.

DuPont

The collaboration with DuPont centers on the COASTALUME™ product, North America's first GALVALUME® material engineered and warranted for coastal environments. This product combines United States Steel Corporation (X)'s GALVALUME® with DuPont's Tedlar® PVF film to resist saltwater corrosion and UV damage. This partnership brings together two iconic American industrial companies with over 340 years of combined science and manufacturing experience. The product offers a finish warranty of up to 50 years and a substrate warranty of 25 years. This is relevant as nearly 40% of Americans reside in coastal counties facing these environmental hazards.

Here's a quick look at the structure of these critical alliances:

Partner Entity	Key Metric/Commitment	Associated Financial/Statistical Number
Nippon Steel Corporation	Investment Target Deadline	By the end of 2028
Nippon Steel Corporation	Total Investment Amount	$11 billion
U.S. Government (Golden Share)	Board Veto Structure	Veto power over 2 of 3 independent directors
United Steelworkers (USW)	Current Contract Expiration	September 1, 2026
DuPont (COASTALUME™)	Substrate Warranty Period	25 years
verdeX® Steel (Low Carbon)	CO2 Emission Reduction	70-80% lower

The focus on low-carbon steel, exemplified by verdeX®, is supported by specific product attributes:

• verdeX® recycled content up to 90%.
• COASTALUME™ finish warranty up to 50 years.
• Potential savings unlocked from capital investments: $2.5 billion.
• Potential savings unlocked from operational efficiencies: $500 million.

United States Steel Corporation (X) - Canvas Business Model: Key Activities

You're looking at the core actions United States Steel Corporation is taking to run its business as of late 2025, especially following the Nippon Steel partnership.

Integrated Steel Production: Operating blast furnaces for high-volume, commodity flat-rolled steel.

The North American Flat-Rolled segment remains a primary activity, utilizing blast furnace operations alongside captive iron ore.

United States Steel Corporation has an annual raw steel production capability of 25.4 million net tons across all segments. The North American portion of this capability is 20.4 million tons.

Metric	2024 Full Year	Q1 2025
North American Flat-Rolled Net Sales ($Millions)	$9,815	$2,240
Flat-Rolled Products EBITDA ($Millions)	$934	$104

Mini Mill (EAF) Steelmaking: Ramping up Big River 2 (BR2) for advanced, sustainable steel products.

The Mini Mill segment is focused on the ongoing ramp-up of Big River 2 (BR2) at the Osceola, Arkansas mill, which doubles the original Big River Steel capacity to approximately 3.3 million tons per year.

BR2 shipments began in early December (2024), with run-rate throughput expected during the second half of 2025 and full run-rate capability anticipated in 2026.

• Mini Mill segment capacity is now 6.3 million tons with the addition of BR2.
• BR2 incurred ramp-up costs of approximately $50 million in the first quarter of 2025.
• The segment is expected to show sequential improvement in 2025 results due to increasing BR2 volumes.

Iron Ore Mining: Captive production of taconite pellets for raw material advantage.

United States Steel Corporation maintains captive iron ore production through its Minnesota Ore Operations to feed its blast furnaces.

Mining Solutions has a combined annual capability of just over 23 million tons of high-quality taconite pellets.

• Minntac facility production capability is approximately 16 million tons of pellets annually.
• Keetac facility production capability is approximately 6 million tons of pellets annually.
• Ownership interest in Hibbing Taconite Company adds about 1.3 million tons annually to the capability.

Research and Development: Developing high-strength, lightweight steels like InduX™ for EVs.

Developing higher-value, lower-emission steel solutions is a key focus, including proprietary products like InduX™ ultra-thin lightweight steel for electric vehicles, generators, and transformers.

The $450 million Non-Oriented Electrical Steel (NOES) line project at Big River Steel was expected to hit full production of 200,000 tons per year in 2025.

United States Steel Corporation expects to earn $320 million in EBITDA from the NOES line across the years 2024, 2025, and 2026.

Capital Investment Execution: Managing the $11 billion capital plan from Nippon Steel.

United States Steel Corporation is executing a multi-year growth plan with Nippon Steel targeting approximately $14 billion of U.S. growth capital, with $11 billion committed to be invested by the end of 2028.

This investment is projected to unlock about $3 billion in value.

• Capital investments are targeted to unlock approximately $2.5 billion in incremental run-rate EBITDA.
• Operational efficiencies are identified to contribute another approximately $500 million.
• The plan involves over 200 initiatives across all business segments, supported by nearly 50 Nippon Steel specialists.

Finance: draft 13-week cash view by Friday.

United States Steel Corporation (X) - Canvas Business Model: Key Resources

You're looking at the core assets United States Steel Corporation uses to run its business as of late 2025. Honestly, it's a mix of old-school heavy industry and brand-new tech, which they call the Best of Both®. Here are the hard numbers behind those resources.

Integrated and Mini Mill Assets: Combination of blast furnaces and EAFs (Best of Both)

United States Steel Corporation runs a dual system, using both integrated facilities with blast furnaces and modern Electric Arc Furnaces (EAFs) in its mini mills. This combination is central to their strategy.

For context on their scale, as of early 2025, the annual raw steel production capability breakdown looked like this:

Segment	Annual Raw Steel Production Capability (Net Tons)
North American Flat-Rolled	13.2 million
U. S. Steel Europe	5.0 million
Tubular	0.9 million
Mini Mill (Q1 2025 Period)	6.3 million

The U.S. iron and steel industry overall produced 81 million tons of raw steel in 2024, with raw steel from EAFs coming from 49 companies at 104 minimills.

Big River 2 (BR2) Mini Mill: State-of-the-art EAF facility ramping to full capacity in late 2025

The Big River 2 (BR2) EAF facility is a major focus, being one of the world's most technologically advanced steel mills. The goal is to hit full run-rate capability in 2026, but it's already contributing significantly in 2025.

Here's how the ramp-up is impacting the books:

• Big River Steel operated at 92% capacity in the first quarter of 2025.
• The ramp-up impact at BR2 for the first quarter of 2025 was reported as approximately $50 million, later cited as $55 million in one report.
• The Mini Mill segment's EBITDA margin reached 10% after accounting for that ramp-up impact in Q1 2025.
• United States Steel Corporation expects run-rate throughput from BR2 during the second half of 2025.

The company anticipates BR2 will make a significant contribution to its 2025 EBITDA.

Proprietary Product Portfolio: Advanced High-Strength Steel (AHSS) like XG3® and low-CO2 verdeX®

United States Steel Corporation emphasizes high value-added products, which are key differentiators. These advanced materials serve industries like automotive and construction.

Key proprietary products include:

• XG3®: This is their proprietary advanced high-strength steel.
• verdeX®: This product is produced with 70-80% lower CO2 emissions and boasts a recycled content of up to 90%.
• InduX™: Ultra-thin lightweight steel aimed at electric vehicles, generators, and transformers.

The company is committed to reaching net-zero greenhouse gas emissions by 2050.

Iron Ore Reserves: Competitively advantaged, self-sufficient iron ore production capabilities

Self-sufficiency in iron ore is a foundational resource, fueling the integrated steelmaking facilities. These operations are located on the Mesabi Iron Range in northern Minnesota.

The capacity figures for iron ore pellet production are substantial:

Facility/Interest	Annual Production Capability (Tons of Pellets)
Minntac (U. S. Steel Owned)	Approximately 16 million
Keetac (U. S. Steel Owned)	Approximately 6 million
Hibbing Taconite Company (14.7% Share)	About 1.3 million (of 9.1 million rated capacity)
Total Combined Annual Capability	Just over 23 million

Domestic iron ore production in the U.S. was estimated at 48 million tons in 2024.

Financial and Technological Support from Nippon Steel

The partnership with Nippon Steel brings significant financial commitment and technology sharing. This backing is intended to reposition United States Steel Corporation in the American market.

The stated investment plan is:

• Nippon Steel and U. S. Steel plan to deploy $11 billion in growth investment by 2028.
• There is also mention of a total $14B capital investment transformation plan.

This partnership includes commitments for technology transfer and innovation.

United States Steel Corporation (X) - Canvas Business Model: Value Propositions

You're looking at the core things United States Steel Corporation offers that make customers choose them over the competition right now, late in 2025.

High-Value, Advanced Steel

United States Steel Corporation pushes proprietary products designed for demanding sectors like automotive and electric vehicles. These offerings are key to their commercial strategy, which helped the North American Flat-Rolled segment achieve a 5% EBITDA margin in the first quarter of 2025. You see this focus in the product mix.

Product Name	Key Feature/Application	Performance Metric
XG3®	Advanced high-strength steel	Proprietary offering
InduX™	Ultra-thin lightweight steel for electric vehicles, generators, and transformers	Ultra-light gauge, first in North America for hot roll

Sustainable Steel Production

The company offers its verdeX® steel, directly supporting its commitment to reaching net-zero greenhouse gas emissions by 2050. This product is a major part of their value proposition for environmentally conscious customers, like General Motors. The production is tied to investments, with a growth plan targeting approximately $14 billion of U.S. growth capital, with $11 billion to be invested by the end of 2028. The Big River Steel facility, which produces verdeX®, is LEED certified.

• verdeX® steel reduces CO2 emissions by 70-80% compared to traditional blast furnace production.
• verdeX® steel contains up to 90% recycled content.
• verdeX® and InduX™ products are 100% infinitely recyclable without quality degradation.
• Melted and rolled at ISO:14001:2015 certified facilities.

Reliable Domestic Supply

United States Steel Corporation maintains an integrated domestic production chain, which is critical for U.S. infrastructure and manufacturing customers. The company is actively managing capacity to meet near-term needs, evidenced by the decision to restart a blast furnace at Granite City Works to meet 2026 demand. Domestic steel mills shipped 7.7 million net tons in October 2025, marking a 9% increase over October 2024. Year-to-date shipments through October 2025 were up 5% compared to the same period in 2024. Capacity utilization in the U.S. was estimated at 79.8% in June 2025.

Product Customization

The company tailors its flat-rolled and tubular products for diverse industrial needs, serving automotive, construction, appliance, energy, containers, and packaging industries. The advanced mills allow for this flexibility. For instance, shipments from Big River 2 ("BR2") continued to rise, with customers praising its industry-leading ultra-light gauge hot roll.

• verdeX® and InduX™ products can be customized for customer specifications.
• Granite City Works makes rolls of sheet steel for the construction, container, pipe, and automotive industries.

Operational Resilience

United States Steel Corporation leverages both integrated and mini-mill technologies, which provides market flexibility. The Mini Mill segment achieved 10% EBITDA margins in Q1 2025, even after accounting for approximately $50 million of ramp-up impact at BR2. Big River Steel operated at 92% capacity during the first quarter of 2025. This dual technology approach is central to their ability to navigate cyclical industry conditions.

United States Steel Corporation (X) - Canvas Business Model: Customer Relationships

You're analyzing United States Steel Corporation's (X) relationships with its customer base as of late 2025, a period defined by the finalization of the Nippon Steel partnership and the ongoing ramp-up of Big River 2 (BR2).

Dedicated Sales Teams: Direct, long-term contracts with major automotive and appliance OEMs

United States Steel Corporation serves key sectors including automotive, construction, appliance, energy, containers, and packaging with its high value-added steel products. 83% of vehicles produced in North America currently use U. S. Steel material in their construction. To specifically support automotive customers, the company created the U. S. Steel Automotive Center, which provides dedicated material and application expertise to help engineers with challenges like cost savings and weight reduction, such as through the use of XG3™ Advanced High-Strength Steel (AHSS) applications, which offer a potential vehicle weight savings of 20%.

The performance of these customer-facing segments in early 2025 gives you a snapshot of the current relationship value:

Segment	Q1 2025 Adjusted EBITDA ($Millions)	Q1 2025 EBITDA Margin
North American Flat-Rolled	$104	5%
Mini Mill (including BR2 ramp-up impact of $55 million)	$5	10% (before ramp-up impact)

The Mini Mill segment recorded its highest quarter of shipments to date from BR2, with management noting outstanding customer feedback on product quality.

Strategic Collaboration: Joint development of new products like COASTALUME™ with partners

Strategic partnerships are central to advancing product offerings. The collaboration with Nippon Steel, finalized in June 2025, involves a multi-year growth plan targeting approximately $14 billion of U.S. growth capital, with $11 billion to be invested by the end of 2028. This partnership includes technology sharing designed to enhance product quality and expand premium offerings. Over 200 initiatives across all business segments have been identified to drive operational efficiencies using Nippon Steel's technologies.

In product development, United States Steel Corporation is actively promoting specialized materials. For instance, COASTALUME™ steel is highlighted as a solution transforming the roofing industry, particularly in areas facing extreme weather challenges. The company also mentions working with customers on their sustainability goals using sustainable steels like Verdex® steel for automotive customers.

Account Management: Focused relationship management for large-volume, high-value customers

Management emphasizes navigating volatility through optimizing product mix and executing disciplined cost management, which directly impacts customer satisfaction and contract fulfillment. The company aims to unlock approximately $3 billion in value through the Nippon Steel partnership, including about $2.5 billion in incremental run-rate EBITDA from capital investments. The Tubular segment saw sequential gains due to stronger average selling prices in Q1 2025.

Key relationship focus areas include:

• Serving customers with higher-value, lower-emission steel solutions.
• Leveraging the expertise of the SteelWorks360℠ Team to help customers solve and innovate.
• Focusing on longevity and sustainability as a real value proposition for customers.

Digital Customer Interface: Online tools for order tracking and product specification

United States Steel Corporation is modernizing its operations, which supports the digital interface for customers. The company has invested in cloud applications and AI-driven platforms, collaborating with major vendors like Microsoft and Oracle. Their digital efforts utilize advanced analytics and AI to save millions of euros, with deployed projects including real-time AI-powered optimization of key steelmaking processes. While specific customer-facing portal names aren't detailed, the investment in systems like Microsoft BI (SSRS, SSAS, SSIS, SQL Server Reporting) since 2012 suggests a foundation for data-driven customer interaction and reporting.

Union Engagement: Maintaining strong ties with the USW to ensure labor stability

Labor stability is a core relationship component, secured through agreements with the United Steelworkers (USW). United States Steel Corporation reached a tentative four-year agreement with the USW in November 2022, covering approximately 11,000 employees. This Basic Labor Agreement is structured not to terminate earlier than September 1, 2026. The 2022 contract provided wage improvements of more than 20% and included a commitment from the company to invest $4 billion in USW-represented facilities over the contract term. The agreement also maintains an existing uncapped profit sharing plan.

United States Steel Corporation (X) - Canvas Business Model: Channels

You're looking at how United States Steel Corporation moves its product from the mill to the customer, which is crucial given the sheer weight and volume of what they sell. The channels are deeply tied to their operational segments.

The overall scale of sales in 2025 gives you a baseline for the channel activity. For the nine months ended September 30, 2025, total Net Sales reached $12.385 billion. This follows a trailing twelve-month revenue of $15.21 billion as of the first quarter of 2025.

Here's a look at how the major segments, which rely on these channels, performed in the first quarter of 2025:

Segment Channel Proxy	Q1 2025 Net Sales ($Millions)	Q1 2025 Adjusted EBITDA ($Millions)	Key Operational Metric
North American Flat-Rolled (Direct/Service Centers)	$2,240	$104	EBITDA Margin: 5%
Mini Mill (Direct/Service Centers)	$675	$5	Shipments: Highest quarter to date; BR2 ramp-up cost: $55 million
U. S. Steel Europe (USSE) (Direct/Local Distribution)	$665	Data Not Explicitly Isolated	2024 Raw Steel Production: 3.8 million tons
Tubular Products (Direct Sales)	$249	Data Not Explicitly Isolated	Segment experienced gains from stronger selling prices

Total steel shipments for the first quarter of 2025 were 3.76 million net tons. The Big River Steel facility operated at 92% capacity during that same period.

Direct Sales Force: Primary channel for large industrial and construction customers.

• This approach is central to the North American Flat-Rolled segment, which serves major automotive and construction needs.
• The Tubular Products segment also relies heavily on direct sales for energy and construction customers, posting sequential gains in Q1 2025.

Service Centers: Distribution partners for smaller-volume orders and just-in-time delivery.

• These partners take volume from the Flat-Rolled and Mini Mill segments for broader market reach.
• The historical e-Steel Exchange, which included 304 service centers as members, suggests a reliance on this distribution layer.

Rail and Truck Logistics: Extensive network for shipping heavy steel products across North America.

• Logistics are critical, as evidenced by Q1 2025 results being impacted by seasonal mining logistics constraints in North America.
• The company manages the movement of millions of tons of product annually, like the 3.76 million net tons shipped in Q1 2025.

U.S. Steel Europe (USSE): Operating facilities in Central Europe for international market access.

• USSE recorded net sales of $665 million for the first quarter of 2025.
• The segment saw benefits from higher shipments in Q1 2025.

E-commerce Platform: Developing online ordering for certain product lines.

• The company is focused on expanding premium offerings like XG3® and verdeX® steel, which requires modern sales engagement.
• Historically, United States Steel Corporation committed to selling products on the e-Steel Exchange, which utilized SteelDirect technology.

Finance: draft 13-week cash view by Friday.

United States Steel Corporation (X) - Canvas Business Model: Customer Segments

United States Steel Corporation (X) serves a diverse set of industrial customers across its operating segments, with total Trailing Twelve Months (TTM) revenue reported at $15.21 Billion USD as of the first quarter of 2025. The company's structure, which includes the North American Flat-Rolled, Mini Mill, U. S. Steel Europe (USSE), and Tubular Products (Tubular) segments, directly dictates the customer base served.

The primary customer groups United States Steel Corporation (X) targets are:

• Automotive Industry: Major buyers of high-strength, lightweight flat-rolled steel.
• Construction Sector: Purchasers of sheet, plate, and structural steel for commercial and residential projects.
• Energy Sector: Buyers of seamless and ERW tubular products for oil and gas applications.
• Appliance and Container Manufacturers: Customers for tin mill and coated products.
• Steel Service Centers: Intermediaries managing inventory and processing for smaller end-users.

The Automotive Industry is a key focus, with the North American Flat-Rolled and Mini Mill segments supplying products to this sector. The broader U.S. Automotive Steel Market generated a revenue of USD 15,154.0 million in 2024 and is expected to grow at a Compound Annual Growth Rate (CAGR) of 5.2% from 2025 to 2030, reaching a projected US$ 20,564.9 million by 2030. The Mini Mill segment, driven by the ramp-up of Big River 2 (BR2), recorded its highest quarter of shipments to date in Q1 2025.

The Construction Sector is served by the Flat-Rolled, Mini Mill, and USSE segments, utilizing materials like sheet and plate. The overall United States steel market, which includes construction demand, was valued at USD 139.6 Billion in 2024.

For the Energy Sector, the Tubular segment provides seamless and electric resistance welded (ERW) tubular steel mill products, with the segment posting sequential gains on stronger average selling prices in Q1 2025. The USSE segment also serves oil, gas, and petrochemical markets.

Appliance and Container Manufacturers are customers for the Flat-Rolled and USSE segments, which supply tin mill and coated products. The Mini Mill segment also serves the electrical steel market, which overlaps with appliance needs.

Steel Service Centers are a significant channel, served by the Flat-Rolled, Mini Mill, and USSE operations. The North American Flat-Rolled segment achieved an EBITDA margin of 5% in the first quarter of 2025, reflecting strong commercial strategy across its customer base.

Here's a look at the segment performance that supports these customer groups in Q1 2025:

Segment	Q1 2025 Adjusted EBITDA (Millions USD)	Q1 2025 EBITDA Margin	Key Operational Note
North American Flat-Rolled	Implied from total, margin provided	5%	Driven by commercial strategy and product mix.
Mini Mill	Implied from total, margin provided	10% (after ramp-up impact)	Recorded highest quarter of shipments to date.
Tubular Products	Sequential gains reported	Not explicitly stated	Posting sequential gains on stronger average selling prices.

The Mini Mill segment's strong performance, with EBITDA margins reaching 10% after accounting for $55 million in ramp-up impact at BR2, shows increasing volume contribution from this newer asset serving these diverse customers. The company's overall Q1 2025 Adjusted EBITDA was $172 million.

United States Steel Corporation (X) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive United States Steel Corporation's expenses as of late 2025. This isn't about strategy fluff; it's about where the dollars actually go.

Raw Material Costs

The largest component of the Cost of Revenue is the spend on raw materials like iron ore, scrap metal, and coking coal. While specific raw material spend isn't broken out, the total Cost of Sales gives you the scale of these inputs, energy, and direct labor combined.

For the nine months ended September 30, 2025, the Cost of Sales (which excludes items like SG&A) totaled $11,316 million. Unfavorable raw material pricing was cited as an impact in the first quarter of 2025.

Operating Costs

Operating costs include both fixed elements from the integrated mills and variable costs tied to the Electric Arc Furnaces (EAFs). You see these costs reflected in Selling, General & Administrative (SG&A) and Depreciation, Depletion & Amortization (D&A).

Here's a look at some key operating expense metrics for the nine months ended September 30, 2025:

Expense Category	Amount (Millions USD)	Period
Cost of Sales (Raw Materials, Energy, Direct Labor Base)	11,316	Nine Months Ended Sep 30, 2025
Selling, General and Administrative Expenses (SG&A)	574	Nine Months Ended Sep 30, 2025
Depreciation, Depletion and Amortization (D&A)	794	Nine Months Ended Sep 30, 2025
Research & Development (R&D)	60	Q2 2025

The company also noted that higher energy costs were an unfavorable impact in the first quarter of 2025.

Labor and Benefits

Labor is a substantial expense, given the unionized workforce and legacy obligations. While direct wages are embedded in Cost of Sales, the pension and benefit side shows up separately. For the nine months ended September 30, 2025, the company recorded Net periodic benefit income of ($11 million).

The ramp-up of Big River 2 (BR2) also brought specific, temporary costs:

• BR2 ramp-up impact in Q1 2025 was approximately $55 million.
• An expected ramp-up impact of about $50 million was anticipated for Q2 2025.

Capital Expenditures

United States Steel Corporation is in a heavy investment phase, modernizing its facilities. This is a major cash outlay.

The forward-looking plan is quite clear:

• The company detailed a multi-year growth plan targeting approximately $14 billion of U.S. growth capital.
• Specifically, $11 billion of this is planned to be invested by the end of 2028.

To give you a sense of the scale of recent spending, a 2025 capex plan of $1 billion was mentioned in late 2024, though this is superseded by the larger modernization commitment.

Energy and Logistics

Energy and logistics are critical cost drivers, especially for an integrated producer. As noted, higher energy costs were cited as an unfavorable impact in Q1 2025 results. Logistics constraints, particularly in the mining sector, also caused temporary negative impacts on segment results in Q1 2025.

The overall Cost of Sales figure of $11,316 million for the first nine months of 2025 bundles these significant variable expenses.

United States Steel Corporation (X) - Canvas Business Model: Revenue Streams

You're looking at how United States Steel Corporation generates its top-line income, which is heavily tied to the cyclical nature of global steel pricing and North American industrial output. Honestly, for a company this size, revenue is a story told through its major product lines and geographic footprint.

The primary revenue drivers for United States Steel Corporation are centered around its core steel production segments. The company reports its sales across four main areas, though the Flat-Rolled and Mini Mill segments are the most significant contributors to the North American business.

Here is a look at the segment revenue composition based on the latest available quarterly data, which helps us map the revenue streams:

Revenue Stream Component	Segment Reference	Net Sales (Q1 2025, $ Millions)
Flat-Rolled Products	North American Flat-Rolled Segment (includes iron ore)	$2,240
Mini Mill Products	Mini Mill Segment	$675
European Steel Products	U. S. Steel Europe Segment	$665
Tubular Products	Tubular Products Segment	$249
Other Businesses	Real Estate and Railway Activities	$4

Flat-Rolled Steel Sales: This is the bedrock, primarily coming from the North American Flat-Rolled segment. This revenue stream covers flat-rolled steel mill products like semi-finished, sheet, plate, and tin mill products. The segment's Q1 2025 Net Sales were $2,240 million. This revenue stream is sensitive to automotive and construction demand.

Tubular Products Sales: Revenue here comes from seamless and electric resistance welded (ERW) tubular steel mill products, serving markets like energy. For Q1 2025, this segment brought in $249 million in Net Sales. The Tubular segment currently focuses on 100% seamless tubular steel mill product production.

European Steel Sales: This revenue is generated by the U.S. Steel Europe (USSE) segment, which includes steel mill products and coke from operations in the Slovak Republic. Q1 2025 Net Sales for USSE were $665 million. This stream is subject to European regional pricing and demand conditions.

Iron Ore Pellet Sales: Revenue from selling excess taconite pellets to third parties is included within the North American Flat-Rolled segment's reported sales, as that segment includes the production and sale of iron ore. Specific standalone revenue for pellet sales isn't separately itemized in the standard segment sales table, but it is a component of that larger revenue bucket.

The overall picture of the company's top line, as of the latest reported nine-month period, is:

• Total Trailing Twelve Months Sales (as of September 30, 2025, Nine Months Ended): Approximately $12.385 billion.
• The requested approximate Total Trailing Twelve Months Sales (Nov 2025): $15.20 billion.

You can see the revenue flow is concentrated, so any major shift in the North American flat-rolled market definitely moves the needle for United States Steel Corporation.