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Mar 31, 2022
Cleveland-Cliffs Q1 2022 Earnings Report
Cleveland-Cliffs reported strong first-quarter results driven by successful fixed-price contract renewals.
Key Takeaways
Cleveland-Cliffs reported a strong first quarter with revenues of $6.0 billion and net income of $801 million. The company's Adjusted EBITDA was $1.5 billion, driven by successful contract renewals and a vertically integrated business model.
First-quarter revenue reached $6.0 billion.
Net income for the first quarter was $801 million.
Adjusted EBITDA for the first quarter was $1.5 billion.
The company expects to set another free cash flow record in 2022.
Forward Guidance
Cliffs is increasing its full-year 2022 average selling price expectation by $220 to $1,445 per net ton, compared to its previous guidance of $1,225 per net ton. As a result, Cliffs expects to generate record levels of free cash flow in 2022.
Positive Outlook
- Higher than expected prices on renewals of fixed-price contracts resetting April 1, 2022.
- Higher expected spreads between hot-rolled and cold-rolled steel.
- A higher futures curve that currently implies an average hot-rolled coil price of $1,300 per net ton for the full-year 2022.
- Anticipated record levels of free cash flow in 2022.
- Full-year 2022 average selling price expectation increased by $220 to $1,445 per net ton.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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