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Mar 31, 2024

Cleveland-Cliffs Q1 2024 Earnings Report

Cleveland-Cliffs reported first-quarter results, featuring revenue of $5.2 billion and adjusted EPS of $0.18, while also announcing a new $1.5 billion share repurchase program.

Key Takeaways

Cleveland-Cliffs reported mixed first-quarter 2024 results, with revenues of $5.2 billion, a net loss of $53 million, and adjusted net income of $87 million. The company repurchased 30.4 million shares and announced a new $1.5 billion share repurchase program. The automotive sector's resilience helped offset service center business challenges. The company maintains its full-year 2024 guidance.

Revenues of $5.2 billion were reported.

Steel shipments reached 3.9 million net tons.

GAAP net loss was $53 million, with an adjusted net income of $87 million.

Adjusted EBITDA was $414 million, a 70% year-over-year improvement.

Total Revenue
$5.2B
Previous year: $5.3B
-1.8%
EPS
$0.18
Previous year: -$0.11
-263.6%
Adjusted EBITDA
$414M
Previous year: $243M
+70.4%
Revenues from product sales
$1.18K
Previous year: $1.13K
+4.2%
Sales volume
3.9M
Previous year: 4.1M
-4.9%
Gross Profit
$285M
Previous year: $99M
+187.9%
Cash and Equivalents
$30M
Previous year: $59M
-49.2%
Free Cash Flow
-$40M
Previous year: -$227M
-82.4%
Total Assets
$17.2B
Previous year: $18.7B
-7.6%

Cleveland-Cliffs

Cleveland-Cliffs

Forward Guidance

The Company maintained all of its previously guided expectations for the full-year 2024.

Positive Outlook

  • Steel shipment volumes of 16.5 million net tons.
  • Year-over-year steel unit cost reductions of approximately $30 per net ton, corresponding to an approximate $500 million Adjusted EBITDA benefit compared to 2023.
  • Automotive sector is expected to remain strong.
  • Orders from service center customers have started to increase
  • Spot pricing also on the upswing.