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Dec 31, 2023
Cleveland-Cliffs Q4 2023 Earnings Report
Cleveland-Cliffs reported mixed results for Q4 2023, with a net loss but increased revenues and adjusted EBITDA compared to the previous year. The company achieved record steel shipments for the year and reduced net debt.
Key Takeaways
Cleveland-Cliffs reported Q4 2023 revenues of $5.1 billion, a net loss of $139 million, and adjusted EBITDA of $279 million. The company achieved record annual steel shipments of 16.4 million net tons and reduced net debt to $2.9 billion. They anticipate steel unit costs to decrease $30 per ton in 2024.
Q4 2023 revenues increased to $5.1 billion from $5.0 billion in the prior year.
The company recorded a GAAP net loss of $139 million, or $0.31 per diluted share, and an adjusted net loss of $25 million, or $0.05 per diluted share.
Adjusted EBITDA for Q4 2023 was $279 million, compared to $123 million in Q4 2022.
Full-year steel shipments reached a record 16.4 million net tons.
Forward Guidance
Cleveland-Cliffs expects steel shipment volumes of 16.5 million net tons, steel unit cost reductions of approximately $30 per net ton, and capital expenditures of $675 to $725 million for the full year 2024. The Company expects its Adjusted EBITDA performance in the first quarter of 2024 to meaningfully exceed its Adjusted EBITDA performance in the fourth quarter of 2023.
Positive Outlook
- Steel shipment volumes of 16.5 million net tons are expected for 2024.
- Steel unit cost reductions of approximately $30 per net ton are anticipated.
- Capital expenditures are projected to be between $675 and $725 million.
- Adjusted EBITDA performance in Q1 2024 is expected to meaningfully exceed Q4 2023.
- Focus on aggressive share buybacks.
Challenges Ahead
- Continued volatility of steel, iron ore and scrap metal market prices.
- Uncertainties associated with the highly competitive and cyclical steel industry.
- Potential weaknesses and uncertainties in global economic conditions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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