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Dec 31, 2024
Cleveland-Cliffs Q4 2024 Earnings Report
Cleveland-Cliffs reported a significant net loss in Q4 2024 due to weak steel demand and declining prices.
Key Takeaways
Cleveland-Cliffs posted Q4 2024 revenue of $4.33 billion, a decline from the prior year. The company reported a net loss of $434 million and an adjusted net loss of $332 million due to lower steel prices and weak demand. Adjusted EBITDA turned negative at -$81 million, compared to $279 million in Q4 2023. The company anticipates a rebound in 2025, driven by improving demand and cost reductions.
Q4 revenue declined to $4.33 billion from $5.11 billion in Q4 2023.
Net loss widened to $434 million, reflecting weaker steel demand.
Adjusted EBITDA dropped to -$81 million from $279 million in Q4 2023.
Company expects a rebound in 2025 with cost reductions and improving demand.
Forward Guidance
Cleveland-Cliffs expects a strong recovery in 2025, supported by cost reductions, improving steel demand, and strategic positioning in the automotive market. The company anticipates $40 per ton in cost reductions and continued operational improvements.
Positive Outlook
- Steel unit cost reductions expected to be $40 per ton in 2025.
- Increased demand from the automotive sector anticipated.
- Integration of Stelco to enhance product mix and margins.
- Projected capital expenditures of $700 million to support operations.
- Expected SG&A expenses of $625 million in 2025.
Challenges Ahead
- Continued pressure from low steel prices.
- Weak demand in the infrastructure and manufacturing sectors.
- Higher interest expenses impacting profitability.
- Macroeconomic uncertainties affecting steel demand.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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