NYSE$CLF

Cleveland-Cliffs Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Cleveland-Cliffs reported mixed results for Q2 2022, with revenue increasing but net income and Adjusted EBITDA decreasing compared to the prior year. The company focused on debt reduction and share repurchases, anticipating improved performance in the second half of the year.

Cleveland-Cliffs reported Q2 2022 revenue of $6.3 billion and net income of $601 million. While revenue increased compared to Q2 2021, net income and Adjusted EBITDA decreased. The company highlighted its focus on debt reduction and share repurchases, and anticipates improved performance in the second half of the year.

  • Second-quarter revenue reached $6.3 billion.
  • Net income for the second quarter was $601 million.
  • Adjusted EBITDA for the second quarter was $1.1 billion.
  • The company completed significant debt reduction and share repurchases during the quarter.

Headline financials

Total Revenue

$6.34B

Previous: $5.05B+25.6%
EPS (adj)

$1.31

Previous: $1.46-10.3%
Adjusted EBITDA

$1.1B

Previous: $1.4B-21.4%
Steel Shipments

3.6K

Previous: 4.2K-13.4%
Avg Selling Price

$1.49K

Previous: $1.12K+33.0%
Capital Expenditures

-$468M

Previous: -$298M-57.0%
Free Cash Flow

$128M

Previous: $482M-73.4%
Net Income

$596M

Previous: $780M-23.6%
Operating Income

$840M

Previous: $1.07B-21.3%
Gross Profit

$981M

Previous: $1.2B-18.0%
Cash & Equivalents

$47M

Previous: $73M-35.6%
Total Assets

$20B

Previous: $17.7B+12.9%

Revenue & EPS history

Cleveland-Cliffs · Revenue · Quarterly

$6.34B

Q2 2022+25.6%vs Q2 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Cleveland-Cliffs · $5.87B total across 1 segment · Q3 2021

  • Steelmaking
    $5.87B

Forward guidance

Based on the current 2022 futures curve, the Company expects its full-year 2022 average selling price to be approximately $1,410 per net ton, incorporating substantial increases in fixed price contracts resetting on October 1, 2022.

Tailwinds

  • Expects full-year 2022 average selling price to be approximately $1,410 per net ton.
  • Anticipates substantial increases in fixed price contracts resetting on October 1, 2022.
  • Expects healthy level of free cash flow to continue.
  • Declining capex needs.
  • Accelerating release of working capital.

Headwinds

  • Continued volatility of steel, iron ore and scrap metal market prices.
  • Uncertainties associated with the highly competitive and cyclical steel industry.
  • Reliance on the demand for steel from the automotive industry.
  • Potential weaknesses and uncertainties in global economic conditions.
  • Excess global steelmaking capacity.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.8%

Avg return

Earnings day

-1.8%

Avg return

5 days after

-2.5%

Avg return

30 days after

55%

40 / 73 earnings

Positive

+23.1%

Q2 2018

Best reaction

-21.1%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.6%+0.3%+10.0%
Q4 2025-16.4%-29.5%-37.0%
Q3 2025+21.4%-1.4%-15.5%
Q2 2025-0.7%-1.9%+9.9%
Q1 2025-15.9%-10.7%-10.5%
Q4 2024-3.2%-2.8%-16.3%
Q3 2024-12.5%-3.0%-6.3%
Q2 2024+4.7%+2.0%-15.4%
Q1 2024-10.9%-14.1%-17.6%
Q4 2023+9.3%+10.4%+10.2%
Q3 2023+7.3%+9.9%+15.5%
Q2 2023+9.9%+7.0%-5.1%
Q1 2023-3.8%-3.1%-10.6%
Q4 2022+2.4%-0.6%-11.4%
Q3 2022-5.0%-13.4%+2.4%
Q2 2022-3.4%-2.9%+3.8%
Q1 2022-6.2%-7.2%-26.3%
Q4 2021-11.8%-5.2%+23.4%
Q3 2021+20.1%+17.2%+3.7%
Q2 2021+1.9%+5.1%+8.5%
Q1 2021+5.5%+9.6%+5.9%
Q4 2020-21.1%-13.1%-2.0%
Q3 2020+3.0%-3.5%+11.6%
Q2 2020-10.8%-5.9%+11.5%
Q1 2020-8.9%-14.9%+36.7%
Q4 2019-6.7%-15.0%-58.0%
Q3 2019+0.1%+3.6%+11.2%
Q2 2019+3.1%+0.6%-24.9%
Q1 2019+6.1%+5.0%-2.1%
Q4 2018+6.9%+5.2%-10.3%
Q3 2018-1.2%-11.2%-10.3%
Q2 2018+23.1%+22.2%+11.5%
Q1 2018+1.0%+4.0%+19.7%
Q4 2017-8.6%-11.0%-10.3%
Q3 2017-8.3%-8.2%-17.6%
Q2 2017-8.2%-3.6%+1.2%
Q1 2017-6.5%-7.8%-14.6%
Q4 2016+17.1%+26.4%-8.2%
Q3 2016-12.4%-12.1%+59.8%
Q2 2016+0.8%+1.4%-26.5%
Q1 2016+22.3%
Q4 2015+4.6%
Q3 2015+4.5%
Q2 2015-10.8%
Q1 2015-11.7%
Q4 2014+5.9%
Q3 2014+17.2%
Q2 2014-0.8%
Q1 2014-1.6%
Q4 2013+5.3%
Q3 2013+6.7%
Q2 2013+7.7%
Q1 2013+21.0%
Q4 2012-19.6%
Q3 2012-12.3%
Q2 2012-9.6%
Q1 2012-4.3%
Q4 2011-2.9%
Q3 2011+2.5%
Q2 2011-4.0%
Q1 2011-0.2%
Q1 2009+3.9%
Q4 2010+3.9%
Q3 2010+4.7%
Q2 2010+4.5%
Q1 2010+1.5%
Q4 2007+13.1%
Q4 2009+13.1%
Q3 2009+1.7%
Q3 2008+1.7%
Q2 2008+10.2%
Q2 2009+10.2%
Q4 2008+10.2%

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