NYSE$CLF

Cleveland-Cliffs Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Cleveland-Cliffs reported a net loss due to weaker demand and pricing, partially offset by cost reduction efforts and the recent acquisition of Stelco.

Cleveland-Cliffs reported third-quarter 2024 results with revenues of $4.6 billion and a GAAP net loss of $230 million. The company faced challenges due to weaker demand and pricing, particularly in the automotive sector. However, cost reduction targets were exceeded, and the acquisition of Stelco is expected to provide resilience and cost advantages.

  • Revenues reached $4.6 billion.
  • Steel shipments amounted to 3.8 million net tons.
  • GAAP net loss was $230 million, with an adjusted net loss of $156 million.
  • Adjusted EBITDA was $124 million.

Headline financials

Total Revenue

$4.57B

Previous: $5.61B-18.5%
EPS (adj)

-$0.33

Previous: $0.54-161.1%
Capital Expenditures

-$490M

Previous: -$481M-1.9%
Free Cash Flow

-$732M

Previous: -$217M-237.3%
Net Income

-$242M

Previous: $264M-191.7%
Operating Income

-$259M

Previous: $325M-179.7%
Gross Profit

-$104M

Previous: $480M-121.7%
Cash & Equivalents

$39M

Previous: $31M+25.8%
Total Assets

$16.8B

Previous: $18.1B-7.0%

Revenue & EPS history

Cleveland-Cliffs · Revenue · Quarterly

$4.57B

Q3 2024-18.5%vs Q3 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

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

  • Steelmaking
    $5.87B

Forward guidance

Cleveland-Cliffs anticipates a rebound in steel demand in early 2025, supported by economic and political factors. The company has set a lower capital budget for 2025 and expects benefits from lower coal costs. Stelco's assets and cost reductions are expected to enable the company to capitalize on the upswing and reduce acquisition debt with healthy free cash flow.

Tailwinds

  • Steel demand is expected to rebound in early 2025.
  • A much lower capital budget has been set for 2025.
  • Lower coal costs will bring a $70 million benefit next year compared to 2024.
  • Stelco's assets and cost reductions are expected to drive growth.
  • Healthy free cash flow will allow for quick reduction of acquisition debt.

Headwinds

  • Weaker demand and pricing drove tighter margins in Q3.
  • Two of the top four automotive clients continue to underperform their own expectations.
  • Cliffs was more affected than competitors due to high exposure to the automotive sector.
  • Acquisition-related expenses impacted GAAP results.
  • Discrete charges and losses totaling $145 million were included in GAAP results, primarily related to an arbitration decision.

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 Q3 2024

Historical avgQ3 2024

+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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