NYSE$CLF

Cleveland-Cliffs Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$5.11B

Previous: $5.04B+1.3%
EPS (adj)

-$0.05

Previous: -$0.30+83.3%
Adjusted EBITDA

$279M

Previous: $123M+126.8%
Steel Shipments

4.0K

Previous: 3.8K+5.2%
Avg Selling Price

$1.09K

Previous: $1.16K-5.4%
Capital Expenditures

-$165M

Previous: $227M-172.7%
Net Income

-$139M

Previous: -$204M+31.9%
Operating Income

-$100M

Previous: -$182M+45.1%
Gross Profit

$168M

Previous: -$60M+380.0%

Revenue & EPS history

Cleveland-Cliffs · Revenue · Quarterly

$5.11B

Q4 2023+1.3%vs Q4 2022
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 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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Impacts of existing and increasing governmental regulation.
  • Supply chain disruptions or changes in the cost, quality or availability of energy sources.

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 Q4 2023

Historical avgQ4 2023

+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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