Cleveland-Cliffs' Q4 Earnings Miss Estimates, Revenues Beat

Core Viewpoint - Cleveland-Cliffs Inc. reported a wider adjusted loss in Q4 2024 compared to the previous year, with revenues declining but still surpassing consensus estimates [1][2]. Financial Performance - The adjusted loss for Q4 2024 was 68 cents per share, compared to a loss of 5 cents in the same quarter last year, and was worse than the Zacks Consensus Estimate of a loss of 65 cents [1]. - Revenues decreased approximately 15.4% year over year to $4,325 million, exceeding the Zacks Consensus Estimate of $4,313.4 million [1]. - For the full year 2024, the company reported a loss of $1.57 per share, down from earnings of 78 cents the previous year, with total revenues declining about 12.8% to $19,185 million [3]. Operational Highlights - Steelmaking revenues for Q4 were $4,168 million, down around 15.8% year over year, missing the estimate of $4,198.3 million [2]. - The average net selling price per net ton of steel products was $976, down approximately 10.7% year over year, which also lagged behind the estimate of $985 [2]. - External sales volumes for steel products were approximately 3.83 million net tons, down around 5.2% year over year, but slightly beating the estimate of 3.82 million net tons [2]. Financial Position - At the end of Q4, cash and cash equivalents stood at $54 million, down from $198 million in the prior-year quarter [4]. - Long-term debt increased by 125.2% year over year to $7,065 million [4]. - Net cash used by operating activities was $472 million in Q4 2024 [4]. Outlook - The company anticipates a reduction of about $40 per net ton in steel unit costs for 2025 compared to 2024 [5]. - Projected capital expenditures for the upcoming year are around $700 million, with selling, general and administrative expenses expected to reach approximately $625 million [5]. - Depreciation, depletion, and amortization expenses are forecasted at roughly $1.1 billion, and cash pension and other post-employment benefits payments are projected to be around $150 million [5]. Price Performance - Shares of Cleveland-Cliffs Inc. have declined by 45% over the past year, contrasting with a 5.3% decline in its industry [6].