Cleveland-Cliffs ( (CLF) ) has released its Q4 earnings. Here is a breakdown of the information Cleveland-Cliffs presented to its investors.
Cleveland-Cliffs Inc. is a leading North American steel producer, specializing in value-added sheet products for the automotive industry, with a vertically integrated operation from mining to steelmaking. The company recently reported its financial results for the full year and fourth quarter of 2024, highlighting a challenging year marked by a significant decline in revenues and profitability compared to the previous year.
In 2024, Cleveland-Cliffs faced a tough steel demand environment, resulting in consolidated revenues of $19.2 billion, down from $22.0 billion in 2023. The company reported a GAAP net loss of $708 million for the year, a stark contrast to the net income of $450 million in 2023. The decline was attributed to lower steel prices and reduced domestic automotive production, which affected the company’s high fixed cost structure.
The fourth quarter of 2024 was particularly challenging, with consolidated revenues dropping to $4.3 billion from $5.1 billion in the same period the previous year. The company recorded a GAAP net loss of $434 million for the quarter, compared to a net loss of $139 million in the fourth quarter of 2023. Despite these setbacks, Cleveland-Cliffs has positioned itself for a rebound in 2025, supported by favorable trade policies and an improved order book.
Looking ahead, Cleveland-Cliffs is optimistic about a recovery in 2025, driven by expected improvements in steel demand and pricing. The company anticipates cost reductions and strategic benefits from its recent acquisition of Stelco, which should enhance its ability to capitalize on the anticipated market rebound.