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CLEVELAND - Cleveland-Cliffs Inc. (NYSE:CLF), a major player in the North American steel industry with a current market capitalization of $5.1 billion, today disclosed preliminary financial outcomes for the fourth quarter and the full year of 2024, marked by a challenging period for steel demand. The stock has experienced significant volatility, having declined nearly 50% over the past year. The company, which completed the acquisition of Stelco (TSX:STLC) Holdings Inc. on November 1, 2024, reported steel shipments totaling 3.8 million net tons and revenues around $4.3 billion for the fourth quarter. Despite this, an adjusted EBITDA loss of approximately $85 million was recorded for the same period.
For the full year, Cleveland-Cliffs shipped 15.6 million net tons and generated revenues of approximately $19.2 billion, with an adjusted EBITDA of about $775 million. The inclusion of Stelco’s performance post-acquisition projects a pro-forma adjusted EBITDA of roughly $1.2 billion for 2024. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score, and current valuations suggest the stock is trading below its Fair Value.
Chairman, President, and CEO Lourenco Goncalves attributed the weak performance, particularly in the latter half of 2024, to a significant downturn in domestic steel demand, which has not been this low since 2010, excluding the COVID-affected year of 2020. The automotive sector’s muted demand heavily impacted the company, given its status as the largest supplier to this industry in North America.
However, Goncalves expressed optimism for 2025, citing improvements in the company’s order book for both automotive and non-automotive products. InvestingPro data reveals that management has been actively buying back shares, suggesting confidence in the company’s future prospects. Investors seeking deeper insights can access 8 additional exclusive ProTips and comprehensive analysis through InvestingPro’s detailed research reports. The CEO also conveyed confidence that the manufacturing-friendly policies on President Trump’s agenda, including recent tariffs on Mexico, Canada, and China, will benefit Cleveland-Cliffs and the steel industry at large. He anticipates that these developments, along with the integration of Stelco, will contribute to the company’s success in the coming year.
Cleveland-Cliffs plans to release its complete fourth-quarter and full-year 2024 earnings after the U.S. market close on February 24, 2025. The current financial disclosure is based on a press release statement and does not represent audited data, as the accounting integration of the Stelco acquisition is still underway. The company has stated that due to the complexity of this process, it cannot provide a reconciliation of its adjusted EBITDA to the most directly comparable GAAP measure at this time.
Investors are advised to consider these preliminary results with caution, as they are subject to change upon finalization of the year-end financial statements. For a complete understanding of Cleveland-Cliffs’ financial position and future prospects, access the detailed Pro Research Report available exclusively on InvestingPro, offering comprehensive analysis of the company’s valuation, financial health, and growth potential among 1,400+ top stocks.
In other recent news, Cleveland-Cliffs Inc. announced plans to offer $750 million in Senior Guaranteed Notes due 2031, aiming to allocate the proceeds for general corporate purposes, including debt repayment. Additionally, Cleveland-Cliffs disclosed its third-quarter 2024 financial results, revealing an adjusted EBITDA of $124 million due to a dip in steel demand. However, the company anticipates a rise in automotive demand and stable pricing in the first quarter of 2025, along with significant cost savings from improved coal contracts and operational efficiencies.
Analyst Gordon Johnson from GLJ Research upgraded Cleveland-Cliffs’ stock rating from Sell to Buy, based on expectations of forthcoming tariffs and typical seasonal strength in the steel sector. The company also announced the appointment of Jane M. Cronin to its Board of Directors, a move expected to bring new insights to the board’s operations.
Furthermore, Cleveland-Cliffs acquired Stelco in a strategic move projected to yield $120 million in cost synergies in the first year and enhance EBITDA margins. These developments are part of recent activities shaping the trajectory of Cleveland-Cliffs.
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