Cleveland-Cliffs Stock Slides On Q4 Earnings: The Details

Cleveland-Cliffs Inc. (CLF) reported fourth-quarter financial results Monday after the bell, with the stock sliding after hours. The steel producer missed analyst estimates on both the top and bottom lines, with revenue coming in at $4.33 billion versus estimates of $4.43 billion, and earnings per share (EPS) at a loss of 68 cents versus estimates for a loss of 61 cents. The company's stock was down 2.96% after hours, trading at $10.82 at the time of publication Monday, according to Benzinga Pro.



Cleveland-Cliffs' fourth-quarter steelmaking revenue included approximately $1.2 billion of sales to the infrastructure and manufacturing market, $1.2 billion of sales to direct automotive customers, $1.2 billion of sales to the distributors and converters market, and $623 million of sales to steel producers. Steel product sales totaled 3.8 million net tons in the fourth quarter, consisting of 40% hot-rolled, 26% coated, 16% cold-rolled, 5% plate, 3% stainless and electrical, and 10% other, including slabs and rail.

Lourenco Goncalves, chairman, president, and CEO of Cleveland-Cliffs, attributed the company's poor performance to the worst steel demand environment since 2010 (ex-COVID). He noted that for the first time, the number of cars sold in the United States that were produced abroad and imported into the United States surpassed the number of cars sold that were produced domestically. This decline in domestic automotive production, coupled with too much imported steel from abroad driving unsustainably low steel prices, deeply impacted Cleveland-Cliffs.



Goncalves also mentioned that the company's cash use in the fourth quarter, due largely to inventory build, has set it up nicely for the rebound it is seeing so far in 2025. Cleveland-Cliffs expects full-year 2025 steel unit cost reductions of approximately $40 per net ton and anticipates full-year capital expenditures of approximately $700 million. The company's executives will further discuss the quarter on a conference call scheduled for 8:30 a.m. ET Tuesday morning.



In conclusion, Cleveland-Cliffs' stock slid after the company reported fourth-quarter earnings that missed analyst estimates. The steel producer's poor performance was attributed to the worst steel demand environment since 2010 (ex-COVID), with the decline in domestic automotive production and unsustainably low steel prices deeply impacting the company. Despite the setback, Cleveland-Cliffs expects a rebound in 2025, with full-year steel unit cost reductions of approximately $40 per net ton and capital expenditures of approximately $700 million. The company's executives will further discuss the quarter on a conference call scheduled for Tuesday morning.