Cleveland-Cliffs Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenues of $19.2 billion, down from $22.0 billion in 2023. The company experienced a net loss of $708 million, compared to a net income of $450 million in the previous year. Adjusted EBITDA also fell sharply to $780 million from $1.9 billion in 2023, reflecting a challenging market environment characterized by lower steel prices and reduced demand, particularly in the automotive sector.
The company's revenue decline was primarily driven by a 25% decrease in revenues from the direct automotive market, which totaled $5.6 billion, as well as a 7% drop in revenues from the infrastructure and manufacturing market. The average selling price for hot-rolled steel decreased to $772 per net ton, a 15% decline from the previous year. Additionally, Cleveland-Cliffs' steel shipments decreased by approximately 0.8 million net tons, contributing to the overall revenue drop.
Strategically, Cleveland-Cliffs completed the acquisition of Stelco Holdings Inc. on November 1, 2024, a move aimed at diversifying its customer base and expanding its geographical presence in Canada. The acquisition is expected to enhance the company's cost structure and operational efficiency. In conjunction with this acquisition, Cleveland-Cliffs announced plans for a new electrical transformer production plant in Weirton, West Virginia, with an investment of approximately $150 million, supported by $50 million from the West Virginia Economic Development Authority.
Operationally, Cleveland-Cliffs employed around 30,000 people across its U.S. and Canadian operations, with over 70% of its workforce represented by unions. The company reported a Total Reportable Incident Rate of 0.9, marking a 26% improvement in safety performance compared to the previous year. Looking ahead, Cleveland-Cliffs anticipates a recovery in steel demand, driven by declining interest rates and government infrastructure spending, which could bolster its financial performance in the coming years. The company remains focused on reducing its debt and enhancing shareholder value through share repurchases, having returned $733 million to shareholders in 2024.
About CLEVELAND-CLIFFS INC.
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