Core Viewpoint - Cleveland-Cliffs shares increased nearly 19% in premarket trading following the company's report of strong demand for its US-produced steel and its plans to explore opportunities in rare-earth materials [1] Group 1: Company Performance - Cleveland-Cliffs reported strong demand for its US-produced steel, contributing to the significant rise in its stock price [1] Group 2: Future Opportunities - The company revealed plans to explore opportunities in the rare-earth materials sector, indicating a strategic expansion beyond its traditional steel business [1]

Financial Data and Key Metrics Changes - The third quarter adjusted EBITDA improved to $143 million, a 52% increase over the prior quarter, driven by margin expansion from higher realized prices and improved mix [17] - Steel shipment volumes were 4 million tons in the quarter, a reduction from the prior quarter due to summer slowdowns and continued market discipline [17] - The average selling price increased to $1,032 per net ton, up $17 per net ton over the prior quarter, driven by an increase in automotive shipments from 26% to 30% share [17][18] Business Line Data and Key Metrics Changes - The automotive sector is leading the rebound in domestic steel demand, with the third quarter being the best auto steel shipment quarter since Q1 2024 [3] - The company locked in multi-year agreements with major automotive OEMs, covering higher sales volumes and favorable pricing through 2027 or 2028 [3][4] - The mix shifted favorably toward automotive, with coated volumes increasing from 27% to 29% share [17] Market Data and Key Metrics Changes - The Canadian market continues to lag expectations, with 9% of total sales coming from Stelco, and imported steel penetration into Canada at 65% [11] - The U.S. automotive sector is experiencing a resurgence, supported by domestic steel production, which is critical for national security [4][5] Company Strategy and Development Direction - The company is focused on strengthening its position in the automotive steel market and is prepared for increased demand in 2026 [6][7] - A memorandum of understanding with a major global steelmaker aims to leverage the company's U.S. footprint for downstream industrial clients moving production to the U.S. [10] - The company is exploring opportunities in rare earth elements within its mining portfolio, identifying two sites in Minnesota and Michigan for potential development [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the automotive sector and the effectiveness of cost actions taken [24] - The company anticipates that operational improvements will lead to amplified EBITDA and cash flow as demand stabilizes [22][23] - The management highlighted the importance of consistent demand and stable policy to sustain the recovery [22] Other Important Information - The company was awarded a five-year, $400 million fixed-price contract by the U.S. Department of War for grain-oriented electrical steel, reinforcing its strategic importance [14] - The company is on track to achieve projected annual savings of $300 million from operational efficiencies implemented earlier in the year [18] Q&A Session Summary Question: How quickly could the company produce products in the rare earth vertical? - The company has identified two promising sites and is working with geologists to assess their commercial viability, with potential cooperation opportunities with Canada [26][30] Question: Can you provide details on the asset sale process? - The company has closed on a portion of the sale of FPT and is considering selling its direct reduction plant in Toledo, Ohio, due to a lack of strategic value [34][35] Question: Did any new auto contracts kick in during this quarter? - Some contracts began on October 1, and the company expects significant activity from these contracts as the year turns to 2026 [52] Question: What does the guidance imply for further unit cost reductions? - The company expects costs to be down $50 a ton year-over-year when adjusted for the increased automotive mix, with shipments expected to be similar to Q3 [54][56] Question: Can you comment on the volume growth from the new auto agreements? - The new contracts are expected to generate more margin, and the company has significant capacity to meet the automotive industry's needs [61][62]

Financial Data and Key Metrics Changes - The adjusted EBITDA for Q3 2025 improved to $143 million, a 52% increase over the prior quarter, driven by margin expansion from higher realized prices and improved mix [16] - Steel shipment volumes were 4 million tons in the quarter, a reduction from the prior quarter due to summer slowdowns and continued market discipline [16] - The average selling price increased to $1,032 per net ton, up $17 per net ton over the prior quarter, driven by an increase in automotive shipments from 26% to 30% share [16] Business Line Data and Key Metrics Changes - The automotive sector is leading the rebound in domestic steel demand, with the third quarter being the best auto steel shipment quarter since Q1 2024 [3] - The company locked in multi-year agreements with major automotive OEMs, covering higher sales volumes and favorable pricing through 2027 or 2028 [3][4] - The automotive-grade galvanized steel plants are fully operational, with significant capacity ready to meet increasing demand [5][6] Market Data and Key Metrics Changes - The Canadian market continues to lag expectations, with 9% of total sales coming from Stelco, primarily due to high levels of imported steel [10] - Imported steel penetration into the Canadian market stands at 65%, which the company attributes to the Canadian government's inaction against dumped steel [10][11] Company Strategy and Development Direction - The company is focused on strengthening its position in the automotive sector and enhancing domestic steel sourcing to reduce exposure to tariffs and foreign volatility [4][5] - A memorandum of understanding with a major global steelmaker is expected to facilitate the onboarding of their downstream industrial clients moving production to the U.S. [9] - The company is exploring opportunities in rare earth elements within its mining portfolio, identifying two sites in Minnesota and Michigan for potential development [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the automotive sector and the positive impact of trade policies on domestic steel demand [20][22] - The company anticipates that operational improvements and cost reductions will lead to amplified EBITDA and cash flow as demand stabilizes [21] - The management remains cautious but acknowledges the first signs of recovery in the automotive sector and the potential for increased volumes and pricing in the future [22][39] Other Important Information - The company was awarded a five-year, $400 million fixed-price contract by the U.S. Department of Defense for grain-oriented electrical steel, reinforcing its strategic importance [12] - The company plans to proceed with projects receiving grants from the Department of Energy, which were not included in a recent cancellation list [13] Q&A Session Summary Question: How quickly could the company produce products in the rare earth vertical? - The company has identified two promising sites and is working with geologists to assess their commercial viability, with potential cooperation opportunities with Canada [24][27] Question: What is the status of the asset sale process? - The company has closed on a portion of the sale of FPT and is considering selling its direct reduction plant in Toledo, Ohio, due to a lack of strategic value [30][31] Question: Did any new automotive contracts kick in during this quarter? - Some contracts began on October 1, and the company expects significant activity from these contracts as the year turns to 2026 [38] Question: What is the guidance for further unit cost reductions? - The company expects costs to be down $50 a ton year over year, with shipments anticipated to be similar to Q3 [41] Question: Can the company provide details on the auto contracts and volume growth? - The new contracts are expected to generate more margin, and the company has significant capacity to meet the automotive industry's needs [43][45]

Financial Data and Key Metrics Changes - The adjusted EBITDA for Q3 2025 improved to $143 million, representing a 52% increase over the prior quarter, driven by margin expansion from higher realized prices and improved mix [23] - Steel shipment volumes were 4 million tons in the quarter, a reduction from the prior quarter due to summer slowdowns and continued market discipline, but the average selling price increased to $10.32 per net ton, up $17 per net ton over the prior quarter [23][24] - The CapEx budget for 2025 is now $525 million, down from the original expectation of $700 million, reflecting reduced spending at Stelco and changes in the DOE project at Middletown [25] Business Line Data and Key Metrics Changes - Automotive shipments increased from 26% to 30% share, while coated volumes moved from 27% to 29% share, contributing to the improved average selling price [24] - The company locked in multi-year agreements with major automotive OEMs, covering higher sales volumes and favorable pricing through 2027 or 2028 [5][6] Market Data and Key Metrics Changes - The U.S. automotive sector is experiencing a significant rebound, with domestic steel demand increasing, particularly in the automotive sector [4][5] - The Canadian market continues to lag expectations, with only 9% of total sales coming from Stelco, attributed to the Canadian government's inaction against steel dumping [15][16] Company Strategy and Development Direction - The company is focused on capitalizing on the resurgence of the U.S. automotive sector and has positioned itself as a key supplier of domestic steel [11][12] - A memorandum of understanding was entered into with a major global steelmaker to leverage the company's U.S. footprint for onboarding their downstream industrial clients [13][14] - The company is exploring opportunities in rare earth elements within its mining portfolio, identifying two sites in Minnesota and Michigan for potential development [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the automotive sector and the effectiveness of cost actions taken, while cautioning that the company is not declaring victory yet [30] - The company expects continued demand growth from automotive contracts and anticipates that operational improvements will lead to amplified EBITDA and cash flow [29] Other Important Information - The company was awarded a five-year $400 million fixed-price contract by the U.S. Department of War for grain-oriented electrical steel, reinforcing its strategic importance to national security [19][20] - The company is proceeding with the Butler project on schedule and is working with the DOE on the Middletown project, which is critical for future operations [21] Q&A Session Summary Question: How quickly could the company produce products in the rare earth vertical? - The company is assessing two promising sites and is optimistic about developing mining capabilities, potentially in cooperation with Canada [33][34][39] Question: What is the status of the asset sale process? - The company has closed on a portion of the sale of FPT and is considering selling its direct reduction plant in Toledo, Ohio, while deprioritizing the asset sale process due to the MOU with the global steelmaker [44][46] Question: Did any new automotive contracts kick in during this quarter? - Some contracts began on October 1, and while Q4 may not see significant activity due to typical shutdowns, the company is excited about the upcoming contracts in 2026 [61][62] Question: What is the expected volume growth from new automotive agreements? - The new contracts are expected to generate more margin, and the company has significant capacity to meet the automotive industry's needs [72][75] Question: What is the nature of the electrical steel contract with the U.S. government? - The contract is a multiyear opportunity to build a strategic inventory of electrical steel for national security purposes [89][90]

Core Insights - Cleveland-Cliffs Inc. reported Q3 revenue of $4.7 billion, a 3.5% year-over-year increase, but $200 million below market expectations, with a Non-GAAP EPS of -$0.45, in line with market forecasts [1] - The company adjusted its FY2025 guidance, lowering capital expenditures from $600 million to approximately $525 million and SG&A expenses from $575 million to about $550 million [1] - The average benchmark steel price for the quarter was approximately $800 per ton, compared to $700 per ton in the same quarter last year [1] Financial Performance - Q3 EBITDA was $143 million, exceeding Wall Street's expectation of $128 million [1] - The stock price rose by 8% in pre-market trading following the earnings report, contributing to a year-to-date increase of approximately 42% [2] - The rise in stock price is attributed to the impact of import tariffs implemented by former President Donald Trump, which boosted domestic steel prices [2] Strategic Focus - CEO Lourenco Goncalves indicated signs of recovery in demand for automotive-grade steel and highlighted improvements in product sales structure and pricing [2] - The company is exploring the feasibility of extracting rare earth minerals from iron ore deposits, aligning with the U.S. national strategy for critical materials independence [3] - Cleveland-Cliffs has signed a memorandum of understanding with an undisclosed global steel manufacturer aiming to enter the U.S. market, which is expected to provide significant value to shareholders [3]

CLEVELAND-CLIFFS INC. Third-Quarter 2025 Earnings Presentation October 20, 2025 © 2025 Cleveland-Cliffs Inc. All Rights Reserved. FORWARD-LOOKING STATEMENTS This presentation contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry or our businesses, are forward-looking statements. We ...

分组1 - Cleveland-Cliffs reported a quarterly loss of $0.45 per share, which was better than the Zacks Consensus Estimate of a loss of $0.48, but worse than a loss of $0.33 per share a year ago, indicating an earnings surprise of +6.25% [1] - The company posted revenues of $4.73 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.12%, but showing an increase from $4.57 billion in the same quarter last year [2] - Cleveland-Cliffs shares have increased approximately 41.7% year-to-date, significantly outperforming the S&P 500's gain of 13.3% [3] 分组2 - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend of estimate revisions for Cleveland-Cliffs was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.38 on revenues of $4.84 billion, and for the current fiscal year, it is -$2.25 on revenues of $19.29 billion [7] 分组3 - The Steel - Producers industry, to which Cleveland-Cliffs belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Market Overview - US stock index futures are all up, with Dow futures rising by 0.14%, S&P 500 futures up by 0.27%, and Nasdaq futures increasing by 0.35% [1] - European indices show mixed results, with Germany's DAX up by 1.12%, UK's FTSE 100 up by 0.38%, France's CAC40 down by 0.17%, and the Euro Stoxx 50 up by 0.64% [2][3] - WTI crude oil prices fell by 0.84% to $56.67 per barrel, while Brent crude oil dropped by 0.85% to $60.77 per barrel [4] Economic Data and Events - The US Consumer Price Index (CPI) is set to be released on October 24, after being delayed due to the government shutdown, which is a key indicator ahead of the Federal Reserve's monetary policy meeting on October 28-29 [4] - The earnings season for major US companies, particularly in the tech sector, is beginning, with notable companies like Tesla, Intel, Netflix, and Coca-Cola set to report their Q3 earnings [4] Company News - Goldman Sachs refutes claims of an AI bubble, asserting that the current strong performance of US tech stocks is driven by fundamental growth rather than irrational speculation [5] - Jefferies believes that the market is underestimating the likelihood of a US-China trade agreement by the end of October, which could boost risk assets [6] - Amazon's AWS experienced a significant outage affecting multiple companies, including Coinbase and Robinhood, highlighting the critical role of AWS in the global cloud market [8] - Apple's iPhone 17 has exceeded demand expectations since its launch in September, driving the fastest growth in its smartphone business since the COVID-19 pandemic [9] - US Antimony Corporation is set to acquire 100% of Australian miner Larvotto Resources to strengthen its critical mineral portfolio, leading to a pre-market stock increase of over 16% [9] - AstraZeneca's cancer drug Enhertu shows better results in preventing recurrence compared to competitors, potentially expanding its patient base [10] - Cleveland-Cliffs reported Q3 revenue of $4.73 billion, slightly above last year's $4.57 billion but below market expectations of $4.9 billion, with a focus on upstream mining opportunities [10]

Core Viewpoint - Cleveland-Cliffs reported revenue growth in Q3, driven by increased domestic steel demand due to tariffs imposed by the Trump administration [1] Financial Performance - Q3 sales reached $4.73 billion, up from $4.57 billion year-over-year, but slightly below analyst expectations of $4.9 billion [1] - The company recorded a net loss of $251 million, or $0.51 per share, which is comparable to a loss of $244 million in the same period last year; adjusted earnings per share were $0.45, in line with market expectations [1] Strategic Partnerships - The CEO announced that the company has signed new long-term supply agreements with all major automotive manufacturers, benefiting from the increased demand for domestic steel [1] - Cleveland-Cliffs has also signed a memorandum of understanding with a global steel producer to leverage its U.S. production capacity to benefit from tariff policies [1] Future Plans - The company plans to expand its presence in the rare earth metals sector, currently exploring potential mining sites in Michigan and Minnesota, which show signs of key rare earth minerals [1] - This initiative aligns with national goals for strategic independence in critical raw materials, similar to the achievements in the steel sector [1]

Core Viewpoint - Cleveland-Cliffs is shifting focus from traditional steel production to rare earths mining, indicating a strategic pivot in its business model [1] Financial Performance - The third-quarter earnings report showed that earnings were not the primary focus, as the company is prioritizing its entry into the rare earths sector [1] Strategic Shift - Cleveland-Cliffs aims to diversify its operations by exploring opportunities in rare earths mining, which is seen as a growth area amid increasing demand for these materials [1] Industry Context - The move into rare earths aligns with broader industry trends where companies are seeking to secure supply chains for critical materials essential for technology and renewable energy [1]