Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA loss of $174 million for Q1 2025, reflecting the lagged impact of low steel prices and underperforming non-core assets [30][4] - Total shipments in Q1 were 4.14 million tons, consistent with guidance to exceed 4 million tons, aided by a full quarter contribution from Stelco [30] - Price realization for Q1 was $980 per net ton, a slight improvement from Q4's $970, but still weighed down by lower realizations in cold rolled products [30] Business Line Data and Key Metrics Changes - The automotive segment remains a high-margin business, with expectations of an annual EBITDA benefit of $250 million to $500 million starting in the second half of 2025 [10] - The company is idling several non-core assets, which is expected to lead to a $50 per ton year-over-year reduction in costs for 2025 [31][12] Market Data and Key Metrics Changes - In 2024, only 50% of cars sold in the U.S. were domestically produced, highlighting the need for reshoring automotive production [6] - The company is seeing a shift of automotive production back to the U.S., which is expected to benefit its steel supply business significantly [9][61] Company Strategy and Development Direction - The company is focused on returning to profitability and free cash flow generation by addressing three key issues: underperformance in automotive markets, loss-making operations, and a burdensome slab supply contract [5][19] - Strategic actions include idling non-core assets and optimizing the operating footprint to enhance cost competitiveness [11][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved pricing and a more consistent business environment starting in April and May 2025 [4] - The company anticipates significant EBITDA improvement in the second half of 2025 and a reset higher in 2026 as various strategic initiatives take effect [31][38] Other Important Information - The company has reduced its 2025 capital expenditure guidance from $700 million to $625 million, primarily due to idling non-core assets [35][107] - The company maintains a healthy liquidity position with approximately $3 billion in available liquidity and $3.3 billion in secured capacity [36] Q&A Session Summary Question: Timing for achieving $300 million savings - Management indicated that the full impact of the $300 million savings will start to materialize in the second half of 2025, primarily from the Cleveland Dearborn switch [40][42] Question: Cost and ASP expectations for Q2 - Costs are expected to increase by about $5 per ton from Q1 to Q2, while ASP is projected to rise by approximately $40 per ton [62][63] Question: Impact of steel tariffs on Stelco - Management clarified that the tariffs do not change the strategic plan for Stelco, which is focused on serving the Canadian market [49][50] Question: Domestic auto production assumptions - Management expects an increase in domestic auto production, which will benefit the company significantly, regardless of overall car sales in North America [57][61] Question: Updates on asset sales - The company has received unsolicited inquiries for non-core assets, which could potentially bring several billion dollars in value [68][69] Question: CapEx and project updates - The company is lowering its CapEx guidance and expects significant reductions in future years, particularly related to strategic projects [107][108]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA loss of $174 million for Q1 2025, reflecting a challenging pricing environment and underperformance of non-core assets [30] - Total shipments in Q1 were 4.14 million tons, consistent with guidance to exceed 4 million tons, aided by a full quarter contribution from Stelco [30] - Price realization for Q1 was $980 per net ton, a slight improvement from Q4's $970, but still weighed down by lower realizations in cold rolled products [30] Business Line Data and Key Metrics Changes - The automotive sector remains a high-margin business for the company, with expectations of an annual EBITDA benefit of $250 million to $500 million starting in the second half of 2025 [10] - The company is idling several non-core assets, which is expected to generate annual savings of over $300 million [18] - The idling of loss-making operations is aimed at optimizing the operating footprint and improving profitability [11][12] Market Data and Key Metrics Changes - In 2024, only 50% of cars sold in the U.S. were domestically produced, highlighting the need for reshoring automotive production [6] - The company is seeing a shift of automotive production back to the U.S., with key customers increasing domestic manufacturing [9] - The domestic flat rolled prices have increased, while the company's realized prices under a Brazilian price-linked slab contract have declined, leading to negative margins [21] Company Strategy and Development Direction - The company is focused on returning to consistent profitability and free cash flow generation through operational changes and strategic initiatives [5] - The strategic repositioning of Stelco as a Canadian supplier is expected to provide more business opportunities for U.S. mills [24] - The company is actively engaging with automotive clients to secure longer-term steel supply contracts as they increase domestic production [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved pricing and operational efficiencies in the second half of 2025, with expectations for a reset in financial results in 2026 [31] - The company is committed to reducing costs and optimizing operations to remain competitive in the U.S. steel market [11][36] - Management highlighted the importance of enforcing trade laws to protect against unfair competition from dumped steel imports [36] Other Important Information - The company has reduced its 2025 capital expenditure guidance from $700 million to $625 million, primarily due to idled assets and canceled projects [34] - The company maintains a healthy liquidity position with approximately $3 billion in available liquidity and $3.3 billion in secured capacity [35] - Management indicated that cash charges related to idling operations would be minimal, with expected non-cash accounting charges of around $300 million in Q2 [87] Q&A Session Summary Question: Timing for achieving $300 million savings - Management indicated that the full impact of the $300 million savings would start to materialize in the second half of 2025, primarily from the Cleveland Dearborn switch and other operational changes [42][43] Question: Impact of steel tariffs on Stelco - Management clarified that the acquisition of Stelco was planned to redirect sales to the Canadian market, and the Section 232 tariffs would not change their strategy [50][51] Question: Assumptions around domestic auto production increase - Management expressed confidence that the overall number of cars produced in the U.S. would increase, benefiting steel suppliers like the company [60] Question: Updates on asset sales and debt covenants - Management confirmed that unsolicited inquiries for non-core assets have been received, with potential sales bringing several billion dollars in value, which would be used for debt reduction [69][70] Question: CapEx and blast furnace reline updates - Management stated that CapEx guidance has been lowered and that blast furnace relines are planned for 2027, with ongoing reliance on blast furnaces for production [105][95]

Cleveland-Cliffs Inc. (CLF) logged a loss (as reported) of $495 million or $1.00 per share in the first quarter of 2025, wider than a loss of $67 million or 14 cents per share a year ago.Barring one-time items, the first-quarter adjusted loss was 92 cents per share. This compares to earnings of 18 cents in the prior-year quarter. It was wider than the Zacks Consensus Estimate of a loss of 78 cents.Revenues fell around 11% from the year-ago quarter to $4,629 million. The top line, however, beat the Zacks Con ...

Group 1 - Cleveland-Cliffs reported a quarterly loss of $0.92 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.78, and a decline from earnings of $0.18 per share a year ago, representing an earnings surprise of -17.95% [1] - The company posted revenues of $4.63 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.71%, but down from $5.2 billion in the same quarter last year [2] - Cleveland-Cliffs shares have declined approximately 8.4% since the beginning of the year, compared to a decline of -4.7% for the S&P 500 [3] Group 2 - The earnings outlook for Cleveland-Cliffs is mixed, with the current consensus EPS estimate for the coming quarter at -$0.20 on revenues of $5.07 billion, and -$0.88 on revenues of $20.02 billion for the current fiscal year [7] - The Steel - Producers industry, to which Cleveland-Cliffs belongs, is currently ranked in the top 21% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

CLEVELAND-CLIFFS INC. First-Quarter 2025 Earnings Presentation May 7, 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 cauti ...

NEWS RELEASE Cleveland-Cliffs Reports First-Quarter 2025 Results CLEVELAND—May 7, 2025—Cleveland-Cliffs Inc. (NYSE: CLF) today reported first-quarter results for the period ended March 31, 2025. First-Quarter Consolidated Results First-quarter 2025 consolidated revenues were $4.6 billion, compared to $4.3 billion in the fourth quarter of 2024. For the first quarter of 2025, the Company recorded a GAAP net loss of $483 million, or $1.00 per diluted share, with an adjusted net loss of $456 million, or $0.92 p ...

Core Viewpoint - Cleveland-Cliffs Inc. (CLF) is expected to report first-quarter 2025 results on May 7, with anticipated challenges due to lower year-over-year steel prices despite cost-cutting measures and increased volumes [1][5][9]. Revenue Estimates - The Zacks Consensus Estimate for CLF's first-quarter consolidated revenues is $4,596.6 million, indicating an 11.6% year-over-year decline [4]. Performance Factors - CLF is likely to face headwinds from weaker steel prices, with benchmark hot-rolled coil (HRC) prices dropping over 40% last year, closing near $700 per short ton from $1,200 per short ton at the beginning of 2024 [5][6]. - The average net selling price per net ton of steel products is estimated at $986, reflecting a 16.1% year-over-year decrease [8]. Cost Management - The company is expected to benefit from reduced steelmaking unit costs, with a sequential decline of approximately $15 per ton in the fourth quarter of 2024 and an anticipated reduction of about $40 per net ton in 2025 compared to 2024 [9]. Volume Growth - CLF is projected to have experienced higher sales volumes in the March quarter, estimated at 4.06 million net tons, suggesting a 3% year-over-year increase, driven by automotive demand and contributions from the Stelco acquisition [10]. Earnings Prediction - The Earnings ESP for CLF is -25.19%, with the consensus estimate indicating a loss of 67 cents for the first quarter, suggesting a low probability of an earnings beat [11][12].

Core Viewpoint - Cleveland-Cliffs (CLF) is expected to report a quarterly loss of $0.67 per share, reflecting a significant year-over-year decline of 472.2%, with anticipated revenues of $4.6 billion, down 11.6% from the previous year [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised downward by 59.1%, indicating a significant reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts estimate 'Revenues- Other Businesses' will reach $164.80 million, representing a year-over-year decline of 4.2% [5]. - 'Revenues- Steelmaking' is projected to be $4.43 billion, indicating an 11.9% decrease from the same quarter last year [5]. - The average prediction for 'Revenues- Steelmaking- Coated steel' is $1.34 billion, reflecting a 17.4% year-over-year decline [5]. - 'Revenues- Steelmaking- Slab and other steel products' is estimated at $312.45 million, down 6.7% from the prior year [6]. Sales Volumes - Analysts predict 'External Sales Volumes- Steel Products' will reach 4,064.01 tons, compared to 3,940 tons in the same quarter last year [6]. - The 'Average net selling price per net ton of steel products' is expected to be $985.85, down from $1,175 in the same quarter last year [7]. - 'Volumes - Steelmaking - Coated steel' is projected at 1,084.44 tons, compared to 1,216 tons in the previous year [7]. - 'Volumes - Steelmaking - Slab and other steel products' is expected to be 422.79 tons, down from 449 tons year-over-year [8]. - 'Volumes - Steelmaking - Plate' is projected at 201.33 tons, slightly up from 201 tons in the previous year [8]. - 'Volumes - Steelmaking - Cold-rolled steel' is expected to be 541.11 tons, down from 663 tons in the same quarter last year [9]. - 'Volumes - Steelmaking - Hot-rolled steel' is forecasted to reach 1,651.52 tons, compared to 1,266 tons in the same quarter last year [9]. - 'Volumes - Steelmaking - Stainless and electrical steel' is estimated at 151.36 tons, slightly up from 145 tons in the previous year [10]. Stock Performance - Over the past month, shares of Cleveland-Cliffs have returned +27.6%, outperforming the Zacks S&P 500 composite's +0.4% change [10]. - Currently, CLF holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [11].

The most recent trading session ended with Cleveland-Cliffs (CLF) standing at $7.91, reflecting no shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.74%. On the other hand, the Dow registered a gain of 0.05%, and the technology-centric Nasdaq increased by 1.26%.Coming into today, shares of the mining company had lost 15.22% in the past month. In that same time, the Basic Materials sector lost 2.61%, while the S&P 500 lost 4.77%.Investors will be eagerly watching ...

Company Performance - Cleveland-Cliffs closed at $7.30, with a daily increase of +1.67%, outperforming the S&P 500's gain of 0.13% [1] - Over the past month, Cleveland-Cliffs shares have declined by 24.9%, significantly underperforming the Basic Materials sector's loss of 4.72% and the S&P 500's loss of 6.3% [1] Upcoming Earnings - The company's earnings report is scheduled for May 7, 2025, with an expected EPS of -$0.62, indicating a 444.44% decline from the same quarter last year [2] - The Zacks Consensus Estimate projects net sales of $4.6 billion, down 11.5% from the previous year [2] Full Year Projections - For the full year, the Zacks Consensus Estimates predict an EPS of -$0.72 and revenue of $20.16 billion, reflecting changes of +1.37% and +5.08% respectively from the prior year [3] Analyst Estimates - Recent adjustments to analyst estimates for Cleveland-Cliffs are crucial as they reflect short-term business trends [4] - Positive estimate revisions are seen as a sign of optimism regarding the company's business outlook [4] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 stocks delivering an average annual return of +25% since 1988 [6] - Over the past month, the Zacks Consensus EPS estimate for Cleveland-Cliffs has decreased by 30.77%, and the company currently holds a Zacks Rank of 3 (Hold) [6] Industry Context - Cleveland-Cliffs operates within the Steel - Producers industry, which is part of the Basic Materials sector and currently holds a Zacks Industry Rank of 66, placing it in the top 27% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]