Cliffs(US:CLF)2025-07-21 10:47Second-Quarter Consolidated Results Cleveland-Cliffs reported second-quarter 2025 revenues of $4.9 billion, a GAAP net loss of $470 million including $323 million in non-recurring charges, and a significant sequential improvement in Adjusted EBITDA to $97 million from a first-quarter loss | Financial Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Revenues | $4.9 billion | $4.6 billion | | GAAP Net Loss | ($470 million) | ($483 million) | | Adjusted Net Loss | ($247 million) | ($456 million) | | Adjusted Net Loss per Share | ($0.50) | ($0.92) | | Adjusted EBITDA | $97 million | ($174 million) | | Steel Unit Cost Reduction (QoQ) | $15 per net ton | - | - Footprint optimization initiatives announced previously are already generating a positive impact on both costs and revenues, with further improvements expected in Q3 and Q43 - The company will not extend its five-year contract to supply slabs from Indiana Harbor, which had become a negative contributor to EBITDA due to low index-based prices35 - The CEO noted the positive impact of tariffs on domestic manufacturing and expects the trend to continue, benefiting both the domestic steel and automotive industries5 Steelmaking Segment Results The Steelmaking segment achieved record sales volume of 4.3 million net tons in Q2 2025, but revenues slightly decreased to $4.77 billion with the average net selling price per ton falling to $1,015, resulting in a gross margin loss of $225 million | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Steel Products (k net tons) | 4,290 | 3,989 | 4,140 | | Avg. Net Selling Price/ton | $1,015 | $1,125 | $980 | | Revenues (in millions) | $4,771 | $4,915 | $4,467 | | Gross Margin (in millions) | ($225) | $145 | ($400) | - Q2 2025 steel product sales mix consisted of 40% hot-rolled, 27% coated, 15% cold-rolled, 5% plate, 3% stainless and electrical, and 10% other6 - Revenue breakdown by market: 31% to infrastructure and manufacturing, 30% to distributors and converters, 26% to automotive, and 13% to steel producers7 Liquidity As of June 30, 2025, Cleveland-Cliffs reported total liquidity of $2.7 billion - The company had $2.7 billion in total liquidity as of June 30, 20258 Outlook The company updated its full-year 2025 guidance, lowering expectations for capital expenditures and SG&A expenses while increasing the forecast for depreciation, depletion, and amortization due to accelerated depreciation from idled facilities | Full-Year 2025 Guidance | Previous Expectation | Updated Expectation | | :--- | :--- | :--- | | Capital Expenditures | $625 million | ~$600 million | | SG&A Expenses | ~$600 million | ~$575 million | | Depreciation, Depletion & Amortization | ~$1.1 billion | ~$1.2 billion | | Steel Unit Cost Reductions (vs 2024) | Maintained | ~$50 per net ton reduction | | Cash Pension & OPEB Payments | Maintained | ~$150 million | Financial Tables This section provides detailed unaudited condensed consolidated financial statements for the periods ended June 30, 2025, including Statements of Operations, Financial Position, and Cash Flows, along with reconciliations of GAAP to non-GAAP measures Statements of Unaudited Condensed Consolidated Operations For the second quarter of 2025, consolidated revenues were $4.934 billion, leading to an operating loss of $498 million and a net loss of $470 million due to increased operating costs including restructuring charges | (In millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $4,934 | $5,092 | | Operating Income (Loss) | ($498) | $6 | | Net Income (Loss) | ($470) | $9 | | Diluted Loss Per Share | ($0.97) | $0.00 | Statements of Unaudited Condensed Consolidated Financial Position As of June 30, 2025, total assets were $20.47 billion, slightly down from year-end 2024 due to reduced inventories, while total liabilities increased to $14.43 billion primarily from a rise in long-term debt | (In millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $6,687 | $6,907 | | Inventories | $4,699 | $5,094 | | Total Assets | $20,471 | $20,947 | | Long-Term Debt | $7,727 | $7,065 | | Total Liabilities | $14,429 | $14,050 | | Total Equity | $6,042 | $6,897 | Statements of Unaudited Condensed Consolidated Cash Flows In Q2 2025, net cash provided by operating activities significantly declined to $45 million from $519 million in Q2 2024, impacted by lower net income despite a positive change in inventories | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $45 | $519 | | Net cash used by investing activities | ($111) | ($152) | | Net cash provided (used) by financing activities | $68 | ($287) | Non-GAAP Reconciliations This section provides reconciliations for non-GAAP financial measures, detailing adjustments to GAAP net income (loss) to derive Adjusted Net Income (Loss) and Adjusted EBITDA, primarily excluding non-recurring charges for idled facilities | (In millions) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income (Loss) Attributable to Cliffs | ($483) | ($495) | $2 | | Adjusted Net Income (Loss) | ($247) | ($456) | $50 | | Adjusted EPS - Diluted | ($0.50) | ($0.92) | $0.11 | | (In millions) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income (Loss) | ($470) | ($483) | $9 | | Total EBITDA | ($76) | ($208) | $291 | | Total Adjusted EBITDA | $97 | ($174) | $323 |