Cliffs(CLF) - 2025 Q3 - Quarterly Results

Executive Summary & Highlights This section provides an overview of Cleveland-Cliffs Inc.'s third-quarter 2025 consolidated financial performance and strategic initiatives Third-Quarter 2025 Consolidated Results Overview Cleveland-Cliffs Inc. reported Q3 2025 consolidated results, showing a slight revenue decrease but improved GAAP and adjusted net loss and adjusted EBITDA quarter-over-quarter, maintaining strong liquidity Consolidated Results Overview | Metric | Q3 2025 | Q2 2025 | | :------------------- | :------------- | :------------- | | Consolidated Revenue | $4.7 billion | $4.9 billion | | GAAP Net Loss | $234 million | $473 million | | Adjusted Net Loss | $223 million | $250 million | | Adjusted Diluted Loss Per Share | $0.45 | $0.51 | | Adjusted EBITDA | $143 million | $94 million | - Steel shipments for Q3 2025 were 4.0 million net tons[4] - As of September 30, 2025, the company's liquidity was $3.1 billion[4] CEO Commentary and Strategic Outlook CEO Lourenco Goncalves noted Q3 results reflect a clear recovery in U.S. automotive-grade steel demand, driven by new trade policies, with new multi-year supply agreements and a focus on rare earth opportunities - Q3 results marked a clear recovery in U.S. automotive-grade steel demand, benefiting from the new trade environment implemented by the Trump administration[3] - New, growing multi-year supply agreements have been secured with all major automotive OEM clients, reflecting the company's supply chain reliability[3] - This trend of a richer sales mix, improved pricing, and cost control is expected to accelerate into 2026, following the conclusion of the billet supply contract with ArcelorMittal in early December[3] - A Memorandum of Understanding was signed with a major global steel producer to leverage the company's unparalleled U.S. footprint and trade-compliant operations, expected to be highly accretive to shareholders[5] - Renewed focus on potential rare earth opportunities within upstream mining assets, with two locations in Michigan and Minnesota showing key indicators of rare earth mineralization[5] Financial Performance This section details the company's financial results, including condensed statements of operations, financial position, cash flows, and non-GAAP reconciliations Consolidated Statements of Unaudited Condensed Operations The company's Q3 2025 revenue was $4.734 billion, up year-over-year but slightly down quarter-over-quarter, with narrowed operating and net losses Consolidated Statements of Unaudited Condensed Operations (Millions of USD) | Metric (Millions of USD) | Q3 2025 | Q3 2024 | Nine Months 2025 | Nine Months 2024 | Q2 2025 | | :------------------------------------ | :------------- | :------------- | :------------- | :------------- | :------------- | | Revenue | $4,734 | $4,569 | $14,297 | $14,860 | $4,934 | | Cost of Goods Sold | $(4,780) | $(4,675) | $(14,951) | $(14,524) | $(5,146) | | Operating Loss | $(204) | $(261) | $(1,248) | $(298) | $(501) | | Net Loss | $(234) | $(232) | $(1,193) | $(280) | $(473) | | Net Loss Attributable to Cliffs Shareholders | $(251) | $(244) | $(1,235) | $(313) | $(486) | | Diluted Loss Per Share Attributable to Cliffs Shareholders | $(0.51) | $(0.52) | $(2.49) | $(0.66) | $(0.98) | - Q3 2025 revenue increased 3.6% year-over-year to $4.734 billion, but decreased 4.1% quarter-over-quarter from $4.934 billion in Q2 2025[19] - Q3 2025 operating loss was $204 million, a significant improvement from $261 million in Q3 2024 and $501 million in Q2 2025[19] Consolidated Statements of Unaudited Condensed Financial Position As of September 30, 2025, total assets decreased from year-end 2024, with reductions in current assets and liabilities, but an increase in long-term debt Consolidated Statements of Unaudited Condensed Financial Position (Millions of USD) | Metric (Millions of USD) | Sep 30, 2025 | Dec 31, 2024 | | :----------------------- | :------------- | :------------- | | Total Assets | $20,290 | $20,947 | | Total Current Assets | $6,689 | $6,907 | | Total Current Liabilities | $3,280 | $3,361 | | Long-Term Debt | $8,039 | $7,065 | | Total Liabilities | $14,583 | $14,080 | | Total Equity | $5,707 | $6,867 | - As of September 30, 2025, long-term debt increased to $8.039 billion, up $974 million from $7.065 billion on December 31, 2024[20] - Total assets decreased from $20.947 billion at year-end 2024 to $20.290 billion as of September 30, 2025[20] Consolidated Statements of Unaudited Condensed Cash Flows In Q3 2025, the company reported cash outflows from operating and investing activities, offset by significant inflows from financing, primarily due to senior notes issuance Consolidated Statements of Unaudited Condensed Cash Flows (Millions of USD) | Metric (Millions of USD) | Q3 2025 | Q3 2024 | Nine Months 2025 | Nine Months 2024 | | :------------------------------------ | :------------- | :------------- | :------------- | :------------- | | Net Cash from Operating Activities | $(143) | $(84) | $(449) | $577 | | Net Cash from Investing Activities | $(138) | $(146) | $(394) | $(477) | | Net Cash from Financing Activities | $286 | $159 | $853 | $(259) | | Net Increase (Decrease) in Cash and Cash Equivalents | $5 | $(71) | $10 | $(159) | - Q3 2025 operating cash outflow was $143 million, an increase from the $84 million outflow in Q3 2024[21] - Financing activities generated $286 million in cash inflow, primarily from the issuance of $850 million in senior notes[21] Non-GAAP Financial Measures The company provides non-GAAP financial metrics like adjusted net income and adjusted EBITDA to better assess operational performance by excluding non-recurring and/or non-cash items Adjusted Net Income and Adjusted Earnings Per Share Reconciliation This section reconciles GAAP net loss to adjusted net loss and adjusted diluted loss per share, excluding impacts from idle facility costs, acquisition-related expenses, and derivative fair value changes Adjusted Net Income and Adjusted Earnings Per Share Reconciliation | Metric | Q3 2025 | Q3 2024 | Nine Months 2025 | Nine Months 2024 | Q2 2025 | | :------------------------------------ | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Loss Attributable to Cliffs Shareholders | $(251) | $(244) | $(1,235) | $(313) | $(486) | | Adjusted Net Loss Attributable to Cliffs Shareholders | $(223) | $(158) | $(1,021) | $(25) | $(250) | | Adjusted Diluted Loss Per Share Attributable to Cliffs Shareholders | $(0.45) | $(0.34) | $(2.06) | $(0.05) | $(0.51) | - Q3 2025 adjusted net loss was $223 million, an improvement from $250 million in Q2 2025[23] EBITDA and Adjusted EBITDA Reconciliation This section reconciles GAAP net loss to EBITDA and adjusted EBITDA, providing a clearer view of operating performance by excluding interest, taxes, depreciation, amortization, and other non-recurring items EBITDA and Adjusted EBITDA Reconciliation (Millions of USD) | Metric (Millions of USD) | Q3 2025 | Q3 2024 | Nine Months 2025 | Nine Months 2024 | Q2 2025 | | :---------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Loss | $(234) | $(232) | $(1,193) | $(280) | $(473) | | Total EBITDA | $129 | $29 | $(163) | $548 | $(79) | | Total Adjusted EBITDA | $143 | $122 | $58 | $854 | $94 | - Q3 2025 adjusted EBITDA was $143 million, a significant increase from $94 million in Q2 2025[27] Operational Performance This section details the operational results of the company's steelmaking segment, including product mix, market distribution, and pricing Steelmaking Segment Results In Q3 2025, the company's steelmaking segment shipped 4.0 million net tons, with hot-rolled products dominating, and the automotive market being the largest direct sales contributor at an average net selling price of $1,032 per net ton Steel Product Mix | Steel Product Type | Percentage | | :------------- | :--- | | Hot-Rolled | 37% | | Coated | 29% | | Cold-Rolled | 15% | | Plate | 6% | | Stainless and Electrical | 4% | | Other (including Billet) | 9% | Market Sales Distribution (Millions of USD) | Market | Sales (Millions of USD) | Percentage | | :------------------- | :---------------- | :--- | | Automotive Market | $1,400 | 30% | | Infrastructure and Manufacturing Market | $1,300 | 29% | | Distributors and Processors Market | $1,300 | 28% | | Steel Producers | $591 | 13% | - Q3 2025 average net selling price for steel products was $1,032 per net ton, lower than $1,045 in Q3 2024 but higher than $1,015 in Q2 2025[6] - Q3 2025 steel shipments were 4.029 million net tons, higher than 3.84 million net tons in Q3 2024[6] Financial Position & Outlook This section covers the company's liquidity and updated full-year 2025 financial outlook Liquidity As of September 30, 2025, the company maintained ample liquidity - As of September 30, 2025, the company's total liquidity was $3.1 billion[10] Full-Year 2025 Outlook The company updated its full-year 2025 outlook, reducing capital expenditures and SG&A, while maintaining expectations for steel unit cost reductions, D&A, and pension/OPEB payments - Capital Expenditures: Approximately $525 million (previously $600 million)[13] - Selling, General & Administrative Expenses: Approximately $550 million (previously $575 million)[13] - Steel Unit Cost Reductions: Maintained at approximately $50 per net ton (versus 2024), adjusted for improved automotive volumes[13] - Depreciation, Depletion, and Amortization: Maintained at approximately $1.2 billion[13] - Cash Pension and OPEB Payments and Contributions: Maintained at approximately $150 million[13] Company Information & Disclosures This section provides background information on Cleveland-Cliffs Inc., forward-looking statements, risk factors, and contact details About Cleveland-Cliffs Inc. Cleveland-Cliffs is North America's leading steel producer, vertically integrated from iron ore mining to finishing, specializing in high-value flat-rolled products for the automotive industry, employing approximately 30,000 people - Cleveland-Cliffs is North America's largest flat-rolled steel producer and the largest producer of iron ore pellets in North America, focusing on high-value flat-rolled products, particularly for the automotive industry[12] - The company's operations are vertically integrated, encompassing iron ore mining, pellet and direct reduced iron production, scrap processing, primary steelmaking, and downstream finishing[12] - The company employs approximately 30,000 people across its operations in the United States and Canada[12] Forward-Looking Statements & Risk Factors This press release contains forward-looking statements, cautioning investors that actual results may differ materially due to various risks and uncertainties, advising consultation of the company's 10-K report - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations[14] - Investors should not place undue reliance on forward-looking statements[14] - Risk factors include fluctuations in steel, scrap, and iron ore market prices, the competitive and cyclical nature of the steel industry, global economic conditions, trade policies, environmental regulations, liquidity, debt levels, and supply chain disruptions[14] - For additional factors concerning the company's business, refer to Part I, Item 1A, "Risk Factors" of the Annual Report on Form 10-K for the year ended December 31, 2024, and other filings with the U.S. Securities and Exchange Commission[16] Contact Information Contact details for media and investor relations are provided - Media Contact: Patricia Persico, Senior Director, Corporate Communications, at (216) 694-5316[18] - Investor Contact: James Kerr, Director, Investor Relations, at (216) 694-7719[18]