Cleveland-Cliffs Reports Fourth-Quarter and Full-Year 2025 Results

Core Insights - Cleveland-Cliffs Inc. reported fourth-quarter and full-year results for 2025, highlighting a consistent revenue performance but significant net losses compared to the previous year [2][4][5]. Fourth-Quarter Results - Fourth-quarter 2025 consolidated revenues were $4.3 billion, unchanged from the prior year's fourth quarter [2]. - The company recorded a GAAP net loss of $235 million, or $0.44 per diluted share, an improvement from a GAAP net loss of $434 million, or $0.92 per diluted share, in the prior-year fourth quarter [2][5]. - Adjusted EBITDA loss for the fourth quarter was $21 million, compared to an Adjusted EBITDA loss of $81 million in the fourth quarter of 2024 [3]. Full-Year Results - Full-year 2025 consolidated revenues totaled $18.6 billion, down from $19.2 billion in the previous year [4]. - The company reported a GAAP net loss of $1.4 billion, or $2.91 per diluted share, compared to a net loss of $714 million, or $1.58 per diluted share, in 2024 [5]. - Adjusted EBITDA for the full year was $37 million, significantly lower than $773 million in 2024 [5]. Operational Challenges and Strategic Actions - The performance in 2025 was negatively impacted by weak production levels in the automotive sector, an expiring slab contract, and adverse market dynamics in Canada [6]. - The company took steps to optimize its operations, including exiting non-core assets, signing multi-year contracts with major automotive customers, and reducing unit costs year-over-year [6]. - Cleveland-Cliffs achieved a record safety year with the lowest Total Recordable Incident Rate of 0.8 per 200,000 hours worked [6]. Market Dynamics and Future Outlook - The trade environment in the U.S. is improving, which is expected to lead to better results in 2026 [6]. - The company anticipates steel shipment volumes of approximately 16.5 to 17.0 million net tons for 2026, with unit cost reductions of about $10 per net ton compared to 2025 [13]. - Capital expenditures are projected to be around $700 million, with selling, general, and administrative expenses estimated at $575 million [13].