Lourenco Goncalves, Chairman, President, and Chief Executive Officer, Cleveland-Cliffs : Thank you, Donna, and good morning, everyone. Our third quarter results were a clear indication that a significant rebound in domestic steel demand has started, and the automotive sector is leading the way. It’s now widely accepted and understood that tariffs are here to stay, particularly the Section 232 tariffs on steel, autos, and derivative products. These tariffs are not a negotiating tool, and the only effective w ...

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]