Core Viewpoint - Cleveland-Cliffs reported a non-GAAP loss of $0.50 per share for Q2 2025, which was better than the consensus estimate of a $0.71 loss, while GAAP revenue reached $4.9 billion, exceeding analyst forecasts of $4.86 billion. Despite improvements in shipments and cost reductions, the company continues to face challenges with ongoing losses and negative gross margins in steel production, indicating uncertainty in achieving sustainable profitability [1][6]. Financial Performance - The company experienced a year-over-year decline in revenue of 3.1%, from $5.09 billion in Q2 2024 to $4.9 billion in Q2 2025 [2]. - Adjusted EBITDA fell significantly by 70%, from $323 million in Q2 2024 to $97 million in Q2 2025 [2][6]. - Steel shipments increased by 7.5% year-over-year, totaling 4.3 million net tons in Q2 2025, partly due to the integration of Canadian operations [2][5]. - Liquidity decreased by 27%, from $3.7 billion in Q2 2024 to $2.7 billion in Q2 2025 [2]. Operational Developments - The company achieved a reduction in steel unit costs by $15 per ton compared to the previous quarter, with a target of $50 per ton cost reduction for the full year 2025 [7][10]. - The product mix included hot-rolled steel (40%), coated steel (27%), and cold-rolled steel (15%), with automotive sector sales accounting for 26% of steelmaking revenue [8]. Strategic Focus - Cleveland-Cliffs is focused on the automotive market, aiming to supply high-margin steel and investing in electrical steels for electric vehicles and energy infrastructure [4]. - The company is pursuing operational efficiency through acquisitions and optimizing its asset base while maintaining strong labor relations and environmental commitments [4]. Future Outlook - Management expects further gains in adjusted EBITDA in the second half of 2025 and anticipates the elimination of a legacy slab supply contract will alleviate earnings pressure [11]. - Capital expenditure guidance has been reduced to approximately $600 million for FY2025, reflecting the cancellation of non-core projects [10].