Cleveland-Cliffs (CLF) Q4 2025 earnings summary

Executive summary

• 2025 was marked by restructuring, asset shutdowns, contract terminations, and workforce reductions to address market challenges and improve profitability, with revenues reaching $18.6 billion and steel shipments totaling 16.2 million net tons.

• The company secured multi-year fixed-price contracts with major automotive OEMs, increasing market share and positioning for growth as U.S. vehicle production recovers.

• Acquisition of Stelco and strategic moves in Canada improved market dynamics, with Canadian pricing and shipments rebounding after government intervention.

• Strategic partnership negotiations with POSCO are ongoing, aiming to enhance U.S. market access, compliance with trade requirements, and attract foreign investment.

• Safety performance reached record levels, with a Total Recordable Incident Rate of 0.8 and a 43% improvement since 2021.

Financial highlights

• Q4 2025 shipments were 3.8 million net tons, with full-year shipments at 16.2 million net tons; Q1 2026 shipments expected to rebound to 4 million net tons.

• Full-year 2025 revenues were $18.6 billion, with Q4 revenues at $4.3 billion; full-year adjusted EBITDA was $37 million, and net loss was $1.43 billion.

• Q4 2025 price realization was $993/ton, with full-year average net selling price at $1,005/ton; Q1 2026 expected to rise by $60/ton.

• Steel unit costs reduced by ~$150 per ton over three years, with further reductions of about $10/ton anticipated in 2026.

• Liquidity at year-end 2025 was $3.3 billion.

Outlook and guidance

• 2026 is expected to see higher utilization, improved price realization, declining unit costs, and strong cash generation, with shipment guidance of 16.5–17 million net tons.

• Automotive volumes are set to increase as OEMs reshore production, with incremental margins from existing capacity.

• Capital expenditures projected at $700 million for 2026, with SG&A expenses of $575 million and D&A of $1.1 billion.

• Asset sales are expected to generate $425 million in proceeds, with potential for more if larger assets are sold post-POSCO negotiations.

• Management expects improved results in 2026 due to a better trade environment and resolved 2025 headwinds.