Cleveland-Cliffs (CLF) Q4 2025 earnings summary

Executive summary

• 2025 was marked by restructuring, asset shutdowns, workforce reductions, and the termination of an onerous slab supply contract, positioning for improved 2026 performance.

• Revenues reached $18.6 billion in 2025, with steel shipments totaling 16.2 million net tons and record safety performance (TRIR 0.8).

• Strategic partnership negotiations with POSCO are ongoing, targeting a definitive agreement in H1 2026, aiming to support U.S. manufacturing and attract foreign investment.

• Asset optimization and cost reductions continued, including new multi-year fixed price contracts with automotive customers and the acquisition of Stelco.

• Performance in 2025 was impacted by weak automotive demand and adverse Canadian market dynamics, but conditions are improving for 2026.

Financial highlights

• Q4 2025 revenues were $4.3 billion, with an adjusted EBITDA loss of $21 million and a GAAP net loss of $235 million.

• Full-year 2025 revenues were $18.6 billion, with adjusted EBITDA of $37 million and a net loss of $1.43 billion.

• Q4 2025 shipments were 3.8 million tons; full-year shipments were 16.2 million tons.

• Q4 2025 price realization was $993/ton; full-year average net selling price was $1,005/ton.

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

Outlook and guidance

• 2026 outlook anticipates steel shipments of 16.5–17.0 million net tons, higher utilization, improved pricing, and further cost reductions.

• Capital expenditures projected at $700 million for 2026, with a spike to $900 million in 2027 for a major furnace reline.

• All 2026 cash flow is earmarked for debt reduction, with asset sales expected to generate $425 million.

• The expiration of the slab contract is projected to add approximately $500 million to EBITDA in 2026.

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