# Cleveland-Cliffs Inc. (NYSE: CLF) Reports Second Quarter 2025 Results
Cleveland-Cliffs Inc. (NYSE: CLF) released its second-quarter results for the period ended June 30, 2025, on July 21, 2025.
## Summary of Second-Quarter 2025 Results
– **Record Shipments**: Steel shipments reached **4.3 million net tons**.
– **Revenue**: Generated **$4.9 billion**, up from **$4.6 billion** in Q1 2025.
– **Net Loss**:
– GAAP net loss of **$470 million** which included **$323 million** in previously disclosed charges related to idled facilities.
– Adjusted net loss of **$247 million**, equivalent to **$0.50** per diluted share, compared to an adjusted net loss of **$456 million** or **$0.92** per diluted share in Q1 2025.
– **EBITDA Performance**: Adjusted EBITDA of **$97 million**, reflecting a **$271 million** improvement from an adjusted EBITDA loss of **$174 million** in the previous quarter.
– **Cost Reduction**: Steel unit costs decreased by **$15 per net ton** from Q1 2025.
– **Liquidity**: **$2.7 billion** in total liquidity as of June 30, 2025.
### Year-Over-Year Comparisons:
– **Steel Shipments**: Increased from **3.989 million net tons** in Q2 2024 to **4.3 million net tons**.
– **Revenue**: $4.934 billion in Q2 2025 down from **$5.092 billion** in Q2 2024; however, Q1 2025 saw $4.629 billion, reflecting growth quarter-over-quarter.
– **Selling Prices**: The average net selling price per net ton decreased to **$1,015** from **$1,125** in the prior year, and from **$980** in Q1 2025.
– **Gross Margin**: Shifted from a profit of **$145 million** in Q2 2024 to a gross loss of **$225 million** in Q2 2025.
– **Net Income**: Transitioned from a minor net income of **$9 million** in Q2 2024 to a significant loss of **$470 million** in the current quarter.
– **Basic and Diluted Earnings per Share**: Fell to **-$0.97**, from **$0.00** in Q2 2024.
### Segment-Specific Insights:
– **Steelmaking Segment**:
– **Sales Volumes**: Comprised of **40% hot-rolled, 27% coated, 15% cold-rolled, 5% plate, 3% stainless and electrical, and 10% other**.
– **Revenues**: Steelmaking revenues totaled **$4.771 billion**, with **31%** from infrastructure and manufacturing, **30%** from distributors and converters, **26%** from automotive markets, and **13%** from sales to steel producers.
– **Cost of Goods Sold**: Increased to **$4.996 billion** compared to **$4.915 billion** in the same quarter last year.
### Outlook for 2025:
– **Capital Expenditures**: Revised to approximately **$600 million**, down from $625 million.
– **Selling, General and Administrative Expenses**: Expected to be **$575 million**, reduced from earlier estimates of **$600 million**.
– **Steel Unit Cost Reductions**: Expected to maintain a reduction of about **$50 per net ton**, compared to 2024.
### Shareholder Returns:
– Cleveland-Cliffs did not declare a quarterly dividend for this period.
– There were no share repurchases mentioned in the release.
### Management Commentary:
Lourenco Goncalves, Chairman, President, and CEO, emphasized that the company is witnessing the benefits of optimization initiatives and is optimistic about upcoming quarters due to expected improvements in cost and revenue performance.
### Conclusion:
With a focus on targeting automotive and infrastructure markets, Cleveland-Cliffs is positioning itself to capitalize on domestic steel demand amidst an evolving market. While the company faced significant challenges this quarter, including a GAAP net loss, their strategic initiatives aim to enhance profitability and operating efficiency going forward.
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The details provided are a concrete summary of the company’s performance within the specified quarter, and are solely based on the provided information in the text. No additional sources or subjective analysis were utilized.
| Three Months Ended | Six Months Ended | Three Months Ended | |||
|---|---|---|---|---|---|
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | Mar. 31, 2025 | |
| Revenues | $4,934 | $5,092 | $9,563 | $10,291 | $4,629 |
| Operating costs: | |||||
| Cost of goods sold | -5,143 | -4,930 | -10,163 | -9,844 | -5,020 |
| Selling, general and administrative expenses | -137 | -103 | -270 | -235 | -133 |
| Restructuring and other charges | -86 | -25 | -89 | -129 | -3 |
| Miscellaneous – net | -27 | -13 | -38 | -36 | -11 |
| Total operating costs | -5,432 | -5,086 | -10,599 | -10,323 | -5,167 |
| Operating income (loss) | -498 | 6 | -1,036 | -32 | -538 |
| Other income (expense): | |||||
| Interest expense, net | -149 | -69 | -289 | -133 | -140 |
| Loss on extinguishment of debt | — | -6 | — | -27 | — |
| Net periodic benefit credits other than service cost component | 43 | 62 | 100 | 122 | 57 |
| Other non-operating income (expense) | -14 | 1 | -23 | 3 | -9 |
| Total other expense | -120 | -12 | -212 | -35 | -92 |
| Loss before income taxes | -618 | -6 | -1,248 | -67 | -630 |
| Income tax benefit | 148 | 15 | 295 | 23 | 147 |
| Net income (loss) | -470 | 9 | -953 | -44 | -483 |
| Net income attributable to noncontrolling interests | -13 | -7 | -25 | -21 | -12 |
| Net income (loss) attributable to Cliffs shareholders | -483 | 2 | -978 | -65 | -495 |
| Earnings (loss) per common share attributable to Cliffs shareholders: | |||||
| Basic | -0.97 | 0.00 | -1.97 | -0.13 | -1.00 |
| Diluted | -0.97 | 0.00 | -1.97 | -0.13 | -1.00 |
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $61 | $54 |
| Accounts receivable, net | 1,783 | 1,576 |
| Inventories | 4,699 | 5,094 |
| Other current assets | 144 | 183 |
| Total current assets | 6,687 | 6,907 |
| Non-current assets: | ||
| Property, plant and equipment, net | 9,620 | 9,942 |
| Goodwill | 1,814 | 1,768 |
| Intangible assets | 1,185 | 1,170 |
| Pension and OPEB assets | 453 | 427 |
| Other non-current assets | 712 | 733 |
| TOTAL ASSETS | $20,471 | $20,947 |
| LIABILITIES | ||
| Current liabilities: | ||
| Accounts payable | $1,947 | $2,008 |
| Accrued employment costs | 521 | 447 |
| Accrued expenses | 348 | 375 |
| Other current liabilities | 461 | 492 |
| Total current liabilities | 3,277 | 3,322 |
| Non-current liabilities: | ||
| Long-term debt | 7,727 | 7,065 |
| Pension and OPEB liabilities | 693 | 751 |
| Deferred income taxes | 612 | 858 |
| Asset retirement and environmental obligations | 613 | 601 |
| Other non-current liabilities | 1,507 | 1,453 |
| TOTAL LIABILITIES | 14,429 | 14,050 |
| TOTAL EQUITY | 6,042 | 6,897 |
| TOTAL LIABILITIES AND EQUITY | $20,471 | $20,947 |
