Cleveland-Cliffs Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw a return to positive free cash flow and a tripling of adjusted EBITDA sequentially, with strong automotive demand and higher prices driving results. Guidance points to even stronger Q3 and Q4 performance, supported by contract resets, cost reductions, and asset sales.
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The meeting confirmed the election of all board nominees, approval of executive compensation, and auditor ratification. Strategic focus remains on automotive steel, electrical steel, and shipbuilding, with plans to reduce debt and address Canadian operational challenges.
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Q1 2026 saw a strong recovery in pricing and shipments, with adjusted EBITDA up $274 million year-over-year. Outlook for Q2 and Q3 is positive, with higher shipments, improved pricing, and major cash inflows expected. Asset sales and operational efficiencies are set to further strengthen results.
Fiscal Year 2025
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2025 restructuring actions and market shifts have positioned the company for a strong 2026, with higher shipments, improved pricing, and significant EBITDA gains expected from the end of the slab contract and Stelco's turnaround. Strategic partnership talks with POSCO and asset sales could further enhance results.
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Q3 2025 saw a strong rebound in domestic steel demand, led by automotive, with multi-year OEM contracts boosting volumes and margins. Operational efficiencies drove a 52% sequential EBITDA increase, while asset sales and cost reductions improved financial flexibility.
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Q2 saw strong EBITDA growth, cost reductions, and higher shipment volumes, with further cost and efficiency gains expected in the second half. Asset sales and internal synergies are set to accelerate debt reduction and support robust free cash flow.
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Q1 2025 saw a $174 million adjusted EBITDA loss, driven by non-core asset underperformance and low steel prices. Strategic asset idling and cost reductions are set to deliver $300 million in annual savings, with profitability and EBITDA expected to rebound in H2 2025 and 2026.
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A $1,000 bonus program was launched for employees buying vehicles with significant Cliffs steel, alongside plans for tax-deductible auto loan interest on U.S.-made cars. Steel prices have risen 50%, and new tariffs will be enforced to support domestic production and job growth.
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The Butler Works plant, once threatened by foreign dumping, is now thriving due to strategic leadership, trade policy intervention, and union collaboration. Plans are in place to acquire U.S. Steel, retain its name, expand operations, and prioritize national security, with bipartisan political support and a focus on American jobs and technology.
Fiscal Year 2024
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2024 was marked by weak steel demand and a Q4 adjusted EBITDA loss, but order books and pricing have rebounded for 2025. The Stelco acquisition is delivering synergies, cost reductions are on track, and all free cash flow will go to debt reduction as tariffs support a stronger domestic market.
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Q3 saw weak steel demand and pricing, especially in automotive, but cost reductions and the Stelco acquisition provided resilience. Management expects stable Q4 shipments and is optimistic for 2025 as interest rates fall and strategic projects advance.
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Federal investments and pro-worker policies have driven job growth, infrastructure modernization, and community revitalization, with a focus on union jobs and fair trade. Strategic trade enforcement and collaborative leadership are key to sustaining progress and economic security.
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Q2 saw strong cash flow, reduced net debt, and continued cost improvements despite lower steel prices. The company advanced the Stelco acquisition, launched a high-margin transformer plant project, and set new emissions targets, positioning for future growth and efficiency.
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A $150 million investment will establish a new transformer plant in Weirton, WV, creating 600 union jobs and addressing a national transformer shortage. The project is backed by state and federal support, aims to revitalize local manufacturing, and is seen as a model for labor-management partnership.
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The acquisition of Stelco for $2.5 billion is set to strengthen market leadership, deliver $120 million in annual synergies, and maintain strong union and stakeholder support. Integration will preserve Stelco's legacy and workforce, with all cost savings expected in the first year.
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Unfair steel imports from Mexico and China are threatening domestic jobs and industry stability, prompting bipartisan legislative action and calls for stronger trade enforcement. Collaboration between labor and management is highlighted as key to economic and community resilience.