Cleveland-cliffs Inc. · NYSE:CLF
Cleveland-cliffs — Q2 2025 Earnings Presentation
24 slides from Cleveland-cliffs's earnings presentation, Jul 21, 2025
Slide 1: Second-Quarter 2025 Earnings Presentation
CLEVELAND-CLIFFS INC. Second-Quarter 2025 Earnings Presentation July 21, 2025 © 2025 Cleveland-Cliffs Inc. All Rights Reserved.
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and pro
Slide 3: Second-Quarter 2025
SECOND-QUARTER 2025 Revenues Record quarterly steel shipments $4.9 Billion Q2 costs better than expected Record Steel Shipments 4.3 Million Q2 ASP benefited from higher (net tons) pricing that began in late Q1 Released over $200 million in Adj. EBITDA1 inventory working capital $97 Million Lower SG&
Slide 4: Q2 2025 End Market and Product Overview
Q2 2025 END MARKET AND PRODUCT OVERVIEW 10% 13% 5% Slab, Rail, Other Steel Producers Plate 27% 26% Direct Coated End Automotive (primarily Product galvanized) Market Mix 31% Mix (Shipments) Infrastructure & (Revenue) 40% Manufacturing Hot-Rolled 15% Cold-Rolled 30% Distributors & 3% Converters Stain
Slide 5: Record Quarterly Steel Shipments
RECORD QUARTERLY STEEL SHIPMENTS 4.3 4.2 4.2 4.1 4.2 4.1 4.1 4.1 4.0 4.0 3.9 3.8 3.8 3.8 3.6 3.6 3.6 In million net tons 3.4 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 5 © 2025 Cleveland-Cliffs Inc. All Rights Reserved.
Slide 6: Summary of Asset Optimization
SUMMARY OF ASSET OPTIMIZATION Flat-Rolled Optimization ▪ Announced that Dearborn blast furnace, BOF steel shop and caster would be idled ▪ Announced full idle of Minorca mine and partial idle of Hibbing mine ~$145 million in ▪ Will continue to work down pellet inventory built in 2024 expected annual
Slide 7: Trade and Tariffs
TRADE AND TARIFFS Trump Administration’s Continued Focus on Strengthening Domestic Steel Top 10 Importing 2024 Jan. 20, 2025 Mar. 12, 2025 Imports Current Countries (Thousand Net Tons) Status Status Canada 6,557 Exempt 25% Tariff 50% Tariff Brazil 4,498 Quota 25% Tariff 50% Tariff Mexico 3,517 Exemp
Slide 8: Effectiveness of Tariffs for Steel
EFFECTIVENESS OF TARIFFS FOR STEEL Total Flat-Rolled Imports Imports as a Percent of Finished (HRC, CRC, Coated) Steel Market Share 857 865 865 25% 819 24% 770 750 755 2024 Avg. 717 724 755K 711 712 671 Section 232 tariffs 619 620 reinstated Thousand Net Tons 21% 564 554 20% 20% 437 Jan-25 Feb-25 Ma
Slide 9: Effectiveness of Tariffs for Auto
EFFECTIVENESS OF TARIFFS FOR AUTO Total U.S. Light Vehicle Imports by Month 769 ▪ Imports of light 741 vehicles from Japan 734 729 718 723 and South Korea 713 691 2024 Avg. down >30% YTD 679 684 680 699K 666 ▪ U.S. light vehicle 645 Post Auto Tariffs production 627 estimates recently Thousand Light
Slide 10: Effectiveness of Tariffs for Auto
EFFECTIVENESS OF TARIFFS FOR AUTO U.S. Light Vehicle Sales Originating Outside of USMCA Region Total U.S. Light Vehicle Imports (Daily Sales Rate) 14.6 25% Auto tariffs announced ~3.6 Down ~16% 13.2 YTD ~3.0 12.4 Million Light Vehicles Thousand Units 11.5 Mar-25 Apr-25 May-25 Jun-25 May 2024 YTD May
Slide 11: The U.S. Needs More Auto Production
THE U.S. NEEDS MORE AUTO PRODUCTION Light Vehicle Production Per Capita (Per 1,000 People) 183 A healthy automotive industry is vital to national security Expect demand for domestically produced vehicles to increase 134 as a result of 25% tariffs on automobiles Domestic automotive industry has under
Slide 12: Steel Tariffs Support U.S. HRC Price
STEEL TARIFFS SUPPORT U.S. HRC PRICE Marginal Import Ton Sets the Price Importance of Steel Tariffs of Steel in U.S. ▪ The United States steel industry has long $150 $900 been undermined by excessive imports ▪ Tariffs play a crucial role in protecting the U.S. $250 economy, national security and ind
Slide 13: Canada Needs Trade Restrictions as Well
CANADA NEEDS TRADE RESTRICTIONS AS WELL 2024 Canadian Steel Industry 2024 Canadian Steel Imports by Country Percent of Imports by Country Argentina, 2% ~15.3 ~2.1 Germany, 3% Japan, 2% United Arab Emirates, 3% ~13.2 Taiwan, 3% Brazil, 5% Million Net Tons United States, 39% Turkey, 6% South Korea, 8%
Slide 14: Cliffs' Raw Material Advantage
CLIFFS’ RAW MATERIAL ADVANTAGE Unlike other flat-rolled producers, Cliffs does not rely on imported pig iron 2024 U.S. Pig Iron Imports Highlights ▪ U.S. announced it will implement 50% Rest of the World ~72% of total tariffs on Brazilian products sent into the ~1 million tons U.S., effective August
Slide 15: Domestic Steel Demand Expected to Increase
DOMESTIC STEEL DEMAND EXPECTED TO INCREASE Domestic Steel Consumption Domestic Steel Import Share Domestic consumption 116 Imports as a percent of 28% expected to grow domestic consumption expected 112 110 to decline 107 105 103 Imports as a percent of consumption 22% Million Net Tons 18% 18% 17% 17
Slide 16: Onerous Third-Party Steel Slab Contract
ONEROUS THIRD-PARTY STEEL SLAB CONTRACT Onerous Slab Contract Set To Expire In Less Than Five Months ▪ Contract expires December 9, HRC vs. Slab $1,000 (price per net ton) 2025 ▪ Represents ~1.5 million net HRC $900 tons annually ~$910 ▪ Directly linked to Brazilian slab $800 export price, which has
Slide 17: Coshocton Works New Bright Anneal Line
COSHOCTON WORKS NEW BRIGHT ANNEAL LINE New $150 Million State-of-the-Art Vertical Stainless Bright Anneal Line • Project groundbreaking occurred July 2021 and commissioning began May 2025 • Produces stainless steel for high-end automotive and critical appliance applications • Uses 100% hydrogen atmo
Slide 18: Well-Positioned Balance Sheet
WELL-POSITIONED BALANCE SHEET Liquidity Secured Note Leverage Commitment to Capacity Target utilize 100% of cash flow $2.7 $3.2 (Net debt / TTM Adj. EBITDA) towards debt billion billion 2.5x repayment Four-Year Note Maturities Secured Note Capacity Secured Ratio Basket $1.1 billion Dollars in Millio
Slide 19: Successful Working Capital Management
SUCCESSFUL WORKING CAPITAL MANAGEMENT Working Capital Q1 to Q2 Quarter-Over-Quarter Management Change Highlights ▪ Successfully releasing working capital through inventory Released ~$100 million in management working capital ▪ Working through excess pellet inventory built at end of 2024 after recent
Slide 20: Lower 2025 Capex Budget
LOWER 2025 CAPEX BUDGET Substantial Drop in Total Capital Expenditures Note: All years inclusive of Stelco $1,093 $893 $791 $800 $ in millions $600 2021 Pro Forma 2022 Pro Forma 2023 Pro Forma 2024 Pro Forma 2025 Guidance 20 © 2025 Cleveland-Cliffs Inc. All Rights Reserved.
Slide 21: Significant Cost Reductions
SIGNIFICANT COST REDUCTIONS Steel Unit Costs Expected To Be Down ~$160 Per Ton In Three Years Cost Savings Highlights Optimization of integrated Expected 2025 footprint and reduction of fixed ~$50/t costs Unit Cost Per Decrease Ton of Steel Reduced overhead and improved efficiencies 2024 ~$30/t Unit
Slide 22: Updated 2025 Outlook
UPDATED 2025 OUTLOOK 2025 Capital Outlay and February May July Expenses 2025 Guide 2025 Guide 2025 Guide Capital Expenditures ~$700 million ~$625 million ~$600 million Selling, General and Administrative Expenses ~$625 million ~$600 million ~$575 million 2025 Unit Cost Per ~$40 per net ~$50 per net
Slide 23: Cleveland-Cliffs' Adjusted EBITDA Reconciliation
CLEVELAND-CLIFFS’ ADJUSTED EBITDA RECONCILIATION Three Months Ended June 30, March 31, December 31, September 30, June 30, ($ in millions) 2025 2025 2024 2024 2024 Net income (loss) ($470) ($483) ($434) ($230) $9 Less: Interest expense, net (149) (140) (135) (102) (69) Income tax benefit 148 147 136
Slide 24: © 2025 Cleveland-Cliffs Inc. All Rights Reserved.
© 2025 Cleveland-Cliffs Inc. All Rights Reserved.