Cleveland-cliffs Inc. · NYSE:CLF
Cleveland-cliffs — Q1 2025 Earnings Presentation
19 slides from Cleveland-cliffs's earnings presentation, May 8, 2025
Slide 1: First-Quarter 2025 Earnings Presentation
CLEVELAND-CLIFFS INC. First-Quarter 2025 Earnings Presentation May 7, 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: First-Quarter 2025
FIRST-QUARTER 2025 Revenues Optimizing operational footprint and repositioning away from non-core assets $4.6 Billion Q1 ASP impacted by weaker pricing from Q4 2024 and early Steel 2025 – and weaker plate pricing Shipments Q1 costs impacted by 4.1 Million underperformance of non-core (net tons) asse
Slide 4: Three Key Areas of Improvement
THREE KEY AREAS OF IMPROVEMENT Expected Annual Financial Improvement Automotive Volume Recovery $250-500 Million ▪ Arranging higher volume commitments with our automotive OEM customers EBITDA ▪ Most established steel supplier to capture automotive tariff Recovery1 driven production increases Optimiz
Slide 5: Q1 2025 End Market and Product Overview
Q1 2025 END MARKET AND PRODUCT OVERVIEW 9% 13% 5% Slab, Rail, Other Steel Producers Plate 27% 29% Direct Coated End Automotive (primarily Product galvanized) Market Mix 30% Mix (Shipments) Infrastructure & (Revenue) 41% Manufacturing Hot-Rolled 15% Cold-Rolled 28% Distributors & 3% Converters Stainl
Slide 6: Well Positioned Balance Sheet
WELL POSITIONED BALANCE SHEET Liquidity Secured Note Leverage Commitment to Capacity Target utilize 100% of $3.0 $3.3 (Net debt / TTM Adj. EBITDA) cash flow towards debt billion billion 2.5x repayment Four-Year Note Maturities Secured Note Capacity Secured Ratio Basket $1.1 billion Dollars in Millio
Slide 7: Flat-Rolled Optimization
FLAT-ROLLED OPTIMIZATION Steel Operations ▪ Idled Cleveland blast furnace #6 on October 1, 2024 Dearborn Hot End ▪ Dearborn blast furnace, BOF steel shop and caster to be idled Idle/Cleveland #6 Restart ▪ Expect to bring Cleveland blast furnace #6 back online by the time Dearborn is idled, largely o
Slide 8: Repositioning Away from Non-Core Assets
REPOSITIONING AWAY FROM NON-CORE ASSETS Riverdale ▪ Relies on liquid pig iron feed delivered by railroad across state Expected Annual line from Indiana Harbor, resulting in unfavorable cost structure Savings ▪ Investments recently made at Indiana Harbor give us the ability to keep pig iron at Indian
Slide 9: Weirton Transformer Production Update
WEIRTON TRANSFORMER PRODUCTION UPDATE No Longer Deploying Capital Toward Distribution Transformer Production Plant ~$50 million of 2025 capital expenditure reduction Project required a partner that could supply the technology and licensing required to produce transformers Project partner unwilling t
Slide 10: Stelco Impact from Steel Tariffs
STELCO IMPACT FROM STEEL TARIFFS Pre-Acquisition Sales Current Sales ~70% of sales ~100% of sales ~30% of sales ~0% of sales Latest Developments on Current Environment ▪ Have taken deliberate action to shift all Stelco sales into the Canadian market ▪ Stelco operations offer an ideal platform to ser
Slide 11: Onerous Third-Party Steel Slab Contract
ONEROUS THIRD-PARTY STEEL SLAB CONTRACT Final Year of Slab Contract with ArcelorMittal / Nippon Steel Calvert ▪ Contract expires December 9, HRC vs. Slab $1,000 (price per net ton) 2025 HRC ▪ Represents ~1.5 million net ~$950 $900 tons annually ▪ Directly linked to Brazilian slab $800 export price,
Slide 12: Global Overproduction Remains a Problem
GLOBAL OVERPRODUCTION REMAINS A PROBLEM The United States remains the only major steel-producing 1,019 country that produces less steel than it consumes 938 Country Excess Production % of Production Above (Million Tons) Consumption U.S (34) (30)% China 81 9% In Million Metric Tons India 8 6% Japan 2
Slide 13: Increased Import Penetration of Light Vehicles
INCREASED IMPORT PENETRATION OF LIGHT VEHICLES U.S. Light Vehicle Production as a % of SAAR Increased Import Penetration 71% ▪ Domestic automotive industry has long been 67% undermined by excessive imports 64% ▪ Trump administration has been vocal that 59% protecting America’s automotive industry is
Slide 14: Underutilized Automotive Production Capacity
UNDERUTILIZED AUTOMOTIVE PRODUCTION CAPACITY Historical U.S. Light Vehicle Production Highlights On March 26, 2025, President Trump imposed 25% tariffs on imports of 12.0 Underutilized Production Capacity automobiles and certain automobile 11.8 parts 11.0 11.0 Underutilized domestic capacity can 10.
Slide 15: 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 $625 2021 Pro Forma 2022 Pro Forma 2023 Pro Forma 2024 Pro Forma 2025 Guidance 15 © 2025 Cleveland-Cliffs Inc. All Rights Reserved.
Slide 16: 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 footprint and 2025 reduction of fixed costs ~$50/t Unit Cost Per Decrease Reduced overhead and improved Ton of Steel efficiencies Completion of elevated ma
Slide 17: Updated 2025 Outlook
UPDATED 2025 OUTLOOK 2025 Capital Outlay and Expenses February 2025 Guide May 2025 Guide 2025 Unit Cost Per Ton ~$40 per net ton ~$50 per net ton of Steel decrease decrease Capital Expenditures ~$700 million ~$625 million Selling, General and Administrative Expenses ~$625 million ~$600 million Depre
Slide 18: Cleveland-Cliffs' Adjusted EBITDA Reconciliation
CLEVELAND-CLIFFS’ ADJUSTED EBITDA RECONCILIATION Three Months Ended March 31, December 31, September 30, June 30, March 31, ($ in millions) 2025 2024 2024 2024 2024 Net income (loss) ($483) ($434) ($230) $9 ($53) Less: Interest expense, net (140) (135) (102) (69) (64) Income tax benefit (expense) 14
Slide 19: © 2025 Cleveland-Cliffs Inc. All Rights Reserved.
© 2025 Cleveland-Cliffs Inc. All Rights Reserved.