Cleveland-Cliffs Inc
NYSE:CLF
Cleveland-Cliffs Inc
Cleveland-Cliffs Inc., often recognized as a pivotal pillar of American mining and manufacturing, is a company with roots tracing back to 1847. Its journey began with the extraction of iron ore from the rich deposits of Minnesota and Michigan, which laid the foundation for its longstanding legacy in the U.S. steel industry. Over the years, Cleveland-Cliffs evolved beyond merely mining, strategically expanding its footprint by acquiring steel production and manufacturing facilities. This transformation enabled the company to become the largest flat-rolled steel producer in North America. From extracting iron ore to creating advanced steel products, Cleveland-Cliffs has honed a vertically integrated business model that ensures control over its supply chain, enhancing efficiency and cost effectiveness.
At the core of Cleveland-Cliffs' operations is its ability to innovate and adapt to the ever-changing demands of the metal markets. The company serves a diverse array of industries, including automotive, infrastructure, and manufacturing, bolstering its revenue with its advanced high-strength steel offerings. Through cost-efficient production techniques and substantial investment in environmentally sustainable practices, the company produces a wide range of steel products, catering to various specifications and requirements. By transforming raw materials into finished steel goods, Cleveland-Cliffs generates income primarily from sales contracts with a spectrum of industrial clients. This comprehensive approach not only secures its profitability but also fortifies its position as a key player driving the resurgence of the American steel industry.
Cleveland-Cliffs Inc., often recognized as a pivotal pillar of American mining and manufacturing, is a company with roots tracing back to 1847. Its journey began with the extraction of iron ore from the rich deposits of Minnesota and Michigan, which laid the foundation for its longstanding legacy in the U.S. steel industry. Over the years, Cleveland-Cliffs evolved beyond merely mining, strategically expanding its footprint by acquiring steel production and manufacturing facilities. This transformation enabled the company to become the largest flat-rolled steel producer in North America. From extracting iron ore to creating advanced steel products, Cleveland-Cliffs has honed a vertically integrated business model that ensures control over its supply chain, enhancing efficiency and cost effectiveness.
At the core of Cleveland-Cliffs' operations is its ability to innovate and adapt to the ever-changing demands of the metal markets. The company serves a diverse array of industries, including automotive, infrastructure, and manufacturing, bolstering its revenue with its advanced high-strength steel offerings. Through cost-efficient production techniques and substantial investment in environmentally sustainable practices, the company produces a wide range of steel products, catering to various specifications and requirements. By transforming raw materials into finished steel goods, Cleveland-Cliffs generates income primarily from sales contracts with a spectrum of industrial clients. This comprehensive approach not only secures its profitability but also fortifies its position as a key player driving the resurgence of the American steel industry.
2025 Challenges & Fixes: 2025 was a tough year for Cleveland-Cliffs, hurt by steel imports, weak automotive production, and a costly slab supply contract, but management took decisive actions to address these issues.
Automotive Recovery: The company secured new multi-year fixed price contracts with all major US automotive OEMs, positioning itself for significant market share gains and higher margins as US vehicle production rebounds in 2026.
Canadian Market Turnaround: Recent Canadian government action to restrict steel imports is boosting pricing and shipments at newly acquired Stelco, making it a positive contributor for 2026.
Slab Contract Exit: Termination of the slab supply contract with ArcelorMittal is expected to boost 2026 EBITDA by around $500 million, with the impact ramping up over the next few quarters.
Cost Reductions: The company reduced unit costs for the third straight year in 2025 and expects another $10 per ton decrease in 2026, despite temporary Q1 cost inflation.
Strategic POSCO Partnership: Negotiations with POSCO continue, aiming for a deal by mid-2026; both parties see the partnership as their top strategic priority.
Asset Sales & Balance Sheet: Cleveland-Cliffs is on track to generate $425 million from asset sales in 2026, with further large asset sales on hold pending the POSCO outcome. Liquidity at the end of 2025 was $3.3 billion.
2026 Outlook: Shipments, pricing, and cash flow are all expected to improve in 2026, with higher mill utilization, stronger order books, and an improved market environment.
