Cleveland-Cliffs Inc
SWB:CVA
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.
Automotive Recovery: Cleveland-Cliffs saw a clear rebound in domestic steel demand, led by the automotive sector, with its best auto steel shipment quarter since early 2024.
Multi-Year Auto Contracts: The company secured major new 2-3 year agreements with all major automotive OEMs, locking in higher volumes and favorable pricing through 2027 or 2028.
Margin & Cost Improvement: Adjusted EBITDA rose 52% quarter-over-quarter to $143 million, driven by margin expansion, cost cuts, and a richer product mix.
Operational Efficiencies: The company achieved $300 million in annualized cost savings from footprint optimization and further reduced SG&A and capital expenditure budgets for 2025.
Asset Sales & Debt Reduction: Cleveland-Cliffs is selling non-core assets valued at $425 million, with proceeds targeted for debt paydown; the larger asset sales process is being deprioritized in favor of a new strategic partnership.
Rare Earth Initiative: The company is exploring rare earth mineral opportunities at sites in Michigan and Minnesota as part of a broader push for U.S. material self-sufficiency.
Government & Defense Contracts: Awarded a 5-year, $400 million contract to supply electrical steel to the U.S. government, reinforcing its role in national security supply chains.
Canada Weakness: Canadian operations (Stelco) underperformed due to lack of domestic steel protections and high import penetration.
