Overview

• North America steel producer's Q4 revenue was $4.3 bln, missing analyst expectations

• Adjusted loss per share Q4 was smaller than analyst expectations

• Company attributes 2025 performance to weak automotive sector and market challenges

Outlook

• Company expects 2026 steel shipment volumes between 16.5 mln and 17.0 mln net tons

• Cleveland-Cliffs anticipates steel unit cost reductions of $10 per net ton in 2026

• Company projects 2026 capital expenditures of approximately $700 mln

Result Drivers

• AUTOMOTIVE SECTOR IMPACT - CEO Lourenco Goncalves cited weak production levels in the automotive sector as a negative factor for 2025 results

• SLAB CONTRACT EXPIRATION - Expiring five-year slab contract was value-destructive in its last year, according to CEO Lourenco Goncalves

• CANADIAN MARKET CHALLENGES - Newly adverse dynamics in the Canadian market affected 2025 performance, per CEO Lourenco Goncalves

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy."

• Wall Street's median 12-month price target for Cleveland-Cliffs Inc is $13.00, about 11.7% below its February 6 closing price of $14.73

Press Release: ID:nBw2JmbLPa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)