Cleveland-Cliffs Reports 3% Revenue Decline and $470 Million Net Loss in Q2 2025

Cleveland-Cliffs Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenues totaling $4.93 billion, a decrease of 3% from $5.09 billion in the same period last year. The company experienced a net loss of $470 million, compared to a net income of $9 million in the prior year. For the first half of 2025, revenues were $9.56 billion, down 7% from $10.29 billion in the first half of 2024, while the net loss reached $953 million, compared to a loss of $44 million in the previous year. The decline in revenue was primarily attributed to a 14% drop in sales from the automotive sector, which is a key market for the company.

Operationally, Cleveland-Cliffs has made strategic adjustments, including the indefinite idling of several facilities, such as the Steelton rail production facility and the Weirton tinplate production plant, due to financial underperformance and weak automotive production. These decisions resulted in restructuring charges of $86 million and asset impairment charges of $39 million for the second quarter. The company also reported an increase in depreciation expenses, which contributed to the overall decline in gross margin, down $370 million year-over-year for the quarter.

In terms of acquisitions, Cleveland-Cliffs completed the acquisition of Stelco Holdings Inc. on November 1, 2024, which is expected to enhance its market position in Canada and diversify its customer base. The acquisition is anticipated to provide synergies through asset optimization and procurement savings. The company reported that its exposure to the North American spot market has doubled as a result of this acquisition, allowing for better insight into market dynamics.

Cleveland-Cliffs' operational metrics showed a slight increase in steel shipments, with a total of 4.29 million net tons shipped in the second quarter of 2025, up 8% from 3.99 million net tons in the same quarter of 2024. However, the average selling price per ton of steel products decreased, reflecting the challenges in the automotive market. The company employed approximately 30,000 people across its operations in the U.S. and Canada, with a significant portion of its workforce represented by unions.

Looking ahead, Cleveland-Cliffs anticipates that domestic steel demand will improve, supported by recent tariffs on imports and a recovery in the automotive sector. The company aims to leverage its vertically integrated operations and strong relationships with its unionized workforce to navigate the current market challenges. Despite the recent financial setbacks, Cleveland-Cliffs remains focused on enhancing operational efficiency and capturing synergies from its recent acquisitions.