Cleveland-Cliffs Inc. Q4 FY2025 earnings call

• Federal administration in 2025 valued preserving and growing American manufacturing, but steel imports still impacted Cleveland-Cliffs. - Shut down underperforming assets and terminated index-based slab supply contract with ArcelorMittal. - In 2026, secured more automotive business, Canadian government restricted steel imports helping Stelco, robust order book. - Partnership with POSCO, Korea's largest steelmaker, for industrial cooperation. - Achieved lowest total recordable incident rate in 2025 with TRIR of 0.8 per 200,000 hours worked, a 43% improvement since 2021.

No specific detailed breakdown of product segments by revenue contribution or absolute financial performance provided in the transcript.

• Q4 shipments were 3.8 million tons, Q1 expected to improve to 4 million tons. Full year 2026 shipments expected 16.5-17 million tons. - Q4 price realization $993 per net ton, expected $60 per ton increase in 2026. - Unit costs reduced $40 per ton in 2025, expected to decline $10 per ton in 2026. - 2025 CapEx was $561 million, 2026 CapEx projected ~$700 million, 2027 ~$900 million, 2028 back to ~$700 million. - Slab contract expiration expected to add ~$500 million to EBITDA in 2026.

• Steel imports continuing to poison domestic market and impact shipments. - Uncertainties in finalizing the POSCO partnership as negotiations continue. - Potential delays in fully realizing EBITDA benefits from slab contract expiration due to inventory and cost flow timings.

Q: Benefit from slab contract cancellation and CapEx beyond 2026?

A: Lourenco Goncalves said slab contract expiration could add ~$500 million to EBITDA, with EBITDA impact seen more in Q2/Q3 than Q1. Celso Goncalves discussed 2026 CapEx projections with 2027 reline driving ~$900 million CapEx.

Q: Open capacity and ASP/costs in Q1?

A: Lourenco Goncalves mentioned open downstream capacity, Celso Goncalves said Q1 ASP expected up $60 per ton, costs up ~$20 per ton in Q1 then normalizing.

Q: POSCO due diligence and aluminum opportunity?

A: Lourenco Goncalves said Cleveland-Cliffs completed due diligence on POSCO, aluminum opportunity with OEMs as aluminum supply chain has disruptions and Cleveland-Cliffs can replace aluminum with steel using existing equipment.

Q: Stelco drag on earnings and Canadian price outlook?

A: Celso Goncalves said Stelco was disappointing in 2025 but improving, Lourenco Goncalves discussed Canadian market improvement and Stelco's potential to contribute more in 2026.

Q: Asset sales proceeds and POSCO hold?

A: Celso Goncalves said $425 million from asset sales, larger assets on hold due to POSCO negotiations but transactions are real and in process.