US-based mining and natural resources company, Cleveland-Cliffs Inc., has reported its financial results for the second quarter of 2025.
In the second quarter, the company reported total revenues of $4.9 billion, compared to $4.6 billion in the first quarter of 2025. The second quarter adjusted EBITDA was $97 million, a $271 million improvement compared to the adjusted EBITDA loss of $174 million in the first quarter of 2025.
Cleveland-Cliffs expects its full-year 2025 capital expenditures of approximately $600 million from its previous expectation of approximately $625 million.
“Our second quarter results demonstrate that the footprint optimization initiatives announced a few months ago are already generating a positive impact on both costs and revenues. Our good cost performance in Q2 will be even further amplified into Q3 and Q4, with further expected improvements in adjusted EBITDA as a result. In Q2 we also further reduced inventories, which drove a meaningful release in working capital during the quarter,” said Lourenco Goncalves, President and CEO of the company. "Our return to generating meaningful free cash flow and rapidly reducing debt is in sight. Domestic steel pricing remains strong, we have visibility into our cost reductions, and our order book remains healthy. Very importantly, the end of the five-year contract to supply slabs from Indiana Harbor to one of our competitors comes in less than five months. Due to the abnormally low index-based prices for slabs we have been exposed to in the last few months, this contract became a negative contributor to EBITDA and will not be extended.”
Mr. Goncalves continued, “Cliffs is a major supplier of steel to the automotive manufacturers, and the Trump Administration continues to show strong support to both the domestic steel and the domestic automotive sectors. We have started to see the positive impact that tariffs have on domestic manufacturing, protecting domestic jobs and national security. We expect this trend to continue, promoting the resurgence of the American automotive industry supported by a thriving domestic steel industry. “Going forward, foreign competitors need to acquire steel capacity within the United States if they want to participate in this desirable market. As a publicly traded America-based company centered on automotive, electrical steels, stainless and plate, Cleveland-Cliffs’ assets, business and footprint are uniquely positioned to benefit from this new reality.”