Cleveland-Cliffs (NYSE:CLF) reported a smaller fourth-quarter loss than a year ago, as the North American steel leader aggressively reshuffles its manufacturing footprint to favor high-margin automotive and electrical steels over traditional commodity products.
The Cleveland-based company posted a GAAP net loss of $235 million, or $0.44 per share, for the quarter ended Dec. 31, 2025—a significant improvement from the $434 million loss reported in the prior-year period.
Revenue held steady at $4.3 billion.
While the company recorded a full-year net loss of $1.4 billion, management highlighted a record safety year and a narrowed adjusted EBITDA loss of $21 million in the final quarter as evidence that its "footprint optimization" strategy is taking hold.
The results cap a transformative year for CEO Lourenco Goncalves, who spent 2025 integrating the $2.5 billion acquisition of Canadian steelmaker Stelco while shuttering underperforming legacy plants, such as the Steelton rail facility in Pennsylvania.
The company is now pivoting toward high-growth sectors, recently restarting a blast furnace in Cleveland to meet infrastructure demand and expanding its Butler Works plant—the only domestic source of grain-oriented electrical steel (GOES) required for the U.S. power grid.
Looking toward 2026, the company expects to further deleverage its balance sheet through a landmark $700 million partnership with South Korean steelmaker POSCO and anticipates significant cost tailwinds following the expiration of a major slab supply contract.
Despite the annual loss, Cleveland-Cliffs maintained robust liquidity of $3.3 billion, positioning it as the primary independent champion of domestic integrated steelmaking.