Cleveland-Cliffs Inc. (CLF): History, Ownership, Mission, How It Works & Makes Money

As a seasoned analyst, I have to ask: what is the true value of Cleveland-Cliffs Inc. (CLF) when its operational strength is masked by non-recurring charges?

The company, North America's largest flat-rolled steel producer, reported a GAAP net loss of $234 million in Q3 2025, but that figure defintely hides the core operational momentum, which saw a 52% quarter-over-quarter jump in Adjusted EBITDA to $143 million, a clear sign of demand recovery in their key markets.

You need to understand how this vertically integrated model, which drove 30% of Q3 2025 steelmaking revenue from direct automotive sales, is poised for a significant near-term uplift, especially with an unprofitable contract expiring in December 2025, a catalyst management expects will benefit annual EBITDA by up to $500 million starting 2026.

Let's dive into the 178-year history, the mission that guides its 30,000 employees, and the ownership structure where institutional giants like BlackRock, Inc. are key players, to see what actually makes this industrial powerhouse money.

Cleveland-Cliffs Inc. (CLF) History

You're looking for the bedrock of Cleveland-Cliffs Inc. (CLF), and honestly, its story is less about a single founding moment and more about a 178-year evolution from a simple iron ore miner to North America's largest flat-rolled steel producer. The direct takeaway is this: the company survived by constantly shedding non-core assets and, more recently, by executing a radical, high-stakes shift from selling raw materials to making the finished product.

Given Company's Founding Timeline

Year established

The company's roots trace back to 1847, when it was founded as the Cleveland Iron Mining Company.

Original location

The initial operations were centered in Cleveland, Ohio, driven by the discovery of rich iron ore deposits in Michigan's Upper Peninsula.

Founding team members

The venture was spearheaded by Samuel Livingston Mather and a group of 14 Cleveland men who were motivated by the Michigan ore deposits.

Initial capital/funding

To be fair, the precise initial capital or funding amount from the 1847 founding is not readily available, but the early operations were a losing proposition until the Sault Ste. Marie Canal opened in 1855, which finally made transportation costs manageable.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The most defintely transformative period for Cleveland-Cliffs Inc. was the pivot from a pure-play iron ore miner to a fully integrated steel manufacturer between 2020 and 2024. This was a massive strategic shift, moving from a commodity supplier to a value-added producer, especially for the automotive industry. It's a classic example of a company moving up the supply chain to control its destiny and margins.

This vertical integration strategy was executed through a series of bold acquisitions:

• The March 2020 acquisition of AK Steel Holding for $1.1 billion was the initial, game-changing move into steel production.
• The December 2020 purchase of ArcelorMittal USA's operations for approximately $1.4 billion instantly made Cleveland-Cliffs the largest flat-rolled steel producer in North America.
• The November 2024 acquisition of Canadian steelmaker Stelco for $2.5 billion further diversified the customer base and lowered the cost structure, building on the integrated model.

The company's focus remains on operational efficiency, too. In early 2025, Cleveland-Cliffs idled six facilities to optimize operations, which is expected to generate over $300 million in annual savings. This move, coupled with the strategic acquisitions, shows a clear path to maximizing returns. You can dive deeper into the financial implications of this strategy by reading Breaking Down Cleveland-Cliffs Inc. (CLF) Financial Health: Key Insights for Investors.

Cleveland-Cliffs Inc. (CLF) Ownership Structure

Cleveland-Cliffs Inc.'s ownership structure is a blend of institutional powerhouses, significant insider holdings, and a large retail investor base, which can lead to volatility but also strong alignment between leadership and shareholders. This mix means major strategic decisions are influenced by a few large asset managers, but the retail crowd's sentiment still carries considerable weight, which you can track further in Breaking Down Cleveland-Cliffs Inc. (CLF) Financial Health: Key Insights for Investors.

Cleveland-Cliffs Inc.'s Current Status

Cleveland-Cliffs Inc. is a publicly traded, America-based company, listed on the New York Stock Exchange (NYSE) under the ticker CLF. As of November 14, 2025, the company commands a market capitalization of approximately $6.11 billion, placing it firmly in the mid-cap steel sector. This public status subjects the company to rigorous regulatory scrutiny, ensuring transparency for all stakeholders, but also exposes it to the whims of the daily market. Honestly, its stock price of $10.73 per share on November 14, 2025, reflects a slight decline of 2.81% over the past year, showing the near-term challenges in the steel market.

Cleveland-Cliffs Inc.'s Ownership Breakdown

The company's control is distributed across three primary groups, with retail investors holding a surprisingly large stake. This level of retail ownership is defintely higher than many of its industrial peers, giving the individual investor a more direct voice, or at least a louder one on social platforms. Here's the quick math on who owns the shares:

Cleveland-Cliffs Inc.'s Leadership

The company's strategy is steered by a long-tenured and focused executive team, led by a CEO who has been in his role for over a decade. This stability is a key factor in their aggressive M&A strategy over the past few years, including the acquisition of ArcelorMittal USA and Stelco Holdings Inc. The leadership is as follows:

• Lourenco Goncalves: Chairman, President, and Chief Executive Officer (CEO). He has been in this triple role since August 2014. His total yearly compensation is approximately $15.25 million.
• Celso Goncalves: Executive Vice President & Chief Financial Officer (CFO). He manages finance, accounting, and investor relations.
• Clifford T. Smith: Executive Vice President, Chief Operating Officer (COO). He oversees the company's operational footprint.
• Board of Directors: The board saw a recent addition in November 2025 with the appointment of Edilson Camara, a move that strengthens the board's expertise in global industrial strategy and executive talent.

The average tenure for the management team is 4.2 years, which is a good sign of operational consistency.

Cleveland-Cliffs Inc. (CLF) Mission and Values

Cleveland-Cliffs Inc.'s core purpose is to be the premier American steel company, driving value through vertical integration, a strong commitment to domestic manufacturing, and a clear focus on sustainability and safety. This strategic alignment, which CEO Lourenco Goncalves emphasized in February 2025, is the company's cultural DNA, linking its operations to the national industrial base.

Cleveland-Cliffs Inc.'s Core Purpose

As a seasoned analyst, I see the mission and vision as a dual mandate: lead the market and do it responsibly. Your investment thesis must account for both the financial performance and the cultural commitment to American steelmaking. The company's revenue for the quarter ending September 30, 2025, was $4,734 million, showing that this mission is tied to real-world growth, even with a Q1 2025 adjusted EBITDA loss of $174 million.

Official Mission Statement

The formal mission is a clear roadmap that extends beyond just iron ore production, covering all key stakeholders. It's about being a leading supplier while maintaining a high bar for operational conduct. You defintely need to see the full context of their principles: Mission Statement, Vision, & Core Values of Cleveland-Cliffs Inc. (CLF).

• Be the leading supplier of iron ore products in North America.
• Deliver value to customers, employees, shareholders, and communities.
• Commit to integrity, safety, and environmental responsibility.
• Strive for operational excellence and sustainable growth.

Vision Statement

The vision statement is a forward-looking goal, centered on market leadership and continuous improvement in the steel industry. This is where the company maps its long-term competitive advantage, especially in a capital-intensive sector like steelmaking.

• Lead the North American steel industry.
• Drive leadership through innovation and operational excellence.
• Maintain a commitment to sustainability.

The company has already reduced its carbon emissions by 25%, which is a concrete example of this vision in action, not just a promise.

Cleveland-Cliffs Inc. Core Values

These values are the operating principles that govern daily decisions, from the plant floor to the boardroom. They show a strong emphasis on safety and accountability, which directly impacts operational efficiency and risk management.

• Safe Production: Prioritizing employee health and safety above all.
• Environmental Stewardship: Preserving the environment for future generations.
• Customer Focus: Continuously improving processes to exceed expectations.
• Creating Economic Value: Ensuring profitable, sustainable growth for stakeholders.
• Group and Individual Accountability: Taking responsibility for actions and results.

In February 2025, the company's Foundation and employees demonstrated their community value by donating over 415,000 pounds of food, with the Foundation contributing an additional $250,000 to address food insecurity.

Cleveland-Cliffs Inc. Slogan/Tagline

While Cleveland-Cliffs Inc. does not use a short, formal slogan in its primary corporate branding, its public identity is heavily defined by its commitment to domestic production, a theme that acts as a de facto rallying cry.

• The company's strategic focus is on being the 'American steel company.'
• It actively promotes a 'Buy American' incentive program for employees.

This focus on American-made steel is a key strategic differentiator, especially with the CEO's strong stance on trade laws and tariffs. It's a clear signal to the market about where their loyalties and future investments lie.

Cleveland-Cliffs Inc. (CLF) How It Works

Cleveland-Cliffs Inc. operates as North America's largest flat-rolled steel producer, generating value by controlling the entire supply chain from raw materials to finished products, which helps stabilize costs and ensure quality for high-spec markets like the automotive industry. The company makes money by mining iron ore, converting it into steel, and selling high-value-added sheet products, with its steelmaking segment driving the majority of its revenue, which was $4.7 billion in the third quarter of 2025.

Cleveland-Cliffs Inc.'s Product/Service Portfolio

The company's focus is on value-added sheet products, with its steelmaking segment accounting for nearly all consolidated revenues and serving a diverse but concentrated set of North American industrial customers. In Q3 2025, the automotive market alone accounted for 30% of steelmaking revenues, totaling $1.4 billion.

Cleveland-Cliffs Inc.'s Operational Framework

The core of Cleveland-Cliffs' operation is its deep vertical integration, which means it owns and controls every major step from the mine to the final product, a structure that few competitors can match. This allows for better cost control and a more reliable supply chain, so the company can meet the demanding specifications of its primary customers. Mission Statement, Vision, & Core Values of Cleveland-Cliffs Inc. (CLF).

Here's the quick math: managing the raw material input helps secure an expected steel unit cost reduction of approximately $50 per net ton for the full year 2025, compared to 2024. That's a huge operational advantage in a low-margin sector.

• Raw Material Sourcing: Mine iron ore in the U.S. Great Lakes region, then process it into high-quality iron ore pellets and Direct Reduced Iron (DRI).
• Primary Steelmaking: Utilize a combination of Blast Furnaces (BFs) and Electric Arc Furnaces (EAFs) to convert the iron units and ferrous scrap into molten steel.
• Downstream Finishing: Process the steel into flat-rolled products like hot-rolled, cold-rolled, and various coated steels, including the new premium stainless steel from the $150 million Bright Annealing Line investment at Coshocton Works.
• Stamping and Tubing: Further process finished steel into stamped components and tubular products for direct use by automotive and other manufacturers.

Cleveland-Cliffs Inc.'s Strategic Advantages

The company's market success is defintely driven by its unique positioning at the intersection of domestic steel production and the North American automotive industry, plus a relentless focus on cost optimization. This strategy is designed to capitalize on the current trade environment and domestic manufacturing trends.

• Full Vertical Integration: Provides control over quality and cost from the mine to the finished steel product, insulating the company from raw material price volatility better than non-integrated mills.
• North American Automotive Dominance: Holds a market leadership position as a major supplier of high-value steel to the U.S. automotive sector, which is a high-volume, high-specification market.
• Aggressive Footprint Optimization: The idling of underperforming non-core facilities in 2025 is expected to generate over $300 million in annual savings, demonstrating a disciplined approach to asset rationalization.
• Favorable Trade Environment: Benefits significantly from the enforcement of Section 232 steel tariffs, which supports domestic steel production and limits competition from illegally dumped foreign steel.
• Green Technology Investment: Secured a $575 million U.S. Department of Energy grant to invest in hydrogen-ready technologies and electric melting furnaces, positioning the company for lower emissions and reduced production costs long-term.

Cleveland-Cliffs Inc. (CLF) How It Makes Money

Cleveland-Cliffs Inc. primarily makes money as a vertically integrated steel producer, transforming its own mined iron ore into high-value flat-rolled steel products, with a heavy focus on the US automotive industry.

This integrated model means the company captures profit across the entire supply chain, from the raw material (iron ore pellets) to the finished product (coated steel for cars), insulating it somewhat from volatile raw material costs.

Cleveland-Cliffs' Revenue Breakdown

The company's revenue is overwhelmingly driven by its Steelmaking segment. For the third quarter of 2025 (Q3 2025), consolidated revenues totaled $4.7 billion, with the vast majority coming from steel product sales.

The revenue mix is a critical indicator of margin health, as the automotive sector typically commands higher-margin, specialized steel. Here's how the steelmaking revenue broke down in Q3 2025:

Direct sales to the automotive market accounted for approximately $1.4 billion of steelmaking revenue in Q3 2025, and this segment is defintely on an upward trajectory due to new multi-year supply arrangements with major US automakers.

The next largest streams, infrastructure and manufacturing, and sales to distributors and converters, each represent about 29% and 28% of steelmaking revenue, respectively.

Business Economics

The core economics of Cleveland-Cliffs Inc. are defined by its vertical integration and the current US trade policy environment, which acts as a protective shield.

• Pricing Power from Tariffs: The company's pricing is heavily supported by the US government's trade policy, specifically the 50% steel and aluminum tariffs implemented in June 2025, which have effectively doubled the cost of foreign steel. This creates a high pricing floor for domestic producers, allowing Cleveland-Cliffs to set its Cliffs HR Market Price higher, such as the $950 per ton set for July 2025 spot orders.
• Automotive Contract Stability: Cleveland-Cliffs has moved toward multiyear fixed-price supply agreements with automakers, which locks in price stability for two to three years. This strategy hedges against short-term price volatility and reinforces the company's dominance in the high-margin US automotive steel market.
• Cost Optimization: Management is executing a cost-cutting program, which includes idling six underperforming facilities in 2025. This is expected to generate over $300 million in annual savings.
• Near-Term Margin Catalyst: A major financial tailwind is the expiration of an onerous third-party slab supply contract in December 2025. Exiting this unprofitable contract is projected to provide an annualized EBITDA benefit of $500 million starting in 2026. You can read more about the company's long-term strategy here: Mission Statement, Vision, & Core Values of Cleveland-Cliffs Inc. (CLF).

Cleveland-Cliffs' Financial Performance

The company's recent financial results show a business navigating a challenging, cyclical market but with improving operational metrics and strong liquidity as of late 2025.

• Revenue Trend: Trailing twelve months (TTM) revenue ending September 30, 2025, was approximately $18.622 billion, representing a 6.76% decline year-over-year, reflecting broader market softness and lower steel prices compared to prior peak periods.
• EBITDA Improvement: Adjusted EBITDA for Q3 2025 was $143 million, a significant sequential increase of 51% from the second quarter of 2025, indicating improving margins and cost control execution.
• Net Loss: Despite the EBITDA improvement, the company reported a GAAP net loss of $234 million in Q3 2025. The steel industry is cyclical, and the company is still working to return to consistent profitability.
• Liquidity and Debt: Cleveland-Cliffs maintains a solid financial cushion, with total liquidity of $3.1 billion as of September 30, 2025. This liquidity is crucial for managing debt and funding strategic initiatives like the exploration of rare-earth mineral production at its mining sites.
• Cost Discipline: Management has reduced its full-year 2025 capital expenditure (CapEx) guidance to approximately $525 million and lowered its Selling, General, and Administrative (SG&A) costs guidance to $550 million, showing a tight focus on cash preservation.

The average net selling price per ton in Q3 2025 was $1,032, a slight decline year-over-year, but the increase in shipment volumes to 4.0 million net tons helped offset the price pressure.

Cleveland-Cliffs Inc. (CLF) Market Position & Future Outlook

Cleveland-Cliffs is strategically positioned as the leading North American producer of flat-rolled steel, leveraging its fully integrated supply chain to service the high-margin automotive sector. Despite a challenging 2025 with net losses, the company's future outlook hinges on aggressive cost reduction, a rebound in auto demand, and high-impact strategic initiatives like rare-earth mineral exploration.

You need to see the execution on these initiatives, particularly the cost savings, to believe the turnaround is defintely on track, plus you should check out the full investor profile here: Exploring Cleveland-Cliffs Inc. (CLF) Investor Profile: Who's Buying and Why?

Competitive Landscape

The U.S. steel market is dominated by a few major domestic players who benefit from trade protection and focus on different production technologies, but Cleveland-Cliffs leads in the flat-rolled segment.

Opportunities & Challenges

The near-term for Cleveland-Cliffs is a mix of self-help cost-cutting measures and favorable macroeconomic tailwinds, but still faces the cyclical nature of steel demand.

Industry Position

Cleveland-Cliffs holds a unique position in the U.S. steel industry as the only fully vertically integrated producer, controlling the entire process from iron ore mining to finished steel products. This integration is the core competitive advantage, especially in an environment of volatile raw material prices.

The company's focus on the high-value flat-rolled steel segment, particularly for the automotive sector, is key to its margin strategy. For example, direct sales to the automotive market accounted for 30% of steelmaking revenues in Q3 2025, totaling approximately $1.4 billion. This specialized focus allows for premium pricing compared to general-purpose steel producers like Nucor and Steel Dynamics, who rely heavily on Electric Arc Furnaces (EAFs) using scrap steel.

While the company reported Q3 2025 revenues of $4.7 billion and an Adjusted EBITDA of $143 million, its profitability remains under pressure, evidenced by an adjusted net loss of $223 million in the same quarter. The market is now focused on how quickly the announced cost savings and the automotive rebound can translate this scale into consistent positive cash flow.

• Control raw material costs through iron ore pellet production.
• Lead the market in producing complex, automotive-grade steel.
• Maintain significant liquidity of $3.1 billion as of September 30, 2025, providing a buffer against cyclicality.

Here's the quick math: The expected $500 million EBITDA boost from the contract expiration in 2026 is a massive tailwind, effectively triple the Q3 2025 Adjusted EBITDA, so it's a critical number for future valuation.