CLFHIGH SIGNALFINANCIAL10-K

Cleveland-Cliffs reported substantially higher net losses alongside declining gross profit margins and reduced dividend payments, indicating severe operational stress.

The company's financial deterioration is evident across multiple metrics, with net losses expanding dramatically while profitability contracted meaningfully. The 43% reduction in dividend payments signals management is conserving cash amid challenging operating conditions, which typically concerns income-focused investors.

Comparing 2026-02-09 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

CLF's financial performance deteriorated significantly, with net losses expanding substantially while gross profit declined by nearly 29% to $576 million. Operating expenses increased modestly through higher SG&A costs, compounding the margin pressure. The company reduced dividend payments by 43% to $41 million, reflecting management's focus on cash preservation during this period of financial stress.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-96%
-$754.0M-$1.5B

Net income declined 96% — review whether driven by operations, interest costs, or non-recurring items.

Dividends Paid
Cash Flow
-43.1%
$72.1M$41.0M

Dividends cut 43.1% — significant signal of cash flow stress or capital reallocation priorities.

Gross Profit
P&L
-28.9%
$809.6M$575.7M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

SG&A Expense
P&L
+11.7%
$486.0M$543.0M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

LANGUAGE CHANGES
NEW — 2026-02-09
PRIOR — 2025-02-25
ADDED
See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b-2 of the Exchange Act.
BUSINESS 4 Information About Our Executive Officers 16 ITEM 1A.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 43 ITEM 7A.
BOF Basic oxygen furnace CERCLA Comprehensive Environmental Response, Compensation and Liability Act of 1980 Clean Water Act Federal Water Pollution Control Act CN Canadian National Railway Company CODM Chief Operating Decision Maker Compensation Committee Compensation and Organization Committee of the Board Directors Plan Cleveland-Cliffs Inc.
Department of Labor POSCO POSCO Holdings Inc., a publicly traded South Korean steel manufacturer headquartered in Pohang, South Korea QA/QC Quality assurance/quality control QP Qualified person, within the meaning set forth in Item 1300 of Regulation S-K RCRA Resource Conservation and Recovery Act S P Standard Poor's SEC U.S.
by the Company, as provided for in the Arrangement Agreement SunCoke Middletown Middletown Coke Company, LLC, a subsidiary of SunCoke Energy, Inc.
Tilden Iron ore mining property owned by Tilden Mining Company L.C., an indirect, wholly owned subsidiary of Cliffs TMDL Total maximum daily load TSR Total shareholder return U.
We have continued to invest capital and resources to meet the requirements needed to serve the automotive industry.
We continue to be an established and reliable supplier of automotive-grade steel and intend to bolster our position as an industry leader going forward.
Demand for our automotive-grade steel is expected to be healthier in the coming years as a result of government support for domestically produced vehicles, the further shift away from other metals such as aluminum, declining interest rates, low unemployment rate, and the replacement of older vehicles.
REMOVED
See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and "emerging growth company" in Rule 12b-2 of the Exchange Act.
BUSINESS 4 Information About Our Executive Officers 17 ITEM 1A.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 45 ITEM 7A.
BOF Basic oxygen furnace CERCLA Comprehensive Environmental Response, Compensation and Liability Act of 1980 CHIPS Act Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 Clean Water Act Federal Water Pollution Control Act CN Canadian National Railway Company CODM Chief Operating Decision Maker Compensation Committee Compensation and Organization Committee of the Board CO 2 e Carbon dioxide equivalent Directors Plan Cleveland-Cliffs Inc.
Steel HRC Hot-rolled coil steel HVAC Heating, ventilation and air conditioning equipment IAM International Association of Machinists and Aerospace Workers Inflation Reduction Act Inflation Reduction Act of 2022 Infrastructure and Jobs Act Infrastructure Investment and Jobs Act of 2021 IRC U.S.
Internal Revenue Code of 1986, as amended ISO International Organization for Standardization IT Information technology JSW Steel JSW Steel (USA) Inc.
and JSW Steel USA Ohio, Inc., collectively LIFO Last-in, first-out LoM Life-of-mine Long ton (lt) 2,240 pounds Metric ton (mt) 2,205 pounds Minorca Iron ore mining property owned by Cleveland-Cliffs Minorca Mine Inc., an indirect, wholly owned subsidiary of Cliffs MMBtu Million British Thermal Units MPCA Minnesota Pollution Control Agency MSHA Mine Safety and Health Administration of the U.S.
Department of Labor Platts 62% price Platts IODEX 62% Fe Fines CFR North China QA/QC Quality assurance/quality control QP Qualified person, within the meaning set forth in Item 1300 of Regulation S-K RCRA Resource Conservation and Recovery Act S P Standard Poor's SEC U.S.
by the Company, as provided for in the Arrangement Agreement STRIPS Separate Trading of Registered Interest and Principal of Securities SunCoke Middletown Middletown Coke Company, LLC, a subsidiary of SunCoke Energy, Inc.
Our sizeable operating footprint provides us with the operational leverage and flexibility to achieve competitive margins throughout the business cycle.
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