Cleveland Cliffs

To be an essential steel producer for manufacturing by becoming the undisputed leader in North American steel.

Cleveland Cliffs SWOT Analysis

Updated: October 2, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Cleveland Cliffs was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Cleveland-Cliffs SWOT analysis reveals a company powerfully transformed, yet at a critical juncture. Its core strength, vertical integration, is a formidable competitive moat, particularly in securing the pole position with automotive clients. This strength must be leveraged to seize the generational opportunity in EV and infrastructure demand. However, this potential is anchored by the significant weaknesses of debt and carbon-intensive legacy assets. The primary strategic imperative is clear: use the cash flow from its current market dominance to aggressively deleverage and fund its decarbonization journey. Failure to mitigate the threats from economic cyclicality and nimble, lower-carbon competitors could undermine its hard-won leadership position. The path forward requires relentless financial discipline and strategic investment in the green steel transition to secure its long-term vision.

Nucor U.S. Steel Steel Dynamics ArcelorMittal Ternium

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be an essential steel producer for manufacturing by becoming the undisputed leader in North American steel.

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Strengths

INTEGRATION: Vertical model provides cost stability in volatile markets.
AUTOMOTIVE: #1 supplier to NA auto industry; strong, sticky relationships.
SCALE: Largest US flat-rolled producer, providing significant efficiencies.
LEADERSHIP: Visionary CEO with a proven track record of value creation.
DELEVERAGING: Aggressive debt reduction strengthens the balance sheet.

Weaknesses

DEBT: Still carries a significant debt load relative to some peers.
CYCLICALITY: Earnings highly sensitive to steel prices and economic cycles.
CARBON: High fixed costs and emissions from legacy blast furnace fleet.
LABOR: Highly unionized workforce presents risk of costly disruptions.
COMPLEXITY: Managing the vast, newly integrated enterprise is a challenge.

Opportunities

EVs: Growing demand for advanced steels in electric vehicle production.
INFRASTRUCTURE: IIJA and IRA bills driving long-term domestic steel demand.
RESHORING: US manufacturing renaissance creates new customer opportunities.
PRICING: Fixed-price contracts insulate from spot market volatility.
M&A: Potential for further consolidation or strategic asset acquisitions.

Threats

RECESSION: A sharp economic downturn would severely impact auto/mfg demand.
IMPORTS: Threat of foreign steel dumping remains despite tariff protections.
COMPETITION: Nimble, lower-emission EAF competitors like Nucor and SDI.
INPUT COSTS: Volatility in metallurgical coal and natural gas prices.
REGULATION: Potential for stricter environmental regulations on emissions.

Key Priorities

FINANCES: Fortify balance sheet by accelerating debt reduction to below 1.5x.
CONTRACTS: Lock in long-term value by expanding fixed-price contracts.
EV MARKET: Capitalize on EV growth by scaling advanced steel production.
DECARBONIZE: Mitigate carbon risk by advancing EAF and green steel plans.

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Cleveland Cliffs OKR

Updated: October 2, 2025 • 2025-Q4 Analysis

This Cleveland-Cliffs OKR plan is a masterclass in strategic focus. It translates the SWOT's core conclusion—financial fortification—into a clear, measurable, and inspiring roadmap. The objectives are bold yet grounded, directly addressing the primary weaknesses (debt) while leveraging strengths (cash generation). By linking every key result to a critical business outcome, from debt reduction to EV market penetration, the plan creates an aligned and accountable framework. This isn't just a list of tasks; it's a disciplined blueprint for extending market leadership and ensuring long-term resilience in a cyclical industry. It's the plan of a company intent on controlling its own destiny.

Nucor U.S. Steel Steel Dynamics ArcelorMittal Ternium

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be an essential steel producer for manufacturing by becoming the undisputed leader in North American steel.

FORTRESS BALANCE SHEET

Build an unbreakable financial foundation for any market.

DEBT: Reduce total net debt by $1.2B to achieve a Net Debt/EBITDA ratio of less than 1.5x.
CASHFLOW: Generate over $1.5B in free cash flow through disciplined operational and capital spending.
RATING: Secure an upgraded credit rating from Moody's or S&P, reflecting enhanced financial stability.
COSTS: Execute a cost-out program to realize $200M in annualized operational efficiency savings.

DOMINATE AUTOMOTIVE

Become the indispensable partner for the EV revolution.

EV STEEL: Increase advanced high-strength steel (AHSS) shipments for EV platforms by 400,000 tons.
CONTRACTS: Increase share of total steel volume sold under fixed-price contracts from 45% to 55%.
PARTNERSHIPS: Launch three new joint R&D programs with major auto OEMs for next-generation materials.
QUALITY: Achieve a 15% reduction in customer-reported quality issues, solidifying our premium status.

LEAD DECARBONIZATION

Pioneer the future of sustainable American steel.

EAF: Finalize engineering and site selection for a new, state-of-the-art Electric Arc Furnace.
EMISSIONS: Reduce Scope 1 & 2 GHG intensity by 5% through process optimization and energy efficiency.
H2-READY: Complete a feasibility study for using hydrogen in one of our direct reduction (DRI) plants.
FUNDING: Secure $100M+ in government grants (e.g., from IRA) to support decarbonization projects.

OPERATIONALIZE AI

Embed intelligence into every ton of steel we produce.

UPTIME: Deploy predictive maintenance AI at two blast furnaces, increasing asset uptime by 3%.
YIELD: Implement AI-driven process controls to improve prime production yield by a full 1.5%.
LOGISTICS: Reduce rail and truck demurrage costs by 10% using an AI-powered logistics optimization tool.
SAFETY: Launch a machine vision pilot program to identify and flag 3 major categories of safety hazards.

METRICS

Net Debt to Adjusted EBITDA Ratio: < 1.5x
Free Cash Flow: > $1.5 Billion
Adjusted EBITDA Margin: > 20%

VALUES

Safety First
Customer Focus
Operational Excellence
Environmental Stewardship
Shareholder Value

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Cleveland Cliffs Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Cleveland-Cliffs Q1 2024 10-Q Report and Earnings Call Transcript
Cleveland-Cliffs 2023 10-K Annual Report and Investor Presentations
Public statements and interviews by CEO Lourenco Goncalves
Industry reports on steel pricing, automotive production, and infrastructure spending
Reputable financial news sources (Bloomberg, Wall Street Journal, Reuters)

Nucor U.S. Steel Steel Dynamics ArcelorMittal Ternium

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be an essential steel producer for manufacturing by becoming the undisputed leader in North American steel.

Toggle Theme

What Went Well

AUTOMOTIVE: Maintained strong shipment volumes to automotive customers.
COSTS: Effective management of controllable costs amid inflationary pressures.
DEBT: Continued progress on debt reduction, strengthening the balance sheet.
CONTRACTS: Fixed-price contracts provided stability against spot price drops.
OPERATIONS: Generally stable operational performance across major facilities.

Not So Well

PRICING: Weaker spot market HRC prices negatively impacted revenue/margins.
GUIDANCE: Quarterly results sometimes missed analyst consensus expectations.
STEELCORP: The failed acquisition of U.S. Steel created market uncertainty.
CAPEX: Higher-than-expected capital expenditures in certain periods.
SENTIMENT: Broader market concerns about recession weighed on stock performance.

Learnings

STRATEGY: The value of fixed contracts is amplified in a falling price market.
DISCIPLINE: Maintaining capital discipline is crucial through market cycles.
COMMUNICATION: Clear communication on M&A strategy is vital for investors.
VOLATILITY: The business remains highly exposed to macroeconomic sentiment.
EFFICIENCY: Continuous focus on operational efficiency is non-negotiable.

Action Items

DELEVERAGE: Aggressively apply free cash flow to further reduce net debt.
CONTRACTS: Increase the percentage of volume under fixed-price agreements.
OPTIMIZE: Launch new initiatives to reduce costs at all production stages.
COMMUNICATE: Clearly articulate long-term value proposition to the market.
INNOVATE: Accelerate R&D on next-gen steels for the EV and green energy.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Cleveland Cliffs Market

AI-Powered Insights

Claude

Gemini

GPT

Cleveland-Cliffs Q1 2024 10-Q Report and Earnings Call Transcript
Cleveland-Cliffs 2023 10-K Annual Report and Investor Presentations
Public statements and interviews by CEO Lourenco Goncalves
Industry reports on steel pricing, automotive production, and infrastructure spending
Reputable financial news sources (Bloomberg, Wall Street Journal, Reuters)

Founded: 1847
Market Share: ~33% of US flat-rolled steel market
Customer Base: Primarily North American automotive and manufacturing
Category:
Steel Production
SIC Code: 1011
NAICS Code: 331110 Iron and Steel Mills and Ferroalloy Manufacturing
Location: Cleveland, Ohio
Zip Code: 44114
Congressional District: OH-11 CLEVELAND
Employees: 28000

Competitors

Nucor View Analysis

U.S. Steel Request Analysis

Steel Dynamics View Analysis

ArcelorMittal Request Analysis

Ternium Request Analysis

Products & Services

No products or services data available

Distribution Channels

Cleveland Cliffs Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Cleveland-Cliffs Q1 2024 10-Q Report and Earnings Call Transcript
Cleveland-Cliffs 2023 10-K Annual Report and Investor Presentations
Public statements and interviews by CEO Lourenco Goncalves
Industry reports on steel pricing, automotive production, and infrastructure spending
Reputable financial news sources (Bloomberg, Wall Street Journal, Reuters)

Problem

Auto OEMs need reliable, high-quality steel.
Supply chain volatility from foreign sources.
Price instability of raw materials (iron ore).

Solution

Vertically integrated domestic steel supply.
Long-term, fixed-price supply agreements.
Advanced, specialized steel for modern needs.

Key Metrics

Net Debt to Adjusted EBITDA Ratio
Free Cash Flow (FCF) per share
Steel Shipments (Tons) and Avg. Price/Ton

Unique

Largest US flat-rolled steel producer.
Only major US steelmaker fully self-sufficient
in iron ore feedstock.

Advantage

Control over input costs via mine ownership.
Unmatched scale and deep customer integration.
Decades of specialized automotive expertise.

Channels

Direct sales force for large OEM accounts.
Partnerships with steel service centers.

Customer Segments

North American Automotive Manufacturers.
Infrastructure and Construction sectors.
Industrial equipment and appliance makers.

Costs

High fixed costs of furnaces and mills.
Labor (unionized workforce).
Energy (natural gas, electricity, coal).

Cleveland Cliffs Product Market Fit Analysis

Updated: October 2, 2025

Cleveland-Cliffs provides North American manufacturers with a secure, reliable, and high-quality steel supply. Its unique vertical integration, from the mine to finished metal, insulates customers from global volatility. This ensures the automotive and industrial sectors can build the future with domestically produced, best-in-class steel, safeguarding their production lines and enhancing product quality.

Our vertical integration de-risks your supply chain from global volatility.

Our leadership in automotive steel ensures you receive the highest quality.

Our domestic focus guarantees reliable supply for American manufacturing.

Before State

Volatile raw material costs hurt margins
Fragmented, unreliable steel suppliers
Foreign steel dumping risks supply chain

After State

Stable, long-term domestic steel partner
Consistent supply of high-grade automotive steel
Predictable costs via fixed-price contracts

Negative Impacts

Production line shutdowns from steel shortages
Inconsistent steel quality affects products
Unpredictable pricing ruins project budgets

Positive Outcomes

Secure supply chain for critical manufacturing
Improved end-product quality and reliability
Enhanced budget stability and margin protection

Key Metrics

Customer Retention Rates - Est. 90%+ with key auto OEMs

Net Promoter Score (NPS) - Est. 40-50 (B2B industrial)

User Growth Rate - Tied to industrial production/auto sales

Customer Feedback/Reviews - N/A (B2B, not on G2)

Repeat Purchase Rates - Very high via long-term contracts

Requirements

Deep integration with customer production plans
Commitment to long-term supply agreements
Joint R&D for next-gen steel applications

Why Cleveland Cliffs

Dedicated account teams for major OEMs
Just-in-time delivery from US-based mills
Collaborative forecasting and planning cycles

Cleveland Cliffs Competitive Advantage

Unmatched vertical integration ensures supply
Decades of expertise in automotive steel
Scale allows for competitive long-term pricing

Proof Points

Largest flat-rolled steel producer in N. America
Largest supplier to the N. American auto industry
Successfully navigated recent supply chain crises

Cleveland Cliffs Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Cleveland-Cliffs Q1 2024 10-Q Report and Earnings Call Transcript
Cleveland-Cliffs 2023 10-K Annual Report and Investor Presentations
Public statements and interviews by CEO Lourenco Goncalves
Industry reports on steel pricing, automotive production, and infrastructure spending
Reputable financial news sources (Bloomberg, Wall Street Journal, Reuters)

Strategic pillars derived from our vision-focused SWOT analysis

Own the value chain from mine to metal.

Lead industry with low-emission steelmaking.

Prioritize North American industrial customers.

Maximize free cash flow and reduce debt.

What You Do

Produce high-quality, specialized steel products.

Target Market

Automotive OEMs and industrial manufacturers.

Differentiation

Vertically integrated from mine to finished steel
Largest supplier of automotive-grade steel in US

Revenue Streams

Fixed-price contract sales
Spot market sales of steel and iron ore

Cleveland Cliffs Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Cleveland-Cliffs Q1 2024 10-Q Report and Earnings Call Transcript
Cleveland-Cliffs 2023 10-K Annual Report and Investor Presentations
Public statements and interviews by CEO Lourenco Goncalves
Industry reports on steel pricing, automotive production, and infrastructure spending
Reputable financial news sources (Bloomberg, Wall Street Journal, Reuters)

Company Operations

Organizational Structure: Functional structure with divisional operations
Supply Chain: Self-supplied iron ore, sourcing coal/alloys
Tech Patents: Patents in advanced high-strength steels (AHSS)
Website: https://www.clevelandcliffs.com

Top Clients

Board Members

Cleveland Cliffs Competitive Forces

Threat of New Entry

Low: The steel industry has enormous barriers to entry, including massive capital investment for mills ($2-4B+) and extensive regulatory hurdles.

Supplier Power

Low-Medium: CLF's vertical integration for iron ore minimizes supplier power. However, it is exposed to market pricing for coking coal and alloys.

Buyer Power

High: Large automotive OEMs (Ford, GM, Stellantis) represent a concentrated customer base, giving them significant leverage in price negotiations.

Threat of Substitution

Low: There are few viable, large-scale substitutes for steel in core applications like automotive frames and building construction.

Competitive Rivalry

High: Intense rivalry exists between CLF, Nucor, SDI, and U.S. Steel for market share, especially in automotive and construction sectors.

Analysis of AI Strategy

Updated: October 2, 2025 • 2025-Q4 Analysis

The Cleveland-Cliffs AI SWOT analysis highlights a immense, untapped opportunity. The company's greatest asset is its vast, proprietary dataset spanning the entire steelmaking value chain—a resource competitors cannot replicate. This data is the fuel for transformative AI applications in predictive maintenance, energy optimization, and quality control, which can directly address core business challenges like operational efficiency and cost reduction. However, the path is blocked by internal weaknesses in legacy IT and a potential talent gap. The strategic priority must be a focused investment in modernizing data infrastructure and cultivating a small, high-impact AI team. By targeting high-ROI projects first, Cliffs can build momentum and demonstrate the power of AI to fortify its operational excellence and competitive advantage in the modern industrial era.

Nucor U.S. Steel Steel Dynamics ArcelorMittal Ternium

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be an essential steel producer for manufacturing by becoming the undisputed leader in North American steel.

Strengths

DATA: Massive, proprietary dataset from mining, logistics, and steelmaking.
PROCESS: Integrated operations are ideal for end-to-end AI optimization.
SCALE: Ability to fund and deploy AI solutions across a vast asset base.
METALLURGY: Decades of materials science data to train alloy design AI.
EXPERTISE: Deep domain knowledge to guide relevant AI model development.

Weaknesses

LEGACY: Aging IT infrastructure may hinder rapid AI model deployment.
TALENT: Shortage of skilled AI/ML engineers in the heavy industry sector.
CULTURE: Potential resistance to change in a traditional manufacturing org.
SILOS: Data may be fragmented across different legacy operational systems.
INTEGRATION: Difficulty connecting AI insights from disparate business units.

Opportunities

MAINTENANCE: AI-driven predictive maintenance to boost blast furnace uptime.
OPTIMIZATION: AI models to optimize energy/raw material usage in real time.
LOGISTICS: AI to streamline the complex supply chain from mines to customers.
PRICING: Dynamic pricing models for spot sales based on predictive analytics.
QUALITY: Machine vision to detect steel defects with superhuman accuracy.

Threats

CYBERSECURITY: AI-controlled operational tech (OT) is a prime cyber target.
COMPETITION: EAF peers may adopt agile AI solutions for efficiency faster.
COST: High cost of developing and implementing industrial-scale AI.
BIAS: Flawed AI models could lead to costly production or safety errors.
DEPENDENCY: Over-reliance on third-party AI vendors could create risks.

Key Priorities

OPTIMIZE: Deploy AI for predictive maintenance and energy use optimization.
SUPPLY-CHAIN: Use AI to create a fully optimized, transparent supply chain.
QUALITY: Implement machine vision for automated quality control systems.
TALENT: Build an internal AI team focused on high-value industrial problems.

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Cleveland Cliffs Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Cleveland-Cliffs Q1 2024 10-Q Report and Earnings Call Transcript
Cleveland-Cliffs 2023 10-K Annual Report and Investor Presentations
Public statements and interviews by CEO Lourenco Goncalves
Industry reports on steel pricing, automotive production, and infrastructure spending
Reputable financial news sources (Bloomberg, Wall Street Journal, Reuters)

Profit: $597 Million (TTM as of Q1 2024)

Market Cap: $7.9 Billion (as of mid-2024)

Stock Performance

Annual Report: Available on company's investor relations website

Debt: $3.6 Billion Net Debt (as of Q1 2024)

ROI Impact: Cyclicality of steel prices heavily impacts ROI

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Cliffs is a dominant Market Leader with a societal-level ambition to anchor America's industrial base. Its high achievability stems from a clear strategy and aligned OKRs that directly tackle core weaknesses like debt. However, its growth is constrained by the cyclical nature of its mature market (reflected in a lower TAM factor) and significant downside risks from economic downturns and decarbonization challenges. The Iconic Index score reflects a powerful, well-run incumbent, not a high-growth disruptor.

SWOT Factors

Upside: 83.0 Risk: 79.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Accelerate debt paydown to de-risk the balance sheet.

Secure long-term contracts to smooth cyclical earnings.

Execute flawlessly on decarbonization/EAF strategy.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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