CLF

Cleveland-Cliffs is the largest flat-rolled steel producer and iron-ore pellet supplier in North America, a heavily capital-intensive integrated steelmaker whose results swing violently with steel prices and demand. The cycle has turned hard against it: revenue slipped 3.0% to $18.6B (down from a $23.0B peak), but the bottom line collapsed to a -$1.48B net loss, worse than FY2024's -$760M, with an operating margin of -8.5% and a -24.2% ROE. This is the second consecutive year of deep losses, and the depreciation load ($1.24B, +29.9%) signals heavy fixed costs that crush profitability when volumes and pricing soften.

The balance sheet and liquidity are the bigger worry. Operating cash flow was -$462M, an outflow against just $57M of cash on hand, while long-term debt sits at $7.25B and total liabilities are 2.24x equity. With losses mounting and almost no cash buffer, the company has been issuing equity — shares outstanding rose 15.4% — diluting holders to fund operations and capex ($561M). Dividends and buybacks have effectively been halted, and retained earnings turned negative (-$529M).