CLEVELAND-CLIFFS INC. 10-Q

ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL POSITION CLEVELAND-CLIFFS INC. AND SUBSIDIARIES (In millions, except share information) June 30, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 70 $ 57 Accounts receivable, net 2,044 1,442 Inventories 4,525 4,772 Other current assets 175 164 Total current assets 6,814 6,435 Non-current assets: Property, plant and equipment, net 9,239 9,481 Goodwill 1,784 1,814 Intangible assets, net 1,063 1,135 Pension and OPEB assets 547 469 Other non-current assets 668 678 TOTAL ASSETS $ 20,115 $ 20,012 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 2,159 $ 1,893 Accrued employment costs 509 517 Accrued expenses 378 396 Other current liabilities 560 496 Total current liabilities 3,606 3,302 Non-current liabilities: Long-term debt 7,703 7,253 Pension and OPEB liabilities 617 655 Deferred income taxes 300 375 Asset retirement and environmental obligations 695 682 Other non-current liabilities 1,376 1,422 TOTAL LIABILITIES 14,297 13,689 Commitments and contingencies (See Note 18) Equity: Common shares - par value $ 0.125 per share Authorized - 1,200,000,000 shares (2025 - 1,200,000,000 shares); Issued - 606,051,530 shares (2025 - 606,051,530 shares); Outstanding - 570,527,556 shares (2025 - 569,759,243 shares) 76 76 Capital in excess of par value of shares 5,746 5,736 Retained deficit ( 911 ) ( 529 ) Cost of 35,523,974 common shares in treasury (2025 - 36,292,287 shares) ( 643 ) ( 659 ) Accumulated other comprehensive income 1,336 1,492 Total Cliffs shareholders' equity 5,604 6,116 Noncontrolling interests 214 207 TOTAL EQUITY 5,818 6,323 TOTAL LIABILITIES AND EQUITY $ 20,115 $ 20,012 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 2 Table of Contents STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS CLEVELAND-CLIFFS INC. AND SUBSIDIARIES Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share amounts) 2026 2025 2026 2025 Revenues $ 5,226 $ 4,934 $ 10,148 $ 9,563 Operating costs: Cost of goods sold ( 5,094 ) ( 5,146 ) ( 10,098 ) ( 10,171 ) Selling, general and administrative expenses ( 154 ) ( 137 ) ( 279 ) ( 270 ) Restructuring and other charges ( 3 ) ( 86 ) ( 3 ) ( 89 ) Asset impairment — ( 39 ) — ( 39 ) Miscellaneous – net ( 24 ) ( 27 ) ( 30 ) ( 38 ) Total operating costs ( 5,275 ) ( 5,435 ) ( 10,410 ) ( 10,607 ) Operating loss ( 49 ) ( 501 ) ( 262 ) ( 1,044 ) Other income (expense): Interest expense, net ( 156 ) ( 149 ) ( 304 ) ( 289 ) Net periodic benefit credits other than service cost component 64 43 128 100 Changes in fair value of derivatives, net ( 12 ) ( 15 ) ( 22 ) ( 24 ) Other non-operating income 1 1 1 1 Total other expense ( 103 ) ( 120 ) ( 197 ) ( 212 ) Loss from continuing operations before income taxes ( 152 ) ( 621 ) ( 459 ) ( 1,256 ) Income tax benefit 20 148 101 297 Loss from continuing operations ( 132 ) ( 473 ) ( 358 ) ( 959 ) Loss from discontinued operations, net of tax ( 2 ) — ( 5 ) — Net loss ( 134 ) ( 473 ) ( 363 ) ( 959 ) Net income attributable to noncontrolling interests ( 11 ) ( 13 ) ( 19 ) ( 25 ) Net loss attributable to Cliffs shareholders $ ( 145 ) $ ( 486 ) $ ( 382 ) $ ( 984 ) Loss per common share attributable to Cliffs shareholders - basic Continuing operations $ ( 0.25 ) $ ( 0.98 ) $ ( 0.66 ) $ ( 1.99 ) Discontinued operations — — ( 0.01 ) — $ ( 0.25 ) $ ( 0.98 ) $ ( 0.67 ) $ ( 1.99 ) Loss per common share attributable to Cliffs shareholders - diluted Continuing operations $ ( 0.25 ) $ ( 0.98 ) $ ( 0.66 ) $ ( 1.99 ) Discontinued operations — — ( 0.01 ) — $ ( 0.25 ) $ ( 0.98 ) $ ( 0.67 ) $ ( 1.99 ) The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 Table of Contents STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED COMPREHENSIVE LOSS CLEVELAND-CLIFFS INC. AND SUBSIDIARIES Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Net loss $ ( 134 ) $ ( 473 ) $ ( 363 ) $ ( 959 ) Other comprehensive income (loss): Changes in pension and OPEB, net of tax ( 24 ) ( 25 ) ( 47 ) ( 52 ) Changes in derivative instruments, net of tax ( 41 ) ( 45 ) ( 65 ) 56 Changes in foreign currency translation ( 24 ) 102 ( 44 ) 103 Total other comprehensive income (loss) ( 89 ) 32 ( 156 ) 107 Comprehensive loss ( 223 ) ( 441 ) ( 519 ) ( 852 ) Comprehensive income attributable to noncontrolling interests ( 11 ) ( 13 ) ( 19 ) ( 25 ) Comprehensive loss attributable to Cliffs shareholders $ ( 234 ) $ ( 454 ) $ ( 538 ) $ ( 877 ) The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 Table of Contents STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS CLEVELAND-CLIFFS INC. AND SUBSIDIARIES Six Months Ended June 30, (In millions) 2026 2025 OPERATING ACTIVITIES Net loss $ ( 363 ) $ ( 959 ) Adjustments to reconcile net loss to net cash used by operating activities: Depreciation, depletion and amortization 521 675 Pension and OPEB credits ( 111 ) ( 82 ) Deferred income taxes ( 102 ) ( 303 ) Restructuring and other charges 3 89 Asset impairments — 39 Other 130 63 Changes in operating assets and liabilities: Accounts receivable, net ( 607 ) ( 199 ) Inventories 229 396 Income taxes 2 10 Pension and OPEB payments and contributions ( 73 ) ( 73 ) Payables, accrued employment and accrued expenses 277 5 Other, net ( 1 ) 33 Net cash used by operating activities ( 95 ) ( 306 ) INVESTING ACTIVITIES Purchase of property, plant and equipment ( 309 ) ( 264 ) Other investing activities 43 8 Net cash used by investing activities ( 266 ) ( 256 ) FINANCING ACTIVITIES Proceeds from issuance of senior notes — 850 Borrowings (repayments) under ABL Facility, net 444 ( 183 ) Debt issuance costs — ( 14 ) Other financing activities ( 69 ) ( 86 ) Net cash provided by financing activities 375 567 Net increase in cash and cash equivalents 14 5 Cash, cash equivalents, and restricted cash at beginning of period 63 60 Effect of exchange rate changes on cash ( 1 ) 3 Cash, cash equivalents, and restricted cash at end of period 76 68 Restricted cash ( 6 ) ( 7 ) Cash and cash equivalents at end of period $ 70 $ 61 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 5 Table of Contents STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CHANGES IN EQUITY CLEVELAND-CLIFFS INC. AND SUBSIDIARIES (In millions) Number of Common Shares Outstanding Par Value of Common Shares Issued Capital in Excess of Par Value of Shares Retained Earnings (Deficit) Common Shares in Treasury AOCI Non-Controlling Interest Total December 31, 2025 569.8 $ 76 $ 5,736 $ ( 529 ) $ ( 659 ) $ 1,492 $ 207 $ 6,323 Comprehensive income (loss) — — — ( 237 ) — ( 67 ) 8 ( 296 ) Stock and other incentive plans 0.6 — ( 4 ) — 14 — — 10 Net distributions to noncontrolling interests — — — — — — ( 18 ) ( 18 ) March 31, 2026 570.4 $ 76 $ 5,732 $ ( 766 ) $ ( 645 ) $ 1,425 $ 197 $ 6,019 Comprehensive income (loss) — — — ( 145 ) — ( 89 ) 11 ( 223 ) Stock and other incentive plans 0.1 — 14 — 2 — — 16 Net contributions to noncontrolling interests — — — — — — 6 6 June 30, 2026 570.5 $ 76 $ 5,746 $ ( 911 ) $ ( 643 ) $ 1,336 $ 214 $ 5,818 (In millions) Number of Common Shares Outstanding Par Value of Common Shares Issued Capital in Excess of Par Value of Shares Retained Earnings (Deficit) Common Shares in Treasury AOCI Non-Controlling Interest Total December 31, 2024 493.9 $ 66 $ 4,758 $ 949 $ ( 676 ) $ 1,537 $ 233 $ 6,867 Comprehensive income (loss) — — — ( 498 ) — 75 12 ( 411 ) Stock and other incentive plans 0.6 — ( 2 ) — 12 — — 10 Net distributions to noncontrolling interests — — — — — — ( 15 ) ( 15 ) March 31, 2025 494.5 $ 66 $ 4,756 $ 451 $ ( 664 ) $ 1,612 $ 230 $ 6,451 Comprehensive income (loss) — — — ( 486 ) — 32 13 ( 441 ) Stock and other incentive plans 0.2 — 12 — 4 — — 16 Net distributions to noncontrolling interests — — — — — — ( 20 ) ( 20 ) June 30, 2025 494.7 $ 66 $ 4,768 $ ( 35 ) $ ( 660 ) $ 1,644 $ 223 $ 6,006 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 6 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CLEVELAND-CLIFFS INC. AND SUBSIDIARIES NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES BUSINESS, CONSOLIDATION AND PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with SEC rules and regulations and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations, comprehensive income (loss), cash flows and changes in equity for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its estimates on various assumptions and historical experience, which are believed to be reasonable; however, due to the inherent nature of estimates, actual results may differ significantly due to changed conditions or assumptions. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of results to be expected for the year ending December 31, 2026 or any other future period. Certain prior period amounts have been reclassified to conform with the current year presentation. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2025. NATURE OF BUSINESS We are a leading North America-based steel producer with focus on value-added sheet products, particularly for the automotive industry. We are vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling and tubing. Headquartered in Cleveland, Ohio, we employ approximately 25,000 people across our operations in the United States and Canada. More than 90% of our approximately 20,000 hourly workforce is represented by three prominent unions – USW, UAW and IAM. BUSINESS OPERATIONS We are organized into four operating segments based on differentiated products, Steelmaking, Tubular, Tooling and Stamping, and European Operations. We primarily operate through one reportable segment – the Steelmaking segment. BASIS OF CONSOLIDATION The consolidated financial statements consolidate our accounts and the accounts of our wholly owned subsidiaries, all subsidiaries in which we have a controlling interest and VIEs for which we are the primary beneficiary. All intercompany transactions and balances are eliminated upon consolidation. INVESTMENTS IN AFFILIATES We have investments in several businesses accounted for using the equity method of accounting. These investments are included within our Steelmaking segment. We review an investment for impairment when circumstances indicate that a loss in value below its carrying amount is other than temporary. Our investment in affiliates of $ 129 million and $ 132 million as of June 30, 2026 and December 31, 2025, respectively, was classified in Other non-current assets. CORRECTION OF AN IMMATERIAL ERROR During the third quarter of 2025, we identified an immaterial error related to our accrual for certain employment costs, resulting in an understatement of Costs of goods sold in prior periods. Prior periods affected include the interim periods ended March 31, 2025 and June 30, 2025, and the interim and annual periods during the years 2022, 2023 and 2024. For the three and six months ended June 30, 2025, Costs of goods sold was increased by $ 3 million and $ 8 million, respectively, to adjust for the error. These adjustments were partially offset by related income tax effects that resulted in an increase to Income tax benefit of a nominal amount and $ 2 million for the three and six months ended June 30, 2025, respectively. Any related impact to cash flows was limited to captions within operating activities. Related changes to financial statement subtotals and related disclosures within the notes accompanying these financial statements reflect the correction of the error. Management evaluated the quantitative and qualitative considerations of the error and determined that the related impact was not material to the results of operations, financial position, or cash flows for any historical annual or interim period. SIGNIFICANT ACCOUNTING POLICIES A detailed description of our significant accounting policies can be found in the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC. There have been no material changes in our significant accounting policies and estimates from those disclosed therein. RECENT ACCOUNTING PRONOUNCEMENTS ACCOUNTING PRONOUNCEMENTS - ISSUED AND NOT EFFECTIVE In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses. This new standard does not affect the recognition, measurement or financial 7 Table of Contents statement presentation. However, this guidance does require additional annual and interim disclosures related to the disaggregation of various income statement expense captions. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. NOTE 2 - SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION INVENTORIES The following table presents the detail of our Inventories on the Statements of Unaudited Condensed Consolidated Financial Position: (In millions) June 30, 2026 December 31, 2025 Product inventories Finished and semi-finished goods $ 2,319 $ 2,401 Raw materials 1,695 1,848 Total product inventories 4,014 4,249 Manufacturing supplies and critical spares 511 523 Inventories $ 4,525 $ 4,772 SUPPLY CHAIN FINANCE PROGRAMS We negotiate payment terms directly with our suppliers for the purchase of goods and services. We currently offer voluntary supply chain finance programs that enable our suppliers to sell their Company receivables to financial intermediaries, at the sole discretion of both the suppliers and financial intermediaries. No guarantees are provided by us or our subsidiaries under the supply chain finance programs. The supply chain finance programs allow our suppliers to be paid by the financial intermediaries earlier than the due date on the applicable invoice. Supply chain finance programs that extend terms or provide us an economic benefit are classified as short-term financings. As of June 30, 2026 and December 31, 2025, we had $ 20 million and $ 28 million, respectively, deemed as short-term financings that are classified in Other current liabilities . Additionally , as of June 30, 2026 and December 31, 2025, we had $ 71 million and $ 73 million, respectively, classified as Accounts payable. INDEFINITELY IDLED FACILITIES CHARGES The following table represents a reconciliation of our accrued liabilities related to the discontinuation of certain product lines resulting from the indefinite idling of our Steelton rail production facility and Weirton tinplate production facility: (In millions) Employee-Related Costs Exit Costs Total Balance as of December 31, 2025 $ 70 $ 8 $ 78 Cash payments ( 13 ) ( 1 ) ( 14 ) Balance as of March 31, 2026 $ 57 $ 7 $ 64 Costs incurred 1 2 1 3 Cash payments ( 12 ) ( 1 ) ( 13 ) Balance as of June 30, 2026 $ 47 $ 7 $ 54 1 All $ 3 million of cost incurred was recorded in Restructuring and other charges. CASH FLOW INFORMATION A reconciliation of capital additions to cash paid for capital expenditures is as follows: Six Months Ended June 30, (In millions) 2026 2025 Capital additions $ 315 $ 281 Less: Non-cash accruals ( 38 ) ( 53 ) Equipment financed with seller 11 28 Right-of-use assets - finance leases 33 42 Cash paid for capital expenditures including deposits $ 309 $ 264 8 Table of Contents Cash payments (receipts) for income taxes and interest are as follows: Six Months Ended June 30, (In millions) 2026 2025 Income taxes paid $ 2 $ 4 Income tax refunds ( 6 ) ( 11 ) Interest paid on debt obligations net of capitalized interest 1 256 210 1 Capitalized interest was $ 7 million and $ 8 million for the six months ended June 30, 2026 and 2025, respectively. NOTE 3 - REVENUES We generate our revenue through product sales, in which shipping terms indicate when we have fulfilled our performance obligations and transferred control of products to our customer. Our revenue transactions consist of a single performance obligation to transfer promised goods. Our contracts with customers define the mechanism for determining the sales price, which is generally fixed upon transfer of control, but the contracts generally do not impose a specific quantity on either party. Quantities to be delivered to the customer are determined at a point near the date of delivery through purchase orders or other written instructions we receive from the customer. Spot market sales are made through purchase orders or other written instructions. We consider our performance obligation to be complete and recognize revenue when control transfers in accordance with shipping terms. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring product. We reduce the amount of revenue recognized for estimated returns and other customer credits, such as discounts and volume rebates, based on the expected value to be realized. Payment terms are consistent with terms standard to the markets we serve. Sales taxes collected from customers are excluded from revenues. Revenue by market and product are presented net of intersegment revenues. The following table represents our Revenues by market: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Steelmaking Direct automotive $ 1,461 $ 1,249 $ 2,829 $ 2,546 Infrastructure and manufacturing 1,427 1,489 2,801 2,843 Distributors and converters 1,638 1,433 3,101 2,661 Steel producers 526 600 1,078 1,188 Total Steelmaking 5,052 4,771 9,809 9,238 Other Businesses Direct automotive 147 129 285 259 Infrastructure and manufacturing 11 14 20 24 Distributors and converters 16 20 34 42 Total Other Businesses 174 163 339 325 Total revenues $ 5,226 $ 4,934 $ 10,148 $ 9,563 9 Table of Contents The following tables represent our Revenues by product line: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Steelmaking Hot-rolled steel $ 1,539 $ 1,332 $ 2,949 $ 2,498 Cold-rolled steel 660 645 1,297 1,236 Coated steel 1,532 1,392 2,963 2,753 Stainless and electrical steel 525 434 990 878 Plate steel 253 275 507 522 Other steel products 16 276 124 523 Other 527 417 979 828 Total Steelmaking 5,052 4,771 9,809 9,238 Other Businesses Other 174 163 339 325 Total revenues $ 5,226 $ 4,934 $ 10,148 $ 9,563 NOTE 4 - SEGMENT REPORTING We are vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. We are organized into four operating segments based on our differentiated products – Steelmaking, Tubular, Tooling and Stamping, and European Operations. We have one reportable segment – Steelmaking. The operating segment results of our Tubular, Tooling and Stamping, and European Operations that do not constitute reportable segments are combined and disclosed in the Other Businesses category. Our Steelmaking segment operates as a leading North America-based steel producer with focus on value-added sheet products, primarily serving the automotive, infrastructure and manufacturing, and distributors and converters markets. Our Other Businesses primarily include the operating segments that provide customer solutions with carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components, and complex assemblies. All intersegment transactions were eliminated in consolidation. Corporate assets and capital additions are primarily related to and support the operations of the Steelmaking segment and therefore have been incorporated within the Steelmaking segment total assets and capital additions below. We allocate Corporate Selling, general and administrative expenses to our operating segments. Our CODM, Lourenco Goncalves, Chairman and Chief Executive Officer, evaluates performance on an operating segment basis, as well as a consolidated basis, based on Adjusted EBITDA, which is a non-GAAP measure. This measure is used by our CODM, management, investors, lenders and other external users of our financial statements to assess our operating performance and to compare operating performance to other companies in the steel industry. In addition, our CODM believes Adjusted EBITDA is a useful measure to assess the earnings power of the business without the impact of capital structure and can be used to assess our ability to service debt and fund future capital expenditures in the business. 10 Table of Contents The following tables provide our results by segment as well as a reconciliation from consolidated Adjusted EBITDA to our consolidated Net loss : Three Months Ended June 30, 2026 (In millions) Steelmaking Other Businesses Eliminations Total Revenues $ 5,096 $ 177 $ ( 47 ) $ 5,226 Cost of goods sold ( 4,983 ) ( 158 ) 47 ( 5,094 ) Selling, general and administrative expenses ( 147 ) ( 7 ) — ( 154 ) Net periodic benefit credits other than service cost component 64 — — 64 Excluding depreciation, depletion and amortization 254 8 — 262 Other segment items 1 ( 16 ) ( 2 ) — ( 18 ) Total Adjusted EBITDA $ 268 $ 18 $ — $ 286 Interest expense, net ( 156 ) Income tax benefit 20 Depreciation, depletion and amortization ( 262 ) EBITDA from noncontrolling interests 2 16 Idled facilities charges ( 5 ) Currency exchange ( 19 ) Changes in fair value of derivatives, net ( 12 ) Gain on disposal of assets, net 2 Other, net ( 4 ) Net loss $ ( 134 ) Capital Additions $ 187 $ 2 $ — $ 189 1 Other segment items primarily consist of the exclusion of EBITDA from noncontrolling interests from Adjusted EBITDA, certain idled facilities charges and the inclusion of items within Miscellaneous – net and Other non-operating income . 2 EBITDA from noncontrolling interests includes net income attributable to noncontrolling interests of $ 11 million and the exclusion of depreciation, depletion and amortization of $ 5 million. 11 Table of Contents Three Months Ended June 30, 2025 (In millions) Steelmaking Other Businesses Eliminations Total Revenues $ 4,808 $ 163 $ ( 37 ) $ 4,934 Cost of goods sold ( 5,034 ) ( 147 ) 35 ( 5,146 ) Selling, general and administrative expenses ( 130 ) ( 7 ) — ( 137 ) Net periodic benefit credits other than service cost component 43 — — 43 Excluding depreciation, depletion and amortization 386 7 — 393 Other segment items 1 7 — — 7 Total Adjusted EBITDA $ 80 $ 16 $ ( 2 ) $ 94 Interest expense, net ( 149 ) Income tax benefit 148 Depreciation, depletion and amortization ( 393 ) EBITDA from noncontrolling interests 2 20 Idled facilities charges ( 204 ) Currency exchange 48 Changes in fair value of derivatives, net ( 15 ) Loss on disposal of assets, net ( 2 ) Amortization of inventory step-up ( 1 ) Severance ( 19 ) Net loss $ ( 473 ) Capital Additions $ 150 $ 2 $ — $ 152 1 Other segment items primarily consist of the exclusion of EBITDA from noncontrolling interests from Adjusted EBITDA, certain idled facilities charges and the inclusion of items within Miscellaneous – net and Other non-operating income. 2 EBITDA from noncontrolling interests includes net income attributable to noncontrolling interests of $ 13 million and the exclusion of depreciation, depletion and amortization of $ 7 million. 12 Table of Contents Six Months Ended June 30, 2026 (In millions) Steelmaking Other Businesses Eliminations Total Revenues $ 9,893 $ 344 $ ( 89 ) $ 10,148 Cost of goods sold ( 9,875 ) ( 312 ) 89 ( 10,098 ) Selling, general and administrative expenses ( 264 ) ( 15 ) — ( 279 ) Net periodic benefit credits other than service cost component 128 — — 128 Excluding depreciation, depletion and amortization 505 16 — 521 Other segment items 1 ( 39 ) — — ( 39 ) Total Adjusted EBITDA $ 348 $ 33 $ — $ 381 Interest expense, net ( 304 ) Income tax benefit 101 Depreciation, depletion and amortization ( 521 ) EBITDA from noncontrolling interests 2 31 Idled facilities credits 5 Currency exchange ( 33 ) Changes in fair value of derivatives, net ( 22 ) Gain on disposal of assets, net 9 Severance ( 1 ) Other, net ( 9 ) Net loss $ ( 363 ) Capital Additions $ 311 $ 4 $ — $ 315 1 Other segment items primarily consist of the exclusion of EBITDA from noncontrolling interests, certain idled facilities credits and the inclusion of items within Miscellaneous – net and Other non-operating income. 2 EBITDA from noncontrolling interests includes net income attributable to noncontrolling interests of $ 19 million and the exclusion of depreciation, depletion and amortization of $ 12 million. 13 Table of Contents Six Months Ended June 30, 2025 (In millions) Steelmaking Other Businesses Eliminations Total Revenues $ 9,303 $ 325 $ ( 65 ) $ 9,563 Cost of goods sold ( 9,934 ) ( 300 ) 63 ( 10,171 ) Selling, general and administrative expenses ( 256 ) ( 14 ) — ( 270 ) Net periodic benefit credits other than service cost component 100 — — 100 Excluding depreciation, depletion and amortization 660 15 — 675 Other segment items 1 18 — — 18 Total Adjusted EBITDA $ ( 109 ) $ 26 $ ( 2 ) $ ( 85 ) Interest expense, net ( 289 ) Income tax benefit 297 Depreciation, depletion and amortization ( 675 ) EBITDA from noncontrolling interests 2 38 Idled facilities charges ( 248 ) Currency exchange 46 Changes in fair value of derivatives, net ( 24 ) Loss on disposal of assets, net ( 4 ) Amortization of inventory step-up 6 Severance ( 20 ) Other, net ( 1 ) Net loss $ ( 959 ) Capital Additions $ 273 $ 8 $ — $ 281 1 Other segment items primarily consist of the exclusion of EBITDA from noncontrolling interests from Adjusted EBITDA, certain idled facilities charges and the inclusion of items within Miscellaneous – net and Other non-operating income. 2 EBITDA from noncontrolling interests includes net income attributable to noncontrolling interests of $ 25 million and the exclusion of depreciation, depletion and amortization of $ 13 million. The following summarizes our assets by segment: (In millions) June 30, 2026 December 31, 2025 Assets: Steelmaking $ 19,525 $ 19,416 Other Businesses 590 596 Total segment assets $ 20,115 $ 20,012 NOTE 5 - PROPERTY, PLANT AND EQUIPMENT The following table indicates the carrying value of each of the major classes of our depreciable assets: (In millions) June 30, 2026 December 31, 2025 Land, land improvements and mineral rights $ 1,462 $ 1,463 Buildings 1,197 1,205 Equipment 11,800 11,630 Other 341 357 Construction in progress 688 655 Total property, plant and equipment 1 15,488 15,310 Allowance for depreciation and depletion ( 6,249 ) ( 5,829 ) Property, plant and equipment, net $ 9,239 $ 9,481 1 Includes right-of-use assets related to finance leases of $ 573 million and $ 576 million as of June 30, 2026 and December 31, 2025, respectively. 14 Table of Contents We recorded depreciation and depletion expense of $ 244 million and $ 483 million for the three and six months ended June 30, 2026, respectively, and $ 374 million and $ 638 million for the three and six months ended June 30, 2025, respectively. During the second quarter of 2025, we decided to indefinitely idle our Steelton, Conshohocken, and Riverdale facilities. As a result, a $ 39 million Asset impairment was recorded to Property, plant and equipment, net and accelerated depreciation of $ 119 million was recorded for both the three and six months ended June 30, 2025, included within depreciation and depletion expense. NOTE 6 - GOODWILL AND INTANGIBLE ASSETS AND LIABILITIES GOODWILL The following table summarizes the changes in Goodwill by segment: (In millions) Steelmaking Other Businesses Total Beginning balance January 1, 2026 $ 1,765 $ 49 $ 1,814 Foreign currency translation ( 30 ) — ( 30 ) Ending balance June 30, 2026 $ 1,735 $ 49 $ 1,784 INTANGIBLE ASSETS AND LIABILITIES The following is a summary of our intangible assets and liabilities: June 30, 2026 December 31, 2025 (In millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangible assets 1 : Customer relationships $ 1,027 $ ( 136 ) $ 891 $ 1,058 $ ( 104 ) $ 954 Developed technology 60 ( 23 ) 37 60 ( 21 ) 39 Trade names and trademarks 88 ( 17 ) 71 91 ( 14 ) 77 Mining permits 72 ( 30 ) 42 72 ( 30 ) 42 Supplier relationships 29 ( 7 ) 22 29 ( 6 ) 23 Total intangible assets $ 1,276 $ ( 213 ) $ 1,063 $ 1,310 $ ( 175 ) $ 1,135 Intangible liabilities 2 : Above-market supply contracts $ ( 71 ) $ 38 $ ( 33 ) $ ( 71 ) $ 35 $ ( 36 ) 1 Amortization related to mining permits and supplier relationships is recognized in Cost of goods sold . Amortization of all other intangible assets is recognized in Selling, general and administrative expenses. 2 Intangible liabilities are classified as Other non-current liabilities. Amortization of all intangible liabilities is recognized in Cost of goods sold . Amortization expense related to Intangible assets, net was $ 20 million and $ 21 million for the three months ended June 30, 2026 and 2025, respectively, and was $ 41 million and $ 40 million for the six months ended June 30, 2026 and 2025, respectively. Any additional movements in the balance of Intangible assets, net as of June 30, 2026, compared to December 31, 2025, is due to fluctuation in foreign currency exchange rates. Estimated future amortization expense is $ 40 million for the remainder of 2026, $ 80 million annually for the years 2027 through 2029 and $ 79 million for 2030 and 2031. Income from amortization related to the intangible liabilities was $ 2 million for both the three months ended June 30, 2026 and 2025, and was $ 3 million for both the six months ended June 30, 2026 and 2025. Estimated future income from amortization is $ 2 million for the remainder of 2026 and $ 5 million annually for the years 2027 through 2031. 15 Table of Contents NOTE 7 - DEBT AND CREDIT FACILITIES The following represents a summary of our long-term debt: (In millions) Debt Instrument Annual Effective Interest Rate June 30, 2026 December 31, 2025 Senior Unsecured Notes: 4.625 % 2029 Senior Notes 4.625 % 368 368 6.875 % 2029 Senior Notes 6.875 % 900 900 6.750 % 2030 Senior Notes 6.750 % 750 750 4.875 % 2031 Senior Notes 4.875 % 325 325 7.500 % 2031 Senior Notes 7.500 % 850 850 7.000 % 2032 Senior Notes 7.054 % 1,425 1,425 7.375 % 2033 Senior Notes 7.375 % 900 900 7.625 % 2034 Senior Notes 7.516 % 1,125 1,125 6.250 % 2040 Senior Notes 6.340 % 235 235 ABL Facility Variable 1 895 452 Total principal amount 7,773 7,330 Unamortized discounts and issuance costs ( 70 ) ( 77 ) Total long-term debt $ 7,703 $ 7,253 1 Our ABL Facility annual effective interest rate was 5.143 % as of June 30, 2026. ABL FACILITY As of June 30, 2026, we were in compliance with the ABL Facility liquidity requirements and, therefore, the springing financial covenant requiring a minimum fixed charge coverage ratio of 1.0 to 1.0 was not applicable. The following represents a summary of our borrowing capacity under our ABL Facility: (In millions) June 30, 2026 Available borrowing base on ABL Facility 1 $ 3,969 Borrowings ( 895 ) Letter of credit obligations 2 ( 60 ) Borrowing capacity available $ 3,014 1 As of June 30, 2026, our ABL Facility has a maximum available borrowing base of $ 4.75 billion. The borrowing base is determined by applying customary advance rates to eligible accounts receivable, inventory and certain mobile equipment. 2 We issued standby letters of credit with certain financial institutions in order to support business obligations, including, but not limited to, operating agreements, employee severance, environmental obligations, workers' compensation and insurance obligations. DEBT MATURITIES The following represents a summary of our maturities of debt instruments based on the principal amounts outstanding as of June 30, 2026 (in millions): 2026 2027 2028 2029 2030 Thereafter Total $ — $ — $ 895 $ 1,268 $ 750 $ 4,860 $ 7,773 16 Table of Contents NOTE 8 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS We offer benefits through defined benefit pension plans, defined contribution pension plans and OPEB plans to a significant portion of our employees and retirees. Benefits are also provided through multiemployer plans for certain union members. The following are the components of defined benefit pension and OPEB costs (credits): DEFINED BENEFIT PENSION COSTS (CREDITS) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Service cost $ 7 $ 7 $ 14 $ 14 Interest cost 45 52 90 105 Expected return on plan assets ( 82 ) ( 80 ) ( 163 ) ( 159 ) Amortization: Prior service costs 5 5 9 9 Net actuarial gain ( 5 ) ( 2 ) ( 9 ) ( 4 ) Net periodic benefit credits $ ( 30 ) $ ( 18 ) $ ( 59 ) $ ( 35 ) OPEB COSTS (CREDITS) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Service cost $ 1 $ 2 $ 3 $ 4 Interest cost 15 15 29 29 Expected return on plan assets ( 11 ) ( 10 ) ( 22 ) ( 21 ) Termination benefits 1 — 15 — 15 Amortization: Prior service credits ( 3 ) ( 4 ) ( 6 ) ( 7 ) Net actuarial gain ( 28 ) ( 34 ) ( 56 ) ( 67 ) Net periodic benefit credits $ ( 26 ) $ ( 16 ) $ ( 52 ) $ ( 47 ) Based on funding requirements, we made $ 3 million and $ 16 million of defined benefit pension contributions for the three and six months ended June 30, 2026, respectively, and we made $ 14 million and $ 29 million of defined benefit pension contributions for the three and six months ended June 30, 2025, respectively. Based on funding requirements, we made no contributions to our voluntary employee benefit association trust plans for both the three and six months ended June 30, 2026 and 2025. NOTE 9 - STOCK COMPENSATION PLANS PERFORMANCE SHARES During the first quarter of 2026, we issued market stock units under our 2021 Equity Plan. The structure and performance metric for these units were modified as compared to prior performance share awards granted under our 2021 Equity Plan. The market stock units granted during the first quarter of 2026 vest over a period of three years and are intended to be paid out in common shares. Performance is measured based on a trailing 30-day volume-weighted average of our stock price at the end of the performance period, measured against the grant‑date stock price of $ 10.55 per share. The number of shares that will ultimately be earned at the end of the performance period will vary based on the level of absolute stock price appreciation or depreciation, subject to a payout range of 50 % to 150 % of the target number of market stock units granted. Approximately 2.8 million market stock units were granted during the first quarter of 2026. Under the terms of these market stock units, certain retirement-eligible members of management become entitled to accelerated vesting upon retirement on or after December 31, 2026. As a result, the Company will recognize expense for such market stock units granted over the required service period, and these market stock units granted will be treated as fully vested at December 31, 2026. We value our market stock units using a Monte Carlo simulation on the grant date. The simulation models the Company’s future stock price over the performance period and incorporates the payout provisions of the award based on absolute stock price performance. The fair value reflects the probability‑weighted outcomes of the performance condition, including applicable caps and floors on payout. The expected term of the grant represents the period from the grant date to the end of the performance period. We estimate the volatility of our common shares using daily historical stock price data over a period commensurate with the performance period. The risk‑free interest rate is based on the rate in effect at the grant date for U.S. Treasury securities with a maturity consistent with the remaining performance period. 17 Table of Contents RESTRICTED STOCK UNITS During the first quarter of 2026, the number of stock-settled restricted stock units granted were reduced to a nominal level as compared to the prior period in 2025. NOTE 10 - INCOME TAXES Our income tax benefit for the three and six months ended June 30, 2026 is $ 20 million and $ 101 million, respectively, compared to income tax benefit of $ 148 million and $ 297 million for the three and six months ended June 30, 2025, respectively. This decrease is primarily due to a decrease in Loss from continuing operations before income taxes . NOTE 11 - ASSET RETIREMENT AND ENVIRONMENTAL OBLIGATIONS ASSET RETIREMENT OBLIGATIONS The accrued closure obligation provides for contractual and legal obligations related to our indefinitely idled and closed operations and for the eventual closure of our active operations. The closure date for each of our active mine sites was determined based on the exhaustion date of the remaining mineral reserves, and the amortization of the related asset and accretion of the liability is recognized over the estimated mine lives. The closure date and expected timing of the capital requirements to meet our obligations for our indefinitely idled or closed mines is determined based on the unique circumstances of each property. For indefinitely idled or closed mines, the accretion of the liability is recognized over the anticipated timing of remediation. Asset retirement obligations at our steelmaking operations primarily include the closure and post-closure care for on-site landfills and other waste containment facilities. Asset retirement obligations have been recorded at present values using settlement dates based on when we expect these facilities to reach capacity and close. The following is a summary of our asset retirement obligations: (In millions) June 30, 2026 December 31, 2025 Asset retirement obligations 1 $ 611 $ 599 Less: current portion 17 18 Long-term asset retirement obligations $ 594 $ 581 1 Includes $ 383 million and $ 375 million related to our active operations as of June 30, 2026 and December 31, 2025, respectively. The following is a roll-forward of our asset retirement obligations: (In millions) 2026 2025 Asset retirement obligations as of January 1 $ 599 $ 526 Accretion expense 17 15 Revision in estimated cash flows — 5 Remediation payments ( 5 ) ( 12 ) Asset retirement obligations as of June 30 $ 611 $ 534 ENVIRONMENTAL OBLIGATIONS Our operations currently use, and have in the past used, hazardous materials and substances, and we have generated, and expect to continue to generate, solid and hazardous waste. We have been, and may in the future be, subject to claims under laws and regulations for toxic torts, natural resource damages and other damages, as well as for the investigation and clean-up of soil, surface water, sediments, groundwater, and other natural resources and reclamation of properties. If we reasonably can, we estimate potential remediation expenditures for those sites where future remediation efforts are probable based on identified conditions, regulatory requirements, or contractual obligations arising from the sale of a business or facility. For sites involving government required investigations, including pursuant to RCRA and CERCLA, we typically make an estimate of potential remediation expenditures only after the investigation is complete and when we better understand the nature and scope of the remediation. In general, the material factors in these estimates include the costs associated with investigations, delineations, risk assessments, remedial work, governmental response and oversight, site monitoring and preparation of reports to the appropriate environmental agencies. The following is a summary of our environmental obligations: (In millions) June 30, 2026 December 31, 2025 Environmental obligations $ 115 $ 112 Less: current portion 14 11 Long-term environmental obligations $ 101 $ 101 18 Table of Contents NOTE 12 - FAIR VALUE MEASUREMENTS The carrying values of certain financial instruments (e.g., Accounts receivable, net , Accounts payable and Other current liabilities ) approximate fair value and, therefore, have been excluded from the table below. See NOTE 13 - DERIVATIVE INSTRUMENTS AND HEDGING for information on our derivative instruments, which are accounted for at fair value on a recurring basis. A summary of the carrying value and fair value of other financial instruments were as follows: June 30, 2026 December 31, 2025 (In millions) Valuation Hierarchy Classification Carrying Value Fair Value Carrying Value Fair Value Senior notes Level 1 $ 6,808 $ 6,832 $ 6,801 $ 7,037 ABL Facility - outstanding balance Level 2 895 895 452 452 Total $ 7,703 $ 7,727 $ 7,253 $ 7,489 The valuation of the financial instruments classified in Level 2 was determined using a market approach based upon quoted prices for similar assets in active markets or other inputs that were observable. EMPLOYEE BENEFIT COMMITMENT In connection with the acquisition of Stelco, we acquired funding commitments to employee life and health trusts. These obligations pertain to plans previously sponsored by Stelco prior to its emergence from bankruptcy protection. The commitments primarily involve fixed scheduled payments that will continue until 2042, with an additional variable component tied to Stelco's standalone operating performance. The financial liability is recorded at fair value on a recurring basis using a discounted cash flow model, which incorporates observable and unobservable inputs for risk-free interest rates and future operating estimates. The liability is classified as a Level 3 within the fair value hierarchy. The current and non-current portions of the employee benefit commitment are classified within Other current liabilities and Other non-current liabilities on the Statements of Unaudited Condensed Consolidated Financial Position, respectively. The following table summarizes the changes in fair value of the employee benefit commitment: (In millions) 2026 2025 Beginning balance as of January 1 $ ( 169 ) $ ( 188 ) Total expense included in earnings ( 6 ) ( 5 ) Payments 8 11 Foreign currency translation 5 ( 11 ) Ending balance as of June 30 $ ( 162 ) $ ( 193 ) MINNTAC OPTION Stelco is party to an option to purchase a 25 % ownership interest in the MinnTac iron ore mine and related infrastructure located in Mt. Iron, Minnesota from U. S. Steel for $ 500 million. This option is exercisable by Stelco at any time until January 31, 2027. This option is recorded as a derivative instrument at fair value on a recurring basis and included within Other current assets as of June 30, 2026 and Other non-current assets as of December 31, 2025 on the Statements of Unaudited Condensed Consolidated Financial Position. Any gain or loss recorded in relation to the fair value of this option is presented within Changes in fair value of derivatives, net on the Statements of Unaudited Condensed Consolidated Operations . The fair value of the derivative asset is estimated using the Black-Scholes option pricing model, which incorporates observable or unobservable inputs for risk-free interest rates, foreign exchange rates, commodity prices, discount rates, corresponding market volatility levels and other market-based pricing factors. This option is classified as a Level 3 derivative asset within the fair value hierarchy. The following table summarizes the changes in fair value of the MinnTac option: (In millions) 2026 2025 Beginning balance as of January 1 $ 54 $ 95 Total expense included in earnings ( 22 ) ( 24 ) Foreign currency translation ( 2 ) 5 Ending balance as of June 30 $ 30 $ 76 NOTE 13 - DERIVATIVE INSTRUMENTS AND HEDGING We are exposed to price risk associated with fluctuations in the market prices of purchased raw materials and energy sources and the sales price of certain steel products. We may use cash-settled commodity purchase swaps to hedge the market risk associated with the purchase of certain of our raw materials and energy requirements and cash-settled sales swaps to hedge the 19 Table of Contents sales price risk of certain steel products. Our hedging strategy is to reduce the effect on earnings from the price volatility of these various exposures. Our commodity purchase swaps and sales swaps are designated as cash flow hedges for accounting purposes, and we record the gains and losses for the derivatives in Accumulated other comprehensive income until we reclassify them into Cost of goods sold when we recognize the associated underlying operating costs or Revenues when we recognize the associated underlying sale . Impacts of our designated commodity purchase swaps and sales swaps are reflected within Other, net in the Statements of Unaudited Condensed Consolidated Cash Flows. Refer to NOTE 15 - ACCUMULATED OTHER COMPREHENSIVE INCOME for further information. Our commodity purchase swaps and sales swaps are classified as Level 2 as values were determined using a market approach based upon quoted prices for similar assets in active markets or other inputs that were observable. The following table presents the notional amount of our outstanding hedge contracts: Notional Amount Hedge Contract Classification Unit of Measure Hedged Periods June 30, 2026 December 31, 2025 Natural Gas Commodity purchase swaps MMBtu July 2026 - June 2029 134,455,000 139,300,000 Electricity Commodity purchase swaps Megawatt hours July 2026 - June 2029 2,099,497 1,974,380 HRC Sales swaps Net tons July 2026 - September 2027 583,450 220,220 As of June 30, 2026, we estimate $ 23 million of net losses related to our commodity purchase swaps and $ 71 million of net losses related to our sales swaps will be reclassified from Accumulated other comprehensive income into Cost of goods sold and Revenues , respectively, during the next 12 months. This estimate is based on June 30, 2026 fair values, some of which will change before their actual reclassification into Cost of goods sold and Revenues. The following table presents the fair value of our outstanding cash flow hedges and the classification in the Statements of Unaudited Condensed Consolidated Financial Position: Balance Sheet Location (In millions) June 30, 2026 December 31, 2025 Other current assets $ 10 $ 7 Other non-current assets 6 10 Other current liabilities ( 93 ) ( 24 ) Other non-current liabilities ( 12 ) ( 2 ) NOTE 14 - CAPITAL STOCK SHARE REPURCHASE PROGRAM During the second quarter of 2024, our Board of Directors authorized a program to repurchase our outstanding common shares in the open market or in privately negotiated transactions, which may include purchases pursuant to Rule 10b5-1 plans or accelerated share repurchases, up to a maximum of $ 1.5 billion. We are not obligated to make any repurchases, and the program may be suspended or discontinued at any time. The share repurchase program does not have a specific expiration date. During both the three and six months ended June 30, 2026 and 2025, we did not repurchase any common shares. As of June 30, 2026, there was $ 1.4 billion remaining authorization under our share repurchase program. PREFERRED STOCK We have 3 million shares of Serial Preferred Stock, Class A, without par value, authorized and 4 million shares of Serial Preferred Stock, Class B, without par value, authorized. No preferred shares are issued or outstanding. 20 Table of Contents NOTE 15 - ACCUMULATED OTHER COMPREHENSIVE INCOME The components of Accumulated other comprehensive income within Cliffs shareholders’ equity and related tax effects allocated to each are shown below: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Foreign Currency Translation Beginning balance $ ( 3 ) $ ( 69 ) $ 17 $ ( 70 ) Other comprehensive income (loss) before reclassifications ( 28 ) 108 ( 51 ) 109 Income tax 4 ( 6 ) 7 ( 6 ) Other comprehensive income (loss) before reclassifications, net of tax ( 24 ) 102 ( 44 ) 103 Ending balance $ ( 27 ) $ 33 $ ( 27 ) $ 33 Derivative Instruments Beginning balance $ ( 39 ) $ 48 $ ( 15 ) $ ( 53 ) Other comprehensive income (loss) before reclassifications ( 82 ) ( 93 ) ( 103 ) 8 Income tax 20 22 25 ( 2 ) Other comprehensive income (loss) before reclassifications, net of tax ( 62 ) ( 71 ) ( 78 ) 6 Losses (gains) reclassified from AOCI to Revenues 21 24 27 24 Losses (gains) reclassified from AOCI to Cost of goods sold 7 10 ( 10 ) 42 Income tax expense (benefit) 1 ( 7 ) ( 8 ) ( 4 ) ( 16 ) Net losses (gains) reclassified from AOCI to net income 21 26 13 50 Ending balance $ ( 80 ) $ 3 $ ( 80 ) $ 3 Pension and OPEB Beginning balance $ 1,467 $ 1,633 $ 1,490 $ 1,660 Losses (gains) reclassified from AOCI to net income 2 ( 31 ) ( 34 ) ( 62 ) ( 69 ) Income tax expense (benefit) 1 7 9 15 17 Net losses (gains) reclassified from AOCI to net income ( 24 ) ( 25 ) ( 47 ) ( 52 ) Ending balance $ 1,443 $ 1,608 $ 1,443 $ 1,608 Total AOCI Ending Balance $ 1,336 $ 1,644 $ 1,336 $ 1,644 1 Amounts recognized in Income tax benefit in the Statements of Unaudited Condensed Consolidated Operations. 2 Amounts recognized in Net periodic benefit credits other than service cost component in the Statements of Unaudited Condensed Consolidated Operations. NOTE 16 - VARIABLE INTEREST ENTITIES SUNCOKE MIDDLETOWN We purchase all the coke and electrical power generated from SunCoke Middletown’s plant under long-term supply agreements and have committed to purchase all the expected production from the facility through 2032. We consolidate SunCoke Middletown as a VIE because we are the primary beneficiary despite having no ownership interest in SunCoke Middletown. SunCoke Middletown had income before income taxes of $ 11 million and $ 20 million for the three and six months ended June 30, 2026, respectively, compared to $ 14 million and $ 29 million for the three and six months ended June 30, 2025, respectively, which was included in our consolidated Loss from continuing operations before income taxes . Additionally, SunCoke Middletown had cash used for capital expenditures of $ 4 million and $ 5 million for the three and six months ended June 30, 2026, respectively, and a nominal am ount for the three and six months ended June 30, 2025, respectively, that are included in our consolidated Purchase of property, plant and equipment on the Statements of Unaudited Condensed Consolidated Cash Flows. 21 Table of Contents The assets of the consolidated VIE can only be used to settle the obligations of the consolidated VIE and not obligations of the Company. The creditors of SunCoke Middletown do not have recourse to the assets or general credit of the Company to satisfy liabilities of the VIE. The Statements of Unaudited Condensed Consolidated Financial Position include the following amounts for SunCoke Middletown: (In millions) June 30, 2026 December 31, 2025 Inventories $ 28 $ 27 Property, plant and equipment, net 266 273 Accounts payable ( 22 ) ( 20 ) Other assets (liabilities), net ( 46 ) ( 61 ) Noncontrolling interests ( 226 ) ( 219 ) NOTE 17 - EARNINGS PER SHARE The following table summarizes the computation of basic and diluted EPS: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share amounts) 2026 2025 2026 2025 Loss from continuing operations $ ( 132 ) $ ( 473 ) $ ( 358 ) $ ( 959 ) Net income from continuing operations attributable to noncontrolling interest ( 11 ) ( 13 ) ( 19 ) ( 25 ) Net loss from continuing operations attributable to Cliffs shareholders ( 143 ) ( 486 ) ( 377 ) ( 984 ) Loss from discontinued operations, net of tax ( 2 ) — ( 5 ) — Net loss attributable to Cliffs shareholders $ ( 145 ) $ ( 486 ) $ ( 382 ) $ ( 984 ) Weighted average number of shares: Basic 571 495 571 495 Employee stock plans 1 — — — — Diluted 571 495 571 495 Loss per common share attributable to Cliffs shareholders - basic: Continuing operations $ ( 0.25 ) $ ( 0.98 ) $ ( 0.66 ) $ ( 1.99 ) Discontinued operations — — ( 0.01 ) — $ ( 0.25 ) $ ( 0.98 ) $ ( 0.67 ) $ ( 1.99 ) Loss per common share attributable to Cliffs shareholders - diluted: Continuing operations $ ( 0.25 ) $ ( 0.98 ) $ ( 0.66 ) $ ( 1.99 ) Discontinued operations — — ( 0.01 ) — $ ( 0.25 ) $ ( 0.98 ) $ ( 0.67 ) $ ( 1.99 ) 1 For the three and six months ended June 30, 2026, 6 million and 5 million , res pectively, potentially dilutive shares were excluded from the computation of diluted EPS because their effect would have been anti-dilutive. For the three and six months ended June 30, 2025, 4 million and 2 million, respectively, potentially dilutive shares were excluded from the computation of diluted EPS because their effect would have been anti-dilutive. NOTE 18 - COMMITMENTS AND CONTINGENCIES PURCHASE COMMITMENTS We purchase portions of the principal raw materials required for our steel manufacturing operations under annual and multi-year agreements, some of which have minimum quantity requirements. We also use large volumes of natural gas, electricity and industrial gases in our operations. We negotiate most of our purchases of chrome, industrial gases and a portion of our electricity under multi-year agreements. Our purchases of coke and iron ore are made under annual or multi-year agreements with periodic price adjustments. We typically purchase coal under annual fixed price agreements. We also purchase certain transportation services under multi-year contracts with minimum quantity requirements. 22 Table of Contents OTHER COMMERCIAL COMMITMENTS We use surety bonds and letters of credit to provide financial assurance for certain obligations and statutory requirements. As of June 30, 2026, we had $ 307 million of surety-backed letters of credit and surety bonds outstanding. Additionally, as of June 30, 2026, we had $ 60 million of outstanding letters of credit issued under our ABL Facility. CONTINGENCIES We are currently the subject of, or party to, various claims and legal proceedings incidental to our current and historical operations. These claims and legal proceedings are subject to inherent uncertainties and unfavorable rulings could occur. An unfavorable ruling could include monetary damages, additional funding requirements or an injunction. If an unfavorable ruling were to occur, there exists the possibility of a material adverse effect on our financial position and results of operations for the period in which the ruling occurs or future periods. However, based on currently available information, we do not believe that any pending claims or legal proceedings will result in a material adverse effect in relation to our consolidated financial statements. ENVIRONMENTAL CONTINGENCIES Our environmental remediation obligations for known environmental matters at active and closed operations have been recognized based on estimates of the cost of investigation and remediation at each facility. We cannot predict the ultimate costs for each site with certainty because of the evolving nature of the investigation and remediation process. Rather, to estimate the probable costs, we must make certain assumptions. The most significant of these assumptions is for the nature and scope of the work that will be necessary to investigate and remediate a particular site and the cost of that work. Other significant assumptions include the cleanup technology that will be used, whether and to what extent any other parties will participate in paying the investigation and remediation costs, reimbursement of past response costs and future oversight costs by governmental agencies, and the reaction of the governing environmental agencies to the proposed work plans. Costs for future investigation and remediation are not discounted to their present value, unless the amount and timing of the cash disbursements are readily known. To the extent that we have been able to reasonably estimate future liabilities, we do not believe that there is a reasonable possibility that we will incur a loss or losses that exceed the amounts we accrued that would, either individually or in the aggregate, have a material adverse effect on our consolidated financial condition, results of operations or cash flows. However, since we recognize amounts in the consolidated financial statements in accordance with GAAP that exclude potential losses that are not probable or that may not be currently estimable, the ultimate costs of these environmental matters may be higher than the liabilities we currently have recorded in our consolidated financial statements. Pursuant to RCRA, which governs the treatment, handling and disposal of hazardous waste, the EPA and authorized state environmental agencies may conduct inspections of RCRA-regulated facilities to identify areas where there have been releases of hazardous waste or hazardous constituents into the environment and may order the facilities to take corrective action to remediate such releases. Likewise, the EPA or the states may require closure or post-closure care of residual, industrial and hazardous waste management units. Environmental regulators have the authority to inspect all of our facilities. While we cannot predict the future actions of these regulators, it is possible that they may identify conditions in future inspections of these facilities that they believe require corrective action. Pursuant to CERCLA, the EPA and state environmental authorities have conducted site investigations at some of our facilities and other third-party facilities, portions of which previously may have been used for disposal of materials that are currently regulated. The results of certain of these investigations remain pending, and we could be directed to spend funds for remedial activities at the former disposal areas. Because of the uncertain status of these investigations, however, we cannot reasonably predict whether or when such spending might be required or its magnitude. In addition to the foregoing matters, we are and may in the future be involved in proceedings with various regulatory authorities that may require us to pay fines, comply with more rigorous standards or other requirements or incur capital and operating expenses for environmental compliance. We believe that the ultimate disposition of any such proceedings will not have, individually or in the aggregate, a material adverse effect on our consolidated financial condition, results of operations or cash flows. TAX MATTERS The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We also recognize tax benefits to the extent that it is more likely than not that our positions will be sustained when challenged by the taxing authorities. To the extent we prevail in matters for which liabilities have been established, or are required to pay amounts in excess of our liabilities, our effective tax rate in a given period could be materially affected. An unfavorable tax settlement would require use of our cash and result in an increase in our effective tax rate in the year of resolution. A favorable tax settlement would be recognized as a reduction in our effective tax rate in the year of resolution. Refer to NOTE 10 - INCOME TAXES for further information. OTHER CONTINGENCIES In addition to the matters discussed above, there are various pending and potential claims against us and our subsidiaries involving antitrust, product liability, personal injury, commercial, mining royalties, employee benefits and other matters arising in the ordinary course of business. Because of the considerable uncertainties that exist for any claim, it is difficult to reliably or accurately estimate what the amount of a loss would be if a claimant prevails. If material assumptions or factual understandings we rely on to evaluate exposure for these contingencies prove to be inaccurate or otherwise change, we may be required to record a liability for an 23 Table of Contents adverse outcome. If, however, we have reasonably evaluated potential future liabilities for all of these contingencies, including those described more specifically above, it is our opinion, unless we otherwise noted, that the ultimate liability from these contingencies, individually or in the aggregate, should not have a material adverse effect on our consolidated financial position, results of operations or cash flows. NOTE 19 - SUBSEQUENT EVENTS We have evaluated subsequent events through the date of financial statement issuance. 24 Table of Contents