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Cleveland-CliffsEagle Materials

Cleveland-Cliffs vs Eagle Materials

This page compares Cleveland-Cliffs and Eagle Materials, highlighting their business models, financial performance, and market context. It presents neutral, accessible information to help readers unde...

Investment Analysis

Pros

  • Cleveland-Cliffs achieved a 52% increase in adjusted EBITDA in Q3 2025, demonstrating operational improvement quarter-over-quarter.
  • The company benefits strategically from strong demand in the automotive sector, with automotive shipments rising to 30% of total shipments.
  • Operational efficiencies are projected to save Cleveland-Cliffs $300 million annually, indicating potential cost reductions and margin improvement.

Considerations

  • The company reported a GAAP net loss of $234 million and an adjusted net loss of $223 million in Q3 2025, reflecting ongoing profitability challenges.
  • Revenue in Q3 2025 missed expectations by about 4%, falling to $4.7 billion from a forecasted $4.9 billion, highlighting fragile top-line growth.
  • Cleveland-Cliffs operates with a significant debt burden, evidenced by a debt-to-equity ratio of 1.33, which could pose financial risk despite strong liquidity.

Pros

  • Eagle Materials supplies diversified construction materials with exposure to resilient end markets including residential and commercial construction.
  • The company maintains a healthy balance sheet with strong cash flow generation supporting growth investments and shareholder returns.
  • Eagle Materials benefits from geographic diversification across the United States, reducing regional economic cyclicality risks in construction markets.

Considerations

  • Eagle Materials faces cyclical market risks linked to variability in construction activity, which can impact demand unpredictably.
  • The company is exposed to raw material cost volatility, which may pressure margins if costs cannot be fully passed on to customers.
  • Eagle Materials has execution risks related to capacity expansions and project ramp-ups that could affect near-term profitability and cash flows.

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