NOTE 19 - EARNINGS PER SHARE
The following table summarizes the computation of basic and diluted EPS:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| (In millions, except per share amounts) | 2025 | | 2024 | | 2023 |
| Income (loss) from continuing operations | $ | (1,423) | | | $ | (714) | | | $ | 435 | |
| Income from continuing operations attributable to noncontrolling interest | (50) | | | (46) | | | (51) | |
| Net income (loss) from continuing operations attributable to Cliffs shareholders | (1,473) | | | (760) | | | 384 | |
| Income (loss) from discontinued operations, net of tax | (5) | | | — | | | 1 | |
| Net income (loss) attributable to Cliffs shareholders | $ | (1,478) | | | $ | (760) | | | $ | 385 | |
| | | | | |
| Weighted average number of shares: | | | | | |
| Basic | 508 | | | 480 | | | 510 | |
| Employee stock plans | — | | | — | | | 1 | |
| Diluted | 508 | | | 480 | | | 511 | |
| | | | | |
| Earnings (loss) per common share attributable to Cliffs common shareholders - basic: | | | | | |
| Continuing operations | $ | (2.90) | | | $ | (1.58) | | | $ | 0.75 | |
| Discontinued operations | (0.01) | | | — | | | — | |
| $ | (2.91) | | | $ | (1.58) | | | $ | 0.75 | |
| Earnings (loss) per common share attributable to Cliffs common shareholders - diluted: | | | | | |
| Continuing operations | $ | (2.90) | | | $ | (1.58) | | | $ | 0.75 | |
| Discontinued operations | (0.01) | | | — | | | — | |
| $ | (2.91) | | | $ | (1.58) | | | $ | 0.75 | |
The following table summarizes the potentially dilutive shares that were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| (In millions) | 2025 | | 2024 | | 2023 |
| Employee stock plans | 4 | | 2 | | | 2 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.