As we look ahead to 2025, we are optimistic about the potential for growth and improved market conditions. The tariffs on steel imports, along with other positive factors, are expected to benefit Cleveland-Cliffs and our subsidiaries. We remain committed to investing in American workers, manufacturing, and supply chains, and we believe that our strong position in the market will allow us to capitalize on opportunities for success.
Thank you for joining us on this earnings call, and we look forward to a successful year ahead. I will now turn the call back to Kevin for any questions from participants. Thank you.
Despite these challenges, we were able to maintain our financial flexibility and manage costs effectively. Our focus on operational efficiency and cost control measures helped us navigate the tough market environment. We continue to be optimistic about the future, especially with the positive trends we are seeing in the market.
We are confident that our strategic initiatives and the synergies from the Stelco acquisition will drive value for our shareholders. We remain committed to delivering strong financial performance and creating long-term value for our stakeholders. Thank you for your continued support.
In summary, despite facing challenges in the fourth quarter of 2024, including weaker automotive demand and low commodity pricing, we are optimistic about the future. The automotive order book for 2025 is strong, and commodity steel prices are on the rise. With the inclusion of Stelco, we expect our profitability to improve significantly in 2025. We have a solid liquidity position, and we are focused on reducing debt. Our cost reduction efforts, combined with strategic acquisitions, position us well for success in the coming year. Thank you for your attention, and we look forward to a successful 2025.
As far as the equity remaining under pressure, we are always evaluating our options and considering all possibilities to maximize shareholder value. Share repurchases could be one of those options, but we are currently focused on debt paydown as our top priority. We do not have a specific target level of net debt in mind, but we will continue to assess our capital structure and make decisions accordingly. Thank you for your question.
Operator
Thank you. Our next question comes from David Lipschitz from Stephens Inc. Your line is now live.
David Lipschitz — Stephens Inc. — Analyst
Thank you. Good morning, everyone. Lourenco, could you provide some color on your expectations for iron ore pricing in 2025? And how do you see this impacting Cliffs’ business going forward?
Laurenco Goncalves — Chairman, President and Chief Executive Officer
Good morning, David. Thank you for your question. Iron ore pricing is always subject to market dynamics and global demand, but we are optimistic about the outlook for 2025. Our vertically integrated business model allows us to control costs and be more resilient to fluctuations in pricing. We believe that our focus on domestic manufacturing and the strength of the American economy will continue to drive demand for our products. Overall, we are confident in our ability to navigate the iron ore market and maintain our position as a leading producer. Thank you.
But overall, we are committed to these projects and we are making progress. We have the funding in place and we are confident in our ability to execute. So, we will continue to monitor the progress and adjust as needed to ensure the success of these important initiatives.
Philip Gibbs — Analyst
Thank you for the update, Lourenco. It’s great to hear that you have a clear plan in place for the capital expenditures and are making progress on these important projects. I look forward to seeing the continued success of Cleveland-Cliffs in the coming years. Thank you.
Laurenco Goncalves — Chairman, President and Chief Executive Officer
Thank you, Phil. We appreciate your support and look forward to updating you on our progress in the future. Have a great day.
Operator
Thank you. This concludes today’s conference call. You may now disconnect.
It sounds like you have a clear strategy in place for navigating the changes in the steel market. By focusing on domestic consumption and reducing reliance on imports, you are positioning your company well for success in 2025. It will be interesting to see how these changes play out and how they impact your business moving forward. Thank you for providing insight into your approach and plans for the future.
So, we are not in the business of issuing equity when the share price is low. We are focused on reducing debt and improving our balance sheet. We have a clear plan in place to achieve this, and we believe that our positive outlook for 2025 will help us achieve our goals without the need for an equity issuance.
Carlos De Alba — Analyst
Thank you for the clarification. That’s very helpful. Good luck for the rest of the year.
Laurenco Goncalves — Chairman, President and Chief Executive Officer
Thank you, Carlos. We appreciate your support.
Operator
Thank you. There are no further questions at this time. I’ll turn the call back over to management for any closing remarks.
Laurenco Goncalves — Chairman, President and Chief Executive Officer
Thank you all for joining us today. We are confident in our strategy and our ability to deliver strong results in 2025. We appreciate your continued support and look forward to updating you on our progress in the coming quarters. Have a great day.
Operator
Thank you for participating in today’s conference call. You may now disconnect. Goodbye.
So it’s just part of the M&A strategy and everything is going accordingly to plan, including the fact that we knew that in 2025, we’d have a new beginning for manufacturing in the United States and we fully support that and we will continue to work to make this thing happen for the country and for Cliffs and for our shareholders.
Celso Goncalves — Executive Vice President, Chief Financial Officer
Yes, Carlos, there is no need to raise equity or to issue equity at this time. We were very proactive on the balance sheet on the capital structure. We did these unsecured deals to raise liquidity. Now we have all the liquidity that we need.
We have secured capacity as well. And even more importantly, we have a capital structure that’s designed — that’s pre-designed for debt reduction. We have the ABL, that’s kind of the No. 1 target of free cash flow going forward.
But we also have — our bonds are well staggered in a way that they become callable with no penalty starting this year. So even after we’ve paid down the entire ABL, we have these different tranches of bonds that we can start to attack. So it’s debt reduction from free cash flow generation with no equity raise.
Laurenco Goncalves — Chairman, President and Chief Executive Officer
And again, if you look at the stack, you’re going to see that the capital structure was put in place that way by design. So we knew that we would start having tranches of our bonds ready to be paid down or paid off with cash flow generation starting 2025.
Carlos De Alba — Analyst
OK. And understanding that you may not answer this question based on what you said earlier in the call and I respect that. I will respect that obviously. And the balance sheet, is there a limitation to pursue another acquisition as you have highlighted in the past?
Laurenco Goncalves — Chairman, President and Chief Executive Officer
Let’s see what happens. There’s a guy that says that a lot. When he says that, the ones that are in the receiving end, they usually they know that they’re in a bad spot. Let’s see what happens.
Celso Goncalves — Executive Vice President, Chief Financial Officer
But to answer your question, Carlos, the balance sheet is not a constraint. We’ve proven that we can raise capital quickly when needed. So the balance sheet is not the constraint.
Carlos De Alba — Analyst
All right. Excellent. Well, thank you very much.
Laurenco Goncalves — Chairman, President and Chief Executive Officer
Thank you.
Operator
Thank you. Next question is coming from Lawson Winder from Bank of America. Your line is now live.
Lawson Winder — Analyst
Thank you, operator, and good morning, Lourenco and Celso. Nice to hear from you both. Celso, you mentioned that bringing the Cleveland Works No. 6 back online is not something that you’re considering at the moment.
Could you maybe speak to the conditions for a potential restart? And how you think about potentially doing that?
Laurenco Goncalves — Chairman, President and Chief Executive Officer
It’s Lourenco here Lawson. No, we’re not going to talk about that. There’s no subject to discuss on C6 right now. It’s idle, indefinite idle and it will remain definite idle until we will decide otherwise.
Lawson Winder — Analyst
OK, perfect. That’s very helpful. With the synergy, you noted, the Stelco synergies that as you noted $120 million to be achieved by year-end ’25 and you’re on track to do so. You mentioned potential upside to that.
Is there a time at which we could get a sense of what some of that upside might be? And could some of that potentially be realized even this year before year-end?
Laurenco Goncalves — Chairman, President and Chief Executive Officer
Celso, take that.
Celso Goncalves — Executive Vice President, Chief Financial Officer
Yes. I mean as it relates to the Stelco synergies, Lawson, we feel extremely confident in being able to overachieve that $120 million that we outlined. I think we’ve given the breakdown of that. But if you just look at what we’ve done with our other acquisitions, we have a track record of overachieving these synergies.
A large portion of that $120 million has already been set in motion by the top management departures, kind of duplicative board expenses, audit expenses and things like that. But we continue to identify more and more unique ways to maximize value from this combination and we’ll be updating you guys over time. But for now we feel extremely confident about the $120 million that we originally outlined.
Lawson Winder — Analyst
OK, fantastic. And if I could ask about your Zanesville non-grain oriented line that started up mid last year, is that now pretty much fully ramped up? And what are you seeing in terms of pricing?
Laurenco Goncalves — Chairman, President and Chief Executive Officer
You said non-grain oriented. Electrical steels, is that what you’re asking?
Lawson Winder — Analyst
Yes, the electrical steel line, exactly the one that was commissioned last summer.
Laurenco Goncalves — Chairman, President and Chief Executive Officer
Yes. Look, we made a small investments in our Zanesville plant that finishes electrical steels to increase our capacity of non-oriented electrical steels of 50,000 tons a year. That more investment paid off. We continue to deliver our non-oriented electrical steels and then we continue to sell our non-oriented electrical steels.
Our competitors, two of our competitors making big investments to produce a lot more non-oriented electrical steels because they are believers in electric vehicles and the total electric vehicles will replace all ICE vehicles or internal combustion engines vehicles in a short period of time. Good luck with that. My goal with electrical steels has always been to produce transformers and transformers grain-oriented electrical steels.
This time, the administration seems to be more committed to maintaining tariffs without exceptions, which could provide a more stable environment for us. As for the downstream benefits, we believe that any tariffs on downstream products could potentially benefit us as it would increase demand for our steel products. However, the exact impact would depend on the specifics of the tariffs and how they are implemented. Thank you for your question. Jadi saat ini ada banyak komitmen untuk tidak mengizinkan kesalahan masa lalu.
Dan proses pengecualian mengalami dorongan besar ketika Presiden Biden menjabat. Itu adalah masa pengecualian. Dia mempertahankannya, tarif, tetapi mereka tetap menjalankan Q2. Tetapi dengan begitu banyak pengecualian sehingga lubang-lubang itu mengompromikan keseluruhan hal.
Saya tidak melihat hal itu terjadi saat ini. Ini adalah komitmen yang jelas dari pemerintahan Trump untuk menjaga seluruh hal tersebut utuh dan pengecualian, pengecualian sebenarnya tidak sedang dibahas saat ini. Bisakah Anda mengulangi bagian kedua dari pertanyaan Anda karena saya benar-benar melewatkan itu.
Tristan Gresser — BNP Paribas Exane — Analis
Ya. Tidak, itu tentang tarif hulu pada artikel baja, jadi tarif baru yang Anda terapkan. Anda menyebutkannya dalam catatan persiapan Anda. Seberapa besar manfaatnya untuk operasi Anda secara langsung atau tidak langsung?
Laurenco Goncalves — Ketua, Presiden, dan Chief Executive Officer
Ya. Pikirkanlah tentang mobil. Dalam dunia perdagangan bebas, oleh karena itu perdagangan bebas adalah sesuatu yang tidak ada. Kita semua tahu itu.
Tetapi dalam dunia perdagangan bebas, mobil yang diproduksi di China dan dipindahkan melalui Meksiko bisa masuk ke Amerika Serikat seharga $20.000. Konsumen akan senang membelinya. Dan itu berlaku untuk benar-benar segalanya.
Jadi tidak perlu memproduksi hal lain. Kita akan tinggal di Amerika Serikat, belanja di Amazon dan saling menuntut. Jadi itu akan menjadi aktivitas sehari-hari kita dan semuanya bekerja dari rumah. Jadi hal ini tidak akan berjalan seperti itu.
Jadi tarif hulu penting untuk menghindari kebocoran yang akan dihasilkan oleh produk-produk high-end seperti mobil, misalnya, dan hal lainnya dan hal lainnya lagi. Dan tiba-tiba, Anda tidak memiliki ekonomi yang bisa berfungsi lagi. Jadi kami menutupi lubang-lubang, pemerintahan menutupi lubang-lubang, dan kita akan memiliki dunia yang jauh berbeda dari yang Anda gambarkan dengan kebocoran dan merendahkan tarif. Saya tidak berpikir itu akan terjadi.
Dan dari sudut pandang saya, kami akan melakukan apa pun yang kami bisa untuk membantu pemerintahan membantu kami dan itulah yang sedang terjadi sekarang.
Tristan Gresser — BNP Paribas Exane — Analis
Baiklah. Itu sangat jelas. Dan terakhir hanya pertanyaan pemeliharaan tentang biaya bunga tunai untuk tahun ini, jika Anda dapat memberikan beberapa panduan di sana. Terima kasih.
Celso Goncalves — Wakil Presiden Eksekutif, Chief Financial Officer
Ya, tentu. Tristan, jika Anda tidak tahu bagaimana menghitung biaya bunga tunai, Anda tinggal mengambil kupon obligasi dan dikalikan dengan jumlah yang belum lunas, Anda akan mendapatkan biaya bunga tunai.
Tristan Gresser — BNP Paribas Exane — Analis
Baiklah. Terima kasih. Dan terakhir hanya tentang manfaat pensiun yang Anda catatkan di Q4, bisakah Anda memberikan beberapa panduan tentang itu? Dan bisakah Anda mengingatkan kami apakah itu termasuk dalam perhitungan EBITDA yang disesuaikan Anda? Terima kasih.
Laurenco Goncalves — Ketua, Presiden, dan Chief Executive Officer
$150 juta semuanya sudah termasuk.
Tristan Gresser — BNP Paribas Exane — Analis
Baik.
Laurenco Goncalves — Ketua, Presiden, dan Chief Executive Officer
$150 juta dalam bentuk tunai, Oke? Tristan? Apakah Anda mendengar?
Tristan Gresser — BNP Paribas Exane — Analis
Ya. Saya mengerti. Terima kasih.
Laurenco Goncalves — Ketua, Presiden, dan Chief Executive Officer
Oke. Baiklah.
Operator
Terima kasih. Kami telah mencapai akhir sesi tanya jawab kami. Saya ingin mengembalikan kata kepada Anda untuk komentar lebih lanjut atau penutup.
Laurenco Goncalves — Ketua, Presiden, dan Chief Executive Officer
Terima kasih banyak atas minat Anda pada Cleveland-Cliffs. Mari terus beroperasi dan mengurus bisnis di sini. Dan silakan pantau perkembangan, segala sesuatunya semakin membaik, akan menjadi jauh lebih baik. Dan kami menghargai Anda yang mengikuti dan membandingkan apa yang telah kami katakan kepada Anda hari ini dalam panggilan ini.
Selamat berakhir pekan dan kita akan berbicara segera. Sampai jumpa.
Operator
[Penutup operator]
Durasi: 0 menit
Laurenco Goncalves — Ketua, Presiden, dan Chief Executive Officer
Celso Goncalves — Wakil Presiden Eksekutif, Chief Financial Officer
Lourenco Goncalves — Ketua, Presiden, dan Chief Executive Officer
Martin Englert — Analis
Nick Giles — B. Riley Financial — Analis
Philip Gibbs — Analis
Phil Gibbs — Analis
Chris LaFemina — Analis
Carlos De Alba — Analis
Lawson Winder — Analis
Mike Harris — Goldman Sachs — Analis
Tristan Gresser — BNP Paribas Exane — Analis
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