Cleveland-Cliffs Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.29%.
Did CLF Beat Earnings? Q3 2025 Results
Cleveland-Cliffs delivered a narrowly better-than-feared quarter in Q3 2025, posting an adjusted loss of $0.45 per diluted share against a consensus estimate of $0.45, a 0.55% beat, while revenue of $4.73 billion trailed the $4.90 billion Wall Street expected by 3.31%, though it still represented a 3.6% increase from the year-ago period. The primary driver of sequential improvement was a strengthening automotive-grade steel sales mix, with direct automotive shipments accounting for 30% of steelmaking revenues at $1.40 billion, as CEO Lourenco Goncalves credited a favorable trade environment for renewed OEM demand. Adjusted EBITDA climbed to $143 million from $94 million in Q2, and the GAAP net loss narrowed significantly to $234 million from $473 million the prior quarter, though rising interest expense of $153 million, up from $102 million a year ago, continued to weigh on results. Shares surged more than 20% following the report, amplified by the company's announcement that it is exploring rare earth mineral extraction at two mining sites in Michigan and Minnesota. Looking ahead, Cliffs trimmed its full-year capital expenditure guidance to approximately $525 million and expects the December expiration of a slab supply contract to accelerate margin recovery into 2026.
- Recovery in automotive-grade steel demand driven by new trade environment
- Richer sales mix with improved pricing
- New multi-year supply arrangements with major automotive OEMs
- Continued cost execution achieving approximately $50 per net ton cost reduction target
- Automotive direct sales represented 30% of steelmaking revenues
“Our third quarter results marked a clear sign of demand recovery for automotive-grade steel made in the USA, and that is a direct consequence of the new trade environment implemented and enforced by the Trump Administration. As a result of this new trade environment, we have won new and growing supply arrangements with all major automotive OEMs, locking in multi-year agreements that reflect the reliability of our well-established supply chains anchored by our nine galvanizing plants dedicated to automotive-grade steels, with five of these plants specialized in exposed parts. Our Q3 results show a richer sales mix and improved pricing, further bolstered by our continued execution on costs. With the end of the slab supply contract to ArcelorMittal in early December, we expect this trend to accelerate into 2026.”
Cleveland-Cliffs CEO, on the earnings call
Forward Guidance & Outlook
Cleveland-Cliffs updated its full-year 2025 guidance: capital expenditures reduced to approximately $525 million (from $600 million); SG&A expenses reduced to approximately $550 million (from $575 million); steel unit cost reductions maintained at approximately $50 per net ton versus 2024, adjusted for improved automotive shipping volume; DD&A maintained at approximately $1.2 billion; and cash pension and OPEB payments maintained at approximately $150 million. The company expects the end of the slab supply contract to ArcelorMittal in early December to accelerate positive trends into 2026. Additionally, Cliffs entered an MoU with a major global steel producer expected to be highly accretive to shareholders.
CLF YoY Financials
CLF Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.