Cleveland-Cliffs Inc (NYSE:CLF) Reports Q3 2025 Earnings Miss, But Shares Rally on Improved EBITDA

Cleveland-Cliffs Inc (NYSE:CLF) reported third-quarter financial results that presented a mixed picture for investors, with the market reacting positively in pre-market trading despite the company missing analyst revenue expectations and posting a net loss.

Earnings and Revenue Versus Estimates

The steel producer's Q3 2025 performance showed notable deviations from Wall Street projections, though the company demonstrated sequential improvement from the previous quarter.

• Revenue: $4.73 billion reported versus $4.95 billion estimated
• Adjusted EPS: -$0.45 per share reported versus -$0.48 estimated
• GAAP Net Loss: $234 million, improved from $473 million in Q2 2025
• Adjusted EBITDA: $143 million, up significantly from $94 million in the prior quarter

While revenue fell approximately $215 million short of expectations, the company's adjusted earnings per share performance exceeded analyst forecasts by $0.03. This earnings beat, combined with meaningful quarter-over-quarter improvement in key profitability metrics, appears to have driven positive investor sentiment.

Market Reaction and Performance

The market response to Cleveland-Cliffs' earnings release has been notably positive, with the stock showing strength across multiple timeframes surrounding the announcement.

• Pre-market trading: +3.6%
• One-month performance: +14.7%
• Two-week performance: +4.5%
• One-week performance: +1.1%

This upward momentum suggests investors are focusing on the company's operational improvements and cost management rather than the revenue miss. The significant pre-market gain indicates particular optimism about the company's direction despite the challenging steel market conditions.

Operational Highlights and Management Commentary

CEO Lourenco Goncalves emphasized positive developments in the company's core automotive steel business, attributing improved results to "a clearer sign of demand recovery for automotive-grade steel made in the USA." The company highlighted several operational achievements:

• Steel shipments of 4.0 million net tons, up from 3.84 million tons in Q3 2024
• Average selling price of $1,032 per net ton, down slightly from $1,045 year-over-year
• Liquidity position of $3.1 billion as of September 30, 2025
• Strong automotive segment performance representing 30% of steelmaking revenues

Goncalves also announced a memorandum of understanding with a major global steel producer, suggesting potential future partnerships that could leverage Cleveland-Cliffs' U.S. manufacturing footprint. Additionally, the company revealed it is exploring rare earth extraction opportunities at two of its mining sites in Michigan and Minnesota, potentially aligning with national critical material independence strategies.

Updated 2025 Outlook

The company provided updated full-year guidance that reflects continued cost discipline and operational efficiency:

• Capital expenditures reduced to approximately $525 million from $600 million
• SG&A expenses lowered to approximately $550 million from $575 million
• Steel unit cost reductions maintained at approximately $50 per net ton compared to 2024
• Depreciation, depletion and amortization maintained at approximately $1.2 billion

This refined guidance demonstrates management's focus on preserving cash and optimizing operations amid market challenges. The reduced expenditure forecasts may reassure investors concerned about the company's financial discipline during a period of net losses.

Forward-Looking Analyst Expectations

Looking ahead, analysts project continued challenges for Cleveland-Cliffs in the coming quarters, with estimates suggesting:

• Q4 2025 Revenue: $4.85 billion
• Full Year 2025 Revenue: $19.60 billion
• Full Year 2025 EPS: -$2.50

These projections indicate expectations for roughly flat sequential revenue performance in Q4 alongside continued pressure on profitability, though the company's improved Q3 EBITDA and cost reduction initiatives may provide a path to better-than-expected results.

For more detailed earnings analysis and future estimates, view the complete Cleveland-Cliffs earnings and estimates page.

Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security or investment strategy. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.