Cleveland-Cliffs (NYSE: $CLF), a major steel maker, releases its Q3, fiscal 2025 to a positive market reception. It beat forecasts, sending its stock soaring by double digits. Let us take a deep dive into the results, and how it has benefited from Trum’s tariffs.
Cleveland-Cliffs Q3 Results
For the third quarter of fiscal 2025, Cleveland-Cliffs reported an earnings per share loss of $0.45, in line with forecasts. However, revenue was short of forecasts at $4.7 billion, missing forecasts of $4.9 billion, a 4.08% miss.
Cleveland-Cliffs reported a GAAP net loss of $234 million, and an adjusted net loss of $223 million. This compares to Q2 results, where it reported a $473 million, and adjusted net loss of $250 million or $0.51 per diluted share. Q3 adjusted EBITDA was reported at $143 million, compared to $94 million in Q2.
Other Q3 Highlights
The company reported Q3 steel sales volume of 4 million net tons, comprising 37% hot-rolled, 29% coated, 15% cold-rolled, 6% plater, 4% stainless, and electrical, and 9% others, including steel slabs, and other steel products.
The $4.6 billion in steelmaking revenue consisted of $1.4 billion or 30% in direct sales to the auto industry, $1.3 billion or 29% to the manufacturing and infrastructure marker, $1.3 billion or 28% to the converters and distributors markers, and $591 million or 13% to steel producers. The company ended Q325 with $3.1 billion in total liquidity.
Cleveland-Cliffs Outlook
The company expects capital expenditures of around $525 million, down from its previous forecast of $600 million for the full year. It also expects expenses of around $550 million from its previous forecast of $575 million.
Cleveland-Cliffs expects steel unit cost reductions to remain at a reduction of around $50 per net ton compared to 2024, adjusted for improved automotive shipping volume. The steel maker maintained its deprecation, depletion, and amortization forecast at around $1.2 billion. It expects cash pension and OPEB payments contributions to remain at around $150 million.
Stock Performance
Following the Q3 results, Cleveland-Cliffs (CLF) shares soared 17.50% during the Monday, October 20, 2025 trading session to $15.65 as of 2:17 PM in New York. Year to date, the stock is up 66.51%, while over the past 12 months, it has risen 12.28%. The stock is up 114.41% in the past 6 months, and up 34.81% in the past months.
Analysts remain optimistic about its future, giving it an overall moderate buy rating. They forecast a high of $14.50, and a low of $10.10. The stock is currently trading above its most recent average forecast of $12.36. Following the most recent performance, it is likely analysts will soon be revising their forecasts.
Cleveland-Cliffs Benefits From Major Rare Earths Announcement
Since Trump revitalized a tariffs war with China, the Chinese government has cut off access to most rare earths, in a daring move. With China being one of the biggest producers of rare earths in the world, this has led to a renewed desire to find a new source for the critical minerals.
During the earnings call, CEO Lourenco Goncalves revealed the company had signed an MoU with a leading steel producer, which would be “highly accretive.” He added that they were taking a serious look at rare earths.
He noted that it has two domestic mining sites that had shown signs of holding rare earths. Following this announcement, the market reacted positively. It represents the huge potential for US rare earth mining, following the current trade war with China. While the rare earths hype speculation is mere hype, analysts state that further updates on the MoU would be the real driver of growth.
Is Cleveland-Cliffs (CLF) A Buy?
Following Trump’s tariffs, the US steel industry has received some much-needed protectionism that could see it start thriving again. Additionally, a potential move into rare earths could contribute massively to Cleveland-Cliffs’ bottom line. With analysts giving a moderate buy rating, coupled with the stock outperforming the S&P 500, adding CLF to your portfolio could provide some great long-term returns.
Click Here for Updates on CLF – It’s 100% FREE to Sign Up for Text Message Notifications!
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment. Please read our Full Disclaimer: https://dexwirenews.com/disclaimer/
