Steelmaker Cleveland-Cliffs' Q3 profit beats estimates on demand recovery

Cleveland-Cliffs

20/10/2025 11:10

Overview

Adjusted EPS for Q3 beats consensus, despite a net loss of $234 mln

Cleveland-Cliffs Q3 revenue of $4.7 bln missed analyst expectations

Company highlights demand recovery for automotive-grade steel, signs MoU with global producer

Outlook

Cleveland-Cliffs updates 2025 capital expenditures to $525 mln from $600 mln

Company maintains 2025 steel unit cost reductions at $50 per net ton

Cleveland-Cliffs expects 2025 SG&A expenses to be $550 mln, down from $575 mln

Result Drivers

AUTOMOTIVE STEEL DEMAND - CEO Lourenco Goncalves attributes demand recovery for automotive-grade steel to new trade environment and multi-year supply agreements with major OEMs

SALES MIX AND PRICING - Co reports a richer sales mix and improved pricing, supported by cost execution

RARE EARTH OPPORTUNITY - Co explores rare earth potential at mining sites in Michigan and Minnesota, aligning with national strategy for critical material independence

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$4.70 bln
$4.89 bln (8 Analysts)
Q3 Adjusted EPS
Beat
-$0.45
-$0.47 (5 Analysts)
Q3 Net Income
-$234 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the iron & steel peer group is "buy."

Wall Street's median 12-month price target for Cleveland-Cliffs Inc is $12.00, about 11% below its October 17 closing price of $13.32

Press Release: ID:nBw8P1Yzha

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)