Cleveland-Cliffs (CLF) stock rallied Monday after the American steel company posted its Q2 2025 earnings report. It reported adjusted earnings per share of -50 cents, which was better than Wall Street’s estimate of -71 cents. However, it was a negative switch year-over-year compared to 11 cents per share.
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Cleveland-Cliffs reported revenue of $4.93 billion in Q2 2025, compared to analysts’ estimate of $4.68 billion. Despite the beat, the company’s revenue slipped 1.62% year-over-year from $5.09 billion. The company reported $323 million in non-recurring charges this quarter that were tied to its footprint optimization initiatives.
CLF stock was up 4.54% in pre-market trading on Monday, following a 0.96% rally on Friday. The shares have also risen 0.85% year-to-date but were down 37.67% over the past 12 months.
Cleveland-Cliffs Guidance
Cleveland-Cliffs provided guidance for the full year of 2025 in its latest earnings report. The company expects the following:
- Capital expenditures of $600 million, compared to its previous outlook of $625 million.
- Selling, general, and administrative expenses of $575 million, compared to its prior guidance of $600 million.
- Steel unit cost reductions of $50 per net ton compared to 2024.
- Depreciation, depletion, and amortization of approximately $1.2 billion, compared to its previous guidance of $1.1 billion.
- Cash Pension and OPEB payments and contributions of $150 million.
Lourenco Goncalves, Chairman, President and CEO, said, “Our good cost performance in Q2 will be even further amplified into Q3 and Q4, with further expected improvements in adjusted EBITDA as a result.”
Is Cleveland-Cliffs Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Cleveland-Cliffs is Hold, based on two Buy, five Hold, and a single Sell rating over the past three months. With that comes an average CLF stock price target of $8.27, representing a potential 12.76% downside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings.
