It has been about a month since the last earnings report for Cleveland-Cliffs (CLF). Shares have lost about 7.9% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cleveland-Cliffs due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Cleveland-Cliffs Inc. before we dive into how investors and analysts have reacted as of late.
Cleveland-Cliffs’ Q2 Earnings and Revenues Beat Estimates
Cleveland-Cliffs’ second-quarter 2025 adjusted loss was 50 cents per share. The figure was narrower than the Zacks Consensus Estimate of a loss of 68 cents. It had reported earnings of 11 cents in the prior-year quarter.
Revenues fell 3.1% year over year to $4,934 million in the quarter. The top line beat the Zacks Consensus Estimate of $4,903.4 million.
Operational Highlights
The company reported Steelmaking revenues of roughly $4.8 billion for the second quarter, down around 2% year over year.
Average net selling price per net ton of steel products was $1,015 in the quarter, down around 9.8% year over year. It missed our estimate of $1,020.
External sales volumes for steel products were roughly 4.3 million net tons, up around 7.5% year over year. It topped our estimate of 4.2 million net tons.
Financial Position
Cleveland-Cliffs ended the second quarter with cash and cash equivalents of $61 million, up around 5% from the prior quarter. Long-term debt increased 1.7% sequentially to $7,727 million.
As of June 30, 2025, the company had $2.7 billion in total liquidity.
Outlook
The company has revised its full-year 2025 guidance, reflecting updated expectations across certain key financial metrics. Capital expenditures are now projected to be approximately $600 million, down from the previously anticipated $625 million. Selling, general and administrative expenses have also been lowered to around $575 million from the earlier estimate of $600 million. Cleveland-Cliffs continues to target steel unit cost reductions of approximately $50 per net ton compared to 2024. Depreciation, depletion and amortization expenses have been revised upward to approximately $1.2 billion, primarily due to accelerated depreciation related to idled facilities. Meanwhile, cash pension and Other Post-Employment Benefits (OPEB) payments and contributions remain unchanged at approximately $150 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -51.35% due to these changes.
VGM Scores
At this time, Cleveland-Cliffs has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Cleveland-Cliffs has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Cleveland-Cliffs Inc. (CLF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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