Cleveland-Cliffs Inc. ( CLF ) reported second-quarter 2025 results Monday that showed narrowing losses and record steel shipments, as early benefits from its footprint optimization strategy began to materialize.

The steelmaker reported an adjusted loss of 50 cents per share, beating analysts’ expectations for a loss of 70 cents. Revenue totaled $4.93 billion, matching estimates but down from $5.09 billion in the same quarter last year.

Revenue was spread across infrastructure and manufacturing (31%), distributors and converters (30%), automotive (26%), and steel producers (13%). Liquidity stood at $2.7 billion.

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Adjusted EBITDA turned positive at $97 million (-70% YoY), improving from a loss of $174 million in the prior quarter. The company’s steel unit costs declined $15 per ton, driven by idling six underperforming facilities earlier this year.

Steel shipments hit a record 4.3 million net tons, up from 3.99 million in the second quarter of 2024, while the average selling price fell year-over-year to $1,015/ton from $1,125. Product mix was led by hot-rolled (40%), coated (27%), cold-rolled (15%), and plate (5%) products, with the remainder split between stainless/electrical and other products such as slabs and rail.

The company stated that its operational streamlining initiatives, including the partial or full idling of six plants earlier this year, are already delivering meaningful cost reductions. Steel unit costs fell by $15 per ton quarter-over-quarter, with further gains expected in the second half of 2025.

“Our second-quarter results demonstrate that the footprint optimization initiatives announced a few months ago are already generating a positive impact on both costs and revenues,” said Lourenco Goncalves, Cleveland-Cliffs’ chairman, president, and CEO.

He added that inventory reductions helped free up working capital during the quarter, accelerating the company’s path toward positive free cash flow and debt reduction. The company ended the quarter with $2.7 billion in total liquidity.

Outlook

For full-year 2025, Cleveland-Cliffs ( CLF ) lowered its capital expenditure guidance to $600 million, down from $625 million. Selling, general and administrative expenses were also reduced to $575 million, from prior guidance of $600 million.

The company maintained its forecast for $50 per ton in steel unit cost reductions versus 2024. Due to accelerated depreciation of idled assets, depreciation and amortization are now expected to come in at $1.2 billion, up from $1.1 billion.

CEO Sees Favorable Steel Conditions Ahead

Goncalves emphasized that domestic steel pricing remains strong, and the company’s order book is healthy. He noted that a long-term slab supply contract with a competitor, deemed unprofitable due to low index-based pricing, will end in less than five months and will not be renewed.

“Cliffs is a major supplier of steel to the automotive manufacturers, and the Trump Administration continues to show strong support to both the domestic steel and the domestic automotive sectors,” Goncalves said, citing recent tariffs and their positive impact on U.S. manufacturing and jobs.

He said foreign competitors will need to establish U.S. steel capacity if they want to access the market, arguing that Cliffs is uniquely positioned as a domestic, publicly traded player focused on automotive, electrical, stainless, and plate steel.

Price Action: At last check Monday, CLF shares were trading higher by 8.54% to $10.29.

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