Core Insights - Cleveland-Cliffs Inc. (NYSE: CLF) has been positively viewed over the past four years despite facing challenges [1] - The article emphasizes the importance of access to high-quality equity research reports for investors [1] Company Analysis - The author has maintained a bullish stance on CLF stock, indicating confidence in its future performance [1] - The investment group Beyond the Wall Investing offers features such as a fundamentals-based portfolio and weekly analysis, which can aid investors in making informed decisions [1] Investment Strategy - The article highlights the benefits of having a single subscription to access extensive equity research, potentially saving investors thousands annually [1] - Regular alerts for short-term trade ideas based on technical signals are provided, which can enhance trading strategies [1]

Cleveland-Cliffs cut its quarterly loss nearly in half on Trump administration support and cost reductions. https://t.co/DcSqALiILL ...

Core Viewpoint - Investors are optimistic about Cleveland-Cliffs despite a challenging quarter, as the company managed to beat earnings expectations and is making progress in cost-cutting measures [1][4]. Group 1: Earnings Performance - Cleveland-Cliffs reported a net loss of $470 million, or $0.97 per share, reversing the small profit from Q2 2024 [3]. - The company shipped a record 4.3 million net tons of steel, a 7.5% increase year-over-year, but average selling prices fell by 10%, leading to a decline in revenue [3]. Group 2: Investor Sentiment - Investors reacted positively, with shares rising 13.7% after the earnings report, partly due to management's disclosure that $323 million of the net loss (about 69%) was from non-recurring charges related to idled facilities [1][4]. - The market is betting on the company's ability to improve profitability through cost reductions and the absence of non-recurring charges in future quarters [6]. Group 3: Future Guidance - Cleveland-Cliffs aims to reduce its cost of production by approximately $50 per ton in 2025 compared to 2024, which could help offset the decline in steel prices observed in Q2 [5]. - The company is also focusing on reducing capital spending and selling, general, and administrative expenses, alongside potential benefits from tariffs on imported steel [5].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Market Overview - Pre-market futures indicate a positive start to the trading week, with the Dow up 70 points, S&P 500 up 10 points, Nasdaq up 25 points, and Russell 2000 up 13 points, although all indexes are off their all-time highs from earlier in the month [1] Company Earnings - Cleveland-Cliffs (CLF) reported a loss of -$0.50 per share, better than the projected -$0.68, with revenues of $4.93 billion exceeding Zacks consensus by +0.62%, leading to a +4.5% increase in shares [2] - Domino's Pizza (DPZ) missed earnings expectations by -3% with earnings of $3.81 per share, marking its second miss in three quarters, but revenues of $1.15 billion were above expectations, reflecting a +4.3% year-over-year increase, resulting in a +3% rise in shares [2] Economic Indicators - The U.S. Leading Economic Indicators (LEI) report for June is expected to show a decline to -0.2% from May's -0.1%, with negative LEI numbers observed over the past six months, indicating potential recession signals [3][4] Upcoming Earnings Reports - More than 20% of S&P 500 companies are set to report Q2 earnings this week, with Alphabet (GOOGL) and Tesla (TSLA) being key highlights [5] - Alphabet is expected to see a +13.2% increase in earnings and +11.1% in overall revenues, while Tesla is projected to experience a -23.1% decline in earnings year-over-year and -11.9% in revenues [6] Economic Data Releases - This week will also see the release of Existing & New Home Sales, S&P flash Services and Manufacturing PMI, and Durable Goods Orders, with mixed expectations for these data points [7]

Group 1: Market Overview - Pre-market futures indicate a positive start to the trading week, with the Dow up 70 points, S&P 500 up 10 points, Nasdaq up 25 points, and Russell 2000 up 13 points, although all indexes are off their all-time highs from earlier in the month [1] Group 2: Company Earnings - Cleveland-Cliffs (CLF) reported a loss of -$0.50 per share, better than the projected -$0.68, with revenues of $4.93 billion exceeding Zacks consensus by +0.62%, leading to a +4.5% increase in shares [2] - Domino's Pizza (DPZ) missed earnings expectations by -3% with earnings of $3.81 per share, marking its second miss in three quarters, but revenues of $1.15 billion were up +4.3% year over year, resulting in a +3% increase in pre-market trading [3] Group 3: Economic Indicators - The U.S. Leading Economic Indicators (LEI) report for June is expected to show a further decline to -0.2% from May's -0.1%, with most LEI numbers negative over the past six months, indicating potential recession signals [4][5] - Upcoming economic reports include Existing & New Home Sales, S&P flash Services and Manufacturing PMI, and Durable Goods Orders, with mixed expectations for these data points [7] Group 4: Future Earnings Expectations - Alphabet (GOOGL) is expected to see a +13.2% increase in earnings and +11.1% in overall revenues, while Tesla (TSLA) is projected to experience a -23.1% decline in earnings year over year and -11.9% in revenue [6]

Financial Data and Key Metrics Changes - Adjusted EBITDA in Q2 improved by $271 million from the prior quarter, driven by higher shipment volumes and operational efficiency [5] - The average selling price increased by $35 per ton to $10.15, while unit costs decreased by $15 per ton [21][22] - The company ended the quarter with $2.7 billion in liquidity and no near-term maturities, with net debt on a downward trajectory [24] Business Line Data and Key Metrics Changes - Shipment volumes reached 4.3 million tons, a 150,000 ton increase from the prior quarter, allowing for more efficient mill operations [21] - The stainless steel business saw a $150 million investment in a bright annealing line, expected to improve quality and productivity [16][18] Market Data and Key Metrics Changes - The Section 232 tariffs have positively impacted both the steel and automotive sectors, with flat rolled steel imports and light vehicle imports hitting multi-year lows [6][7] - The company is positioned to benefit from the resurgence in automotive production in the U.S., as OEMs are moving production back from Mexico and Asia [70][71] Company Strategy and Development Direction - The company is focused on cost-cutting and optimizing its footprint, with expectations for further cost reductions in Q3 and Q4 [5][32] - Cleveland Cliffs is exploring potential sales of non-core assets to unlock value for shareholders, with JPMorgan engaged as an advisor [25][96] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro trends aligning favorably for the company, anticipating a better second half of 2025 compared to the first half [28] - The management highlighted the need for a new Federal Reserve Chairman to lower interest rates, which would benefit the automotive sector [12][13] Other Important Information - The company is vertically integrated, relying on American iron ore and coal, which differentiates it from competitors who depend on imported feedstock [15] - The company has seen a significant reduction in working capital due to inventory reductions, particularly in raw materials [22][40] Q&A Session Summary Question: How should we think about the cadence of cost reductions from here? - Management expects costs to decrease by another $20 per ton from Q2 to Q3, with further reductions anticipated in Q4 [32] Question: What are the expectations for free cash flow generation in the second half? - Free cash flow is expected to improve as working capital continues to be released, with a history of generating over $1 billion in free cash flow annually [40][41] Question: Can you provide insights on automotive volumes in Q2? - Automotive volumes are growing as OEMs are moving production back to the U.S. and reducing reliance on imports [70][71] Question: What is the outlook for average selling prices in Q3? - Average selling prices are expected to remain stable, with shipments similar to Q2 levels [53][56] Question: Can you elaborate on the non-core assets that may be sold? - The company is open to selling non-core assets that could generate significant cash inflow, which would be used for debt reduction [96][104]

Financial Data and Key Metrics Changes - Adjusted EBITDA in Q2 improved by $271 million from the prior quarter, driven by higher shipment volumes and operational efficiency [4] - Average selling price increased to $10.15 per ton, a $35 per ton increase from the prior quarter, primarily due to higher index pricing [20] - Unit costs decreased by $15 per ton, contrary to previous expectations of a slight increase [20] Business Line Data and Key Metrics Changes - Volumes reached 4.3 million tons, a 150,000 ton increase from the prior quarter, allowing for more efficient mill operations [20] - The stainless steel business saw a significant investment of $150 million in a bright annealing line, expected to improve quality and productivity [16] Market Data and Key Metrics Changes - The U.S. steel market remains strong, with Section 232 tariffs positively impacting both the steel and automotive sectors [5][6] - Imported steel and automotive imports hit multi-year lows, indicating a favorable environment for domestic producers [6] Company Strategy and Development Direction - The company is focused on cost-cutting and optimizing its footprint, with initiatives expected to show impact in the second half of the year [4] - Cleveland Cliffs is positioned to support the resurgence in American vehicle production, leveraging its integrated business model [14][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro trends aligning favorably for the company, anticipating a better second half of 2025 compared to the first half [28] - The company expects to continue reducing costs and improving EBITDA generation in the coming quarters [26] Other Important Information - The company ended the quarter with $2.7 billion in liquidity and no near-term maturities, with net debt on a downward trajectory [23] - Plans for potential non-core asset sales are underway, which could unlock significant value for shareholders [24][93] Q&A Session Summary Question: How should we think about the cadence of cost reductions from here? - Management expects costs to decrease by another $20 per ton from Q2 to Q3, with further reductions anticipated in Q4 [32] Question: Can you provide insights on CapEx expectations for 2027? - There is no reline scheduled for 2026, and the Middletown project is being revamped to enhance operations without hydrogen [34][36] Question: How should we think about free cash flow generation in the second half? - Free cash flow is expected to improve significantly, with a focus on using cash to pay down debt [41] Question: What are the expectations for average selling price and volume in Q3? - Shipments are expected to remain flat at 4.3 million tons, with continued EBITDA improvement anticipated [52][56] Question: What is the outlook for the Canadian market? - Management believes there is potential for growth in Canada, contingent on local policies and market conditions [60][62] Question: Can you discuss automotive volumes in Q2? - Automotive volumes are growing as OEMs shift production back to the U.S. and reduce reliance on imports [69][70]

Financial Performance & Outlook - Cleveland-Cliffs reported revenues of $4.9 billion for Q2 2025[6] - Adjusted EBITDA for Q2 2025 was $97 million, with expectations for continued improvement from Q2 to Q3[6] - The company released over $200 million in inventory working capital during Q2 2025[6] - Cleveland-Cliffs expects to reduce steel unit costs by approximately $160 per ton over three years[55] Steel Shipments & Market Dynamics - Record quarterly steel shipments of 4.3 million net tons were achieved in Q2 2025[6] - Steel shipments increased by 150,000 tons from the prior quarter[11] - The average selling price (ASP) increased by $35 per ton due to higher index pricing, partially offset by lower slab pricing[11] Asset Optimization & Cost Savings - Flat-rolled optimization is expected to yield approximately $145 million in annual savings[15] - Repositioning away from non-core assets is projected to generate around $165 million in annual savings[15] - The company announced the idling of several facilities, including Riverdale, Conshohocken, and Steelton, resulting in approximately $90 million, $45 million, and $30 million in expected annual savings, respectively[16] Trade & Tariffs - Tariffs on steel imports from various countries, including Canada, Brazil, and Mexico, have increased to 50%[18] - Imports of light vehicles from Japan and South Korea are down by more than 30% year-to-date[22] Capital Expenditure & Debt Management - The 2025 capital expenditure guidance has been lowered to approximately $600 million[57] - The company has a liquidity of $2.7 billion[6]

Group 1 - Cleveland-Cliffs reported a quarterly loss of $0.5 per share, better than the Zacks Consensus Estimate of a loss of $0.68, and compared to earnings of $0.11 per share a year ago, representing an earnings surprise of +26.47% [1] - The company posted revenues of $4.93 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.62%, but down from $5.09 billion year-over-year [2] - Cleveland-Cliffs shares have increased approximately 0.9% since the beginning of the year, while the S&P 500 has gained 7.1% [3] Group 2 - The earnings outlook for Cleveland-Cliffs is mixed, with the current consensus EPS estimate for the coming quarter at -$0.20 on revenues of $4.97 billion, and -$1.69 on revenues of $19.46 billion for the current fiscal year [7] - The Zacks Industry Rank indicates that the Steel - Producers industry is currently in the bottom 14% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] Group 3 - Cleveland-Cliffs has surpassed consensus EPS estimates only once in the last four quarters, while it has topped consensus revenue estimates three times during the same period [2][6] - The estimate revisions trend for Cleveland-Cliffs was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]