Cleveland-Cliffs Q2 Earnings and Revenues Beat Estimates

Core Viewpoint - Cleveland-Cliffs Inc. reported a narrower adjusted loss of 50 cents per share for Q2 2025, compared to an expected loss of 68 cents, while revenues decreased by 3.1% year over year to $4.93 billion, surpassing estimates [1][6]. Operational Highlights - Steelmaking revenues were approximately $4.8 billion, reflecting a 2% year-over-year decline [2]. - The average net selling price per net ton of steel products was $1,015, down 9.8% year over year, missing the estimate of $1,020 [2]. - External sales volumes for steel products increased to roughly 4.3 million net tons, up 7.5% year over year, exceeding the estimate of 4.2 million net tons [2]. Financial Position - As of the end of Q2, the company had cash and cash equivalents of $61 million, a 5% increase from the previous quarter [3]. - Long-term debt rose by 1.7% sequentially to $7.727 billion [3]. - Total liquidity stood at $2.7 billion as of June 30, 2025 [3]. Outlook - The company revised its full-year 2025 guidance, projecting capital expenditures of approximately $600 million, down from $625 million [4]. - Selling, general and administrative (SG&A) expenses were lowered to around $575 million from $600 million [4]. - Steel unit cost reductions are targeted at approximately $50 per net ton compared to 2024 [4]. - Depreciation, depletion, and amortization (DD&A) expenses were revised upward to approximately $1.2 billion due to accelerated depreciation related to idled facilities [4]. - Cash pension and Other Post-Employment Benefits (OPEB) payments remain unchanged at approximately $150 million [4]. Price Performance - Shares of Cleveland-Cliffs are down 32.9% over the past year, compared to a 23% decline in its industry [5].