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CLEVELAND - On Monday, Cleveland-Cliffs Inc. (NYSE:CLF) reported a narrower-than-expected second-quarter loss on Monday, as the steelmaker’s cost-cutting initiatives began to show positive results.
The company’s shares rose 2.95% in pre-market trading following the announcement.
The Ohio-based steel producer posted an adjusted loss of $0.50 per share for the quarter ended June 30, compared to analysts’ expectations of a $0.71 per share loss. Revenue came in at $4.9 billion, slightly above the $4.86 billion consensus estimate.
The company achieved record steel shipments of 4.3 million net tons during the quarter.
Cleveland-Cliffs reported an adjusted EBITDA of $97 million, marking a significant $271 million improvement from the first quarter’s $174 million loss. The company reduced steel unit costs by $15 per net ton compared to the previous quarter, demonstrating progress in its footprint optimization initiatives.
"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, Chairman, President and CEO of Cleveland-Cliffs. "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."
The company’s second-quarter steel shipments consisted of 40% hot-rolled, 27% coated, 15% cold-rolled, 5% plate, 3% stainless and electrical, and 10% other products. Revenue increased 6.5% from $4.6 billion in the first quarter of 2025.
Cleveland-Cliffs maintained its guidance for steel unit cost reductions of approximately $50 per net ton compared to 2024, while lowering its capital expenditure forecast to $600 million from $625 million previously.
The company ended the quarter with $2.7 billion in total liquidity as of June 30, positioning it for continued operational improvements in the second half of the year.
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