Cleveland‑Cliffs Inc. Navigates a Mixed Quarter While Positioning for Rare‑Earth Expansion
Cleveland‑Cliffs Inc. (NYSE: CLF), a U.S.‑based metals and mining company that produces custom‑made pellets, hot‑briquetted iron (HBI), and a range of flat‑rolled and long‑length steel products, released its third‑quarter 2025 earnings on Monday, October 20. The company posted a loss of $251 million (–$0.51 per share), narrowly in line with Wall Street expectations. Revenue of $4.7 billion fell short by roughly $200 million from the $4.9 billion forecasted by analysts.
Key Financial Highlights
| Metric | Q3 2025 | Analyst Estimate |
|---|---|---|
| Net loss | $251 million | $244 million |
| Adjusted EPS | –$0.51 | –$0.45 |
| Revenue | $4.7 billion | $4.9 billion |
| Net tonnage of steel shipped | 4 million | — |
The company’s Non‑GAAP EPS of –$0.45 also matched expectations, underscoring the difficulty of sustaining profitability amid a volatile steel market. Cleveland‑Cliffs’ price‑to‑earnings ratio remains negative at –3.88, a consequence of recurring losses in the steel sector. Its market capitalization is approximately $6.6 billion, and its share price has been trading around $13.32 as of October 16, 2025.
Steel Tariffs and Demand Drivers
The company highlighted that steel tariffs imposed by the Trump administration have provided a temporary lift in demand. “We have seen a resurgence in demand for our flat‑rolled and long‑length steel products as the U.S. footprint is rewarded by the trade policy,” stated Chief Executive Lourenco Goncalves. This tariff‑driven demand has helped offset some of the headwinds from global market softness, yet the company remains cautious about sustaining long‑term growth.
Rare‑Earth Exploration
A recurring theme across multiple news outlets was Cleveland‑Cliffs’ intent to diversify into rare‑earth minerals. In a “highly profitable pact” announced at the same time as the earnings release, the company confirmed plans to explore the production of rare‑earth minerals—a move that could open a new revenue stream and reduce exposure to the cyclical steel market. The announcement coincided with a stock rally, suggesting investors are optimistic about the potential upside of a diversified commodity portfolio.
Capital Expenditure Adjustments
Amid concerns about future steel demand, Cleveland‑Cliffs revised its FY 2025 capital‑expenditure guidance downward. While specific figures were not disclosed, the company indicated a more conservative investment approach, focusing on core operations and the rare‑earth initiative.
Plant Closure and Operational Realignment
In a separate development, the company confirmed the permanent closure of its Steelton plant in early 2026. The decision reflects broader strategic realignment to streamline operations and cut costs in response to shifting market dynamics.
Market Reaction
Despite a loss that matched, rather than beat, analyst expectations, the stock surged following the earnings announcement. The rally—reported by Seeking Alpha and Morningstar—illustrates investor enthusiasm for the rare‑earth strategy and the positive impact of steel tariffs, even as the company grapples with ongoing profitability challenges.
In summary, Cleveland‑Cliffs Inc. delivered a third‑quarter performance that underscored the continued volatility of the steel sector. The company’s loss, though in line with forecasts, is counterbalanced by strategic pivots toward rare‑earth minerals and a cautious capital‑expenditure approach. Investors will likely watch closely how the tariff‑driven demand and new commodity ventures shape the company’s trajectory in the coming years.
