Key Stats for Cleveland-Cliffs Stock
- Price change for Cleveland-Cliffs stock: 16%
- $CLF Stock Price as of Jul. 14: $11
- 52-Week High: $17
- $CLF Stock Price Target: $11
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What Happened?
Cleveland-Cliffs (CLF) stock jumped nearly 16% today after the steel maker posted Q2 results that beat expectations across the board.
The company lost $0.20 per share, excluding certain items, on revenue of $5.23 billion. Analysts had expected a bigger loss of $0.21 per share on $5.15 billion in revenue.
The improvement wasn’t small either. Net loss narrowed by 70% to $145 million, down from $486 million a year ago.
Revenue climbed 6% year over year to $5.2 billion, and adjusted EBITDA came in at $286 million, the company’s best quarter in two years, and Cleveland-Cliffs returned to positive free cash flow after two years of burning cash.
Pricing helped a lot here. Average selling price rose $76 per ton during the quarter as pricing lags worked in the company’s favor.
Steel shipments were just over 4 million tons, though that was down slightly due to planned maintenance and stronger automotive demand, which tends to come with longer lead times.
What really caught investors’ attention was the outlook.
Cleveland-Cliffs issued Q3 EBITDA guidance of about $575 million, which would be its strongest quarter in three years and topped what analysts were modeling.
Management expects shipment volumes above 4.3 million tons in Q3, another $55 per ton pricing increase, and a $10 per ton reduction in costs.
The company says Q4 results should be even better than Q3.
CEO Lourenco Goncalves pointed to strong domestic demand, subdued imports, and extending lead times as signs the U.S. steel market remains healthy.
He also highlighted improving automotive volumes and early signs of a turnaround in Canada through the company’s Stelco business.
In leadership news, CFO Celso Goncalves was promoted to president and joined the board of directors, continuing to work alongside his father Lourenco, who remains Chairman and CEO.
One softer data point: hedge fund participation actually declined heading into this report, with 53 funds holding Cleveland-Cliffs stock last quarter compared to 56 the quarter before, and combined holdings dropping 34% to $1.19 billion.
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What the Market Is Telling Us About Cleveland-Cliffs Stock
Today’s surge in Cleveland-Cliffs stock shows investors reacting strongly to a clear turning point in the business.
Narrowing losses, returning to positive free cash flow, and issuing bullish forward guidance all at once is a powerful combination.
The company also pointed to upcoming fixed-price contract resets and improving Canadian operations as further upside heading into 2027.
With prices, volumes, and costs all reportedly moving in the right direction, today’s rally in Cleveland-Cliffs stock reflects growing confidence that the worst of the downturn is behind the company.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
