Cleveland-Cliffs Inc. (NYSE:CLF) Surpasses Earnings and Revenue Estimates

Cleveland-Cliffs Inc. (NYSE:CLF) is a prominent player in the steel industry, known for its production and supply of iron ore pellets and steel products. The company operates in the Zacks Steel - Producers industry and has a significant presence in the North American market. Its competitors include major steel producers like U.S. Steel and Nucor Corporation.

On July 21, 2025, CLF reported its earnings, revealing an earnings per share (EPS) of -$0.50, which was better than the estimated EPS of -$0.61. This result also surpassed the Zacks Consensus Estimate of a $0.68 loss, marking an earnings surprise of 26.47%. Despite the negative EPS, this performance was a relief to investors, as highlighted by the stock's increase following the earnings report. The company's revenue for the quarter was approximately $4.93 billion, surpassing the estimated revenue of about $4.90 billion. This figure exceeded the Zacks Consensus Estimate by 0.62%, although it was slightly lower than the $5.09 billion reported in the same quarter last year. Cleveland-Cliffs has managed to exceed consensus revenue estimates three times in the last four quarters, showcasing its ability to perform better than expected.

Despite the challenges, Cleveland-Cliffs achieved record steel shipments totaling 4.3 million net tons. However, the company reported a GAAP net loss of $470 million, which includes $323 million in non-recurring charges related to idled facilities. On an adjusted basis, the net loss was $247 million, or -$0.50 per diluted share, with an adjusted EBITDA of $97 million, marking a $271 million improvement.

Cleveland-Cliffs faces financial difficulties, as indicated by its negative price-to-earnings (P/E) ratio of approximately -2.94 and a negative earnings yield of -33.96%. The company's debt-to-equity ratio is 1.28, suggesting a higher level of debt compared to equity. However, the current ratio of 2.04 indicates a strong ability to cover short-term liabilities with short-term assets, providing some financial stability.