- Cleveland-Cliffs reported second-quarter revenue of $4.93 billion, which surpassed expectations of $4.88 billion, but marked a 3.1% decrease year-over-year.
- The adjusted loss per share is 50 cents, compared to an 11-cent earnings per share (EPS) in the same period last year, better than the estimated loss of 79 cents per share.
- Adjusted EBITDA stood at $97 million, a significant year-over-year decline of 70%, yet it exceeded estimates that projected a loss of $30.6 million.
- The company reported a loss per share of 97 cents, a sharp reversal from $0 last year, though it was less than the estimated loss of 86 cents per share.
- Inventory reductions in Q2 helped achieve a release of working capital.
- Prices for slabs were unusually low, adversely impacting EBITDA, leading to a decision not to renew the related contracts.
- The company expects improved cost performance and adjusted EBITDA in upcoming quarters, with benefits seen in Q3 and Q4.
- Cleveland-Cliffs anticipates continued growth for the American automotive industry, supported by a strong domestic steel sector.
- There are currently 4 buy ratings, 8 hold ratings, and 1 sell rating for the company.
Cleveland-Cliffs Inc on Smartkarma
Independent analysts on Smartkarma have provided insightful coverage of Cleveland-Cliffs Inc. Baptista Research‘s report, “Cleveland-Cliffs Abandons Weirton Plant—What’s Behind This Bold Pivot?” delves into the company’s challenges in the first quarter of 2025, citing lower performance metrics like EBITDA and cash flow. The report attributes these difficulties to lingering low steel prices and underperformance of non-core assets, emphasizing the impact of federal tariffs on foreign steel under Section 232.
Rahul Jain‘s analysis, “Cleveland-Cliffs: Weak Q1 Results, Restructuring Underway, Valuations Reflect Deep Discount,” highlights the company’s losses from weak auto demand and high costs. Despite these challenges, Cleveland-Cliffs plans to enhance its financial position by cutting costs, exiting unprofitable operations, and targeting $300 million in cost savings. Trading at deep value levels, the report emphasizes the potential for improvement in valuations and outlines strategies to mitigate current difficulties.
A look at Cleveland-Cliffs Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts have provided a comprehensive assessment of Cleveland-Cliffs Inc’s future prospects using Smartkarma’s Smart Scores. The company excels in terms of value, receiving the highest score possible. This indicates a strong position in terms of financial health and market value. However, the dividend score is on the lower end, suggesting limited returns for investors seeking income. In terms of growth and resilience, Cleveland-Cliffs Inc has received moderate ratings. While there is room for improvement, these scores indicate a stable performance in the industry. The company’s momentum score is favorable, indicating positive market sentiment and potential upward trends in the future.
Cleveland-Cliffs Inc, an American iron ore mining company, primarily supplies iron ore products to the global steel industry. The company is actively diversifying its customer base by targeting Electric Arc Furnaces in addition to traditional blast furnaces. With a strong emphasis on value and a positive momentum outlook, Cleveland-Cliffs Inc is poised for long-term growth and sustainability in the competitive market of iron ore mining and supply.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
