Cleveland-Cliffs Inc. (CLF) Reports Q3 2025 Financial Results shares surge over 21%

by MarketNewsData

Headline:
Cleveland-Cliffs (CLF) shares rally over 21% as company unveils rare-earth exploration plans amid steady steel demand recovery.

Key Points:

  • Stock Reaction: CLF surged 21.47% to close at $16.18, marking a strong breakout above its 50-day moving average of $11.62.
  • Earnings Snapshot: Reported Q3 2025 revenue of $4.7 billion, nearly flat year-over-year, with an adjusted net loss of $223 million ($0.45/share), in line with estimates.
  • EBITDA Improvement: Adjusted EBITDA rose to $143 million from $122 million a year earlier.
  • Guidance Update: Management reduced capital expenditures to $525 million (from $600 million) and cut SG&A to $550 million, reflecting disciplined cost control.

What Triggered the Rally:
The standout catalyst driving the rally was CEO Lourenco Goncalves’s announcement of new rare-earth mineral exploration at sites in Michigan and Minnesota. The initiative aligns with U.S. policy goals for domestic critical material independence, positioning Cleveland-Cliffs as a potential strategic player in the supply chain for electric vehicles, batteries, and defense technologies.

Additionally, the company’s multi-year agreements with major automotive OEMs and its mention of a Memorandum of Understanding with a global steel producer reinforced investor optimism around long-term revenue stability and trade-compliant U.S. production.

Market Context:
While the results were largely in line with Wall Street expectations, the market responded enthusiastically to the rare-earth narrative, viewing it as a diversification pivot beyond traditional steelmaking. The elevated RSI of 74.28 suggests near-term overbought conditions, but momentum remains strong as investors bet on future value from critical-mineral exposure.

Key Takeaways:

  • Rare-earth exploration announcement sparked significant buying interest.
  • Earnings were steady, with improved cost efficiency and EBITDA growth.
  • Automotive demand recovery and strategic partnerships support long-term outlook.
  • Short-term technicals show overbought territory, but sentiment remains bullish.

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