Cleveland-Cliffs Inc. (NYSE: CLF) saw its stock soar 5.18% in pre-market trading on Monday following the release of its third-quarter 2025 earnings report. The steelmaker's results painted a mixed picture, with earnings beating analyst expectations despite a revenue miss, while management highlighted positive trends in automotive steel demand.

The company reported an adjusted loss of $0.45 per share, narrower than the $0.48 loss analysts had forecasted. However, revenue came in at $4.7 billion, falling short of the $4.9 billion consensus estimate. Despite the top-line miss, investors appeared to focus on the positive aspects of the report and management's optimistic outlook.

CEO Lourenco Goncalves emphasized the encouraging signs in the steel market, stating, "Our third quarter results marked a clear sign of demand recovery for automotive-grade steel made in the USA." This recovery is attributed to the new trade environment and multi-year supply agreements with major automotive manufacturers, potentially signaling improved future performance for Cleveland-Cliffs.

Adding to the positive sentiment, the company revealed it is exploring rare earth potential at its mining sites in Michigan and Minnesota. This initiative aligns with the broader national strategy for critical material independence and could open up new revenue streams for Cleveland-Cliffs in the future.

As the market digests these results, investors will be watching closely to see if the pre-market gains hold and whether the company's optimistic outlook for automotive steel demand translates into sustained growth in the coming quarters.