Cleveland-Cliffs Inc. (NYSE: CLF) stock surged 5.07% in Monday's trading session following the release of its third-quarter 2025 earnings report, which showcased better-than-expected results and positive outlook for the U.S. steel industry. The company's shares closed at $16.74, reflecting growing investor confidence in Cleveland-Cliffs' ability to navigate the changing trade landscape and capitalize on emerging opportunities in the steel and rare earth sectors.
The steelmaker reported an adjusted loss of $0.45 per share for Q3, beating analyst estimates of $0.48 per share. While revenue of $4.73 billion fell slightly short of the expected $4.9 billion, it still represented a 3.6% increase from the same quarter last year. The company's adjusted EBITDA of $143 million surpassed analysts' expectations of $128 million, demonstrating improved operational efficiency and cost management.
CEO Lourenco Goncalves attributed the positive results to a clear recovery in demand for automotive-grade steel made in the USA, crediting the Trump administration's trade policies for creating a favorable environment for domestic steel producers. "Our third quarter results marked a clear sign of demand recovery for automotive-grade steel made in the USA, and that is a direct consequence of the new trade environment implemented and enforced by the Trump Administration," Goncalves stated during the earnings call.
Adding to investor enthusiasm, Cleveland-Cliffs announced its exploration of rare earth potential at mining sites in Michigan and Minnesota, aligning with the national strategy for critical material independence. This diversification effort could provide additional growth opportunities for the company in the future, especially as the U.S. government seeks to reduce dependence on foreign sources for essential minerals.
The company also revealed it had entered into multi-year agreements with all major automotive OEMs, securing higher sales volumes and favorable pricing through 2027 or 2028. This development underscores the growing preference for domestically produced steel among automakers, partly driven by the desire to reduce exposure to tariffs and foreign market volatility.
Cleveland-Cliffs' strategic moves, coupled with the company's improved sales mix and cost management, have contributed to the significant stock surge, reflecting growing investor confidence in the company's ability to capitalize on the changing trade landscape and emerging opportunities in both the steel and rare earth sectors.