Cleveland-Cliffs Inc. (CLF) shares surged 5.17% in pre-market trading on Monday, following the release of its second-quarter 2025 financial results that exceeded analyst expectations. The U.S. steelmaker reported a narrower-than-anticipated loss and significantly better EBITDA, signaling improved operational performance despite challenging market conditions.

The company posted an adjusted net loss of $247 million, or $0.50 per share, for the quarter, beating analysts' estimates of a $0.74 per share loss. While revenues slightly declined to $4.93 billion from $5.10 billion a year earlier, they were in line with market expectations. Notably, Cleveland-Cliffs achieved a positive adjusted EBITDA of $97 million, far surpassing the IBES estimate of -$7.38 million, demonstrating the company's ability to manage costs effectively.

CEO Lourenco Goncalves provided an optimistic outlook, stating, "Domestic steel pricing remains strong, we have visibility into our cost reductions, and our order book remains healthy." He also noted the positive impact of tariffs on domestic manufacturing, suggesting potential benefits for the company moving forward. With record steel shipments of 4.3 million net tons and a $15 per net ton reduction in steel unit costs compared to the previous quarter, Cleveland-Cliffs appears well-positioned for improved performance in the coming months.