Latest news with #LourencoGoncalves
Yahoo
21 hours ago
- Business
- Yahoo
Cleveland-Cliffs Rides Cost Cuts And Trump Tariffs To Stronger Outlook, Eyes Billions From Asset Sales
Cleveland-Cliffs Inc. (NYSE:CLF) is gaining renewed confidence from Wall Street after posting better-than-expected results for the second quarter of 2025, prompting KeyBanc Capital Markets analyst Philip Gibbs to upgrade the stock to Overweight and set a price forecast of $14. The move reflects a more favorable risk-reward outlook for the steelmaker, which is capitalizing on robust domestic demand, aggressive cost-cutting, and strategic shifts amid a supportive policy environment. Cleveland-Cliffs reported a narrower second-quarter 2025 adjusted loss of $0.50 per share, beating expectations, with revenue of $4.93 billion. Also Read: Steel Dynamics Sees Q2 Rebound From Q1 But Still Trails Street Forecast Steel shipments reached a record 4.3 million net tons, though the average selling price declined. Cost-cutting efforts, including the idling of six facilities, reduced steel unit costs by $15 per ton. Adjusted EBITDA turned positive at $97 million. The company lowered its 2025 capital expenditure and SG&A guidance and expects further cost improvements in the second half. CEO Lourenco Goncalves emphasized strong domestic steel demand, a healthy order book, and policy support from the Trump administration. He noted that a loss-making slab supply deal will end soon, further supporting margins and accelerating free cash flow and debt reduction. Gibbs stated that the upgrade reflects his increased confidence in Cleveland-Cliffs' cost-cutting efforts and operational efficiencies, especially within its high-margin automotive segment. He also pointed to trade protections and reshoring trends as favorable tailwinds that position the company to gain market share. The analyst revised his 2025 outlook, narrowing projected losses due to improved margins and lower production costs. He now forecasts 2025 EBITDA of $419 million, more than double his previous estimate. For the third quarter of 2025, he raised EBITDA expectations to $197 million from $123 million, aided by an additional $20 per ton in cost savings. Looking ahead to 2026, Gibbs raised his EPS forecast to $0.42 and EBITDA to $1.86 billion, citing a stronger production base, contract repricing, and the elimination of a $250 million drag from the slab agreement with ArcelorMittal. If U.S. and Canadian steel prices outperform expectations, 2026 EBITDA could exceed $2 billion. According to Gibbs, valuation remains attractive, with shares trading at about 7x 2026 EV/EBITDA, within historical norms. The $14 price forecast reflects a multiple toward the higher end of that range, factoring in potential asset sales and upside from stronger steel pricing.
Business Insider
a day ago
- Business
- Business Insider
CLF Earnings: Cleveland-Cliffs Stock Rallies on Strong Q2 Beats
Cleveland-Cliffs (CLF) stock rallied Monday after the American steel company posted its Q2 2025 earnings report. It reported adjusted earnings per share of -50 cents, which was better than Wall Street's estimate of -71 cents. However, it was a negative switch year-over-year compared to 11 cents per share. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Cleveland-Cliffs reported revenue of $4.93 billion in Q2 2025, compared to analysts' estimate of $4.68 billion. Despite the beat, the company's revenue slipped 1.62% year-over-year from $5.09 billion. The company reported $323 million in non-recurring charges this quarter that were tied to its footprint optimization initiatives. CLF stock was up 4.54% in pre-market trading on Monday, following a 0.96% rally on Friday. The shares have also risen 0.85% year-to-date but were down 37.67% over the past 12 months. Cleveland-Cliffs Guidance Cleveland-Cliffs provided guidance for the full year of 2025 in its latest earnings report. The company expects the following: Capital expenditures of $600 million, compared to its previous outlook of $625 million. Selling, general, and administrative expenses of $575 million, compared to its prior guidance of $600 million. Steel unit cost reductions of $50 per net ton compared to 2024. Depreciation, depletion, and amortization of approximately $1.2 billion, compared to its previous guidance of $1.1 billion. Cash Pension and OPEB payments and contributions of $150 million. Lourenco Goncalves, Chairman, President and CEO, said, 'Our good cost performance in Q2 will be even further amplified into Q3 and Q4, with further expected improvements in adjusted EBITDA as a result.' Is Cleveland-Cliffs Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Cleveland-Cliffs is Hold, based on two Buy, five Hold, and a single Sell rating over the past three months. With that comes an average CLF stock price target of $8.27, representing a potential 12.76% downside for the shares. These ratings and price targets will likely change as analysts update their coverage after today's earnings.
Business Insider
a day ago
- Business
- Business Insider
Cleveland-Cliffs CEO: We're ready for the surge in automotive production
Lourenco Goncalves is speaking on CNBC's Mad Money. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Toronto Star
2 days ago
- Business
- Toronto Star
Cleveland-Cliffs CEO calls on Canada to adopt steel tariffs
(Bloomberg) — Cleveland-Cliffs Inc.'s chief executive Lourenco Goncalves is calling on Canadian Prime Minister Mark Carney to implement punishing steel import tariffs to protect the nation's industry. The notoriously combative US executive and vocal public supporter of President Donald Trump said on Monday that Carney and his cabinet should enact 'significant' trade protections for the nation's steel industry.
CNBC
2 days ago
- Business
- CNBC
Cleveland-Cliffs CEO Lourenco Goncalves goes one-on-one with Jim Cramer
Cleveland-Cliffs Chairman, President and CEO Lourenco Goncalves joins 'Mad Money' host Jim Cramer to talk the state of the U.S. steel industry, demand for steel, quarterly results, and more.
