Cleveland-Cliffs revenue up on continued steel demand

Cleveland-Cliffs reported higher first-quarter revenue as steel demand continued to improve despite continuing global tensions.

The steel producer also named its chief financial officer, Celso Goncalves, to the additional post of president and appointed him to the board.

Cleveland-Cliffs posted a narrowed loss of $134 million, or 25 cents a share, compared with a loss of $229 million, or 42 cents a share, the year prior.

On an adjusted basis, the company reported a loss of 20 cents a share. Analysts polled by FactSet expected a loss of 21 cents a share.

Consolidated revenue rose to $5.23 billion from $4.93 billion a year earlier. Analysts expected revenue of $5.15 billion.

Shares recently were up 13.1% at $10.69 in premarket trading.

Average net selling price per net ton of steel products rose to $1,124 from $1,015. Steelmaking revenue rose to $5.05 billion from $4.77 billion.

“The domestic market remains strong as ongoing global tensions continue to underscore the importance of having a thriving domestic steel industry,” Chief Executive Lourenco Goncalves said. “Demand continues to improve, imports remain subdued, and lead times are extending further.”

Goncalves said he expects the second half of the year could be the company’s strongest since 2021, with average selling prices, volumes, and costs all moving in the right direction.

Cleveland-Cliffs still expects steel shipments of 16.5 million to 17 million net tons this year, with capital expenditures at about $700 million.

Earlier this week, Steel Dynamics posted a higher profit and revenue in its second quarter. Chief Executive Barry Schneider told analysts the company has seen high,accelerated rates of all steel exports, even with the 50% U.S. tariff intended to keep foreign-made steel out of the U.S.

On Thursday, Cleveland-Cliffs also said Goncalves assumed the president post from his father, Lourenco Goncalves, who remains chairman and chief executive of the company.

Celso Goncalves joined Cleveland-Cliffs in 2016 and had been executive vice president and finance chief since 2021.

Write to Colin Kellaher at [email protected] and Freddy Sebastian at [email protected]