CLF is expected to report earnings to fall 50.82% to -19 cents per share on July 27
Cleveland-Cliffs Inc. (CLF) Q1 2026 Earnings Recap: Loss Narrows on Revenue Beat
Key Takeaways
- Cleveland-Cliffs Inc. reported Q1 2026 revenues of $4.9 billion, up 7% year-over-year (YoY) from $4.6 billion and beating consensus estimates around $4.8 billion.
- GAAP net loss narrowed to $229 million ($0.42 per diluted share) from $486 million ($1.01 per share) in Q1 2025; adjusted net loss was $228 million ($0.40 per share).
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) improved to $95 million from a $179 million loss YoY, despite an $80 million hit from extreme cold weather energy costs.
- Steel product sales volumes reached 4.1 million net tons, nearly flat YoY, with average net selling price rising to $1,048 per ton.
- Shares fell about 5-8% in post-earnings trading on April 21, 2026, as higher costs overshadowed improvements.
- Full-year 2026 guidance includes 16.5-17.0 million net tons of steel shipments and $700 million in capital expenditures.
Earnings Context and Why It Matters
As North America's largest flat-rolled steel producer, Cleveland-Cliffs Inc. faces volatile commodity cycles, trade dynamics, and energy costs that heavily influence profitability. Q1 2026 results mark a step toward recovery after prolonged losses in 2025 amid weak demand and high input costs. Investors watch these reports closely for signs of pricing power, volume stability, and margin expansion, especially with U.S. steel imports at multi-year lows due to trade enforcement. Strong results could signal a broader industry upturn, boosting confidence in Cliffs' vertically integrated model and strategic moves like potential POSCO partnerships.
Cleveland-Cliffs reported consolidated revenues of $4.9 billion for the first quarter ended March 31, 2026, a $300 million increase from $4.6 billion in Q1 2025 and $600 million above Q4 2025's $4.3 billion. The steelmaking segment drove growth with $4.8 billion in revenues, reflecting higher average net selling prices of $1,048 per net ton (up from $980 YoY) and external sales volumes of 4.108 million net tons.
The company posted a GAAP net loss of $229 million, or $0.42 per diluted share, improved from Q1 2025's $486 million loss ($1.01 per share). Adjusted figures showed a net loss of $228 million, or $0.40 per share, versus consensus expectations that varied between -$0.37 and -$0.41. Adjusted EBITDA swung to a $95 million profit from a $179 million loss YoY, though hampered by an $80 million energy cost spike from severe winter weather.+Tops+Q1+EPS+by+1c,+Beats+on+Revenue;+Offers+Guidance/26333235.html)
Steelmaking segment cash gross margin was $136 million, with steel shipments totaling 4.1 million net tons (down 32,000 tons YoY). Liquidity stood at $3.1 billion as of quarter-end.
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Market Reaction and Investor Sentiment
CLF shares dropped 5-8% on April 21, 2026, following the earnings release, with pre-market declines reaching 10% in some reports. Investors appeared to focus on the energy cost impact and ongoing net losses, despite revenue beats and EBITDA improvement. Sentiment reflects caution amid steel sector headwinds, though low import levels and pricing momentum offer some optimism.
Forward Outlook and Key Factors to Monitor
Management anticipates sequential quarterly improvements in Q2 2026, driven by a strengthening order book, higher pricing realization, and positive free cash flow. Full-year guidance projects 16.5-17.0 million net tons of steel shipments, $700 million in capital expenditures, $575 million in selling, general, and administrative (SG&A) expenses, $1.1 billion in depreciation, depletion, and amortization (DD&A), and $125 million in cash pension and other postretirement employee benefit (OPEB) payments.
Key catalysts include ongoing U.S. trade enforcement keeping imports at lows not seen since the global financial crisis, bolstering domestic pricing. Negotiations with POSCO under a memorandum of understanding (MoU) could yield an accretive transaction. Investors should track energy cost normalization post-winter, steel demand from automotive and infrastructure sectors, and raw material trends like iron ore and metallics.
Middle East disruptions may further favor North American producers like Cliffs. Monitor Q2 results for margin progression and any updates on strategic initiatives.
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a miner of iron ore
Industry Steel