Cleveland-Cliffs (NYSE:CLF) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Cleveland‑Cliffs beat Q1 estimates with EPS of ($0.40) versus consensus ($0.44), generated revenue of $4.92 billion (up 6.3% YoY), and reported adjusted EBITDA of $95 million as shipments recovered to ~4.1 million tons.
• An extreme winter energy spike and higher input costs caused an approximate $80 million EBITDA headwind in Q1, and management expects Q2 unit costs to rise about $15/ton before easing in the second half of the year.
• Management says automotive OEM bookings are increasing and expects Q2 to be the best quarter in nearly two years with selling prices rising roughly $60/ton, while targeting $425 million from property sales and maintaining liquidity above $3 billion to support a return to positive free cash flow.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) announced its quarterly earnings results on Monday. The mining company reported ($0.40) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.44) by $0.04, FiscalAI reports. Cleveland-Cliffs had a negative return on equity of 18.94% and a negative net margin of 7.91%.The business had revenue of $4.92 billion for the quarter, compared to the consensus estimate of $4.84 billion. During the same quarter last year, the business posted ($0.92) EPS. The business's revenue was up 6.3% on a year-over-year basis.

Here are the key takeaways from Cleveland-Cliffs' conference call:

• The company says its order book is full and automotive OEM bookings are increasing; extended lead times have pushed the pricing realization lag to about two months, so management expects current market price strength to flow into results over Q2–Q3.
• First-quarter adjusted EBITDA was $95 million (a $274 million YoY increase) with shipments recovering to ~4.1 million tons, and management forecasts Q2 to be the best quarter in nearly two years with selling prices rising roughly $60/ton sequentially.
• An extreme winter energy spike and higher electricity/gas prices drove an approximately $80 million EBITDA headwind in Q1; diesel, scrap, and fuel remain elevated, and management expects Q2 unit costs to rise about $15/ton before easing in H2.
• Management expects to collect meaningful cash in Q2 (working-capital unwind) and still targets $425 million from property sales (≈$70 million received so far), leaving liquidity above $3 billion and a return to positive free cash flow as EBITDA and collections improve.
• Discussions with POSCO remain active but have slowed due to geopolitical disruption; some contemplated asset-sale options (e.g., HBI) are off the table for now and timing/outcome of any transaction remains uncertain.

Cleveland-Cliffs Price Performance

Shares of NYSE:CLF opened at $9.73 on Tuesday. Cleveland-Cliffs has a 1 year low of $5.63 and a 1 year high of $16.70. The business has a fifty day simple moving average of $9.56 and a 200 day simple moving average of $11.78. The company has a current ratio of 1.95, a quick ratio of 0.50 and a debt-to-equity ratio of 1.15. The firm has a market cap of $5.55 billion, a price-to-earnings ratio of -3.33 and a beta of 1.91.

More Cleveland-Cliffs News

Here are the key news stories impacting Cleveland-Cliffs this week:

• Positive Sentiment: Management expects Q2 selling prices roughly $60/ton higher and is targeting about $425M in cash receipts from idled properties — a near‑term pricing tailwind and potential liquidity source. Cliffs expects Q2 selling prices up about $60 a ton as it targets $425M idled property cash
• Positive Sentiment: Q1 revenue beat estimates (revenues ≈ $4.9B) and the GAAP loss narrowed year‑over‑year; adjusted EBITDA was positive ($95M) ex the one‑time energy impact, which supports the argument that operations can improve as costs normalize. Cleveland-Cliffs Reports First-Quarter 2026 Results
• Neutral Sentiment: CEO highlighted a “stronger position” amid geopolitical (Middle East) turmoil and said the company expects to return to profitability, but offered limited new detail on timing — supportive rhetoric but not hard catalysts. Cleveland-Cliffs CEO touts ‘stronger position’ amid Middle East turmoil as it beats Q1 estimates
• Neutral Sentiment: The earnings call/transcript reiterates that several Q1 headwinds were “one‑timers” (notably energy) and management provided prepared slides and commentary — useful for modelling but no immediate new guidance beyond pricing and asset receipts. Cleveland-Cliffs (CLF) Q1 2026 Earnings Transcript
• Negative Sentiment: An $80M one‑time energy cost from extreme cold materially reduced Q1 results and was flagged by management as the largest single drag — creates near‑term earnings volatility and investor concern about cost control. Cleveland-Cliffs stock drops on $80 million Q1 energy cost
• Negative Sentiment: Shares sold off despite the beats as markets worry about recurring profitability, management saying it’s “no longer in a hurry” on a POSCO deal, and peers (Nucor, Steel Dynamics) outperforming — signaling strategic doubts and investor impatience. Cleveland-Cliffs down despite narrower-than-expected Q1 loss; says no longer in hurry on Posco deal

Insider Activity at Cleveland-Cliffs

In other Cleveland-Cliffs news, COO Clifford T. Smith sold 200,000 shares of the business's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $10.46, for a total value of $2,092,000.00. Following the completion of the sale, the chief operating officer owned 560,529 shares of the company's stock, valued at $5,863,133.34. The trade was a 26.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Edilson Camara bought 19,700 shares of Cleveland-Cliffs stock in a transaction that occurred on Friday, February 13th. The stock was bought at an average price of $10.13 per share, with a total value of $199,561.00. Following the completion of the acquisition, the director owned 41,983 shares in the company, valued at approximately $425,287.79. The trade was a 88.41% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.95% of the company's stock.

Institutional Investors Weigh In On Cleveland-Cliffs

Hedge funds have recently bought and sold shares of the company. Focus Partners Wealth acquired a new stake in Cleveland-Cliffs in the 1st quarter valued at approximately $339,000. Prudential Financial Inc. increased its holdings in shares of Cleveland-Cliffs by 27.4% during the 2nd quarter. Prudential Financial Inc. now owns 49,955 shares of the mining company's stock worth $380,000 after purchasing an additional 10,733 shares during the period. Russell Investments Group Ltd. raised its position in shares of Cleveland-Cliffs by 4.4% during the second quarter. Russell Investments Group Ltd. now owns 143,264 shares of the mining company's stock valued at $1,088,000 after buying an additional 6,073 shares during the last quarter. CW Advisors LLC raised its position in shares of Cleveland-Cliffs by 47.4% during the second quarter. CW Advisors LLC now owns 22,167 shares of the mining company's stock valued at $168,000 after buying an additional 7,127 shares during the last quarter. Finally, Invesco Ltd. grew its position in Cleveland-Cliffs by 20.3% during the second quarter. Invesco Ltd. now owns 3,081,241 shares of the mining company's stock worth $23,417,000 after buying an additional 520,120 shares in the last quarter. 67.68% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. Wells Fargo & Company cut their price objective on Cleveland-Cliffs from $12.00 to $9.00 and set an "equal weight" rating for the company in a report on Thursday, March 19th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Cleveland-Cliffs in a report on Tuesday, January 27th. Glj Research reiterated a "sell" rating and issued a $9.42 price target on shares of Cleveland-Cliffs in a research report on Monday, March 16th. Argus raised Cleveland-Cliffs to a "hold" rating in a research note on Monday, April 6th. Finally, KeyCorp assumed coverage on shares of Cleveland-Cliffs in a research note on Wednesday, March 25th. They set a "sector weight" rating for the company. Two analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Cleveland-Cliffs presently has an average rating of "Hold" and an average target price of $12.69.

About Cleveland-Cliffs

Cleveland-Cliffs Inc is a leading North American producer of iron ore pellets and flat-rolled steel products. Tracing its roots to 1847, the company has evolved from an iron-ore mining concern in the Great Lakes region into a fully integrated steelmaker. Today, Cleveland-Cliffs operates iron ore mining complexes in Michigan and Minnesota as well as steelmaking and finishing facilities across the United States.

The company's integrated platform begins with direct control of key raw materials, including iron ore and scrap, and extends through every stage of steel production.