Cleveland-cliffs Stock Earnings Reports

Cleveland-Cliffs reported Q1 2026 results showing signs of a sustained improvement trajectory driven by stronger pricing, recovering shipments and a full order book—particularly from automotive OEMs. Adjusted EBITDA was $95 million, up $274 million year-over-year, aided largely by higher realized pricing and improving volumes (Q1 shipments ~4.1 million tons). Management highlighted a roughly two-month lag for market price changes to flow into realized results, implying more of the current pricing strength should appear in Q2 and Q3. Q1 was negatively impacted by a one-time energy spike (estimated ~$80 million EBITDA headwind) and higher electricity/gas/industrial gas costs; Celso said Q2 costs should tick up modestly (~$15/ton) due to outages, mix and lingering effects, but costs are expected to fall meaningfully in the back half of the year with Q3 being the strongest quarter operationally. Stelco (Canada) is receiving lower spot pricing (~40% discount to U.S. levels) but remains margin-positive. Management reiterated confidence in trade enforcement (Section 232) improving domestic demand and supply predictability and noted accelerating steel substitution for aluminum across automotive and other end markets. Strategic items: progress on DOE-funded Butler and Middletown projects (2028 target for Butler), footprint optimization (idling smaller plate lines without layoffs), continued evaluation of rare earths contingent on U.S. refining availability, an upcoming AI partnership for production planning, and ongoing labor negotiations with the United Steelworkers. The company expects to generate meaningful positive free cash flow beginning in Q2 driven by higher collections and EBITDA, and remains on track to receive ~$425 million from idle property sales. Discussions with POSCO remain active but timing is less urgent given improved market conditions.