Cleveland-Cliffs Inc. (NYSE:CLF) shares were trading lower Monday after the company reported mixed first-quarter fiscal 2026 results.

Earnings Snapshot

The Cleveland-based steelmaker reported adjusted losses of 40 cents per share, missing the analyst consensus loss estimate of 39 cents. Revenue came in at $4.92 billion, topping the analyst consensus estimate of $4.78 billion.

Steel product sales volumes stood at 4.1 million net tons, roughly flat compared with the same period a year earlier. Steelmaking revenues reached $4.8 billion, up slightly from $4.5 billion in the year-ago quarter.

Adjusted earnings before interest, taxes, depreciation, and amortization came in at $95 million, compared with a loss of $179 million in the prior-year quarter. The first-quarter figure includes an $80 million one‑time energy cost impact driven by extreme cold weather.

As of March 31, the company reported total liquidity of $3.1 billion.

Management Commentary

Chairman, President and Chief Executive Officer Lourenco Goncalves said first-quarter results reflected short-term headwinds including energy prices and price realization lags.

“As we move through the year, each quarter is expected to improve sequentially, as the momentum already visible in both our order book and pricing continues to translate into earnings and cash flow,” Goncalves said. “Importantly, we expect to generate healthy positive free cash flow in the second quarter, marking a return to the earnings and cash-generation profile this company is capable of delivering.”

Goncalves also addressed the company’s ongoing partnership discussions, saying geopolitical instability in the Middle East has strengthened Cleveland-Cliffs’ competitive position and increased interest from global steel producers in partnering with the company.

“While the current situation has not helped the timeline of a potential deal with POSCO, we continue to negotiate in good faith within the framework of our MoU toward a transaction that is accretive for our shareholders,” he said.

2026 Outlook

The company reiterated its outlook for steel shipment volumes of approximately 16.5 million to 17.0 million net tons and capital expenditures of about $700 million for the full year.

During the earnings call Monday, Goncalves said geopolitical instability stemming from the conflict in Iran has disrupted global metal supply chains. Despite those pressures, he said Cleveland-Cliffs is operating at maximum capacity with a full order book.

On new initiatives, Goncalves said the company is evaluating opportunities in the rare earth sector but does not plan to enter the refinement stage. The company is also working to integrate artificial intelligence into its production logistics, with an update on those projects expected in the coming weeks.

A company executive noted that conditions in South Korea and broader Asian markets have grown significantly more complex in recent years.

Cleveland-Cliffs expects market patterns from the first quarter to persist into the second quarter, with anticipated increases in selling prices and improving performance in the Canadian market.

CLF Price Action: Cleveland-Cliffs shares were down 1.96% at $9.74 at the time of publication on Monday, according to Benzinga Pro data.

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