Cleveland-Cliffs (NYSE:CLF) Releases Earnings Results, Beats Expectations By $0.19 EPS

Cleveland-Cliffs (NYSE:CLF) announced its quarterly earnings results on Monday. The mining company reported ($0.43) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.62) by $0.19, FiscalAI reports. Cleveland-Cliffs had a negative net margin of 9.00% and a negative return on equity of 20.02%. The business had revenue of $4.31 billion for the quarter, compared to the consensus estimate of $4.60 billion. During the same period last year, the company posted ($0.68) EPS. Cleveland-Cliffs’s revenue for the quarter was down .3% on a year-over-year basis.

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

• Termination of the ArcelorMittal slab contract should materially boost margins — management estimates roughly a $500 million EBITDA benefit as higher‑margin finished steel replaces low‑margin slab sales, with most impact flowing through in Q2–Q3 2026.
• The non‑binding POSCO MOU is the company’s top strategic priority and, if finalized in H1 2026 as targeted, could expand Cliffs’ U.S. customer access while meeting melted‑and‑poured rules and be accretive to shareholders.
• Policy and market tailwinds — Section 232 tariffs, melted‑and‑poured requirements, and recent Canadian import restrictions — plus a stronger order book and improving Stelco dynamics underpin guidance of ~16.5–17 million tons shipments for 2026.
• Operational improvements support margin expansion: unit costs fell about $40/ton in 2025 and are forecast to decline another ~$10/ton in 2026, aided by >$100M in coal savings and available production capacity to absorb reshored automotive volume without new plants.
• Near‑term headwinds and financial risks remain — 2025 was hit by import pressure and vehicle production declines, the company completed asset rationalizations and ~3,300 layoffs, leverage is still elevated despite $3.3B liquidity, and Q1 may see a temporary cost uptick while some asset‑sale timing is contingent on POSCO talks.

Cleveland-Cliffs Stock Down 16.4%

CLF stock opened at $12.31 on Tuesday. The company has a debt-to-equity ratio of 1.41, a current ratio of 2.04 and a quick ratio of 0.61. The stock has a market capitalization of $6.09 billion, a P/E ratio of -3.62 and a beta of 1.93. Cleveland-Cliffs has a fifty-two week low of $5.63 and a fifty-two week high of $16.70. The business has a 50-day moving average of $13.47 and a 200-day moving average of $12.26.

Analyst Ratings Changes

Several equities research analysts have commented on the stock. JPMorgan Chase & Co. upped their target price on shares of Cleveland-Cliffs from $10.00 to $13.00 and gave the company a “neutral” rating in a research note on Monday, October 13th. Bank of America upped their price objective on shares of Cleveland-Cliffs from $12.50 to $14.50 and gave the company a “neutral” rating in a research report on Tuesday, October 21st. KeyCorp downgraded Cleveland-Cliffs from an “overweight” rating to a “sector weight” rating in a research note on Wednesday, January 7th. Wells Fargo & Company raised Cleveland-Cliffs from an “underweight” rating to an “equal weight” rating and boosted their target price for the company from $11.00 to $12.00 in a research note on Friday, November 14th. Finally, Morgan Stanley upgraded Cleveland-Cliffs from an “equal weight” rating to an “overweight” rating and increased their price target for the stock from $12.80 to $17.00 in a report on Friday, January 9th. Three research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $13.70.

Cleveland-Cliffs News Roundup

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

• Positive Sentiment: Management expects a 2026 recovery — company guided to higher 2026 steel shipments (~16.8M tons), steady capex (~$700M) and said all assets are fully operational, which supports upside to margins and cash flow if demand/pricing normalize. BusinessWire: Q4 and Full-Year Results
• Positive Sentiment: Q4 EPS beat the consensus (loss of $0.43 vs. est. -$0.62), showing some operational improvement versus prior year and limiting the magnitude of the hit to investor expectations. Zacks: Q4 results
• Neutral Sentiment: Strong liquidity position — the company reported roughly $3.3B of liquidity, which reduces near-term financing risk while it executes its recovery plan. BusinessWire: Liquidity disclosure
• Neutral Sentiment: Earnings call/transcript provided color on contracts, utilization and the POSCO partnership but left material details (timing/terms) ambiguous — outcome of that deal is a potential catalyst but not yet definitive. Seeking Alpha: Q4 earnings transcript
• Negative Sentiment: Revenue missed estimates (reported $4.31B vs. ~$4.60B expected), a principal reason for the sharp sell-off as it signals weaker demand/contract pricing and reduced near-term top-line visibility. Reuters: Revenue miss
• Negative Sentiment: Full-year net loss widened and management flagged higher Q1 costs, which raise short-term margin pressure and prompted analysts/investors to re-price near-term expectations. Seeking Alpha News: Full-year loss widens
• Negative Sentiment: Market reaction and coverage highlighted the selloff and investor disappointment — headlines and broker notes amplified volatility after the report. Crain’s Cleveland: Stock falls sharply

Hedge Funds Weigh In On Cleveland-Cliffs

A number of large investors have recently bought and sold shares of the company. Brooklyn Investment Group increased its position in shares of Cleveland-Cliffs by 259.8% in the third quarter. Brooklyn Investment Group now owns 16,567 shares of the mining company’s stock valued at $202,000 after acquiring an additional 11,963 shares during the last quarter. Nicolet Advisory Services LLC bought a new position in Cleveland-Cliffs in the third quarter valued at approximately $176,000. Chesapeake Capital Corp IL acquired a new position in shares of Cleveland-Cliffs during the 3rd quarter worth approximately $170,000. Corient Private Wealth LLC raised its stake in shares of Cleveland-Cliffs by 88.2% during the 2nd quarter. Corient Private Wealth LLC now owns 20,814 shares of the mining company’s stock worth $158,000 after purchasing an additional 9,757 shares in the last quarter. Finally, Diversify Advisory Services LLC acquired a new stake in shares of Cleveland-Cliffs in the 2nd quarter valued at approximately $169,000. Institutional investors and hedge funds own 67.68% of the company’s stock.

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.