Cliffs States It Will Proceed at Fair Value to Shareholders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
0mins
Cliffs says it will only proceed at "full and fair value to shareholders." Cliffs also notes that it has zero note maturities from 2026-2028 following October 2025 redemption. Comments taken from Q1 earnings conference call presentation slides.
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Analyst Views on CLF
Wall Street analysts forecast CLF stock price to rise
9 Analyst Rating
2 Buy
5 Hold
2 Sell
Hold
Current: 9.940
Low
5.75
Averages
12.78
High
17.00
Current: 9.940
Low
5.75
Averages
12.78
High
17.00
About CLF
Cleveland-Cliffs Inc. is a steel producer with a focus on value-added sheet products, particularly for the automotive industry in North America. The Company is vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. Its offering includes advanced high-strength steel, hot-dipped galvanized, aluminized, galvalume, electrogalvanized, galvanneal, hot-rolled coil (HRC), cold-rolled coil, plate, grain oriented electrical steel (GOES), non-oriented electrical steel (NOES), stainless steels, tool and die, stamped components, and slabs. Its Other Businesses primarily include the Tubular and Tooling and Stamping segments that provide customer solutions with carbon and stainless-steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components and complex assemblies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cleveland-Cliffs Q1 2026 Earnings Call Insights
- Performance Review: In Q1 2026, Cleveland-Cliffs reported an adjusted EBITDA of $95 million, despite an $80 million negative impact from spiking energy costs, demonstrating the company's resilience in a high-demand environment.
- Orders and Production: The CEO noted a full order book with increasing steel demand from automotive OEMs, expecting Q2 shipments to exceed 4.1 million tons and selling prices to rise by approximately $60 per ton from Q1, reflecting strong market demand.
- Cost and Challenges: Although Q2 costs are projected to increase by $15 per ton due to rising raw material and fuel prices, management anticipates a significant decline in costs in the second half of the year, indicating effective strategies in managing cost pressures.
- Strategic Investment and Innovation: Cleveland-Cliffs has partnered with a leading AI provider to embed AI into production planning and order entry, with a detailed announcement expected in the coming weeks, highlighting the company's commitment to technological innovation.
See More
S&P 500 Flat Amid Rising Oil Prices and Earnings Outlook
- Market Dynamics: The S&P 500 remained flat on Monday despite escalating tensions between the U.S. and Iran, while West Texas Intermediate crude surged 5% to over $88 per barrel, indicating market sensitivity to oil price fluctuations.
- Company Update: Bank of America analysts raised Corning's price target from $155 to $186, highlighting that its scale-out potential for increasing compute capacity is not reflected in current valuations, which is expected to drive demand for fiber-optic networking, although this may pressure margins in the near term.
- Apple Outlook: Morgan Stanley named Apple a 'tactical long', forecasting that memory-related gross margin pressures will be offset by positive June-quarter guidance, with upcoming catalysts including the WWDC and the foldable iPhone launch.
- Investment Strategy: Jim Cramer noted in the livestream that while recent cautious calls on Corning may lead to a potential stock decline, opportunistic investors in the market may seize the chance to buy, reflecting confidence in future earnings.
See More
Cleveland-Cliffs Reports Q1 Loss Amid Energy Cost Surge
- Earnings Report Loss: Cleveland-Cliffs reported an adjusted loss of $0.40 per share for Q1, which, while exceeding Wall Street's expectations, shows improvement from a $0.92 loss in the same quarter last year, indicating short-term challenges the company faces.
- Energy Cost Impact: The Q1 adjusted EBITDA totaled $95 million, including an $80 million spike in energy costs, highlighting the sensitivity of its high-energy blast furnace operations to energy price fluctuations, which may affect future profitability.
- Steel Shipment Growth: Steel shipments rose to 4.1 million net tons, an increase of 338,000 tons from the prior quarter, supported by strong demand and higher prices, providing short-term revenue support despite ongoing profitability constraints.
- Future Outlook and Strategy: CEO Lourenco Goncalves reiterated expectations for quarter-over-quarter improvement through FY 2026 and a return to positive free cash flow in Q2, while stating that negotiations with South Korea's Posco are active, although progress is hindered by Middle Eastern disruptions.
See More
Cleveland-Cliffs Earnings Beat Expectations
- Earnings Performance: Cleveland-Cliffs reported a non-GAAP EPS of -$0.40, beating expectations by $0.02, demonstrating resilience in challenging conditions despite still being in a loss position.
- Significant Revenue Growth: The company achieved revenue of $4.9 billion in Q1, exceeding expectations by $110 million, indicating enhanced sales capabilities that may lay the groundwork for future profitability.
- Market Reaction Analysis: Despite the earnings beat, the stock price dipped, reflecting investor caution regarding future economic recovery, which could impact market confidence in the short term.
- Optimistic Long-Term Outlook: Analysts maintain a positive view on Cleveland-Cliffs' long-term growth potential, anticipating a significant recovery by 2026, prompting investors to monitor strategic adjustments and market dynamics.
See More
Cleveland-Cliffs Reports Better-Than-Expected Earnings
- Earnings Beat Expectations: Cleveland-Cliffs reported a non-GAAP EPS of -$0.40, surpassing market expectations by $0.02, indicating the company's resilience in challenging market conditions.
- Significant Revenue Growth: The company achieved first-quarter revenues of $4.9 billion, exceeding forecasts by $110 million, reflecting strong demand in the steel market and effective sales strategies.
- Cautious Market Reaction: Despite the positive earnings report, the stock price dipped, suggesting investor concerns about the future market environment, particularly with an unclear recovery outlook for 2026.
- Long-Term Growth Potential: Analysts believe that, despite short-term challenges, Cleveland-Cliffs is poised for a significant recovery in 2026, and investors should focus on its long-term growth potential.
See More
Cleveland-Cliffs Calls for Enhanced Steel Industry Protections
- Trade Policy Effectiveness: Cleveland-Cliffs CEO Goncalves praised the Trump administration's trade enforcement policy as “working exactly as intended,” noting that U.S. steel imports have fallen to their lowest levels since the 2008 financial crisis, indicating a positive impact on domestic manufacturing protection.
- Middle East Situation Strengthens Competitive Position: The ongoing Iran war has bolstered Cleveland-Cliffs' competitive position, with Goncalves stating that global steel producers are increasingly willing to partner with the company, reflecting a rising demand for its products in the market.
- Financial Performance vs. Expectations: The company reported an adjusted net loss of $0.4 per share on revenue of $4.9 billion in Q1, surpassing Wall Street analysts' expectations of a $0.42 loss and $4.8 billion in revenue, demonstrating resilience amid challenging conditions.
- Future Cash Flow Outlook: Cleveland-Cliffs expects to generate positive free cash flow in Q2 and reiterated its steel shipment guidance of 16.5 to 17 million net tons for fiscal year 2026, indicating confidence in future performance.
See More
Cleveland-Cliffs Q1 2026 Earnings Call Insights
- Performance Review: In Q1 2026, Cleveland-Cliffs reported an adjusted EBITDA of $95 million, despite an $80 million negative impact from spiking energy costs, demonstrating the company's resilience in a high-demand environment.
- Orders and Production: The CEO noted a full order book with increasing steel demand from automotive OEMs, expecting Q2 shipments to exceed 4.1 million tons and selling prices to rise by approximately $60 per ton from Q1, reflecting strong market demand.
- Cost and Challenges: Although Q2 costs are projected to increase by $15 per ton due to rising raw material and fuel prices, management anticipates a significant decline in costs in the second half of the year, indicating effective strategies in managing cost pressures.
- Strategic Investment and Innovation: Cleveland-Cliffs has partnered with a leading AI provider to embed AI into production planning and order entry, with a detailed announcement expected in the coming weeks, highlighting the company's commitment to technological innovation.
See More
S&P 500 Flat Amid Rising Oil Prices and Earnings Outlook
- Market Dynamics: The S&P 500 remained flat on Monday despite escalating tensions between the U.S. and Iran, while West Texas Intermediate crude surged 5% to over $88 per barrel, indicating market sensitivity to oil price fluctuations.
- Company Update: Bank of America analysts raised Corning's price target from $155 to $186, highlighting that its scale-out potential for increasing compute capacity is not reflected in current valuations, which is expected to drive demand for fiber-optic networking, although this may pressure margins in the near term.
- Apple Outlook: Morgan Stanley named Apple a 'tactical long', forecasting that memory-related gross margin pressures will be offset by positive June-quarter guidance, with upcoming catalysts including the WWDC and the foldable iPhone launch.
- Investment Strategy: Jim Cramer noted in the livestream that while recent cautious calls on Corning may lead to a potential stock decline, opportunistic investors in the market may seize the chance to buy, reflecting confidence in future earnings.
See More
Cleveland-Cliffs Reports Q1 Loss Amid Energy Cost Surge
- Earnings Report Loss: Cleveland-Cliffs reported an adjusted loss of $0.40 per share for Q1, which, while exceeding Wall Street's expectations, shows improvement from a $0.92 loss in the same quarter last year, indicating short-term challenges the company faces.
- Energy Cost Impact: The Q1 adjusted EBITDA totaled $95 million, including an $80 million spike in energy costs, highlighting the sensitivity of its high-energy blast furnace operations to energy price fluctuations, which may affect future profitability.
- Steel Shipment Growth: Steel shipments rose to 4.1 million net tons, an increase of 338,000 tons from the prior quarter, supported by strong demand and higher prices, providing short-term revenue support despite ongoing profitability constraints.
- Future Outlook and Strategy: CEO Lourenco Goncalves reiterated expectations for quarter-over-quarter improvement through FY 2026 and a return to positive free cash flow in Q2, while stating that negotiations with South Korea's Posco are active, although progress is hindered by Middle Eastern disruptions.
See More
Cleveland-Cliffs Earnings Beat Expectations
- Earnings Performance: Cleveland-Cliffs reported a non-GAAP EPS of -$0.40, beating expectations by $0.02, demonstrating resilience in challenging conditions despite still being in a loss position.
- Significant Revenue Growth: The company achieved revenue of $4.9 billion in Q1, exceeding expectations by $110 million, indicating enhanced sales capabilities that may lay the groundwork for future profitability.
- Market Reaction Analysis: Despite the earnings beat, the stock price dipped, reflecting investor caution regarding future economic recovery, which could impact market confidence in the short term.
- Optimistic Long-Term Outlook: Analysts maintain a positive view on Cleveland-Cliffs' long-term growth potential, anticipating a significant recovery by 2026, prompting investors to monitor strategic adjustments and market dynamics.
See More
Cleveland-Cliffs Reports Better-Than-Expected Earnings
- Earnings Beat Expectations: Cleveland-Cliffs reported a non-GAAP EPS of -$0.40, surpassing market expectations by $0.02, indicating the company's resilience in challenging market conditions.
- Significant Revenue Growth: The company achieved first-quarter revenues of $4.9 billion, exceeding forecasts by $110 million, reflecting strong demand in the steel market and effective sales strategies.
- Cautious Market Reaction: Despite the positive earnings report, the stock price dipped, suggesting investor concerns about the future market environment, particularly with an unclear recovery outlook for 2026.
- Long-Term Growth Potential: Analysts believe that, despite short-term challenges, Cleveland-Cliffs is poised for a significant recovery in 2026, and investors should focus on its long-term growth potential.
See More
Cleveland-Cliffs Calls for Enhanced Steel Industry Protections
- Trade Policy Effectiveness: Cleveland-Cliffs CEO Goncalves praised the Trump administration's trade enforcement policy as “working exactly as intended,” noting that U.S. steel imports have fallen to their lowest levels since the 2008 financial crisis, indicating a positive impact on domestic manufacturing protection.
- Middle East Situation Strengthens Competitive Position: The ongoing Iran war has bolstered Cleveland-Cliffs' competitive position, with Goncalves stating that global steel producers are increasingly willing to partner with the company, reflecting a rising demand for its products in the market.
- Financial Performance vs. Expectations: The company reported an adjusted net loss of $0.4 per share on revenue of $4.9 billion in Q1, surpassing Wall Street analysts' expectations of a $0.42 loss and $4.8 billion in revenue, demonstrating resilience amid challenging conditions.
- Future Cash Flow Outlook: Cleveland-Cliffs expects to generate positive free cash flow in Q2 and reiterated its steel shipment guidance of 16.5 to 17 million net tons for fiscal year 2026, indicating confidence in future performance.
See More
