Cleveland-Cliffs (CLF) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached $4.92 billion, up 6% year-over-year, with steel shipments of 4.1 million net tons, a sequential increase of 338,000 tons, driven by higher prices and favorable mix despite slightly lower year-over-year volumes.

• Adjusted EBITDA improved to $95 million from a loss of $179 million, reflecting higher gross margins, reduced idled facility charges, and a $274 million year-over-year increase, despite an $80 million one-time energy cost impact.

• Net loss attributable to shareholders narrowed to $229 million ($0.42 per share), improved from $486 million in Q1 2025 and $498 million in the prior year quarter.

• Liquidity stood at $3.1 billion at quarter-end, supporting ongoing operations and capital allocation priorities.

• Automotive and service center shipments drove growth, with a shift toward higher-margin business and a full order book from OEMs.

Financial highlights

• Average selling price per ton increased to $1,048 from $980 year-over-year and $993 sequentially, with a $68/ton year-over-year and $55/ton sequential increase.

• Gross margin improved by $310 million, with steel product revenue up $230 million due to pricing.

• SG&A expenses decreased to an all-time quarterly low post-acquisition, reflecting cost discipline.

• Q1 free cash flow was negative due to working capital timing, but positive free cash flow is anticipated in Q2.

• Interest expense increased by $8 million due to higher rates and borrowings.

Outlook and guidance

• Q2 shipments and prices are expected to improve further, with selling prices up about $60/ton from Q1 and costs rising $15/ton due to outages and mix, but Q3 costs expected to fall.

• Full-year shipment guidance maintained at 16.5–17.0 million net tons, with CapEx for 2026 projected at $700–$800 million.

• Management anticipates sequential improvement in earnings and cash flow through 2026, with major cash inflows from asset sales and positive free cash flow in Q2.

• SG&A projected at $575 million, D&A at $1.1 billion, and pension/OPEB payments at $125 million for 2026.

• $425 million in cash receipts from idled property sales targeted for 2026, with $70 million received YTD and remainder expected across Q2–Q4.