Cleveland-Cliffs (CLF) Q2 2026 earnings summary

Executive summary

• Revenues reached $5.2 billion in Q2 2026, up $300 million from the prior quarter and 6% year-over-year, driven by higher steel pricing and favorable sales mix, despite a 6% decline in shipment volumes.

• Adjusted EBITDA for Q2 2026 was $286 million, tripling sequentially and marking the highest in two years, with significant improvements in gross margins and lower idled facility charges.

• Returned to positive free cash flow in Q2 2026, with liquidity at $3.1 billion as of June 30, 2026.

• Net loss attributable to shareholders was $145 million for Q2 2026, a significant improvement from Q2 2025, with adjusted net loss at $115 million.

• Clear path to leverage target below 2.5x within 12 months, with all free cash flow committed to debt repayment.

Financial highlights

• Q2 2026 revenues were $5.2 billion, up from $4.9 billion in Q1 2026, with gross margin improving to 2% from -5% in Q2 2025.

• Adjusted EBITDA improved by $191 million sequentially and $192 million year-over-year, with margin rising to 5%.

• Average selling price per ton increased $76 from Q1 and 11% year-over-year to $1,124 in Q2 2026.

• Operating loss narrowed to $49 million in Q2 2026 from $501 million in Q2 2025.

• Cash and cash equivalents stood at $70 million, with total liquidity of $3.1 billion including the ABL Facility.

Outlook and guidance

• Q3 2026 adjusted EBITDA is expected to be approximately $575 million, with Q4 anticipated to outperform Q3 despite typical seasonality.

• Full-year 2026 guidance includes steel shipment volumes of 16.5–17.0 million net tons and capital expenditures of $700 million.

• Leverage target of under 2.5x debt to EBITDA expected by mid-2027, driven by profit growth and asset sales.

• Fixed price contract resets and Stelco improvements projected to add $500 million in EBITDA year-over-year.

• Opportunities for over $1 billion in further EBITDA contribution in 2027 from Stelco and non-auto fixed price contract resets.