Cleveland-Cliffs reported a sequential improvement in revenue and a reduced net loss for Q1 2026, driven by higher steel shipments and average selling prices. However, the quarter was impacted by a significant one-time energy cost due to extreme weather, leading to a modest Adjusted EBITDA. Management anticipates sequential improvement throughout the year and expects to generate healthy positive free cash flow in Q2.
Steel shipments increased to 4.1 million net tons, a 338,000 increase from the prior quarter.
positiveRevenues increased by $600 million from the prior quarter to $4.9 billion.
positiveGAAP net loss improved to $229 million ($0.42 per diluted share) from $486 million ($1.01 per diluted share) in the prior year's quarter.
positiveAdjusted EBITDA was $95 million, an improvement from a loss of $179 million in Q1 2025 and a loss of $21 million in Q4 2025.
positiveLiquidity stands at $3.1 billion as of March 31, 2026.
positiveFull-year 2026 guidance for steel shipment volumes, capital expenditures, SG&A, and D&A were maintained.
neutralAdjusted EBITDA of $95 million was impacted by an $80 million one-time energy cost due to extreme cold weather.
attentionDespite revenue increase, the company reported a GAAP net loss of $229 million for the quarter.
negativeGross margin for the Steelmaking segment was negative at $(95) million, compared to $(405) million in the prior year's quarter, indicating persistent cost pressures.
negativeInventories increased to $4,591 million from $4,772 million in the prior quarter, but remain elevated compared to $4,467 million in Q1 2025.
attentionAccounts receivable increased to $1,882 million from $1,442 million in the prior quarter, potentially indicating slower collections or increased sales on credit.
attentionLong-term debt increased to $7,763 million from $7,253 million in the prior quarter.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Steelmaking | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| shipments | increase from Q1 | Q2 2026 | directional | New |
| selling_prices | up about $60 a ton | Q2 2026 | point | New |
| working_capital | slight release | Q2 2026 | directional | New |
| unit_cash_costs | tick up another $15 per ton | Q2 2026 | point | New |
| asset_sales_proceeds | $50 million | Q2 2026 | point | New |
| asset_sales_proceeds | $100 million | Q3 2026 | point | New |
| asset_sales_proceeds | remainder | Q4 2026 | directional | New |
| electrical_steel_expansion_project_completion | 2028 | 2028 | point | New |
$425 million · over the balance of the year · funded by idled property sales
$3 billion · quarter end
$50 million · Q2 · funded by asset sales
$100 million · Q3 · funded by asset sales
Q4 · funded by asset sales
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Q1 results reflected the impact of short-term headwinds like 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.
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.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.