Cleveland-Cliffs reported a net loss of $1.4 billion on $18.6 billion in revenue for 2025, down from $19.2 billion in 2024, as weak automotive production and lower spot steel prices compressed margins. The stock tumbled 16.4% after weak Q4 results, while CEO Lourenco Goncalves divested 3 million shares for roughly $37 million in February 2026.

In Q1 2026, revenue reached $4.9 billion versus $4.81 billion expected, shipments rose to 4.1 million net tons, and the adjusted loss narrowed to $0.40 per share from $0.93 a year earlier. Adjusted EBITDA swung to a $95 million profit despite an $80 million winter energy cost headwind compared with negative $179 million in Q1 2025.

Hot-rolled coil prices averaged $980 per ton in Q1, up 24% year-over-year, while steel imports fell to their lowest level since the financial crisis due to Section 232 tariffs. Management reports strengthening order books, improving automotive demand and extended lead times, all pointing toward a healthier domestic steel cycle.

With trailing EPS at negative $2.31 and a forward P/E near 29x, Cliffs trades at roughly 1.0x book value and 0.31x sales, implying the market still prices in distress. Normalized EBITDA multiples suggest a $10–$15 valuation range, and management anticipates positive free cash flow beginning in Q2 2026 amid ongoing debt and profitability risks.