Cleveland-Cliffs Q1 Revenue Rises to $4.9B, EBITDA Hits $95M
CMC•Cleveland-Cliffs posted a $1.4 billion net loss on $18.6 billion revenue in 2025 as automotive demand slumped and spot steel prices pressured margins. In Q1 2026, revenue rose to $4.9 billion, adjusted EBITDA swung from negative $179 million to positive $95 million, and the per-share loss narrowed to $0.40.
1. 2025 Performance
Cleveland-Cliffs reported a net loss of $1.4 billion on $18.6 billion revenue in 2025 as weak automotive production and low spot prices squeezed margins. A CEO sale of 3 million shares for $37 million in February 2026 preceded a 16.4% stock drop after disappointing Q4 results.
2. Q1 2026 Improvement
Q1 2026 revenue rose to $4.9 billion, exceeding forecasts of $4.81 billion, while shipments climbed to 4.1 million net tons. Adjusted EBITDA swung from negative $179 million to positive $95 million despite an $80 million winter energy cost, and the per-share loss narrowed to $0.40.
3. Tariff-Driven Pricing Gains
Hot-rolled coil prices averaged $980 per ton in Q1, up 24% year over year, as Section 232 tariffs cut imports to their lowest level since the financial crisis. Management reports stronger order books, improving automotive demand and extended lead times as signs of a tightening domestic steel market.
4. Valuation and Outlook
The stock trades at roughly 1.0x book value and 0.31x sales with trailing EPS of negative $2.31 and a forward P/E near 29x, suggesting recovery expectations are muted. Management forecasts sequential improvement through 2026 and anticipates positive free cash flow beginning in Q2.
