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.

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.

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.

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.