Cleveland-Cliffs Q4 EPS Beats by 30.6%, $4.31B Revenue Misses Forecast
Cleveland-Cliffs reported Q4 EPS of -$0.43, beating estimates by 30.6%, while revenue of $4.31 billion fell 6.7% short of forecasts. The company cited 50% Section 232 tariffs, termination of an ArcelorMittal slab contract, plant shutdowns and multi-year fixed-price automotive agreements as catalysts for 2026 margin improvement.
1. Q4 Financial Results
Cleveland-Cliffs delivered fourth-quarter EPS of -$0.43 versus consensus of -$0.62, representing a 30.6% surprise, while revenue totaled $4.31 billion, missing estimates by 6.7%. Shares dipped roughly 3.6% post-announcement but remain up about 7% year to date on expectations of policy-driven tailwinds.
2. Operational Restructuring and Cost Advantage
Throughout 2025, management shut underperforming assets and ended its index-based slab supply contract with ArcelorMittal after Brazilian slab prices diverged from U.S. finished steel. Rising scrap and electricity costs boosted mini-mill cost structures, enhancing Cleveland-Cliffs’ in-house power and scrap efficiency advantage.
3. Policy Drivers and 2026 Outlook
With 50% Section 232 tariffs in effect and new Canadian import restrictions, automotive production reshoring secured multi-year fixed-price agreements with major OEMs. These developments, combined with robust order books and elevated spot steel prices, position the company for higher utilization and margin expansion in 2026.