Cleveland-Cliffs narrowed its Q4 adjusted loss year-over-year but reported revenue roughly 6% below analyst expectations, triggering an 18.9% intraday selloff in its shares. The mixed earnings highlighted strength in cost controls but underscored lingering demand pressures in key end markets.

Management forecasts shipping 16.8 million tons of steel in 2026, up about 3% from 2025’s 16.2 million tons, and plans roughly $700 million in capital expenditures. The outlook reflects confidence in stable spending and incremental volume gains offsetting flat contract pricing.

This will be the first full year under 50% U.S. steel tariffs, which the company expects to bolster domestic sales. All facilities are now fully operational after underutilization weighed on last year’s results, setting up potential margin leverage as fixed costs are absorbed.

Details remain scarce on the proposed POSCO equity investment, leaving investors uncertain about its timing. Management emphasized that modest improvements in steel pricing and capacity use could disproportionately boost free cash flow by leveraging largely fixed operating costs.