Cleveland-Cliffs Shares Drop 24% After Q4 EPS Miss and Guidance Cut
Cleveland-Cliffs shares plunged 24% after reporting Q4 adjusted EPS of $1.60, missing analyst forecasts of $2.50, and revenue of $3.3 billion versus $3.5 billion expectations. The company also cut its 2026 adjusted EBITDA guidance to $2.8 billion, citing weaker steel demand and higher energy costs.
1. Q4 Earnings Miss
Cleveland-Cliffs reported Q4 adjusted EPS of $1.60, well below consensus at $2.50, while revenue totaled $3.3 billion versus analysts’ $3.5 billion estimate. The EPS shortfall reflected lower realized steel pricing and elevated production costs during the quarter.
2. 2026 Guidance Reduction
Management trimmed full-year 2026 adjusted EBITDA guidance to $2.8 billion from a prior range of $3.0–$3.2 billion, revising shipment forecasts down by 5% due to softening end-market orders. The cut underscores caution around manufacturing activity and global steel consumption trends.
3. Market Challenges and Outlook
The company cited weaker automotive and construction demand alongside a 15% year-over-year rise in energy expenses as key headwinds. Analysts will watch raw material margins and any further updates on capacity utilization as indicators of recovery potential.