Cleveland-Cliffs news

Stock popped 7% due to announcement of $1 billion investment in flagship Ohio facility with $500 million government grant, plus sector-wide rebound from tariff news. The potential tariff reduction on Canadian steel also benefits their recent Stelco acquisition, providing dual positive catalysts.

Stock surged 15.98% on strong quarterly results, positive free cash flow, and significantly improved EBITDA guidance. Management expects Q3 EBITDA to approximately double to $575 million, indicating robust operational performance and market strength.

The company faces severe near-term headwinds with a massive $1.4 billion loss and 32.5% stock decline, but management's positive 2026 outlook, recovering automotive demand, surging steel prices, and improved market dynamics suggest potential recovery. CEO insider selling raises some concern but doesn't negate the turnaround narrative.

Turned profitable with $381M adjusted EBITDA in first half of 2026 versus $85M loss in prior year. Expects Q3 EBITDA of $575M (more than double Q2) with favorable trends in pricing, volumes, and costs continuing into Q4.

Posted $229 million net loss in Q1 2026 with only 2% EBITDA margin despite tariff protection. High fixed costs from integrated blast furnace operations, unionized workforce, and debt obligations limit profitability. Stock fell over 8% post-earnings. However, potential POSCO partnership and analyst consensus price target suggest some recovery possibility.

Company faced unfavorable pricing due to contract business lags and high energy prices impacting quarterly results, contrasting negatively with Steel Dynamics' strong performance.