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Cleveland-Cliffs’ Q1 Revenue Tops Forecasts as $80 Million Energy Hit Pressures Results

Tougher U.S. trade rules have cut imports, boosting prices to support a stronger Q2.

Overview

  • - Shares fell as much as 11% after Monday’s earnings release before trimming losses to about 3%, reflecting concern over costs.
  • - The steelmaker posted $4.92 billion in revenue and $95 million in adjusted EBITDA, with a per‑share loss of 40 cents.
  • - Profit was weighed by an $80 million energy bill tied to a severe cold snap, which CEO Lourenco Goncalves linked to the timing of monthly natural‑gas hedges during January’s price peak.
  • - Free cash flow turned negative on roughly $130 million of working‑capital build, though liquidity stayed above $3 billion and management still expects about $425 million from property sales in 2026.
  • - Executives reaffirmed full‑year shipments of 16.5–17.0 million tons and about $700 million in capex, projected Q2 to be the strongest in nearly two years with further gains into Q3, and said they are no longer in a hurry to close the planned POSCO deal as reduced imports have lifted domestic prices.