Key Takeaways
- First-quarter adjusted EBITDA reached $95M, surpassing Wall Street’s $92M projection
- Earnings per share registered at -$0.40, falling short of the -$0.37 analyst consensus
- Quarterly revenue totaled $4.92B, exceeding the $4.84B forecast
- Shares declined approximately 1% during premarket hours to $9.84
- Current trade enforcement measures have driven steel imports down to levels unseen since the 2008 financial crisis
Cleveland-Cliffs delivered a Q1 performance that left analysts divided — the company exceeded expectations on both revenue and EBITDA while falling short on earnings. Investors responded with caution, sending shares lower.
The steel producer announced Monday that its first-quarter adjusted EBITDA landed at $95 million, surpassing the Street’s $92 million projection. This marks a dramatic improvement compared to the same period last year, when the company recorded an EBITDA loss of $174 million.
Quarterly revenue reached $4.92 billion, climbing above the consensus estimate of $4.84 billion. Earnings per share, however, registered at -$0.40, falling three cents short of the anticipated -$0.37.
Management highlighted an exceptional $80 million energy expense stemming from severe cold weather conditions during the reporting period. Excluding this non-recurring charge, the core operational performance showed meaningful strength.
Shipment volumes remained stable on a year-over-year basis at 4.1 million tons. The pricing environment, meanwhile, showed improvement. CLF’s average selling price climbed to $1,048 per ton, advancing from $980 in the prior-year quarter.
Shares started the session at $9.91 and hovered near $9.84 during premarket activity, representing a roughly 1% decline. The current price remains significantly below the 200-day moving average of $11.80.
Heading into this week, CLF shares had fallen 25% year-to-date, while showing a 36% gain over the trailing twelve months. The 52-week trading range extends from $5.63 to $16.70.
Trade Enforcement Reshaping Market Dynamics
Chief Executive Lourenco Goncalves addressed trade policy impacts directly in the earnings announcement. “Trade enforcement in the United States is working exactly as intended, with steel imports at their lowest levels since the global financial crisis,” he stated.
Hot-rolled coil prices currently hover around $1,100 per ton — a substantial increase from levels below $700 recorded before tariffs on imported steel and aluminum took effect in early 2025.
This past April, the administration revised the tariff framework. Manufacturers now face a uniform 25% levy on the complete value of products composed primarily of steel, aluminum, or copper — replacing the previous system that taxed only the metal component’s value.
Management reaffirmed its full-year outlook. The company anticipates shipments ranging from 16.5 to 17.0 million tons with capital expenditures around $700 million.
Wall Street Perspectives and Insider Transactions
Analyst views remain divided on the stock. Eleven analysts collectively assign an average “Hold” rating, consisting of two Buy recommendations, seven Hold ratings, and two Sell calls. The consensus price target stands at $12.69 — indicating substantial upside from current trading levels.
Argus moved CLF to a “Hold” stance on April 6. Wells Fargo reduced its price objective from $12 down to $9. Citigroup lifted its target from $11 to $13. GLJ Research maintained a “Sell” rating with a $9.42 price target.
Corporate Insider Activity
Regarding insider transactions, Director Edilson Camara acquired 19,700 shares at $10.13 during February — expanding his holdings by 88%. Chief Operating Officer Clifford T. Smith divested 200,000 shares at $10.46 around the same timeframe, decreasing his stake by approximately 26%.
Institutional shareholders control 67.68% of outstanding CLF shares. Recent accumulation activity includes Focus Partners Wealth, Prudential Financial, and Invesco, which expanded its position by more than 520,000 shares in the second quarter.
The company maintains a debt-to-equity ratio of 1.15, alongside a current ratio of 1.95 and a market capitalization of $5.65 billion.
