Cleveland-Cliffs Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.43%.
Did CLF Beat Earnings? Q2 2026 Results
Cleveland-Cliffs posted a narrower-than-expected loss in Q2 2026, with adjusted net loss per diluted share of $0.20 coming in a penny better than the Street's consensus estimate of $0.21, marking the company's fourth consecutive quarter of beating EPS expectations. Revenue climbed to $5.23 billion, up 5.9% year over year, as average steel selling prices rose to $1,124 per net ton from $1,048 in Q1, more than offsetting a modest dip in shipment volumes to 4.03 million net tons. The key driver behind the sequential recovery was a tripling of adjusted EBITDA to $286 million, a sharp rebound from just $95 million in Q1 after extended maintenance outages weighed on the first quarter. The GAAP net loss of $134 million narrowed substantially from $473 million in Q2 2025, and operating cash flow turned positive at $230 million. Looking ahead, management guided Q3 2026 adjusted EBITDA to approximately $575 million, with Q4 expected to exceed that level, positioning the second half of 2026 as the company's strongest earnings stretch in several years.
- Higher average net selling price per net ton of $1,124 in Q2 vs $1,048 in Q1
- Adjusted EBITDA tripled sequentially to $286 million from $95 million in Q1
- Return to positive operating cash flow of $230 million
- Strong automotive volumes with further increases expected in Q3
- Subdued imports and extending lead times supporting domestic pricing
- Sales mix: 33% distributors/converters, 29% automotive, 28% infrastructure/manufacturing, 10% steel producers
“The second quarter marked another step in returning to the earnings power this company is capable of and has demonstrated in the past. Even with extended maintenance outages in April and May, our second quarter adjusted EBITDA tripled from the Q1 level and Q3 adjusted EBITDA is expected to more than double Q2. As previously foreshadowed, we returned to positive free cash flow during Q2 and have begun reducing our debt, a trend that will continue in a more meaningful way for the foreseeable future.”
Cleveland-Cliffs CEO, on the earnings call
Forward Guidance & Outlook
The company expects Q3 2026 adjusted EBITDA of approximately $575 million, more than double the Q2 level. Q4 EBITDA is currently expected to further exceed Q3 guidance, making second-half 2026 the strongest earnings period since 2021. Full-year 2026 guidance is maintained: steel shipment volumes of approximately 16.5-17.0 million net tons, capital expenditures of approximately $700 million, SG&A expenses of approximately $575 million, DD&A of approximately $1.1 billion, and cash pension and OPEB payments of approximately $125 million. The company expects to reach its leverage target of under 2.5x debt-to-EBITDA by mid-2027, with continued debt reduction and improved profits from Canada and higher fixed price contract resets entering 2027.
CLF YoY Financials
CLF Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.