TLDR

  • Cleveland-Cliffs announced Q1 adjusted EBITDA of $95 million, exceeding the Wall Street forecast of $92 million.
  • The company reported a loss per share of -$0.40, which was $0.03 worse than the -$0.37 consensus estimate.
  • Revenue reached $4.92 billion, surpassing the $4.84 billion estimate.
  • Despite the mixed earnings report, the stock declined approximately 1% in premarket trading to $9.84.
  • Steel imports have fallen to their lowest point since the global financial crisis due to trade enforcement under the Trump administration.

(SeaPRwire) –   Cleveland-Cliffs delivered a mixed first-quarter performance, with revenue and EBITDA exceeding expectations but earnings per share falling short, and the market reaction was negative. The stock price declined nonetheless.

On Monday, CLF posted a first-quarter adjusted EBITDA of $95 million, slightly ahead of the Wall Street estimate of $92 million. This represents a significant improvement compared to the same period last year, when the company recorded an EBITDA loss of $174 million.

Revenue was reported at $4.92 billion, above the consensus estimate of $4.84 billion. However, earnings per share were -$0.40, a three-cent miss compared to the -$0.37 estimate.

Cleveland-Cliffs Inc., CLF
CLF Stock Card

The company noted a one-time $80 million energy cost impact related to severe cold weather during the quarter. Excluding this charge, the fundamental financial performance appears much more robust.

Shipments remained nearly unchanged year-over-year at 4.1 million tons. Conversely, pricing saw an improvement. The average selling price for CLF increased to $1,048 per ton, up from $980 per ton a year earlier.

The stock began trading at $9.91 and was changing hands around $9.84 in premarket activity, a drop of about 1%. This price is significantly lower than its 200-day moving average of $11.80.

CLF started the week with a 25% decline for the year to date, although it has gained 36% over the past 12 months. Its 52-week trading range is between $5.63 and $16.70.

Trade Policy Playing a Real Role

CEO Lourenco Goncalves was direct in his comments on trade. “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 in the earnings release.

Current hot-rolled coil prices are approximately $1,100 per ton, an increase from below $700 before tariffs on imported steel and aluminum were implemented in early 2025.

The Trump administration revised the tariff structure in April. Businesses now pay a standard 25% levy on the total value of products predominantly made from steel, aluminum, or copper, instead of a duty calculated solely on the value of the metal content.

The company reaffirmed its full-year outlook. It anticipates shipments between 16.5 and 17.0 million tons and capital expenditures of approximately $700 million.

Analyst and Insider Activity

Analyst opinions are divided. Based on ratings from 11 analysts, the stock has an average “Hold” recommendation, comprising two Buy ratings, seven Holds, and two Sells. The average price target is $12.69, which is substantially higher than the current stock price.

Argus upgraded CLF to “Hold” on April 6. Wells Fargo reduced its price target from $12 to $9. Citigroup increased its target from $11 to $13. GLJ Research maintained a “Sell” rating with a $9.42 target.

Insider Moves

Regarding insider trading, Director Edilson Camara purchased 19,700 shares at $10.13 each in February, expanding his holding by 88%. Around the same time, COO Clifford T. Smith sold 200,000 shares at $10.46 per share, decreasing his stake by roughly 26%.

Institutional investors hold a 67.68% stake in CLF. Recent purchasers include Focus Partners Wealth, Prudential Financial, and Invesco, which collectively acquired more than 520,000 shares in the second quarter.

The company’s debt-to-equity ratio is 1.15, it has a current ratio of 1.95, and its market capitalization is $5.65 billion.

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