Cleveland-Cliffs (NYSE:CLF – Get Free Report) announced its quarterly earnings results on Thursday. The mining company reported ($0.20) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.21) by $0.01, FiscalAI reports. The company had revenue of $5.23 billion during the quarter, compared to the consensus estimate of $5.15 billion. Cleveland-Cliffs had a negative net margin of 4.56% and a negative return on equity of 13.37%. The company’s revenue for the quarter was up 5.9% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.50) earnings per share.
Here are the key takeaways from Cleveland-Cliffs’ conference call:
- Cleveland-Cliffs said Q2 adjusted EBITDA rose to $286 million, free cash flow turned positive again, and management expects a much stronger second half with Q3 EBITDA guidance of $575 million and further improvement in Q4.
- Executives pointed to rising steel prices, higher shipment volumes, and lower unit costs as the main drivers of near-term improvement, with Q3 shipments expected to top 4.3 million tons and costs expected to decline sequentially.
- Management said the company is benefiting from a strong automotive backdrop, including higher auto shipments, improved finishing line utilization, and top supplier awards from Toyota and General Motors.
- The company reiterated that trade policy and domestic sourcing trends are supporting its outlook, while noting that upcoming contract resets in non-automotive and automotive markets should be priced meaningfully higher than last year.
- Cleveland-Cliffs highlighted plans to use cash flow and asset-sale proceeds to delever below 2.5x net leverage by next year, while also noting ongoing strategic discussions, including POSCO, and a constructive start to union contract negotiations.
Cleveland-Cliffs Stock Up 8.9%
Cleveland-Cliffs stock opened at $11.94 on Friday. Cleveland-Cliffs has a fifty-two week low of $7.73 and a fifty-two week high of $16.70. The stock has a market cap of $6.81 billion, a PE ratio of -7.37 and a beta of 2.13. The firm’s 50-day simple moving average is $11.29 and its 200 day simple moving average is $11.03. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.64 and a current ratio of 1.89.
Trending Headlines about Cleveland-Cliffs
- Positive Sentiment: Cleveland-Cliffs posted Q2 results that beat expectations on both earnings and revenue, helped by stronger steel pricing that improved margins even as shipment volumes declined. CLF Q2 Earnings and Sales Beat Estimates on Higher Steel Pricing
- Positive Sentiment: The company reported a sharp jump in adjusted EBITDA, returned to positive free cash flow, and gave a notably optimistic outlook, with investors focusing on the prospect of stronger profitability ahead. Cleveland-Cliffs Inc (CLF) Q2 2026 Earnings Call Highlights: Strong EBITDA Growth and Positive …
- Positive Sentiment: Several analysts turned more constructive, including Glj Research upgrading the stock to buy and lifting its price target, which added to the bullish sentiment around the name. Cleveland-Cliffs upgraded by Glj Research
- Positive Sentiment: Trading activity was also supportive, with reports of unusual call-option buying and multiple articles highlighting CLF as a momentum stock with value appeal.
- Neutral Sentiment: Wells Fargo raised its price target but kept an “equal weight” rating, suggesting some upside remains but not a full endorsement of the rally. Wells Fargo price target raised on CLF
- Neutral Sentiment: The company also announced a leadership change, promoting CFO Celso Goncalves to President and CFO, which is more of a governance update than a direct earnings driver. Cleveland-Cliffs Announces Promotion of Chief Financial Officer
- Negative Sentiment: Not all analyst commentary was supportive: one report said brokerage consensus remains “Reduce,” and another noted Wells Fargo’s new target is still below the current share price, reflecting lingering skepticism about the stock’s valuation and durability of the rebound.
Insider Activity at Cleveland-Cliffs
In related news, EVP Celso L. Goncalves, Jr. sold 214,308 shares of the stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $13.41, for a total transaction of $2,873,870.28. Following the completion of the sale, the executive vice president directly owned 184,542 shares of the company’s stock, valued at approximately $2,474,708.22. This trade represents a 53.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.95% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On Cleveland-Cliffs
A number of hedge funds have recently made changes to their positions in CLF. Maple Rock Capital Partners Inc. grew its position in Cleveland-Cliffs by 90.1% during the fourth quarter. Maple Rock Capital Partners Inc. now owns 12,358,230 shares of the mining company’s stock valued at $164,117,000 after buying an additional 5,855,830 shares during the period. State Street Corp grew its position in shares of Cleveland-Cliffs by 20.2% during the 2nd quarter. State Street Corp now owns 27,450,442 shares of the mining company’s stock valued at $208,623,000 after acquiring an additional 4,603,807 shares during the period. Voloridge Investment Management LLC increased its stake in shares of Cleveland-Cliffs by 960.4% during the 3rd quarter. Voloridge Investment Management LLC now owns 4,683,251 shares of the mining company’s stock worth $57,136,000 after purchasing an additional 4,241,582 shares during the last quarter. BNP Paribas Financial Markets raised its holdings in shares of Cleveland-Cliffs by 200.4% in the 2nd quarter. BNP Paribas Financial Markets now owns 6,329,414 shares of the mining company’s stock worth $48,104,000 after purchasing an additional 4,222,528 shares during the period. Finally, Duquesne Family Office LLC purchased a new position in Cleveland-Cliffs in the third quarter valued at approximately $33,123,000. 67.68% of the stock is currently owned by institutional investors.
Analyst Ratings Changes
CLF has been the topic of several recent analyst reports. Glj Research upgraded shares of Cleveland-Cliffs from a “hold” rating to a “buy” rating and boosted their target price for the company from $15.01 to $15.60 in a report on Friday. Argus raised shares of Cleveland-Cliffs to a “hold” rating in a research note on Monday, April 6th. Weiss Ratings reissued a “sell (d-)” rating on shares of Cleveland-Cliffs in a research report on Tuesday. The Goldman Sachs Group reissued a “neutral” rating and issued a $10.00 price objective on shares of Cleveland-Cliffs in a research note on Friday, May 1st. Finally, Wells Fargo & Company reiterated a “positive” rating on shares of Cleveland-Cliffs in a report on Friday. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $11.86.
Check Out Our Latest Analysis on Cleveland-Cliffs
About Cleveland-Cliffs
Cleveland-Cliffs Inc is a leading North American producer of iron ore pellets and flat-rolled steel products. Tracing its roots to 1847, the company has evolved from an iron-ore mining concern in the Great Lakes region into a fully integrated steelmaker. Today, Cleveland-Cliffs operates iron ore mining complexes in Michigan and Minnesota as well as steelmaking and finishing facilities across the United States.
The company’s integrated platform begins with direct control of key raw materials, including iron ore and scrap, and extends through every stage of steel production.
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