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Cleveland-Cliffs Shares Tumble on Earnings Miss and Uncertain POSCO Deal

The company signaled only modest 2026 shipment growth following a quarterly EBITDA loss with a steep full-year slide.

Overview

  • Fourth-quarter revenue of $4.3 billion missed roughly $4.6 billion consensus, though adjusted EPS of negative $0.43 beat expectations for a larger loss.
  • Full-year 2025 EBITDA fell to $37 million from $773 million in 2024, with the CEO citing weak auto production, an unprofitable slab contract, and soft Canadian demand.
  • Shares fell about 16% to $12.31 after an intraday drop of as much as 25% following the results.
  • Talks with South Korea’s POSCO remain in due diligence, with an agreement expected in the first half of 2026 but no terms disclosed, drawing critiques of “process, not progress.”
  • Management guided to roughly 16.8 million tons of 2026 shipments (about 3% growth), planned around $700 million in capital spending, and reported liquidity of approximately $3.3 billion.