Cleveland-Cliffs Inc. (NYSE:CLF) shares traded lower following the company’s first quarter 2026 earnings release on Monday, even as the steelmaker reported results that beat analyst expectations for both revenue and earnings.
The stock was down more than 5% in trading after the announcement, with investors weighing a smaller-than-expected loss against continued profitability pressures and cost volatility.
For the first quarter of 2026, Cleveland-Cliffs reported revenue of $4.9 billion, exceeding Wall Street estimates of approximately $4.5 billion.
The company also outperformed on earnings, posting an adjusted loss of $0.40 per share compared with analyst expectations for a wider loss of roughly $0.42 per share.
Despite the earnings beat, sentiment was tempered by cost pressures. Cleveland-Cliffs said extreme cold weather during the quarter drove an $80 million spike in energy costs, weighing on profitability. The company’s blast furnace operations are particularly exposed to energy price fluctuations due to their high energy intensity.
Adjusted EBITDA for the quarter was $95 million, which included the energy-related headwind. Steel shipments rose to 4.1 million net tons, an increase of 338,000 tons from the prior quarter, supported by stronger demand and higher realized prices.
Cleveland Cliffs CEO Lourenco Goncalves said the quarter reflected short-term challenges, including energy cost volatility and pricing timing effects, but reiterated expectations for sequential improvement through 2026. He also said the company expects to return to positive free cash flow in the second quarter.
“As we move through the year, each quarter is expected to improve sequentially, as the momentum already visible in both our order book and pricing continues to translate into earnings and cash flow,” Goncalves said.