Cleveland-Cliffs shares drop as revenue misses expectations

Investing.com -- Cleveland-Cliffs Inc. (NYSE: CLF) reported a narrower-than-expected fourth-quarter loss on Thursday, but shares fell 3.4% premarket after the steelmaker's revenue fell short of analyst expectations amid weak automotive production levels.

The Ohio-based steel producer posted fourth-quarter revenue of $4.3 billion, below the analyst consensus of $4.59 billion. The company reported an adjusted loss of $0.43 per share, better than the expected loss of $0.62 per share. Revenue was flat compared to the $4.3 billion reported in the same quarter last year.

Steel shipments for the quarter totaled 3.8 million net tons, down slightly from 3.83 million net tons in the year-ago period. The company's average net selling price per ton of steel products increased to $993 from $976 in the fourth quarter of 2024.

"Our performance in 2025 was negatively affected by persistently weak production levels from the automotive sector throughout the entire year, an expiring five-year slab contract becoming value-destructive during its last year, and a newly adverse dynamic in the Canadian market," said Lourenco Goncalves, Cliffs' Chairman, President, and CEO.

For the full year 2025, Cleveland-Cliffs reported consolidated revenues of $18.6 billion, down from $19.2 billion in 2024. The company recorded an adjusted net loss of $2.48 per diluted share for 2025, compared to an adjusted net loss of $0.74 per diluted share in 2024.

Looking ahead to 2026, Cleveland-Cliffs expects steel shipment volumes of approximately 16.5-17.0 million net tons and steel unit cost reductions of approximately $10 per net ton compared to 2025. The company also noted that negotiations continue with POSCO regarding a strategic partnership, with the companies targeting a definitive agreement in the first half of 2026.

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