Cleveland-Cliffs (NYSE:CLF) Posts Earnings Results, Beats Expectations By $0.04 EPS

Cleveland-Cliffs (NYSE:CLF) posted its quarterly earnings results on Monday. The mining company reported ($0.40) EPS for the quarter, beating analysts’ consensus estimates of ($0.44) by $0.04, FiscalAI reports. Cleveland-Cliffs had a negative net margin of 6.42% and a negative return on equity of 15.48%. The firm had revenue of $4.92 billion for the quarter, compared to analysts’ expectations of $4.84 billion. During the same quarter in the prior year, the company posted ($0.92) earnings per share. The business’s revenue for the quarter was up 6.3% on a year-over-year basis.

Here are the key takeaways from Cleveland-Cliffs’ conference call:

• The company says its order book is full and automotive OEM bookings are increasing; extended lead times have pushed the pricing realization lag to about two months, so management expects current market price strength to flow into results over Q2–Q3.
• First-quarter adjusted EBITDA was $95 million (a $274 million YoY increase) with shipments recovering to ~4.1 million tons, and management forecasts Q2 to be the best quarter in nearly two years with selling prices rising roughly $60/ton sequentially.
• An extreme winter energy spike and higher electricity/gas prices drove an approximately $80 million EBITDA headwind in Q1; diesel, scrap, and fuel remain elevated, and management expects Q2 unit costs to rise about $15/ton before easing in H2.
• Management expects to collect meaningful cash in Q2 (working-capital unwind) and still targets $425 million from property sales (≈$70 million received so far), leaving liquidity above $3 billion and a return to positive free cash flow as EBITDA and collections improve.
• Discussions with POSCO remain active but have slowed due to geopolitical disruption; some contemplated asset-sale options (e.g., HBI) are off the table for now and timing/outcome of any transaction remains uncertain.

Cleveland-Cliffs Price Performance

NYSE CLF opened at $9.13 on Wednesday. The business’s fifty day moving average price is $9.50 and its 200-day moving average price is $11.75. The stock has a market capitalization of $5.21 billion, a price-to-earnings ratio of -3.90 and a beta of 1.91. The company has a debt-to-equity ratio of 1.29, a current ratio of 2.02 and a quick ratio of 0.50. Cleveland-Cliffs has a 1-year low of $5.63 and a 1-year high of $16.70.

Insider Activity

In other news, COO Clifford T. Smith sold 200,000 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $10.46, for a total transaction of $2,092,000.00. Following the transaction, the chief operating officer directly owned 560,529 shares of the company’s stock, valued at $5,863,133.34. This represents a 26.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Edilson Camara purchased 19,700 shares of the stock in a transaction dated Friday, February 13th. The shares were purchased at an average cost of $10.13 per share, for a total transaction of $199,561.00. Following the completion of the acquisition, the director directly owned 41,983 shares in the company, valued at approximately $425,287.79. This trade represents a 88.41% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 0.95% of the company’s stock.

Hedge Funds Weigh In On Cleveland-Cliffs

Several hedge funds and other institutional investors have recently modified their holdings of the company. Los Angeles Capital Management LLC bought a new position in Cleveland-Cliffs in the fourth quarter worth approximately $25,000. Larson Financial Group LLC raised its position in Cleveland-Cliffs by 819.2% in the third quarter. Larson Financial Group LLC now owns 2,684 shares of the mining company’s stock worth $33,000 after acquiring an additional 2,392 shares during the period. CIBC Private Wealth Group LLC raised its position in Cleveland-Cliffs by 306.1% in the fourth quarter. CIBC Private Wealth Group LLC now owns 2,461 shares of the mining company’s stock worth $33,000 after acquiring an additional 1,855 shares during the period. Caitong International Asset Management Co. Ltd raised its position in Cleveland-Cliffs by 94.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,505 shares of the mining company’s stock worth $33,000 after acquiring an additional 1,214 shares during the period. Finally, Johnson Financial Group Inc. raised its position in Cleveland-Cliffs by 2,935.8% in the fourth quarter. Johnson Financial Group Inc. now owns 3,309 shares of the mining company’s stock worth $44,000 after acquiring an additional 3,200 shares during the period. 67.68% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research firms have recently commented on CLF. JPMorgan Chase & Co. cut their price target on shares of Cleveland-Cliffs from $13.00 to $10.00 and set a “neutral” rating on the stock in a report on Tuesday, April 14th. Citigroup increased their price target on shares of Cleveland-Cliffs from $11.00 to $13.00 and gave the company a “neutral” rating in a report on Monday, February 9th. Glj Research reiterated a “sell” rating and set a $9.42 price target on shares of Cleveland-Cliffs in a report on Monday, March 16th. Argus upgraded shares of Cleveland-Cliffs to a “hold” rating in a report on Monday, April 6th. Finally, Wells Fargo & Company cut their price target on shares of Cleveland-Cliffs from $12.00 to $9.00 and set an “equal weight” rating on the stock in a report on Thursday, March 19th. Two investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $12.19.

Cleveland-Cliffs News Roundup

Here are the key news stories impacting Cleveland-Cliffs this week:

• Positive Sentiment: Q1 beat — CLF reported EPS of -$0.40 (vs. -$0.44 consensus), revenue of ~$4.9B and adjusted EBITDA of $95M while shipments rose, showing demand resilience and an improving quarter‑over‑quarter performance. BusinessWire Q1 Release
• Positive Sentiment: Near‑term pricing and cash initiatives — management expects Q2 selling prices to be roughly $60/ton higher and is targeting ~$$425M in cash from idled property actions, which could meaningfully lift margins if realized. Seeking Alpha Pricing/Cash Article
• Positive Sentiment: Analyst stance retains upside — Morgan Stanley cut its price target to $12 from $16.80 but kept an “overweight” rating, implying material upside from current levels and signaling some analyst confidence in recovery potential. TickerReport on MS PT
• Neutral Sentiment: Detailed commentary available — the full Q1 earnings call transcript and slide deck are published for investors to assess management’s tone on cost dynamics, pricing, and strategic priorities. Earnings Call Transcript
• Negative Sentiment: Energy cost shock — an $80M one‑time energy expense tied to extreme cold materially reduced Q1 results and highlights volatility in input costs; investors punished the stock despite the beats. Yahoo: $80M Energy Cost
• Negative Sentiment: Strategic and profitability concerns — management’s comments (e.g., “no longer in a hurry” on the Posco deal) plus continued negative net margins and a GAAP loss left some investors questioning the near‑term path to sustained profitability. Market commentary frames the report as a narrow beat but not enough to restore confidence. Seeking Alpha on Strategic Doubts

Cleveland-Cliffs Company Profile

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.