Cleveland-Cliffs Inc. reported a revenue increase of 6% for the first quarter of 2026, reaching $4.922 billion compared to $4.629 billion in the same period of 2025. The company attributed this growth primarily to higher steel prices, particularly for hot-rolled steel, which saw an average selling price rise to $1,048 per net ton. The increase in revenue was also supported by a favorable sales mix following the conclusion of a less profitable slab contract with ArcelorMittal USA, allowing a shift towards higher-margin products. Despite the revenue growth, the company experienced a net loss of $229 million, an improvement from the $486 million loss reported in the prior year.
Operationally, Cleveland-Cliffs faced a slight decline in steel product shipment volumes, which decreased by 1% year-over-year. The total steel shipments amounted to 4.108 million net tons, with notable increases in hot-rolled and coated steel shipments, while plate and slab shipments saw declines. The gross margin for the quarter improved significantly, increasing by $310 million, driven by the higher pricing of hot-rolled steel and a reduction in costs associated with idled facilities. Adjusted EBITDA for the Steelmaking segment rose to $80 million, a substantial recovery from the negative $189 million reported in the previous year.
In terms of strategic developments, Cleveland-Cliffs has been actively optimizing its operations, including the decision to idle or permanently close several underperforming facilities. The company is also exploring strategic partnerships, such as a Memorandum of Understanding with POSCO, aimed at leveraging its U.S. operations to support POSCO's customer base. Additionally, Cleveland-Cliffs is focusing on enhancing its operational efficiency through the integration of artificial intelligence technologies to improve production and inventory management.
The company reported a total employee headcount of approximately 25,000, with over 90% of its workforce represented by unions. As of March 31, 2026, Cleveland-Cliffs had $45 million in cash and cash equivalents, with total liquidity of $3.1 billion, including availability under its Asset-Based Revolving Credit Agreement (ABL Facility). The company remains committed to reducing its debt and enhancing financial flexibility, with plans to utilize cash flow for capital expenditures and potential asset sales to further strengthen its balance sheet.
Looking ahead, Cleveland-Cliffs anticipates continued growth in domestic steel demand, supported by favorable market conditions and government tariffs on imports. The company expects to benefit from its position as a leading supplier of automotive-grade steel, particularly as the automotive industry recovers and the average age of vehicles on the road increases. However, the company remains cautious about potential risks, including fluctuations in commodity prices and ongoing geopolitical tensions that could impact operational costs and market dynamics.
About CLEVELAND-CLIFFS INC.
Cleveland-Cliffs Inc. is a leading North American integrated steel producer specializing in value-added flat-rolled steel products, primarily for the automotive industry. Its vertically integrated operations span iron ore mining, pellet production, steelmaking, and downstream finishing, stamping, tooling, and tubing. The company serves automotive, infrastructure, manufacturing, distributors, and steel producers markets, leveraging domestic raw materials and advanced R&D to deliver high-quality, technologically advanced steel solutions with stable supply and cost advantages.
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