Cleveland-Cliffs CEO Touts ‘Stronger Position’ Amid Middle East Turmoil As It Beats Q1 Estimates

• Goncalves praised the Trump administration’s trade enforcement policy, stating that it is “working exactly as intended.”
• He also urged the Canadian government to further heighten its defenses for the steel industry to achieve “Fortress North America” in the U.S. and its northern neighbor.
• Goncalves stated that Cleveland-Cliffs expects to generate positive free cash flow in the second quarter.

Cleveland-Cliffs Inc. (CLF) CEO Lourenco Goncalves said on Monday that the ongoing disruption in the Middle East due to the Iran war has strengthened the company’s competitive position.

The Iran war, which began with joint strikes led by the U.S. and Israel, is now in its eighth week, with the hostilities currently at a low due to a temporary ceasefire that is set to expire this week.

“Ongoing disruption in the Middle East has made Cliffs' competitive position stronger and underscores why global steel producers want to partner with Cleveland-Cliffs,” Goncalves said, as the company reported its first-quarter (Q1) results.

Cleveland-Cliffs reported an adjusted net loss of $0.4 per share on revenue of $4.9 billion. Wall Street analysts expected the company to report an adjusted net loss of $0.42 per share on revenue of $4.8 billion, according to Fiscal.ai data.

Cleveland-Cliffs shares were up more than 2% in Monday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘bullish’ territory at the time of writing.

Goncalves Calls For Achieving ‘Fortress North America’

Goncalves called for increased measures to protect the steel industries in the U.S. and Canada.

While noting that steel imports into the U.S. have fallen to their lowest levels since the Great Financial Crisis in 2008, Goncalves praised the Trump administration’s trade enforcement policy, stating that it is “working exactly as intended.”

“Recent actions related to derivative products have brought needed clarity to the market, supporting manufacturing in the United States and creating new jobs for American workers,” he added.

Goncalves urged the Canadian government to further heighten its defenses for the steel industry to achieve “Fortress North America” in the U.S. and its northern neighbor.

“At this point we feel encouraged by the level of understanding demonstrated by key Canadian officials to the urgency of resolving the problem and preserving Canadian jobs currently at risk,” he said.

Cleveland-Cliffs Flags $80M Hit Due To Energy Price Spike

Cleveland-Cliffs reported an $80 million hit due to a spike in energy prices because of cold weather during Q1. Goncalves added that the company experienced short-term headwinds, such as price-realization lags and energy prices, during the quarter, but expects improvements in subsequent quarters.

He also stated that Cleveland-Cliffs expects to generate positive free cash flow in the second quarter.

Cleveland-Cliffs reiterated its steel shipment guidance at 16.5 million to 17 million net tons, and capital expenditure at about $700 million for the full fiscal year 2026.

The company’s Q1 steel product sales volume stood at 4.1 million net tons.

CLF stock is down 25% year-to-date, but up 36% over the past 12 months. The Vanguard Total Stock Market Index Fund ETF (VTI) is up 35% over the past 12 months, while the Vanguard Small-Cap Index Fund ETF (VB) is up 38%.

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