Why Are CLF Shares Down Over 19% Today?

• Cleveland-Cliffs reported diluted loss per share of $0.43, narrowing about 37% from the same period last year. 
• The company’s CEO said that performance in 2025 was negatively affected by persistently weak production levels from the automotive sector throughout the entire year. 
• The company said that it expects steel shipment volumes of about 16.5 - 17.0 million net tons, marginally above 2025 volumes of 16.2 million net tons.

Shares of Cleveland-Cliffs Inc. (CLF) plummeted over 19% on Monday after the company reported fourth-quarter (Q4) 2025 results, with revenue missing street expectations.

The steelmaker reported revenue of $4.3 billion, flat year-on-year, but below analyst consensus of $4.6 billion, according to data from Fiscal.ai.

Cleveland-Cliffs reported diluted loss per share of $0.43, narrowing about 37% from the same period last year. Analysts were expecting the company to report a loss per share of $0.62.

“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, Cleveland-Cliffs’ Chairman, President, and CEO.

Deal Update

Investors were looking for updates on Cleveland-Cliffs’ deal with Korea’s largest steelmaker POSCO, which was initially announced in October 2025.

While the company reiterated its timeline of targeting a definitive agreement in the first half of 2026, adding that the deal remains its top strategic priority, no other meaningful updates were provided.

Goncalves added in a call with investors that the engagement between the two companies is “active and ongoing” and that the “duration of these negotiations reflects the seriousness and potential scale of the opportunity.”

2026 Outlook

While Cleveland-Cliffs did not provide revenue and earnings guidance, the company said that it expects steel shipment volumes of about 16.5 million - 17.0 million net tons, marginally above 2025 volumes of 16.2 million net tons.

The company also said that it expects steel unit cost reductions of about $10 per net ton compared to 2025, and announced capital expenditures of about $700 million in 2026.

Cleveland-Cliffs said that its Q4 price realization fell by around $40 per net ton due to lagging indices on spot prices declining, automotive volume falling, and slab prices becoming more disconnected. The company noted that these factors have largely waned, and that it expects a substantial improvement in realized prices starting in Q1 of 2026, an increase of about $60 per ton from Q4 of 2025.

“As we move through 2026, we are operating with a leaner footprint, a stronger order book, improving price realization, declining unit costs, and a clear line of sight to higher utilization and cash generation,” Goncalves said to investors.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around CLF shares jumped from ‘bearish’ territory to ‘extremely bullish’ over the past 24 hours amid ‘extremely high’ message volumes.

One user reiterated their bullish stance on the stock, stating that the management signaled a clear operational and market turnaround heading into 2026, while also highlighting how the POCSO partnership could be strategically accretive.

However, another user said that the POSCO deal would never close, given CLF has been losing money, and it would be a ‘money-losing proposition’ for the Korean company.

Shares of CLF have remained largely unchanged in the past year, down marginally by 0.17%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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