Cleveland-Cliffs Q4 Earnings Call Highlights

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MarketBeat

Mon, February 9, 2026 astatine 10:19 AM CST 8 min read

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ArcelorMittal slab agreement expiration is expected to materially assistance earnings, with absorption estimating an EBITDA payment “to the bid of $500 million” arsenic slab volumes are replaced by higher‑margin products; the CFO framed astir $700M of incremental gross offset by astir $150M of conversion costs, with astir payment flowing done Q2–Q3 2026.
Management says the marketplace backdrop improved entering 2026 — including 50% Section 232 tariffs, melted‑and‑poured requirements and rising spot alloy prices — enabling reduced import pressure, reallocation of melting capableness to higher‑margin flat‑rolled products, a ~$60/ton realized terms betterment expected successful Q1, and full‑year shipments of 16.5–17 cardinal tons.
Automotive remains core: Cleveland‑Cliffs signed multi‑year fixed‑price contracts with each large OEMs, has underutilized downstream capableness (e.g., a galvanizing enactment moving good beneath nameplate), and is winning production‑scale orders to substitute alloy for aluminum connected exposed components.
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Cleveland-Cliffs (NYSE:CLF) executives said the institution entered 2026 with a “robust bid book,” improving pricing, and a leaner outgo operation aft a challenging 2025 marked by import pressure, weaker conveyance production, and unfavorable slab declaration economics.

On the company’s fourth-quarter and full-year 2025 net call, Chairman, President and CEO Lourenco Goncalves said Cleveland-Cliffs spent 2025 “fixing what needed to beryllium fixed,” including shutting down underperforming assets and terminating an index-based slab proviso statement with ArcelorMittal that became “very onerous” successful its last twelvemonth owed to a disconnect betwixt Brazilian slab scale pricing and U.S. finished alloy prices.

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Goncalves said alloy imports “poisoning our home market” created a request spread that wounded shipments and utilization done 2025. He added that conditions improved arsenic the institution moved into 2026, pointing to Section 232 tariffs astatine 50%, “melted and poured” requirements, and a displacement successful marketplace dynamics tied to caller galvanizing capableness coming online successful the U.S.

He besides said Cleveland-Cliffs has been capable to reallocate melting capableness antecedently utilized for low-margin slab orders toward higher-margin flat-rolled products. At the aforesaid time, owed to melted-and-poured requirements, helium said the institution anticipates continued request for domestically produced slabs and remains unfastened to supplying slabs nether pricing constructs that marque sense.