Cleveland-Cliffs narrows losses in Q2, predicts stronger 2H and 2027

Cleveland-Cliffs

Second quarter ended June 30	2026	2025	% Change
Net sales	$5,226	$4,934	5.9%
Net earnings (loss)	($145)	($486)	70.1%
Per diluted share	($0.25)	($0.98)	74.5%
Six months ended June 30
Net sales	$10,148	$9,563	6.1%
Net earnings (loss)	($382)	($984)	61.2%
Per diluted share	($0.67)	($1.09)	38.5%

(in millions of dollars except per share)

Cleveland-Cliffs Inc. narrowed its losses in the second quarter thanks to increased demand, higher prices, longer lead times, and limited import competition.

The Cleveland-based steelmaker also predicted results in the second half of the year and 2027 would be even better.

“With average selling prices, volumes, and costs all moving in the right direction, our second-half earnings performance should be our strongest since 2021,” Cliffs Chairman and CEO Lourenco Goncalves said.

“We expect to finish the year on a positive note and enter 2027 with significant momentum and additional opportunities for upside, including the higher reset of fixed-price contracts and much improved profits in Canada,” he added.

Goncalves made the statement in commentary released along with second-quarter earnings data on Thursday.

He noted on the company’s earnings call that those contracts were negotiated last year when prevailing hot-rolled coil prices were “in the $800 level, maybe less.” Now, in contrast, HR prices “are at the $1,150 level, maybe more.”

All told, Cliffs reported a Q2’26 loss of $145 million, less than the $486 million the company lost in Q2’25. Revenue rose to $5.23 billion in Q2’26, up 5.9% from $4.93 billion in Q2’25. The result also marked an improvement over Q1’26, when Cliffs lost $237 million.

The higher revenue came as Cliffs recorded average selling prices of $1,124 per short ton (st) in Q2’26, up 10.7% from $1,015/st in Q2’25. Shipments, however, fell to 4.03 million tons in Q2’26, down 6.5% from 4.29 million tons in Q2’25.

Cliffs said shipments declined largely because of “extended maintenance outages.” The company did not provide details about where and when those outages occurred. It predicted volumes would increase by approximately 300,000 tons in Q3 on increased demand and as outages conclude. For the year, Cliffs maintained a shipment target of 16.5 million to 17 million tons.

In Canada, meanwhile, Cliffs said it expected a $500-million improvement in earnings before interest, taxes, depreciation, amortization (EBITDA) at Stelco. Goncalves said on the earnings call that the brighter outlook resulted largely from a strengthening Canadian hot-rolled coil market. “The finishing side at Stelco is still lagging,” he added.

Recall that Cliffs acquired Stelco in 2024 for $2.5 billion.

Michael Cowden

Michael Cowden is editor-in-chief for Steel Market Update. Cowden has covered the steel industry since 2007. He specializes in flat-rolled steel but has also reported on steel long products, steel pipe and tube, and aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.