Cleveland-Cliffs Shares Plunge 16% After Disappointing Q4 Results and Weak Outlook
Cleveland-Cliffs Inc. saw its stock crater 16% to $12.31 following a dismal fourth-quarter earnings report. The steelmaker posted an EBITDA loss of $21 million on $4.3 billion revenue - missing analyst estimates by 6% - as weak automotive demand and poor Canadian market conditions weighed on results.
Full-year EBITDA guidance collapsed to just $37 million for 2025, down from $773 million in 2024. Investors expressed particular disappointment with the lack of concrete progress updates on the strategic POSCO partnership, though management maintains a deal will materialize in first-half 2026.
The company forecasts modest steel shipment growth to 16.8 million tons in 2026, with capital expenditures holding steady at $700 million. Market participants appear skeptical of the promised 2026 turnaround, with shares gapping down to $13.10 in premarket trading from Friday's $14.73 close.
