Why Is Cleveland-Cliffs (CLF) Down 22.3% Since Last Earnings Report?

It has been about a month since the last earnings report for Cleveland-Cliffs (CLF). Shares have lost about 22.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cleveland-Cliffs due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Cleveland-Cliffs Inc. before we dive into how investors and analysts have reacted as of late.

Cleveland-Cliffs' Q4 Earnings Beat, Revenues Miss Estimates

Cleveland-Cliffs' fourth-quarter 2025 adjusted loss was 43 cents per share. The figure was narrower than the Zacks Consensus Estimate of a loss of 62 cents. It reported an adjusted loss of 68 cents per share in the prior-year quarter.

Revenues remained essentially flat year over year at $4,313 million in the quarter. The top line missed the Zacks Consensus Estimate of $4,620.9 million.

Operational Highlights

The company reported Steelmaking revenues of roughly $4.15 billion for the fourth quarter, down around 0.3% year over year.

The average net selling price per net ton of steel products was $993 in the quarter, up around 2% year over year. However, the metric missed the consensus estimate of $1,004.

External sales volumes for steel products were roughly 3.77 million net tons, down around 1.5% year over year. The figure fell short of the consensus estimate of 4.01 million net tons.

Financial Position

Cleveland-Cliffs ended the fourth quarter with cash and cash equivalents of $57 million, down around 14% from the prior quarter. Long-term debt decreased 10% sequentially to $7,253 million.

As of Dec. 31, 2025, the company had $3.3 billion in total liquidity.

Outlook

The company issued full-year 2026 guidance. Capital expenditures are expected to be approximately $700 million. Selling, general and administrative (SG&A) expenses are forecast be around $575 million.

The company targets steel unit cost reductions of about $10 per net ton from 2025. Depreciation, depletion and amortization expenses have been projected at roughly $1.1 billion. Cash pension and Other Post-Employment Benefits payments and contributions are expected to be approximately $125 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -131.11% due to these changes.

VGM Scores

At this time, Cleveland-Cliffs has a average Growth Score of C, a score with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Cleveland-Cliffs has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Radical New Technology Could Hand Investors Huge Gains

Quantum Computing is the next technological revolution, and it could be even more advanced than AI.

While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.

Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.

Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.

See Top Quantum Stocks Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cleveland-Cliffs Inc. (CLF): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research