CLF

L.B. Foster Company’s FSTR second-quarter 2026 adjusted earnings were 48 cents per share, topping the Zacks Consensus Estimate of 41 cents. On a reported basis, earnings were 29 cents per share compared with 27 cents a year ago. The company logged revenues of $138.6 million for the quarter, down 3.5% year over year. Revenues surpassed the Zacks Consensus Estimate of $134.5 million by 3%. The year-over-year decline reflected lower sales in both the Rail, Technologies and Services and Infrastructure Solutions segments. New orders were roughly $176.1 million in the reported quarter, up 0.2% year over year. Backlog was $246.1 million, down 8.8% from the prior-year quarter but up 17.4% sequentially. L.B. Foster Company price-consensus-eps-surprise-chart | L.B. Foster Company Quote Sales from the Rail, Technologies, and Services segment fell 5.2% year over year in the reported quarter to $72 million. Rail Products sales declined 27.3% due to the timing of large orders, partly offset by growth in Global Friction Management and Technology Services and Solutions. Segment gross margin expanded 70 basis points (bps) to 20.6%. Infrastructure Solutions segment sales were $66.5 million, down 1.5% year over year. Lower Steel Products sales were partly offset by growth in Precast Concrete Products. Segment gross margin improved 80 bps to 24.1% on favorable sales mix and manufacturing efficiency. L.B. Foster ended the second quarter with cash and cash equivalents of around $5.8 million. Total debt was roughly $48 million, down 41.2% from the prior-year quarter, while the gross leverage ratio improved to 1 from 2.2 a year ago. Cash flow from operations was $17.9 million for the second quarter, up 71.7% year over year. Free cash flow increased 85% to $14.3 million. FSTR reaffirmed its 2026 financial guidance. It expects net sales in the range of $540-$580 million and adjusted EBITDA in the band of $41-$46 million. Free cash flow is projected in the range of $15-$25 million for the year. Capital spending is expected to account for roughly 2.7% of sales. The company said the $36.5 million sequential increase in backlog supports its growth expectations for the second half of 2026. At the midpoints, the sales and adjusted EBITDA guidance imply year-over-year growth of 3.7% and 11.3%, respectively. L.B. Foster’s shares are up 63.6% year to date compared with the Zacks Steel Producers industry’s 81.8% rise. Image Source: Zacks Investment Research FSTR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Nucor Corporation NUE reported second-quarter adjusted earnings of $4.84 per share, up from $1.73 reported in the prior quarter. The figure topped the Zacks Consensus Estimate of $4.57. NUE expects third-quarter 2026 earnings to rise, driven by higher pricing in Steel Mills and stronger volumes and pricing in Steel Products. Raw Materials earnings are projected to decline due to lower margins. Steel Dynamics, Inc. STLD reported adjusted earnings of $3.8 per share for the second quarter, up from $2.01 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $3.67 per share. Domestic steel and aluminum demand is expected to remain strong through 2026-27, supported by better orders, pricing and reshoring. Steel Dynamics expects aluminum profitability and volumes to rise sharply in second-half 2026 as utilization improves and startup costs ease. Cleveland-Cliffs Inc. CLF reported a second-quarter adjusted loss of 20 cents per share, narrower from 51 cents a year ago. The figure was narrower than the Zacks Consensus Estimate of a loss of 21 cents per share. Cleveland-Cliffs expects a strong second half of 2026, with third quarter adjusted EBITDA projected at about $575 million and fourth quarter expected to be even stronger. CLF maintained its full-year shipment and capex guidance while targeting leverage below 2.5x by mid-2027. 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 L.B. Foster Company (FSTR) : Free Stock Analysis Report Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report Nucor Corporation (NUE) : Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The steelmaker is still losing money, but a leap in guidance and a coming contract reset convinced the market the profit recovery is finally real. Cleveland-Cliffs (CLF) surged 8.9% on Friday to close at $11.93, a second straight jump right after its second-quarter 2026 earnings landed the morning before and lifted the stock 16%. The odd part is what the company actually reported, because it lost money again. What the market bought was the forecast. Was This The Whole Steel Sector Moving? No. Over the same session the broad market was flat, with the S&P 500 up 0.1%, and the rest of the group moved only modestly. Nucor (NUE) and Steel Dynamics (STLD) each added 2.7% and RS rose 3.2%, a fraction of Cleveland-Cliffs' move. A rising steel-price tide would have carried all of them, and a broad basket of materials producers would have looked ordinary. This was one company's news, and the news was its own numbers. Why Cheer A Quarter That Lost Money? On paper the results were red. Revenue was $5.2 billion, up $300 million from the first quarter of 2026, yet the company still posted a GAAP net loss of $134 million, an adjusted net loss of $115 million, and a loss of $0.25 per share. Its net margin remains in the red at negative 4.6% over the trailing twelve months, versus a 1.8% profit peak over the past three years. The pull is the trend underneath, because adjusted EBITDA reached $286 million, its best in 2 years and roughly triple the first-quarter figure. Buyers treated the loss as the tail of a downturn rather than the shape of the business. What Is The Market Really Paying Up For? The forecast, almost entirely. Management guided adjusted EBITDA of about $575 million for Q3 2026, which would be its strongest in 3 years, and said Q4 2026 should top even that. It expects automotive shipments, already at their highest in 2 years, to keep climbing, and it flagged a reset of expiring fixed-price contracts that it estimates is worth about $500 million a year in added EBITDA. On that arithmetic it aims to cut leverage below 2.5 times within about a year. None of it has been earned yet, and all of it is the company's own projection. So Should You Chase A Two-Day Run? Be honest about what you would be buying, which is a stock repriced on figures that have not happened. The results in hand are still losses, and the quarter's return to positive free cash flow leaned on a build in payables that management tied to higher raw material and maintenance costs, so the cash came from working capital rather than from profit. At $11.93 the stock sits roughly midway between its $7.82 low and $16.18 high over the past year, leaving real room if the guide lands and real air beneath it if the next report slips. The one thing worth watching is whether the Q3 2026 numbers actually deliver the $575 million management promised, which is exactly the test behind a screen of companies whose guidance keeps marching higher. A Guided Turnaround Is Still A Promise Nothing here says the recovery is fake. The order book is full, pricing is climbing, and the guide may well land. But a stock that can jump 16% and then another 8.9% on two days of forward numbers can hand it all back just as fast if a single quarter comes up short, and this one was still losing money in the very results that sparked the rally. Owning that swing is a wager on management hitting its own targets on schedule. A rules-based basket such as the Trefis High Quality Portfolio spreads that bet across quality names and re-balances by rule rather than on one company's guide. It has a track record of outpacing a benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

Cleveland-Cliffs (CLF) reported $5.23 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 5.9%. EPS of -$0.20 for the same period compares to -$0.50 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $5.13 billion, representing a surprise of +1.88%. The company delivered an EPS surprise of +4.76%, with the consensus EPS estimate being -$0.21. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Cleveland-Cliffs performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: External Sales Volumes - Total steel Products: 4,025.00 KTon versus 4,105.28 KTon estimated by three analysts on average. Average net selling price per net ton of steel products: $1,124.00 versus the three-analyst average estimate of $1,109.49. Steel shipments by product - Coated steel: 1,240.00 KTon compared to the 1,269.08 KTon average estimate based on two analysts. Steel shipments by product - Plate: 172.00 KTon versus the two-analyst average estimate of 203.05 KTon. Revenues- Other Businesses: $174 million versus $170.67 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +6.8% change. Revenues- Steelmaking: $5.05 billion compared to the $4.99 billion average estimate based on three analysts. The reported number represents a change of +5.9% year over year. Revenues- Steelmaking- Stainless and electrical steel: $525 million versus the two-analyst average estimate of $424.94 million. The reported number represents a year-over-year change of +21%. Revenues- Steelmaking- Plate steel: $253 million versus the two-analyst average estimate of $282.19 million. The reported number represents a year-over-year change of -8%. Revenues- Steelmaking- Other: $527 million versus the two-analyst average estimate of $418 million. The reported number represents a year-over-year change of +26.4%. Revenues- Steelmaking- Cold-rolled steel: $660 million versus the two-analyst average estimate of $708.3 million. The reported number represents a year-over-year change of +2.3%. Revenues- Steelmaking- Hot-rolled steel: $1.54 billion versus $1.53 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +15.5% change. Revenues- Steelmaking- Coated steel: $1.53 billion compared to the $1.55 billion average estimate based on two analysts. The reported number represents a change of +10.1% year over year. View all Key Company Metrics for Cleveland-Cliffs here>>> Shares of Cleveland-Cliffs have returned -10.6% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. 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

Cleveland-Cliffs Inc. (NYSE:CLF) saw its share prices increase by 15.98 percent on Thursday to finish at $10.96 apiece, after reporting a strong earnings performance in the second quarter of the year. During the period, the company narrowed its net loss attributable to shareholders by 70 percent to $145 million from $486 million in the same period last year, as revenues increased by 6 percent to $5.2 billion from $4.9 billion year-on-year. A Cleveland-Cliffs facility in the Industrial Valley. Photo from Cleveland-Cliffs Cleveland-Cliffs Inc. (NYSE:CLF) Chairman and CEO Lourenco Goncalves pointed to the ongoing global tensions as benefitting the domestic steel market. “The domestic market remains strong as ongoing global tensions continue to underscore the importance of having a thriving domestic steel industry. Demand continues to improve, imports remain subdued, and lead times are extending further,” he said. “Our automotive volumes remained strong during the quarter and will increase further in Q3, helping to further absorb fixed costs as our finishing lines operate at higher utilization rates. In addition, we are beginning to see meaningful improvement in the Canadian market, positioning Stelco to return to generating significant earnings,” he added. Looking ahead, Cleveland-Cliffs Inc. (NYSE:CLF) is confident about further improving its earnings performance in the second half of the year, “with average selling prices, volumes, and costs all moving in the right direction.” “Our second-half earnings performance should be our strongest since 2021 as Q4 EBITDA is currently expected to even further exceed our Q3 guidance. 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,” Goncalves said. In line with the results, Cleveland-Cliffs Inc. (NYSE:CLF) announced that its chief financial officer Celso Goncalves has been promoted to president and is now an official member of the board of directors. He replaced his father, Lourenco, who will remain as chairman and CEO of the company. Celso has served as executive vice president and CFO since 2021 and has been with the firm since 2016. Institutional participation in the company notably weakened in the first quarter of the year, despite improving prospects for the domestic steel market. Based on data by Insider Monkey, 53 hedge funds held positions in the firm during the period, down from 56 in the previous quarter. Their combined holdings also significantly dropped by 34 percent to $1.19 billion from $1.8 billion quarter-on-quarter, even as expectations for stronger domestic steel demand and supportive trade policies improved. While we acknowledge the potential of CLF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.

Nucor Corporation NUE is slated to come up with second-quarter 2026 results after the closing bell on July 27. NUE is expected to have benefited from favorable steel prices and higher earnings across its segments in the second quarter. The Zacks Consensus Estimate for second-quarter earnings has been stable in the past 60 days. The consensus estimate for earnings is pegged at $4.57 per share, suggesting a 75.8% year-over-year increase. Image Source: Zacks Investment Research NUE surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice. It has a trailing four-quarter earnings surprise of roughly 8.1%, on average. Image Source: Zacks Investment Research Our proven model predicts an earnings beat for Nucor this time around. The combination of a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.NUE has an Earnings ESP of +0.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Higher segment earnings are likely to have aided NUE’s performance in the second quarter. Nucor is expected to have benefited from higher selling prices and strong demand from non-residential construction & infrastructure, military & defense and energy end markets.Nucor, last month, said that it expects earnings to increase across all three operating segments compared to the previous quarter. The largest increase is expected to be witnessed in the steel mills segment due to higher average selling prices and stable volumes.Approximately $130 million in cash refunds tied to prior raw materials procurement costs will also benefit the costs in the segment. The steel products segment is expected to benefit from higher volumes and slightly improved pricing, while the raw materials segment should see gains from stronger realized prices.U.S. steel prices recovered in the fourth quarter of 2025, following the lows seen in the third quarter, and the momentum continued in the first half of 2026. Overall demand weakness and abundant steel mill output dragged benchmark hot-rolled coil (“HRC”) prices below $800 per short ton in late August, continuing through early September. HRC prices have rebounded on major steel mills' price increases, extending lead times and tightening supply, partly due to plant outages and reduced imports driven by tariffs. The recovery has led to HRC prices surging to near $1,200 per short ton. Higher selling prices are expected to have supported Nucor’s performance in the quarter to be reported. Our estimate for second-quarter average sales price per ton for the company’s steel mills unit stands at $1,308, indicating a 25.6% year-over-year increase.Nucor is expected to have witnessed continued demand weakness in certain markets such as heavy equipment, rail cars, truck and trailer and agriculture. Residential construction, a key end market for Nucor, remains another area of weakness. The construction sector has experienced a slowdown in the United States due to high interest rates, dampening steel demand in this market. Elevated borrowing costs and inflation have taken a bite out of the residential construction industry. The softness in this market is expected to have continued in the June quarter. Nucor’s shares have gained 65.4% in the past year, topping the Zacks Steel Producers industry’s rise of 60.9% and the S&P 500’s increase of 20%. Among its major U.S. steel-making peers, Steel Dynamics, Inc. STLD has rallied 83.9% while Cleveland-Cliffs Inc. CLF has lost 4.2%. Image Source: Zacks Investment Research From a valuation standpoint, Nucor is currently trading at a forward 12-month earnings multiple of 13.25, a roughly 14.2% premium to the peer group average of 11.6X. It is trading at a discount to Cleveland-Cliffs and at a modest premium to Steel Dynamics. NUE currently has a Value Score of B, while Steel Dynamics and Cleveland-Cliffs have a Value Score of C and F, respectively. Image Source: Zacks Investment Research Nucor is well positioned for long-term growth through capacity expansion, strategic acquisitions and a disciplined capital allocation strategy. Its new mills and downstream investments should strengthen its low-cost position, while solid liquidity and consistent shareholder returns reinforce financial resilience. Higher U.S. steel prices also provide a supportive backdrop for margins. However, the company continues to face headwinds from weak demand in residential construction and cyclical industrial markets, including heavy equipment and transportation. While these challenges may weigh on near-term performance, Nucor’s diversified end-market exposure, growth pipeline and strong balance sheet support its long-term investment appeal. Nucor benefits from its actions to expand its production capabilities and grow its business through strategic acquisitions. Its efforts to boost production capacity through several growth projects should drive profitability. Higher steel prices are also expected to support Nucor’s margins. Despite these positives, NUE remains exposed to demand weakness in certain areas such as residential construction, heavy equipment and agriculture, exerting some volume headwinds. Holding onto the NUE stock will be prudent for investors who already own it, awaiting more clarity on the company’s prospects following its forthcoming earnings release. 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 Nucor Corporation (NUE) : Free Stock Analysis Report Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cleveland-Cliffs Inc. CLF reported second-quarter 2026 adjusted loss of 20 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents and the year-ago loss of 51 cents. Revenues rose 5.9% year over year to $5.2 billion and surpassed the consensus estimate of $5.1 billion by 1.9%. Higher steel pricing supported the top line and margin improvement, although steel shipment volumes declined from the prior-year quarter. Consolidated cost of goods sold declined to $5.1 billion from $5.15 billion a year earlier. Selling, general and administrative expenses rose to $154 million from $137 million, while restructuring and other charges decreased to $3 million from $86 million. Cleveland-Cliffs Inc. price-consensus-eps-surprise-chart | Cleveland-Cliffs Inc. Quote Steelmaking revenues increased 5.9% year over year to $5.05 million from $4.8 billion. The segment generated a cash margin of $349 million, up sharply from $138 million in the year-ago quarter, reflecting stronger selling prices and improved cost performance. The average net selling price per net ton of steel products was $1,124, up 10.7% from $1,015 a year earlier. The metric was above the consensus estimate of $1,109. External sales volumes for steel products totaled 4.025 million net tons, down 6.2% from 4.290 million net tons in the prior-year quarter. The figure missed the consensus estimate of 4.11 million net tons. Cleveland-Cliffs ended the second quarter with cash and cash equivalents of $70 million, up from $57 million at the end of 2025. Long-term debt stood at $7.7 billion compared with $7.3 billion as of Dec. 31, 2025. The company had total liquidity of $3.1 billion as of June 30, 2026. Cleveland-Cliffs expects third-quarter 2026 adjusted EBITDA of approximately $575 million, more than double the second-quarter result. Management also expects fourth-quarter EBITDA to exceed its third-quarter guidance as average selling prices, shipment volumes and costs continue to move in a favorable direction. CLF maintained its full-year 2026 steel shipment guidance of approximately 16.5-17 million net tons. The company continues to project capital expenditures of about $700 million, SG&A expenses of approximately $575 million and depreciation, depletion and amortization of roughly $1.1 billion. Cash pension and other post-employment benefit payments and contributions remain projected at approximately $125 million. Management expects second-half earnings performance to be the company’s strongest since 2021 and believes it can reach its leverage target of less than 2.5 times debt to EBITDA by this time next year. CLF’s shares have lost 4.2% in the past year against the industry’s rise of 60.9%. Image Source: Zacks Investment Research CLF currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the basic materials space are Carpenter Technology Corporation CRS, Kronos Worldwide, Inc. KRO and Avient Corporation AVNT. Carpenter Technology is slated to report fourth-quarter fiscal 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at $10.58 per share, indicating 41.44% year-over-year growth. CRS sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Kronos is scheduled to report second-quarter 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO flaunts a Zacks Rank #1 at present. Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2. 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 Carpenter Technology Corporation (CRS) : Free Stock Analysis Report Kronos Worldwide Inc (KRO) : Free Stock Analysis Report Avient Corporation (AVNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the Q2 EBITDA tripling to the materialization of three strategic pillars: automotive volume recovery, footprint optimization, and the expiration of uneconomic legacy supply contracts. Automotive shipments reached a two-year high, allowing finishing lines to return to healthy utilization levels and improving unit cost absorption. The company credits Section 232 and recent trade enforcement for accelerating domestic manufacturing investment and eliminating 'escape valves' for transshipped steel from Mexico and Canada. Management asserts that Cleveland-Cliffs has become the 'supplier of choice' for the U.S. auto sector, claiming market share gains from both domestic integrated competitors and mini-mills. Operational efficiency is being enhanced through AI-based initiatives with Palantir, aimed at optimizing mill schedules and reducing maintenance-related downtime. The company successfully transitioned back to positive free cash flow, supported by a richer product mix and the realization of pricing lags from previous quarters. Q3 2026 adjusted EBITDA is guided to approximately $575 million, a projected doubling of Q2 results driven by the convergence of higher prices, lower costs, and increased shipping volumes. Management expects a $500 million year-over-year EBITDA improvement in 2027 specifically from resetting fixed-price contracts at significantly higher current market levels. The company targets a leverage ratio below 2.5x by mid-2027, utilizing cash flow from operations and approximately $400 million in expected property sale proceeds. Future capacity restarts, specifically at the Dearborn blast furnace, are contingent on automotive OEMs demonstrating long-term commitment to domestic production over imports. Capital allocation will prioritize debt paydown as the primary objective until leverage targets are met, with no immediate refinancing needs until 2029. Management flagged that Canadian finishing operations at Stelco are lagging and may face footprint changes if the Canadian government does not implement stronger trade protections. The company rejected recent offers for HBI and FPT assets, stating that prospective buyers' valuations fell short of the assets' internal strategic value to Cliffs' iron-making capabilities. A major upgrade to the Butler Works induction reheat furnace is underway, scheduled for 2028 completion to increase grain-oriented electrical steel capacity by 25%. Negotiations with the United Steelworkers (USW) have commenced, with management describing the early dialogue as constructive and productive. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects a 'foregone conclusion' of higher prices for non-auto contracts as the negotiation starting point has moved from the $800 level to approximately $1,150. For automotive, the company intends to be more selective and play for higher prices, citing a lack of viable domestic or imported alternatives for high-end automotive steel. CEO Goncalves stated he will not restart the 2-million-ton furnace until OEMs provide 'conviction' that they will not revert to importing or sourcing from Mexico. The company is comfortable maintaining tight backlogs for clients until long-term domestic sourcing commitments are solidified. Discussions remain friendly but management emphasized they are not 'desperate' to transact and will only proceed if valuation and structure meet their thresholds. The company noted that their HBI assets have become more valuable internally for 'juicing' iron-making capabilities during periods of high demand.

Interested in Cleveland-Cliffs Inc.? Here are five stocks we like better. Cleveland-Cliffs reported a sharp earnings recovery in Q2, returning to positive free cash flow and posting adjusted EBITDA of $286 million, its best quarterly result in two years. Management expects an even stronger second half, with Q3 EBITDA guidance around $575 million. Improving automotive demand and better pricing are driving the outlook. Shipments to auto customers hit a two-year high, and the company expects higher steel prices, lower costs and increased shipment volumes to lift both Q3 and Q4 results. Debt reduction is the top capital priority as Cleveland-Cliffs uses free cash flow and planned asset-sale proceeds to pay down leverage, targeting below 2.5x by this time next year. The company also sees a major 2027 EBITDA boost from higher fixed-price contract resets. Tariffs Rose: 1 Steelmaker Thrived, 1 Still Struggles Cleveland-Cliffs (NYSE:CLF) said it returned to positive free cash flow in the second quarter of 2026 and expects a substantially stronger second half of the year, driven by higher steel prices, improved automotive demand, lower costs and higher shipment volumes. Chairman and CEO Lourenco Goncalves told analysts that the company’s second-quarter results showed “tangible evidence” of the earnings recovery management has been forecasting. Cleveland-Cliffs reported adjusted EBITDA of $286 million in the quarter, which President and CFO Celso Goncalves said was the company’s best quarterly result in two years. The figure was roughly triple the company’s first-quarter adjusted EBITDA, according to management. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Cleveland-Cliffs Sinks After Earnings—Is the Selloff Overdone? “During the second quarter, we returned to positive free cash flow and tripled our adjusted EBITDA from the first quarter,” Lourenco Goncalves said. “While the second quarter represents meaningful progress, it still understates where this company is headed over the coming quarters.” Cleveland-Cliffs issued third-quarter adjusted EBITDA guidance of approximately $575 million, which Celso Goncalves said would represent the company’s strongest quarter in three years. Management said the expected improvement reflects a convergence of higher prices, lower costs and increased shipping volumes. → 3 Photonics Companies Making Quantum Tech Possible Cleveland-Cliffs Breaks to New Highs on Earnings, More Upside? Second-quarter steel shipments were just over 4 million tons, down sequentially because of maintenance outages and stronger automotive demand, which management said carries longer lead times. Cleveland-Cliffs expects third-quarter shipments to exceed 4.3 million tons, citing a strong order book and extended backlogs. Pricing also improved during the second quarter. Celso Goncalves said the company’s average selling price increased by $76 per ton from the prior quarter, helped by pricing lags beginning to flow through and a richer product mix tied to automotive demand. He said Cleveland-Cliffs expects its average selling price to rise by another $55 per ton in the third quarter. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off On costs, management said maintenance outages and inventory lag lifted unit costs in the second quarter, but those headwinds are expected to ease. Celso Goncalves said unit costs are expected to decline by $10 per ton in the third quarter, while Lourenco Goncalves said further cost improvements are expected in the fourth quarter as production levels rise and mill schedules become more stable. The company also said it expects fourth-quarter adjusted EBITDA to exceed third-quarter levels, assuming the current hot-rolled coil futures curve. Management said this expectation already factors in normal holiday-related seasonal slowdowns. Management highlighted improving automotive steel demand as a major contributor to the company’s outlook. Lourenco Goncalves said Cleveland-Cliffs’ shipments to automotive customers during the second quarter were the highest in two years. He also said finishing lines that had been running at suboptimal utilization levels over the last several years are now operating at healthier levels, with a favorable impact on costs. Cleveland-Cliffs said it has received top supplier awards this year from both Toyota and General Motors. Lourenco Goncalves said the company remains “the supplier of choice for the automotive sector in the United States.” During the question-and-answer session, Lourenco Goncalves said about half of the expected 300,000-ton shipment increase in the third quarter would come from the improved automotive market, with the other half coming from non-automotive flat-rolled steel. Asked about the potential restart of the Dearborn blast furnace, Goncalves said the company has the capacity and technology to supply more automotive steel, but would need stronger conviction from automakers that production will remain in the United States. He said the Dearborn furnace represents “more than 2 million tons” of potential capacity. Cleveland-Cliffs said upcoming fixed-price contract resets could provide a significant lift in 2027. Celso Goncalves said the company expects a $500 million year-over-year EBITDA improvement from resetting a large portion of its fixed-price contracts at higher levels. Lourenco Goncalves said negotiations for non-automotive contracts begin in earnest in the second half of the year and typically conclude by late November or early December. He said last year’s contracts were negotiated against a much lower pricing backdrop, with prevailing prices around $800 per ton or less, compared with recent levels around $1,150 per ton or more. “The expectation that these contracts will reset for much higher prices are just a foregone conclusion,” he said. On automotive contracts, Goncalves said Cleveland-Cliffs plans to be more selective and seek higher prices, citing its position with U.S. automakers and tighter trade enforcement. Celso Goncalves said Cleveland-Cliffs generated positive free cash flow in the second quarter after two years of negative free cash flow and expects the trend to continue. He said second-quarter working capital was a release of about $55 million, driven by reduced inventory and a slight build in accounts payable, partially offset by accounts receivable. The company said it is now under contract on all major property sales, with earnest money in hand in each case. Cleveland-Cliffs expects the bulk of the $400 million in proceeds from those sales to arrive in the second half of 2026. Management said debt paydown is the company’s top capital allocation priority. Celso Goncalves said free cash flow and asset-sale proceeds will be used to reduce debt, with the goal of reaching leverage below 2.5 times by this time next year if current market conditions hold. “Until we get to our leverage target, we’re not going to prioritize any other type of capital allocation,” he said. Lourenco Goncalves repeatedly emphasized the importance of U.S. trade policy, particularly Section 232, which he called “the single most effective industrial policy implemented in our country in a generation.” He credited trade enforcement with supporting domestic steel utilization, manufacturing investment and automotive reshoring. The company also discussed Canada and Stelco, which Cleveland-Cliffs acquired. Lourenco Goncalves said Stelco’s results have improved and are contributing to the company’s second-half guidance. He said Canadian hot-rolled steel pricing has improved as the pricing gap with the U.S. has narrowed, but galvanized steel in Canada remains under pressure. He warned that the competitiveness of Stelco’s galvanizing lines in Hamilton could be at risk without further trade protections. On strategic initiatives, Celso Goncalves said offers received for assets such as HBI and FPT have fallen short of Cleveland-Cliffs’ value threshold. He said discussions with POSCO remain friendly and ongoing, but Cleveland-Cliffs does not have a deadline and is not under pressure to complete a transaction. The company also noted that it has begun negotiations with the United Steelworkers union to renew its collective bargaining agreement. Lourenco Goncalves said the process is off to “a constructive and productive start.” Cleveland-Cliffs also announced that Celso Goncalves has been appointed to the company’s board of directors as president and CFO. Lourenco Goncalves said the move reflects the role Celso has already been playing and marks “the early stages of a transition in leadership,” while adding that he plans to continue leading the company for several more years. Cleveland-Cliffs Inc is a leading North American producer of iron ore pellets and flat-rolled steel products. Tracing its roots to 1847, the company has evolved from an iron-ore mining concern in the Great Lakes region into a fully integrated steelmaker. Today, Cleveland-Cliffs operates iron ore mining complexes in Michigan and Minnesota as well as steelmaking and finishing facilities across the United States. The company's integrated platform begins with direct control of key raw materials, including iron ore and scrap, and extends through every stage of steel production. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cleveland-Cliffs Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Adjusted EBITDA: $286 million in Q2, tripled from Q1; guidance of $575 million for Q3. Steel Shipments: Over 4 million tonnes in Q2; expected to exceed 4.3 million tonnes in Q3. Average Selling Price: Increased by $76 per ton in Q2; expected to rise another $55 per ton in Q3. Unit Costs: Expected $10 per ton reduction in Q3. Free Cash Flow: Returned to positive in Q2 after two years of negative cash flow. Property Sales Proceeds: Expected $400 million in the second half of the year. Leverage Target: Aiming for sub 2.5 times leverage by next year. Warning! GuruFocus has detected 7 Warning Signs with CLF. Is CLF fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cleveland-Cliffs Inc (NYSE:CLF) returned to positive free cash flow and tripled its adjusted EBITDA from the first quarter. The company expects to more than double its Q2 EBITDA in Q3, with a guidance of $575 million. Automotive demand has significantly improved, with shipments to automotive clients being the highest in the last two years. Cleveland-Cliffs Inc (NYSE:CLF) has received top supplier awards from both Toyota and General Motors, highlighting its strong position in the automotive sector. The company is benefiting from favorable trade policies, such as Section 232, which have improved domestic steel utilization and manufacturing investment. Q2 results were impacted by maintenance outages and lagged contracts, which limited the demonstration of the company's full asset capabilities. Stelco's finishing side in Canada is still lagging, posing a risk to the competitiveness of galvanizing lines in Hamilton. The company faces challenges in the Canadian market due to insufficient measures to protect fair trade, affecting future competitiveness. Cleveland-Cliffs Inc (NYSE:CLF) is under pressure to transact with prospective counterparties, which has affected valuation discussions. The company is still negotiating with the United Steelworkers Union to renew its collective bargaining agreement, which could impact labor relations. Q: Can you provide more details on the resetting of non-auto fixed-price contracts and expectations for auto contracts next year? A: Lourenco Goncalves, CEO, explained that the resetting of non-auto contracts will occur in the second half of the year, with expectations for higher prices due to the current pricing environment. For auto contracts, Cleveland-Cliffs is positioned as a key supplier, and they anticipate resetting these contracts at higher prices as well. Q: What is the expected impact of improved automotive market conditions on shipment volumes in the third quarter? A: Lourenco Goncalves, CEO, stated that about half of the 300,000-ton shipment uplift expected in the third quarter is attributed to the improved automotive market, with the other half from non-automotive sectors. Q: Can you provide insights into the Canadian spot pricing and its impact on Stelco's performance? A: Lourenco Goncalves, CEO, noted that the pricing gap in Canada has closed, particularly for hot-rolled steel, due to government actions. However, galvanized steel pricing remains under pressure. The company is considering adjustments to its Canadian operations to optimize financial performance. Q: What assumptions are included in the guidance for Q3 2026 and 2027, particularly regarding pricing and costs? A: Celso Goncalves, CFO, mentioned that the guidance is based on the current US HRC forward curve for pricing and includes benefits from fixed-price contract renewals. Cost assumptions are consistent with current levels, with no significant changes expected. Q: What are the expectations for debt paydown and capital allocation priorities? A: Celso Goncalves, CFO, emphasized that debt reduction is the top capital allocation priority, with plans to use free cash flow and proceeds from asset sales to achieve leverage targets. The company has no immediate refinancing needs, with maturities pushed out to 2029. For the complete transcript of the earnings call, please refer to the full earnings call transcript.