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Cleveland-Cliffs (CLF) Is Up 11.2% After Narrowing Q2 Losses And Pausing Buybacks - What's Changed

Simply Wall St · 2d ago
  • In the second quarter of 2026, Cleveland-Cliffs Inc. reported sales of US$5,226 million and a net loss of US$145 million, both improved from a year earlier, while executing no additional share repurchases under its April 2024 buyback program.
  • The results show sales growth alongside a smaller loss per share, indicating that cost and operational measures are narrowing the company’s losses even as it pauses incremental buybacks.
  • With quarterly losses narrowing and sales higher, we’ll now examine how this earnings progress influences Cleveland-Cliffs’ investment narrative and risk profile.

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Cleveland-Cliffs Investment Narrative Recap

To own Cleveland-Cliffs, you need to believe its vertically integrated steel model and auto exposure can eventually translate higher revenue into consistent profits despite structural shifts toward scrap-based, lower-emission steel. The latest quarter’s higher sales and smaller loss support that profitability path, but do not change the near term reality that Cliffs is still loss making and exposed to policy risk around Section 232 tariffs, which remains the single biggest swing factor for the business.

The most directly relevant update here is the second quarter 2026 earnings release, which showed sales of US$5,226 million and a net loss of US$145 million, both improved year on year. This continued loss profile, even as operations appear more efficient, keeps the focus on whether management can strengthen cash generation enough to manage its leverage, especially after prior debt financings tied to acquisitions and an extended pause in buybacks.

Yet beneath improving quarterly numbers, investors should be aware that Cliffs' debt burden and reliance on policy support could still...

Read the full narrative on Cleveland-Cliffs (it's free!)

Cleveland-Cliffs' narrative projects $23.1 billion revenue and $1.2 billion earnings by 2029. This requires 6.4% yearly revenue growth and a $2.1 billion earnings increase from -$866.0 million today.

Uncover how Cleveland-Cliffs' forecasts yield a $11.65 fair value, a 8% downside to its current price.

Exploring Other Perspectives

CLF 1-Year Stock Price Chart
CLF 1-Year Stock Price Chart

Some of the lowest ranked analysts were already cautious, assuming only about 3.3 percent annual revenue growth and US$550.5 million earnings by 2029, so this quarter’s smaller loss may prompt them to reassess how much risk they still see in Cliffs’ capital intensive, legacy steel footprint and its exposure to decarbonization pressures.

Explore 4 other fair value estimates on Cleveland-Cliffs - why the stock might be worth 8% less than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.