Cleveland-Cliffs Inc. (NYSE:CLF) shares fell 3.4% in premarket trading on Thursday after the steelmaker reported a smaller-than-expected fourth-quarter loss but missed revenue forecasts, as subdued automotive production continued to weigh on results.
The Ohio-based group posted fourth-quarter revenue of $4.3 billion, below the analyst consensus of $4.59 billion, and unchanged from the same period a year earlier. On an adjusted basis, the company reported a loss of $0.43 per share, narrower than expectations for a $0.62 per-share loss.
Steel shipments in the quarter reached 3.8 million net tons, slightly lower than the 3.83 million net tons shipped a year earlier. However, the average net selling price per ton of steel products rose to $993, up from $976 in the fourth quarter of 2024.
“Our performance in 2025 was negatively affected by persistently weak production levels from the automotive sector throughout the entire year, an expiring five-year slab contract becoming value-destructive during its last year, and a newly adverse dynamic in the Canadian market,” said Lourenco Goncalves, Chairman, President and Chief Executive Officer of Cleveland-Cliffs.
For the full year 2025, Cleveland-Cliffs reported consolidated revenue of $18.6 billion, down from $19.2 billion in 2024. The company recorded an adjusted net loss of $2.48 per diluted share for the year, compared with an adjusted loss of $0.74 per share in the prior year.
Looking ahead, the company expects steel shipment volumes of around 16.5 to 17.0 million net tons in 2026 and anticipates reducing steel unit costs by roughly $10 per net ton compared with 2025. Cleveland-Cliffs also said discussions with POSCO over a potential strategic partnership are ongoing, with both parties aiming to reach a definitive agreement in the first half of 2026.