Why Cleveland-Cliffs Stock Crashed Today
Key Points
Improved results from a year ago didn't satisfy investors.
Cleveland-Cliffs sees growing shipments this year.
Investors are waiting for details related to a potential partnership with South Korea's POSCO.
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Shares of steelmaker and miner Cleveland-Cliffs (NYSE: CLF) plunged as much as 25% today after a disappointing fourth-quarter report. The news wasn't all bad, however. Shipments are expected to grow this year for Cliffs and other steel companies.
Today's news came after the stock had soared 50% over the past six months. Cliffs shares recovered from the early plunge, but were still 19.9% lower as of 11:35 a.m. ET.
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Growth ahead
The steelmaker reported flat fourth-quarter sales when analysts had expected a mid-single-digit increase. While an improvement over the prior-year period, its quarterly loss was also more than anticipated. Management is ready to turn the corner after a disappointing year. The automotive market didn't provide a boost, and the company struggled with costs and a sluggish Canadian market.
Cliffs CEO Lourenco Goncalves struck an optimistic tone, though. He said the negative situations have all improved entering 2026, noting the company has now "signed multi-year contracts with all our major automotive customers, reduced unit costs year-over-year, extended our debt maturities, and lowered capital expenditures, among several other initiatives."
At the midpoint of its guidance, the Cliffs expects shipment volume to increase about 3.4% in 2026. That mirrors comments from peer steelmaker Nucor last month, saying it is seeing "robust demand in several key end markets." It expects an approximately 5% increase in steel shipments this year.
Cliffs is also working on a strategic partnership with South Korea's POSCO. Investors may be waiting to hear more details on that before giving the company the benefit of the doubt for an improving 2026.
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Howard Smith has positions in Nucor and has the following options: short February 2026 $180 calls on Nucor and short March 2026 $200 calls on Nucor. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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