Cleveland-Cliffs stock took a heavy hit Monday, with investors bailing after the Cleveland-based steelmaker reported a bruising 2025 and laid out cautious goals for 2026. Executives say they are already cutting costs and locking in long-term auto contracts, but a year that ended deep in the red was enough to trigger a sharp selloff and fresh scrutiny of the company’s potential tie-up with POSCO and the hoped-for rebound in car production that might rebuild margins.
What the books showed
The company reported a fourth-quarter GAAP net loss of $235 million, or $0.44 per diluted share, and a full-year GAAP net loss of $1.4 billion, or $2.91 per diluted share, according to Cleveland-Cliffs. Consolidated revenue for 2025 came in at $18.6 billion, and steel product sales totaled about 16.2 million net tons, the release said.
Investors head for the exits
Shares slid more than 16% Monday, closing around $12.31, as traders dumped the stock following the results and a revenue miss, as reported by Crain's Cleveland Business. Market listings show the stock's 52 week trading range has run roughly from $5.63 to $16.70, underscoring the volatility investors are weighing, per Chartmill.
Guidance and fix-it moves
In its outlook, management told investors it expects 2026 steel shipments of about 16.5 to 17.0 million net tons, plans to reduce steel unit costs by roughly $10 per net ton versus 2025, and is projecting capital spending near $700 million, the company said. CEO Lourenço Gonçalves noted that Cliffs has signed multi-year contracts with all major automotive customers and has been trimming its footprint to exit loss-making businesses. He added that POSCO continues due diligence and that both sides are aiming to sign a definitive agreement in the first half of 2026, according to the company release.
Local footprint and what to watch
The company is headquartered in downtown Cleveland and is a major regional employer, with syndicated filings and press distribution noting roughly 25,000 employees across its U.S. and Canadian operations, per BusinessWire. Local plants, suppliers and unions will be watching output, pricing and the POSCO timeline for any early signs of rehiring or plant restarts.
Analysts told market outlets the quarter was mixed, with a narrower EPS loss but a revenue shortfall, leaving Cleveland-Cliffs with a narrow path to materially better 2026 results without a clearer auto recovery or the hoped-for strategic tie-up, Investing.com noted. For Cleveland and for shareholders, the near-term watch list is straightforward: the POSCO process, auto production data and whether those cost cuts actually show up as meaningful margin improvement.
