Key Takeaways Vale posted 2025 revenues of $38B and EPS up 15%, with iron, copper and nickel output beating expectations.VALE targets higher iron ore and copper capacity through 2030, backed by major expansion projects.CLF reported a wider 2025 loss, citing weak auto demand and lower steel prices despite cost cuts.Vale S.A (VALE) and Cleveland-Cliffs Inc. (CLF) are major players in the global iron ore and steel supply chain. Vale is a leading iron ore producer and Cleveland-Cliffs is a top U.S. steelmaker a ...

Cleveland-Cliffs Inc. Appoints Ralph Michael as Lead DirectorFeb 23, 2026 6:01 PM Eastern Standard Time# Cleveland-Cliffs Inc. Appoints Ralph Michael as Lead DirectorShare---CLEVELAND--([BUSINESS WIRE])-- Cleveland-Cliffs Inc. (NYSE: CLF) today announced the appointment of Ralph "Mike†Michael III as Lead Independent Director of the Company's Board of Directors, effective immediately. Mr. Michael succeeds Douglas Taylor as Lead Independent Director, following the Board's acceptance of Mr. Taylor's resignatio ...

Vladimir Dimitrov, CFA is a former strategy consultant within the field of brand and intangible assets valuation. During his career in the City of London he has been working with some of the largest global brands within the technology, telecom and banking sectors. He graduated from the London School of Economics and is interested in finding reasonably priced businesses with sustainable long-term competitive advantages.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of ...

Core Viewpoint - Cleveland-Cliffs' stock has experienced a significant decline, dropping 32.5% at its lowest point, primarily due to disappointing earnings and macroeconomic challenges, but there are signs of potential recovery in 2026 as market dynamics improve and steel prices rise [1][2][4]. Financial Performance - Cleveland-Cliffs reported a net loss of $1.4 billion for 2025, which is approximately double the loss from 2024 [6]. - The company ended a major five-year steel slab contract with ArcelorMittal USA in 2025 due to unprofitability stemming from a tariff-driven price gap [5]. Market Dynamics - The automotive sector, a key market for Cleveland-Cliffs, faced a slump in demand due to declining vehicle production in the U.S. during 2025 [4]. - However, management anticipates a recovery in automotive volumes and has already secured orders from clients, which is expected to positively impact revenue and earnings in 2026 [7]. Price Trends - Steel prices are expected to rise, with hot-rolled oil-steel prices projected to be nearly $60 per ton higher sequentially in the first quarter of 2026, with further improvements anticipated throughout the year [8]. - The Canadian subsidiary, Stelco, is expected to benefit from government-imposed restrictions on steel imports starting December 2025, which may enhance its market position [8]. Investment Outlook - Cleveland-Cliffs is viewed as a potential turnaround stock worth monitoring in 2026, given the anticipated recovery in market conditions and pricing [8].

Core Viewpoint - The potential rollback of tariffs on steel and aluminum is causing significant market reactions, with producers experiencing declines in stock prices due to fears of increased foreign competition and reduced domestic pricing power [1][2][5] Group 1: Market Reactions - Steel and aluminum producers saw stock declines of 5-6% in early trading as investors anticipated renewed competition and softer pricing [1] - Cleveland-Cliffs, focused on U.S. steel, faced sharper declines, while Alcoa, an aluminum producer, also dropped due to concerns over lower pricing [2] Group 2: Impact of Tariff Changes - Tariffs have historically supported U.S. producers by maintaining margins and limiting cheaper imports; a rollback would reduce this support [2] - The removal of tariffs is expected to compress multiples for producers, indicating a direct relationship between protection and market premiums [3] Group 3: Potential Sector Rotation - The decline in metal producers may signal a rotation towards sectors that could benefit from lower input costs, such as automakers, machinery manufacturers, and construction companies [4] - Easing tariffs could improve margins for downstream industries, suggesting a classic cost-relief trade scenario [4] Group 4: Broader Implications - Policy shifts regarding tariffs can rapidly alter the landscape of entire sectors, with recent years seeing tariffs significantly influence the earnings of U.S. steel and aluminum companies [5] - The market is already adjusting to the potential changes, indicating that even hints of tariff reversals can introduce volatility [5]

Core Viewpoint - Steel and aluminum stocks are experiencing a decline following a report indicating that President Donald Trump is easing his position on tariffs, which has been a point of concern for consumers due to rising prices [1] Industry Impact - The report suggests a potential shift in tariff policy, which could influence the pricing dynamics in the steel and aluminum markets [1] - Consumer complaints regarding increased prices are linked to the current tariff situation, highlighting the sensitivity of these industries to policy changes [1]

Company Overview - Cleveland-Cliffs Inc. is a leading North American steel producer with a vertically integrated business model, leveraging both steelmaking and iron ore mining assets [6] - The company serves a diversified customer base, with significant exposure to the automotive and manufacturing sectors, positioning it as a key supplier in the regional steel industry [6] Financial Performance - As of February 11, shares of Cleveland-Cliffs were priced at $12.48, reflecting a 10.4% increase over the prior year [3] - The company reported fourth-quarter revenue of $4.3 billion, flat year over year, with a net loss of $235 million and an adjusted EBITDA loss of $21 million [10] - For the full year, revenue decreased to $18.6 billion from $19.2 billion, and the net loss widened to $1.4 billion [10] - Liquidity stood at $3.3 billion, with management guiding for 2026 steel shipments of approximately 16.5 to 17.0 million net tons and targeted unit cost reductions of about $10 per net ton [10] Investment Position - Turiya Advisors Asia Ltd initiated a new position in Cleveland-Cliffs by acquiring 7,250,000 shares valued at $96.28 million, which now accounts for 14.75% of the fund's 13F reportable assets under management as of December 31 [2][3] - This allocation indicates a strategic tilt towards economically sensitive assets, complementing a portfolio already concentrated in large technology names and cyclical plays [11] - The significant size of the position suggests a belief that the steel cycle is closer to a trough than a peak, focusing on balance sheet flexibility and cost discipline for long-term investors [12]

Group 1 - Cleveland-Cliffs Inc. is facing challenges due to tariffs impacting its stock performance, although it has performed better than it would have without these tariffs [1] - The company produces flat-rolled and specialty steel products, including stainless, electrical, and tubular steels, as well as iron ore and hot-briquetted iron [3] - Comparatively, Nucor is viewed as a superior operator in the steel industry, with a strong performance and potential for purchase at a discount during market weaknesses [3] Group 2 - There is a belief that certain AI stocks may offer greater upside potential and carry less downside risk compared to Cleveland-Cliffs [4]

Group 1 - The business environment has started to improve, indicating a positive trend for the company [1] - The order book is described as "robust," suggesting strong future demand [1] - The automotive sector remains a core end market for the company [1] Group 2 - The company expects increased production of vehicles in 2026, reflecting optimism in the automotive market [1] - There is no need to build additional plants to handle the anticipated demand, indicating efficient capacity management [1] - Canadian pricing and shipping have improved in the past month, which may enhance profitability [1]

Core Insights - Cleveland-Cliffs Inc. (CLF) reported a narrower adjusted loss of 43 cents per share for Q4 2025, compared to a loss of 68 cents per share in the same quarter last year, and better than the Zacks Consensus Estimate of a loss of 62 cents [1][7] - Revenues for the quarter were approximately $4,313 million, remaining flat year over year, but missing the Zacks Consensus Estimate of $4,620.9 million [1][7] Operational Highlights - Steelmaking revenues were around $4.15 billion for Q4, reflecting a decrease of about 0.3% year over year [2] - The average net selling price per net ton of steel products was $993, which is an increase of approximately 2% year over year, but fell short of the consensus estimate of $1,004 [2] - External sales volumes for steel products were approximately 3.77 million net tons, down around 1.5% year over year, and also below the consensus estimate of 4.01 million net tons [3] Financial Position - As of the end of Q4, the company had cash and cash equivalents of $57 million, a decrease of about 14% from the prior quarter [4] - Long-term debt decreased by 10% sequentially to $7,253 million, with total liquidity standing at $3.3 billion as of December 31, 2025 [4] Outlook - For the full year 2026, the company expects capital expenditures to be approximately $700 million and SG&A expenses to be around $575 million [5] - CLF aims for steel unit cost reductions of about $10 per net ton from 2025 levels, with projected depreciation, depletion, and amortization expenses of roughly $1.1 billion [5] Price Performance - Over the past year, CLF shares have increased by 8.9%, while the industry has seen a rise of 58.6% [6]