A vertically integrated North American steelmaker that mines its own iron ore and turns it into automotive-grade flat-rolled steel for carmakers, plus tubing, tooling, and stamping. Founded in 1847 as the Cleveland Iron Mining Company, it merged with its rival, the Iron Cliffs Company, in 1891 — giving the firm its hyphenated name. It is the oldest iron-mining company in the United States.
Cleveland-Cliffs Q2 2026 gross margin returned to positive 2% after four quarters of negative prints
Cleveland-Cliffs' turned positive for the first time in a year. rose 6.3% to $4,922.0M and gross margin reached -1.7% in Q1 then 2% in Q2 on higher hot-rolled prices and lower idle charges, with the net loss narrowing to $237.0M in Q1 and a smaller loss expected as margins recovered. The company is back to generating steel margins above zero but carries $7,763.0M in against $3.1B .
Key takeaways
improved to 2% in Q2 2026 from -5% a year earlier, a $341M increase driven by a 19% rise in prices to $1,079/ton and a $60M reduction in idle facility charges.
rose 6.3% to $4,922.0M and 14.1% from Q1, with Steelmaking revenue up 6% to $5.05B as the slab contract ended and mix shifted favorably, partly offset by a 6% shipment decline.
Steelmaking rose to $286M from $94M, reflecting the stronger margin, while SG&A increased $17M on higher incentive compensation.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 6% to $4.5B on higher steel prices and favorable mix shift away from slabs, driving gross margin to 2% from -5%.
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Steelmaking revenues increased 6% to $5.05B in Q2 2026, driven by a 19% rise in prices to $1,079/ton and a favorable mix shift after the slab contract ended, partially offset by a 6% decline in shipments.
was -$95M for H1 2026, improved from -$306M a year earlier, but consumed $173M from a $607M build tied to rising prices.
stood at $3.1B as of June 30, 2026 with $70M cash and $3.0B ; is expected at $900M over the next 12 months including a blast furnace reline.
The net loss was $237.0M in Q1 2026, or -$0.42 , narrowing from a $498.0M loss a year earlier, with Q2 margin recovery pointing to a further reduced loss.
What changed
Q2 2026 Steelmaking and : the flagged Q2 2025 negative margin of -4.2% and 14% automotive drop reversed as prices rose 19% to $1,079/ton and gross margin reached 2%.
from $7,763.0M in Q1 2026: rose 7.0% to $7,763.0M in Q1 and was $7,727.0M at Q2 2025; the flagged asset sale or transaction has not closed, with $900M and $800M prior expectation still pressuring deleveraging.
trajectory: the $218M Q1 increase tied to rising prices persisted into H1 with a $607M build, though total H1 cash use improved to -$95M from -$306M.
YTD negative level: H1 2026 was -$95M versus -$306M a year earlier, as the from rising prices continued but earnings improved.
U. S. Steel–Nippon Steel suit: voluntarily dismissed with prejudice September 3, 2025 with no consideration, removing the flagged damages exposure carried from Q1 2025.
What to watch
Q3 2026 Steelmaking and as the $1,079/ton price and favorable mix persist or fade after the ArcelorMittal USA slab contract ended
movement from $7,763.0M as $900M lands and any partnership or non-core asset sale closes for paydown
as the $607M H1 build normalizes with collection timing
Details of the blast furnace reline within the $900M and its cost impact on H2 2026 margins
improved to 2% from -5% in Q2 2025, with a $341M increase, primarily from higher hot-rolled pricing and a $60M reduction in cost of goods sold due to lower .
rose to $286M from $94M, reflecting stronger steelmaking performance, while SG&A increased $17M on higher incentive compensation.
was -$95M for H1 2026, improved from -$306M a year ago, but consumed $173M mainly from a $607M build in due to rising prices.
Liquidity stood at $3.1B as of June 30, 2026, with $70M cash and $3.0B ABL availability; the company expects $900M in over the next 12 months, including a blast furnace reline.
Management expects domestic steel demand to grow, supported by tariffs, low imports, and an aging vehicle fleet, while the partnership and rare earth exploration remain uncertain.
Quantitative and Qualitative Disclosures About Market Risk
Information regarding our market risk is presented under the caption "Market Risks," which is included in our Annual Report on Form 10-K for the year ended December 31, 2025, and Part I – Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operatio…
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Information regarding our market risk is presented under the caption "Market Risks," which is included in our Annual Report on Form 10-K for the year ended December 31, 2025, and Part I – Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report on Form 10-Q.
Environmental Matters. SEC regulations require us to disclose certain information about administrative or judicial proceedings involving the environment and to which a governmental authority is a party if we reasonably believe that such proceedings may result in monetary sanctio…
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Environmental Matters. SEC regulations require us to disclose certain information about administrative or judicial proceedings involving the environment and to which a governmental authority is a party if we reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to SEC regulations, we use a threshold of $1 million for purposes of determining whether disclosure of any such proceedings is required. We believe that this threshold is reasonably designed to result in disclosure of any such proceedings that are material to our business or financial condition.
We have described the other material pending legal proceedings, including administrative or judicial proceedings involving the environment, to which we are a party in our Annual Report on Form 10-K for the year ended December 31, 2025.
We caution readers that our business activities involve risks and uncertainties that could cause actual results to differ materially from those currently expected by management. We described the most significant risks that could impact our results in Part I, Item 1A. "Risk Facto…
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We caution readers that our business activities involve risks and uncertainties that could cause actual results to differ materially from those currently expected by management. We described the most significant risks that could impact our results in Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025.