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]

Group 1 - The Trump administration's steel tariffs have negatively impacted Cleveland-Cliffs, creating a demand gap that affected steel shipments and asset utilization [3] - A five-year steel slab supply contract, linked to the acquisition of ArcelorMittal USA, became unprofitable in its final year, representing about 10% of the company's sales volume [4] - The imposition of a 50% tariff on Brazilian steel by the Trump administration and a 25% tariff on steel and aluminum imports by Canada have further strained Cleveland-Cliffs' finances [5] Group 2 - Cleveland-Cliffs' revenue in 2025 decreased by approximately 3% year over year to $18.6 billion, with a net loss of $1.4 billion, a complete reversal from profitability in 2024 [7] - Steel shipment volumes increased by 4.1% year over year to 16.2 million tons, indicating some operational resilience despite financial losses [7] - The company anticipates recovery in 2026, citing improved business from automotive clients as production returns to the U.S. [7]

Core Insights - ArcelorMittal has confirmed a strategic €1.3 billion investment for the construction of an electric arc furnace (EAF) at its Dunkirk steelmaking site, marking a significant step in the decarbonisation of its steel production in France [1][3][10] Investment Details - The EAF is expected to have a production capacity of 2 million tonnes and will generate steel with three times less CO2 emissions compared to traditional blast furnaces, producing 0.6 tonnes of CO2 per tonne of steel [3] - The funding for this project will be partially supported by Energy Efficiency Certificates (CEE), which will cover 50% of the total investment [3] Regulatory Environment - Recent regulatory proposals from the European Commission aim to limit unfair imports through a Tariff Rate Quota (TRQ) mechanism and reform the Carbon Border Adjustment Mechanism (CBAM) [4] - ArcelorMittal expresses appreciation for these regulatory developments, which are expected to restore fair competition in the European steel market and secure a sustainable future for steel production in the EU [5] Government Support - The French government, including President Emmanuel Macron, has been instrumental in supporting the steel industry, which has facilitated the investment decision for the Dunkirk EAF [7][8] - A long-term contract with EDF for low-carbon electricity supply is also a critical component of ArcelorMittal's energy strategy in France [5] Future Prospects - The company is considering the possibility of building additional EAFs in other European locations, contingent on favorable economic conditions and regulatory frameworks [9] - The Dunkirk EAF project is seen as a milestone for ArcelorMittal's commitment to decarbonisation and the long-term viability of steel production in Europe [10] Additional Investments - In addition to the EAF, ArcelorMittal is launching a new electrical steel production unit at its Mardyck plant, with a €500 million investment, representing the largest investment in Europe in the last decade, excluding decarbonisation efforts [11]

Market Overview - Markets opened positively on Tuesday, with the BSE Sensex at ₹84,210.00, up from ₹84,065.75, and trading at ₹84,310.07, an increase of 244.32 points or 0.29% [1] - The Nifty 50 index opened at ₹25,922.65, up from ₹25,867.30, and was trading at ₹25,942.65, an increase of 75.35 points or 0.29% [1] Recent Performance - On Monday, the Nifty gained 174 points and the Sensex surged 485 points, with nearly all key sectoral indices trading positively [2] - The Media index led the gains, soaring by 4.30% [2] Influencing Factors - Optimism in domestic markets is driven by the recent India-US interim trade deal, which is viewed as a structural positive enhancing India's export competitiveness [2] - Foreign institutional investors (FIIs) turned net buyers on Monday, purchasing shares worth approximately ₹2,255 crore, marking the second consecutive session of buying [2] - Domestic institutional investors (DIIs) remained largely neutral with marginal net buying of around ₹4 crore [2] Global Market Influence - Global markets provided strong support, with US markets closing higher; the Dow Jones Industrial Average reached a new all-time high of 50,135 [3] - The S&P 500 climbed 0.5%, and the Nasdaq advanced 0.9%, driven by technology stocks [3] Sector Performance - Banking stocks showed strength, particularly State Bank of India, which outperformed sharply following strong Q3 results [5] - The rally was led by banking, PSU banks, metals, and select consumption and capital goods stocks [5] Technical Outlook - Analysts remain cautiously optimistic about the near-term market outlook, with key support levels at 25,750 / 83,800 [6] - As long as the market stays above these levels, the upward trend is likely to persist, with potential rises towards 26,000-26,100 / 84,500-84,700 [6]

Market Overview - The Dow is holding above the 50,000 level, with small gains noted [1] - The NASDAQ composite is up 1%, indicating a resurgence in the tech sector [2] - The S&P 500 is up about 0.61%, with both the equal-weight S&P 500 and S&P 600 (small caps) reaching record highs [3] Bond and Currency Movements - The 10-year Treasury yield is down to 4.2%, while the 30-year yield is approximately 4.85% [4] - The US dollar index has seen a significant move, down 0.8%, which is notable for currency markets [4] Sector Performance - The technology sector (XLK) is up 1.86%, with semiconductors and software showing strong performance [5] - Healthcare, staples, financials, and consumer discretionary sectors are underperforming, with retail stocks in the red [6] Upcoming Economic Data - The January jobs report is expected to show an increase of 70,000 payrolls, with the unemployment rate holding steady at 4.4% [10] - The consumer price index for January is anticipated to rise by 2.5%, with core inflation expected to inch up by 0.2% month-over-month [13] Industrial and Manufacturing Outlook - The industrial and manufacturing economy is showing signs of a rebound, with PMI data exceeding expectations and new orders index rising significantly [21][22] - This rebound is attributed to easing monetary policy from the Federal Reserve, which has led to a positive shift in leading indicators [28] Investment Opportunities - There is a call for a rotation into "old economy" sectors such as energy, materials, and industrials, which have underperformed during the recent industrial weakness [30] - Investors are encouraged to diversify their portfolios beyond technology, which currently dominates market cap [32] Chipotle's Marketing Strategy - Chipotle recently gave away $1 million in free food to 100,000 customers during the Super Bowl, aiming to attract more consumers amid a slowdown [46][47] - The company plans to open between 350 and 370 new restaurants this year, expanding its footprint in various regions [59][60] SpaceX's Strategic Shift - SpaceX is pivoting its focus from Mars to the moon, which is seen as a more realistic goal for upcoming missions and potential IPO clarity [106][107] - The moon base strategy is linked to the production of materials for orbital data centers, leveraging the moon's resources [109] Oracle's Market Position - DA Davidson has upgraded Oracle's stock to a buy, citing its ties to OpenAI and TikTok as potential growth drivers [113][114]

Core Insights - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, which can lead to exceptional returns [1] Group 1: Company Overview - ATI is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank, indicating strong growth prospects [2] - The company has a historical EPS growth rate of 58%, with projected EPS growth of 27.1% for the current year, surpassing the industry average of 20.9% [4] Group 2: Financial Metrics - ATI's year-over-year cash flow growth stands at 24%, exceeding the industry average of 19.1%, which is crucial for its expansion without relying on external funding [5] - The historical annualized cash flow growth rate for ATI over the past 3-5 years is 9.9%, compared to the industry average of 9% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for ATI, with the Zacks Consensus Estimate for the current year increasing by 5.2% over the past month [7] - This upward revision trend contributes to ATI's Zacks Rank of 2 (Buy) and a Growth Score of A, positioning the company well for potential outperformance [9]

Group 1 - Cleveland-Cliffs shares fell as much as 25% following a disappointing fourth-quarter report, despite a previous 50% increase over the past six months [1][2] - The company reported flat fourth-quarter sales, while analysts had anticipated a mid-single-digit increase, and the quarterly loss exceeded expectations [2] - CEO Lourenco Goncalves expressed optimism, highlighting improvements such as multi-year contracts with major automotive customers and reduced unit costs [3] Group 2 - Cleveland-Cliffs expects shipment volume to increase approximately 3.4% in 2026, aligning with positive comments from peer steelmaker Nucor regarding robust demand [3] - The company is pursuing a strategic partnership with South Korea's POSCO, which may influence investor sentiment moving forward [4]

Core Insights - Cleveland-Cliffs is reallocating melting capacity from low-margin slab orders to higher-margin flat-rolled products, anticipating continued demand for domestically produced slabs [1] - The company is experiencing improved market conditions entering 2026, driven by 50% Section 232 tariffs, melted-and-poured requirements, and new galvanizing capacity in the U.S. [2][5] - The expiration of the ArcelorMittal slab agreement is expected to significantly enhance earnings, with an estimated EBITDA benefit of around $500 million [6][11] Market Dynamics - Steel imports are negatively impacting the domestic market, creating a demand gap that has affected shipments and utilization through 2025 [2] - The company signed multi-year fixed-price contracts with major OEMs, which is expected to secure high-margin business and increase market share [4][7] - U.S. vehicle production fell for the third consecutive year in 2025, yet Cleveland-Cliffs is positioned to absorb incremental automotive demand without needing new plants [8] Financial Performance - Total shipments for Q4 2025 were reported at 3.8 million tons, with expectations to improve to about 4 million tons in Q1 2026 [13] - The realized price in Q4 2025 was $993 per net ton, down $40 per ton, but a $60 per ton improvement is anticipated in Q1 2026 [14] - The company has achieved three consecutive years of unit cost reductions, with a projected additional reduction of $10 per ton in 2026 [15] Capital Expenditure and Asset Management - Capital expenditures for 2025 were $561 million, the lowest on record, with projections of about $700 million for 2026 [16] - Cleveland-Cliffs has closed the sale of FPT Florida and is on track for $425 million in total proceeds from sales of idled properties [20] - The company is focusing on generating EBITDA and cash flow to pay down debt, with total liquidity at the end of 2025 reported at $3.3 billion [21] Strategic Initiatives - The company is actively pursuing a memorandum of understanding with POSCO, which is considered a strategic priority [18][19] - Cleveland-Cliffs has redirected Stelco's output to the Canadian market, which has faced pricing challenges but is expected to improve [17]

Cleveland-Cliffs Stock Drops on Earnings Miss. 2026 Should Be Better. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Cleveland-Cliffs Stock Plummets 24%. An Earnings Miss Isn't the Only Disappointment.By [Al Root]ShareResize---ReprintsIn t ...

Market Overview - US stocks experienced a positive turn on Monday, with the S&P 500 rising approximately 0.5% and the Nasdaq Composite gaining nearly 1%, while the Dow Jones Industrial Average remained above 50,000 for the first time [1] - Wall Street is currently debating the impact of AI disruptions on software companies, highlighted by a significant drop in shares of Monday.com, which fell as much as 22% due to disappointing revenue and profit guidance [2][12] Company Earnings and Performance - Cleveland-Cliffs stock dropped 19% after the steel producer's fourth-quarter revenue of $4.3 billion fell short of estimates of $4.5 billion, with a net loss per share of $0.44, which was better than the expected loss of $0.60 [5][6][7] - Monday.com reported adjusted earnings per share of $1.04, exceeding estimates of $0.92, but its first-quarter revenue guidance of $338 million to $340 million was below expectations of $342 million, leading to a 15% drop in stock price [19][20][21] - Kroger's stock surged over 8% after announcing the appointment of former Walmart executive Greg Foran as CEO, aiming to capture market share following a blocked acquisition [9][10] Economic Data and Trends - Investors are awaiting the delayed January jobs report from the Bureau of Labor Statistics, with a focus on potential signs of weakness in the labor market following a disappointing ADP payroll update [4] - Gold futures rose above $5,000 an ounce, while Bitcoin fell below $69,000 after experiencing significant volatility [3][26][27] Strategic Developments - STMicroelectronics announced a multiyear, multibillion-dollar deal with Amazon to supply chips for its data centers, resulting in an 8% increase in STMicroelectronics' stock [13][14][15] - QuantumScape's stock rose 14% following the launch of its "Eagle Line" battery production factory in San Jose [28]