Core Viewpoint - Cleveland-Cliffs Inc (NYSE:CLF) is experiencing a recovery in its stock price after a significant decline, despite a downgrade from KeyBanc, indicating potential for further gains due to technical indicators and market conditions [1][2]. Group 1: Stock Performance - CLF's stock rose by 2.6% to $12.35, recovering from a previous drop of 9.3% [1]. - The stock is approaching a historically bullish trendline, suggesting a potential rebound [1]. Group 2: Technical Indicators - The stock is currently within 0.75 of the 126-day moving average's 20-day average true range (ATR), having remained above this level 80% of the time in the past two weeks and 80% of the last 42 trading sessions [2]. - Historical data shows that similar signals have led to a 75% chance of the stock being higher one month later, with an average gain of 4.3% [2]. Group 3: Market Sentiment - A short squeeze may provide additional support, with short interest at 13.1% of the stock's available float, equating to nearly three days of buying power [4]. - The 14-day relative strength index (RSI) of 28.1 indicates that the stock is in "oversold" territory, which often precedes a short-term bounce [4].

Financial Data and Key Metrics Changes - CMC reported net earnings of $177.3 million, or $1.58 per diluted share, compared to a net loss of $175.7 million in the prior year period [21] - Adjusted earnings were $206.2 million, or $1.84 per diluted share, compared to $86.9 million and $0.76 per diluted share in the prior year [22] - Consolidated core EBITDA reached $316.9 million, a 52% increase from $208.7 million in the prior year [22] - Core EBITDA margin expanded to 14.9%, reflecting growth both year-over-year and sequentially [5] Business Line Data and Key Metrics Changes - North American Steel Group generated adjusted EBITDA of $293.9 million, with an EBITDA margin of 17.7%, up from 12.3% in the prior year [22] - Construction Solutions Group net sales grew by 17% year-over-year to $198.3 million, with adjusted EBITDA increasing by 75% to $39.6 million [23] - Europe Steel Group reported adjusted EBITDA of $10.9 million, down from $25.8 million in the prior year, primarily due to a lower CO2 credit [24] Market Data and Key Metrics Changes - Shipments of finished steel were virtually unchanged year-over-year, with a less than 1% decline from the previous quarter [10] - The Dodge Momentum Index increased by approximately 50% year-over-year, indicating substantial pent-up demand in non-residential markets [11] - The commercial segment of the DMI grew by 57%, while institutional projects increased by 37% [11] Company Strategy and Development Direction - CMC's strategic focus is on transforming into a stronger organization with higher, more stable margins and returns on capital [5] - The TAG initiative aims to drive operational and commercial excellence, targeting a permanent improvement in margins and cash flows [16] - Recent acquisitions of CPMP and Foley Products are expected to enhance CMC's commercial portfolio and financial profile [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the supportive market conditions, with stable demand and limited imports contributing to strong performance [5] - The company anticipates modest declines in consolidated core EBITDA for the second quarter due to seasonal trends, but expects contributions from the precast businesses to offset this [31] - Management remains optimistic about long-term demand drivers, including infrastructure investment and energy generation [12] Other Important Information - CMC's effective tax rate was 3.1% in the first quarter, with expectations of a full-year rate between 5% and 10% for fiscal 2026 [29] - The company plans to spend approximately $625 million in capital expenditures for fiscal 2026, focusing on growth investments and completing the Steel West Virginia micromill [30] Q&A Session Summary Question: Insights on CPMP and Foley acquisitions - Management noted positive cultural fit and integration potential, with confidence in achieving synergies [36] Question: North American metal margins outlook - Management expects margins to remain stable, with demand absorbing new supply entering the market [38] Question: Seasonal impacts on volumes - Typical seasonal decline of 5%-10% is expected in the second quarter, despite stronger than anticipated first-quarter volumes [42] Question: Precast business seasonality - The precast business is expected to follow overall seasonal trends, contributing about $30 million of EBITDA in the second quarter [46] Question: Scrap optimization benefits - Scrap optimization initiatives have significantly improved margins, with ongoing efforts to enhance quality and reduce costs [50]

Financial Performance & Outlook - Q1 Net Earnings reached $1773 million[15], while Adjusted Earnings were $2062 million[15] - Q1 Core EBITDA stood at $3169 million[15], with a Core EBITDA Margin of 149%[15] - The company aims to exit FY 2026 with an annualized run-rate EBITDA benefit of $150 million from TAG initiatives[14, 21] - Precast business is expected to contribute approximately $165 million to $175 million to Construction Solutions Group Adjusted EBITDA in fiscal 2026[34] Strategic Initiatives - The company launched new Transform, Advance, Grow ("TAG") initiatives with commercial opportunities in focus[14, 19] - The company rebranded Emerging Businesses Group to Construction Solutions Group to better reflect business composition and strategic role of segment[14, 28] - The company completed acquisitions of Concrete Pipe & Precast ("CP&P") and Foley Products Company ("Foley")[2, 34] Market Dynamics - Construction Solutions Group net sales were up 170% year-over-year, while adjusted EBITDA increased by 747%[52, 65] - Europe Steel Group shipments increased by 157% on a year-over-year basis[52, 72] - The company anticipates reducing net debt to adjusted EBITDA to below 2x within 18 months[14, 46]

Group 1 - Cleveland-Cliffs Inc. (CLF) is the largest flat-rolled steel company in North America and has consistently been rated as a "Buy" due to its significant growth potential [1] - The company is covered by analysts who provide insights and analysis, helping investors balance growth and value [1] - Beyond the Wall Investing offers features such as a fundamentals-based portfolio, weekly analysis from institutional investors, and alerts for short-term trade ideas based on technical signals [1]

Group 1 - Cleveland-Cliffs Inc. (CLF) is the largest flat-rolled steel company in North America and has consistently been rated as a "Buy" due to its significant growth potential [1] - The company is covered by analysts who provide insights and analysis, helping investors balance growth and value [1] - Beyond the Wall Investing offers features such as a fundamentals-based portfolio, weekly analysis from institutional investors, and alerts for short-term trade ideas based on technical signals [1]

Core Viewpoint - Commercial Metals Company (CMC) is expected to report a year-over-year improvement in revenues and earnings for the first quarter of fiscal 2026, with earnings anticipated to jump 99% year-over-year [1][2][6]. Financial Performance Expectations - The Zacks Consensus Estimate for CMC's fiscal first-quarter revenues is $2 billion, reflecting a 4.6% decrease from the previous year [1]. - The consensus estimate for earnings is $1.55 per share, which has increased by 2.6% over the past 60 days and indicates a year-over-year rise of 98.7% [2][6]. Earnings Surprise History - CMC has had mixed earnings surprises in the past four quarters, beating estimates once, matching once, and missing twice, with an average surprise of -6.3% [5]. Market Conditions and Performance Drivers - The company is facing challenges from a prolonged economic slowdown in the Western world and weaker-than-expected steel demand, particularly in Europe [10]. - Despite these challenges, CMC expects improved steel margins in North America due to price hikes offsetting rising scrap costs [6][12]. Strategic Acquisitions and Synergies - CMC has recently completed two significant acquisitions, positioning itself as a leading player in the Mid-Atlantic and Southeastern regions, with expected annual run-rate synergies of $25-$30 million from these acquisitions by year three [18][19]. Valuation and Stock Performance - CMC shares have increased by 56.1% over the past year, outperforming the industry average of 54.5% and the S&P 500's 21% [13]. - The company is currently trading at a forward price/sales ratio of 0.96, which is lower than the industry average of 1.59 [15]. Investment Considerations - Given the expected strong fiscal first-quarter results driven by improving conditions in Europe and demand in North America, along with favorable valuation and upward earnings estimate revisions, it may be a good time to consider investing in CMC [20].

Core Insights - Commercial Metals Company (CMC) reported strong financial results for the first quarter of fiscal 2026, achieving net earnings of $177.3 million, or $1.58 per diluted share, compared to a net loss of $175.7 million in the prior year period [2][5][23] - The company experienced significant year-over-year improvements in adjusted earnings, which reached $206.2 million, or $1.84 per diluted share, up from $86.9 million, or $0.76 per diluted share, in the previous year [3][5][23] - CMC's strategic initiatives, including the TAG program and recent acquisitions, are expected to enhance margins and earnings power, with a goal of achieving an annualized run-rate EBITDA benefit of $150 million by the end of fiscal 2026 [2][5][14] Financial Performance - First quarter net sales totaled $2.1 billion, a 11% increase from $1.9 billion in the prior year [5][23] - Consolidated core EBITDA for the first quarter was $316.9 million, reflecting a 52% increase year-over-year, with a core EBITDA margin of 14.9% [5][9][22] - The North America Steel Group's adjusted EBITDA increased by 57.9% to $293.9 million, driven by higher margins and operational improvements [9][22] Market Conditions - The domestic market environment for CMC's North America Steel Group and Construction Solutions Group remained stable, characterized by solid demand and expanding margins [2][7] - Steel product metal margins increased for the third consecutive quarter, reaching their highest level in nearly three years, with potential for further increases based on favorable market dynamics [2][8] - The Europe Steel Group faced modestly softened market conditions, with adjusted EBITDA declining to $10.9 million from $25.8 million in the prior year, impacted by lower average selling prices and margins [12][13] Strategic Initiatives - CMC successfully completed acquisitions of Concrete Pipe and Precast, LLC and Foley Products Company, establishing a new growth platform in the precast concrete industry with over $2.5 billion deployed [2][5][4] - The company launched several new operational and commercial initiatives under the TAG program, aimed at expanding margins and enhancing service value [2][5] - The Emerging Businesses Group has been renamed to Construction Solutions Group to better align with the strategic priorities of the segment [10][11] Outlook - CMC anticipates a modest decline in consolidated core EBITDA for the second quarter of fiscal 2026 due to seasonal slowdowns, but expects contributions from the newly acquired precast businesses to offset some of this impact [14] - The long-term outlook remains positive, with expectations of significant value creation for shareholders through strategic execution and operational excellence [14]

Market Performance - Equity benchmark indices Sensex and Nifty fell sharply by nearly 1 per cent, marking the fourth consecutive session of decline due to renewed concerns over potential US tariff hikes and widespread selling pressure in global markets [1][7] - The 30-share BSE Sensex dropped 780.18 points, or 0.92 per cent, closing at 84,180.96, with an intraday low of 84,110.10, down 851.04 points or 1 per cent [3] - The 50-share NSE Nifty tumbled 263.90 points, or 1.01 per cent, to settle at 25,876.85 [3] Sector Performance - Significant losses were observed in metal, oil & gas, and commodity stocks, exacerbated by ongoing foreign fund outflows [3] - Among the 30-Sensex firms, major laggards included Larsen & Toubro, Tech Mahindra, Tata Consultancy Services, Reliance Industries, Tata Steel, and Trent, while gainers included Eternal, ICICI Bank, Bajaj Finance, and Bharat Electronics [4] Geopolitical Factors - US President Donald Trump supported a sanctions bill that could impose 500 per cent tariffs on countries purchasing Russian oil, aiming to leverage pressure on nations like China and India to cease buying cheap oil from Moscow [6] - US Senator Lindsey Graham indicated that the legislation would provide the White House with "tremendous leverage" against countries such as China, India, and Brazil [6] Global Market Context - In Asian markets, South Korea's Kospi index increased, while Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng indices declined [8] - Brent crude, the global oil benchmark, rose by 0.75 per cent to $60.42 per barrel [8]

Market Overview - Asian shares ended mixed amid escalating China-Japan tensions and anticipation of key U.S. jobs data that could influence the Federal Reserve's rate trajectory [1] - Oil prices increased as the U.S. announced plans to control Venezuela's oil sales indefinitely [1] - Gold prices extended losses due to a firm dollar [1] Regional Indices - China's Shanghai Composite index closed marginally lower at 4,082.98, while Hong Kong's Hang Seng index declined by 1.17% to 26,149.31, affected by basic materials and stocks [2] - Japan's Nikkei average dipped 1.63% to 51,117.26, with trade friction with China impacting chemical stocks and real wages falling at the fastest pace since January 2025 [2] Company-Specific Developments - Shin-Etsu Chemical shares fell by 4% following China's anti-dumping probe into Japanese chipmaking chemicals [3] - Technology stocks, including semiconductor-linked companies like SoftBank, Advantest, and Tokyo Electron, experienced declines of 2-8% [3] - Samsung Electronics shares dropped by 1.6% despite projecting a three-fold increase in fourth-quarter operating profit due to global demand for AI servers [4] Australian Market Performance - Australian markets rose modestly, led by financials and healthcare stocks, while miners faced profit-taking after a three-day winning streak [5] - The benchmark S&P/ASX 200 increased by 0.29% to 8,720.80, and the broader All Ordinaries settled 0.32% higher at 9,046.50 [6] - BlueScope Steel shares fell by 1.6% after rejecting a $9 billion takeover bid from SGH and Steel Dynamics [6] U.S. Market Insights - U.S. stocks fluctuated before ending mixed, with the S&P 500 down 0.3% and the Dow down 0.9% after reaching record closing highs [7] - The tech-heavy Nasdaq Composite edged up by 0.2%, supported by economic reports indicating a slowing yet resilient labor market [7] - The JOLTS report suggested a cooling labor market, while ADP reported a modest rebound in private hiring, and the ISM Services PMI surprised to the upside [7]

Shares of BlueScope Steel were down 2% in early trading on Thursday after the company rejected a A$13.2 billion ($8.87 billion) takeover offer from Australian conglomerate SGH and U.S.-based Steel Dynamics. ...