Investors overlook $134 million Q2 2026 loss after steelmaker raises EBITDA forecast and signals contract reset gains.
Cleveland-Cliffs (CLF) climbed 8.9% to $11.93 after lifting its Q3 2026 guidance, despite reporting a $134 million GAAP net loss for Q2 2026. Revenue rose to $5.2 billion, up $300 million sequentially, but adjusted EBITDA of $286 million—triple the prior quarter—drove the rally.
The company posted a $0.25 per-share loss and a negative 4.6% net margin over the trailing twelve months, compared with a 1.8% profit peak in recent years. Competitors Nucor (NUE) and Steel Dynamics (STLD) gained only 2.7%, while the S&P 500 edged up 0.1%, underscoring the stock’s idiosyncratic move.
Investors focused on the improved outlook, betting on a profit recovery as steel prices stabilize and contract resets take effect later this year.