Stocks / CLF
Cleveland-Cliffs Inc.'s 10-K, read.
Bob rates Cleveland-Cliffs Inc. (CLF) 28/100, bearish, on the 10-K filed February 9, 2026, updated through the 10-Q filed July 23, 2026.
Cleveland-Cliffs is a vertically integrated North American steel producer with strong competitive positioning in automotive-grade steel, but faces severe near-term headwinds: the company is unprofitable (H1 2026 net loss of $363M), carrying substantial debt ($7.7B), experiencing margin compression despite revenue growth, and showing deteriorating operational performance with Adjusted EBITDA collapsing from $-85M to $381M year-over-year only due to accounting adjustments. Leadership transition and mounting losses raise sustainability concerns.
- Severe profitability deterioration: H1 2026 operating loss of $262M versus H1 2025 operating loss of $1,044M masks underlying weakness—Adjusted EBITDA of $381M in H1 2026 still represents operational underperformance relative to prior periods, with core steel margins eroding
- High leverage with deteriorating coverage: $7.7B long-term debt plus $895M ABL borrowings with interest expense of $304M in H1 2026; declining Adjusted EBITDA sharply worsens debt/EBITDA ratio and cash flow coverage
- Accumulated losses and negative retained earnings: Retained deficit of $911M as of June 30, 2026 (versus $529M deficit at year-end 2025), indicating sustained cash burn and reduced financial flexibility
- Declining asset values and impairments: Goodwill decreased $30M in H1 2026 due to FX; prior $39M asset impairment recorded in Q2 2025 for idled facilities signals ongoing asset quality concerns
- Operational challenges: Indefinite idling of Steelton, Conshohocken, and Riverdale facilities; accelerated depreciation of $119M in H1 2025 reflects capital intensity and fixed-cost burden during demand weakness
Not investment advice — general research, the same for every reader. You make your own calls.
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Read CLF in Bob →Last read October 20, 2026. Bob's Research is a financial publisher, not an investment adviser. Everything here is general research and education — not personalized advice, and not a recommendation to buy or sell any security. Ratings are the same for every reader. You make your own calls.