Q2 2026 Cleveland-Cliffs Inc Earnings Call Transcript
Key Points
- Cleveland-Cliffs Inc (CLF) returned to positive free cash flow and tripled its adjusted EBITDA from the first quarter.
- The company expects to more than double its Q2 EBITDA in Q3, with a guidance of $575 million.
- Automotive demand has significantly improved, with shipments to automotive clients being the highest in the last two years.
- Cleveland-Cliffs Inc (CLF) has received top supplier awards from both Toyota and General Motors, highlighting its strong position in the automotive sector.
- The company is benefiting from favorable trade policies, such as Section 232, which have improved domestic steel utilization and manufacturing investment.
- Q2 results were impacted by maintenance outages and lagged contracts, which limited the demonstration of the company's full asset capabilities.
- Stelco's finishing side in Canada is still lagging, posing a risk to the competitiveness of galvanizing lines in Hamilton.
- The company faces challenges in the Canadian market due to insufficient measures to protect fair trade, affecting future competitiveness.
- Cleveland-Cliffs Inc (CLF) is under pressure to transact with prospective counterparties, which has affected valuation discussions.
- The company is still negotiating with the United Steelworkers Union to renew its collective bargaining agreement, which could impact labor relations.
Good morning, ladies and gentlemen. My name is Daryl, and I am your conference facilitator today. I would like to welcome everyone to Cleveland-Cliffs' second quarter 2026 earnings conference call. (Operator Instructions)
The company reminds you that certain comments made on today's call will include predictive statements that are intended to be made as forward-looking within the Safe Harbor protections of the Private Securities Litigation Reform Act of 1995.
Although the company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that can cause actual results to differ materially. Important factors that can cause results to differ materially are set forth in reports on Forms 10-K, and 10-Q and news releases filed with the SEC, which are available on the company's website.
Today's conference call is also available on being broadcast at clevelandcliffs.com. At the conclusion of the call, it will be archived on the website and available for replay. The company will also discuss results excluding
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