Cleveland-Cliffs' stock plummeted 9.71% intraday on Monday, as the steel producer's first-quarter earnings report disappointed investors and raised concerns over a key strategic partnership.

The company reported an adjusted loss per share of $0.40 for Q1 2026, missing the analyst consensus estimate of a $0.39 loss. While quarterly revenue of $4.922 billion beat expectations of $4.777 billion, the wider-than-expected loss significantly weighed on investor sentiment. CEO Lourenco Goncalves noted that the ongoing disruption in the Middle East "has not helped the timeline of a potential deal" with South Korea's POSCO, with negotiations still ongoing.

The dual concerns over near-term profitability and the uncertain pace of strategic collaboration drove the stock notably lower. The company confirmed that its potential partnership with POSCO has not accelerated despite current market conditions, falling short of some investors' more optimistic expectations for the deal's progress.