Cleveland-Cliffs' stock experienced a significant pre-market plunge of 5.43% on Monday, following the release of its first-quarter 2026 financial results.

The steel producer reported an adjusted loss per share of $0.40, which slightly missed the analyst consensus estimate of a $0.39 loss. While the company posted a revenue beat of $4.922 billion against expectations of $4.777 billion, investor focus shifted to the earnings miss and commentary regarding a key strategic transaction.

CEO Lourenco Goncalves noted that the ongoing disruption in the Middle East, specifically referencing the war in Iran, has not helped the timeline of a potential deal with South Korea's POSCO. This statement introduced uncertainty around a significant corporate development, contributing to the negative market reaction despite other positive aspects of the quarterly report, including improved revenue and a narrower net loss compared to the previous year.