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Cliffs Surges: Q3 Earnings Beat Expectations
19 Oct
Summary
- Cleveland-Cliffs' Q3 adjusted earnings surpassed analyst estimates.
- Revenue increased by 18% year-on-year to $5.6 billion.
- Company forecasts over $4 billion in adjusted EBITDA for 2027.
Cleveland-Cliffs announced its third-quarter 2026 financial results, reporting adjusted earnings per share of $0.28, surpassing the analyst consensus of $0.22. Revenue reached $5.6 billion, an 18% increase from the prior year's $4.7 billion, though slightly below market expectations.
The company's adjusted EBITDA for the quarter was $612 million, exceeding its own guidance by $37 million. This performance was bolstered by an average steel selling price of $1,177 per net tonne, a 14% increase from the previous year. CEO Lourenco Goncalves stated this was the company's strongest quarter in three years.
Looking forward, Cleveland-Cliffs forecasts fourth-quarter 2026 adjusted EBITDA to be approximately $715 million, an increase attributed to higher steel prices. However, seasonal factors and maintenance are expected to temper these gains. The company also projects exceeding $4 billion in adjusted EBITDA for 2027, based on new contracts and steel price outlooks.
Available liquidity stood at $3.2 billion as of September 30, 2026. Cleveland-Cliffs reaffirmed its commitment to reducing leverage to below 2.5 times net debt to EBITDA by mid-2027, remaining on schedule to achieve this target.
