Cleveland-Cliffs Inc. (NYSE:CLF) reported third-quarter 2026 adjusted earnings above analyst expectations on Monday, supported by higher steel prices and increased revenue compared with the previous year.
Shares in the US steel producer rose more than 7% in premarket trading following the publication of its financial results.
The company reported adjusted earnings per share of $0.28, compared with analysts’ consensus estimate of $0.22. Revenue reached $5.6 billion, slightly below market expectations of $5.71 billion.
Cleveland-Cliffs also reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $612 million, exceeding the $575 million guidance issued three months earlier.
Cleveland-Cliffs generated third-quarter revenue of $5.6 billion, representing an 18% increase from the $4.7 billion reported in the corresponding period of 2025.
The company shipped 4.2 million net tonnes of steel during the quarter, with an average selling price of $1,177 per net tonne.
This compared with an average selling price of $1,032 per net tonne in the third quarter of 2025, representing an increase of approximately 14%.
The higher average selling price contributed to the year-on-year increase in revenue.
Adjusted EBITDA reached $612 million, exceeding the company’s previous quarterly forecast by $37 million.
The results also reflected changes in sales volumes and unit production costs compared with the second quarter.
Cleveland-Cliffs Chairman and Chief Executive Officer Lourenco Goncalves said the company’s third-quarter performance exceeded the guidance provided earlier in the year.
“Third quarter was our strongest quarter in three years, with adjusted EBITDA of $612 million, a number above the $575 million guidance we provided three months ago,” Goncalves said.
“Average selling price, sales volumes, and unit costs all moved in the right direction relative to Q2 performance.”
The company’s financial results indicate that higher steel selling prices contributed to the improvement in quarterly earnings.
Management also identified changes in shipment volumes and unit costs as factors affecting performance relative to the preceding quarter.
Cleveland-Cliffs expects adjusted EBITDA of approximately $715 million for the fourth quarter of 2026.
The forecast represents an increase of approximately $103 million from the third-quarter result of $612 million.
Management expects higher steel pricing to contribute to the anticipated increase in earnings.
However, the company said seasonal factors and additional maintenance-related production outages are expected to partially offset the benefits of improved pricing.
The guidance reflects management’s current expectations for market conditions and operating performance during the final quarter of the year.
Actual results will depend on steel prices, customer demand, production activity and the timing of maintenance work.
Looking ahead, Cleveland-Cliffs forecasts adjusted EBITDA exceeding $4 billion in 2027.
The projection is based on newly secured customer contracts and prevailing steel price forecasts.
The company expects these factors to contribute to earnings over the coming financial year.
The 2027 outlook represents a substantial increase from the quarterly earnings levels reported during 2026.
However, the forecast remains dependent on the company’s ability to fulfil customer contracts, maintain expected production volumes and achieve the steel prices assumed in its projections.
Changes in market demand, operating costs or pricing conditions could affect the eventual outcome.
Cleveland-Cliffs reported available liquidity of $3.2 billion as of 30 September 2026.
The company also reaffirmed its objective of reducing leverage to below 2.5 times net debt to EBITDA by the middle of 2027.
The leverage measure compares a company’s net debt with its earnings before interest, taxes, depreciation and amortisation, providing an indication of debt relative to operating profitability.
Cleveland-Cliffs said it remains on schedule to meet the target.
Progress towards that objective will depend on future earnings, cash generation and changes in the company’s debt position.
Cleveland-Cliffs’ third-quarter results showed higher revenue and adjusted earnings compared with the previous year, although reported revenue remained below analysts’ consensus forecast.
The company’s fourth-quarter guidance anticipates a further increase in adjusted EBITDA, supported by higher pricing despite seasonal factors and planned maintenance activity.
For 2027, management’s forecast of more than $4 billion in adjusted EBITDA places particular emphasis on new customer agreements and assumptions about future steel prices.
Investors will continue assessing the company’s ability to meet these financial targets while progressing towards its stated leverage objective.
Cleveland-Cliffs stock price
| 1 hour | |
| 2 hours | |
| 3 hours | |
| 3 hours | |
| 3 hours | |
| 3 hours | |
| 4 hours | |
| 5 hours |
CLF Stock Flashes Buy Signal On Steelmaker's Massive $4 Bil Outlook
CLF +15.80%
Investor's Business Daily
|
| 6 hours | |
| 6 hours | |
| 6 hours | |
| 7 hours | |
| 7 hours | |
| 9 hours | |
| 9 hours |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, alerts, and much more.
Learn more about Finviz Elite