Cleveland-Cliffs beats Q3 estimates and sees 2027 adjusted EBITDA above $4 billion

what happened

According to Stocktwits, Cleveland-Cliffs (CLF) shares climbed more than 10% on Monday morning after the steelmaker reported third-quarter results. Adjusted earnings per share came in at $0.28, versus the $0.24 analyst estimate. Adjusted EBITDA reached $612 million, up from $286 million in the second quarter and above the earlier guidance of $575 million. Revenue was about $5.6 billion, below the $5.72 billion estimate.

The company expects fourth-quarter adjusted EBITDA of roughly $715 million and more than $4 billion for 2027, based on new customer contracts and index-price forecasts. CEO Lourenco Goncalves said the outlook had "improved materially" since the previous call. Total liquidity stood at $3.2 billion as of September 30. Separately, the company will indefinitely idle the galvanizing lines at its Stelco operations in Canada because of an oversupplied galvanized steel market, while about 2,000 Canadian jobs are preserved.

why it matters

For markets, the story shows that U.S. steelmakers are benefiting from a supportive trade backdrop, with imports below historical levels and longer lead times. Strong quarterly EBITDA points to better margins in the sector, but the company's guidance depends on future index prices for steel.

market impact

Steel stocks: higher prices and lower imports support Cleveland-Cliffs' margins

tags

instruments