Cleveland-Cliffs Returns to Profit in Q3 as Steel Volumes and Prices Climb

what happened

Cleveland-Cliffs moved back into profit in the third quarter, reporting net income of $152 million, or 26 cents per share, compared with a $251 million deficit, or 51 cents per share, in the same period last year, according to Dow Jones Newswires. Adjusted earnings came to 28 cents a share, above the 21 cents analysts expected, FactSet data showed.

Revenue climbed to $5.61 billion from $4.73 billion, though it came in slightly below the $5.7 billion analysts had forecast. The company shipped 4.2 million net tons of steel products, up from 4 million, while its average net price per ton rose to $1,177 from $1,032.

For the fourth quarter, the company projects adjusted EBITDA of about $715 million, and for 2027 it expects more than $4 billion. Chief Executive Lourenco Goncalves said the outlook has improved since the July earnings call, with several growth initiatives progressing better than planned. Shares rose 11% to $13.49 in premarket trading.

why it matters

As one of the largest US steelmakers, Cleveland-Cliffs offers a read on domestic steel demand. Goncalves linked the improved outlook to low import levels and trade policy, factors that support domestic producers and steel pricing.

market impact

US steel makers and CLF shares: stronger prices and volumes support the sector's earnings outlook

tags

instruments