From The Motley Fool · Motley Fool Transcribing · · 1m 50s
Cleveland-Cliffs Q3 Earnings Beat
Cleveland-Cliffs reports $612M Q3 adjusted EBITDA, highest in 3 years, with $715M Q4 guidance and $4B 2027 EBITDA target.
In brief
Cleveland-Cliffs reports $612M Q3 adjusted EBITDA, highest in 3 years, with $715M Q4 guidance and $4B 2027 EBITDA target. Cleveland-Cliffs achieved $612M Q3 adjusted EBITDA, up from $286M Q2, with $715M Q4 guidance and $4B 2027 EBITDA target. Originally reported by The Motley Fool.
Q3 Earnings Results
Cleveland-Cliffs reported $5.6 billion revenue, up from $5.2 billion in previous quarter.
Strong Q3 Profitability
Adjusted EBITDA reached $612 million, the strongest quarterly result in three years.
Q4 EBITDA Guidance
Fourth-quarter adjusted EBITDA guidance of approximately $715 million.
2027 EBITDA Target
2027 adjusted EBITDA guidance of over $4 billion based on current price forecasts.
Steel Sales Volumes
Steel product sales volumes increased to 4.2 million net tons from 4 million net tons in Q2.
Price Improvements
Average net selling price rose to $1,177 per net ton, up $53 per ton sequentially.
Cost Performance
Unit cost declined $17 per net ton, exceeding previous guidance due to high facility utilization.
Net Income
GAAP net income of $165 million, or $0.26 per diluted share for Q3.
Liquidity Position
Total liquidity stood at $3.2 billion as of September 30, 2026.
Stelco Acquisition
Stelco acquisition cost $3.4 billion Canadian dollars completed less than two years ago.
Middletown Modernization
Middletown Works modernization project costs $1 billion with $500 million from Department of Energy.
2027 Capital Expenditures
2027 capital expenditures expected to exceed $1 billion for strategic projects.
Burns Harbor Delay
Postponing Burns Harbor C-blast furnace reline to April 2028 to increase cash generation.
Grain-Oriented Steel
Grain-oriented electrical steel production increasing 25% at Butler Works to support grid demand.
Contract Renewals
Expected to generate over $1 billion in year-over-year EBITDA improvement from contract renewals.
USW Negotiations
USW negotiations extended past original deadline but remain 'professional respectful and productive'.
The key point
Cleveland-Cliffs achieved $612M Q3 adjusted EBITDA, up from $286M Q2, with $715M Q4 guidance and $4B 2027 EBITDA target.
