CEO Lourenco Goncalves said the company’s 2027 outlook had “improved materially,” citing signed customer contracts and prevailing steel price forecasts.

  • The company reported adjusted EPS of $0.28, beating Fiscal AI's estimate of $0.24.
  • Cleveland-Cliffs forecast fourth-quarter adjusted EBITDA of approximately $715 million, up from $612 million in Q3.
  • The steelmaker reported $3.2 billion in liquidity and reaffirmed its target of net debt-to-EBITDA below 2.5x by mid-2027.

Cleveland-Cliffs (CLF) shares rose more than 10% on Monday morning following the steelmaker’s third-quarter report, with adjusted earnings per share beating analyst estimates and management forecasting 2027 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) above $4 billion.

CEO Lourenco Goncalves noted that the third quarter was the firm’s strongest in three years, with adjusted EBITDA of $612 million, exceeding the $575 million guidance we provided three months ago.

The company reported adjusted earnings per share (EPS) of $0.28, beating the Fiscal AI estimate of $0.24. GAAP EPS came in at $0.26, and the company reported net income of $165 million.

Revenue reached approximately $5.6 billion, compared with the Fiscal AI estimate of $5.72 billion. Adjusted EBITDA reached $612 million, exceeding the company’s previous guidance of $575 million and rising from $286 million in the second quarter.

Cleveland-Cliffs shipped 4.2 million net tons of steel products in the third quarter, compared with 4.0 million net tons in the year-ago quarter. The average net selling price increased to $1,177 per net ton from $1,032 per net ton a year earlier.

CLF Forecasts Higher Q4 And 2027 EBITDA

Cleveland-Cliffs expects fourth-quarter adjusted EBITDA of approximately $715 million. The company said increased pricing is expected to support results, partly offset by seasonality, increased maintenance outages, input costs and incentive compensation accruals.

For 2027, the company expects adjusted EBITDA to exceed $4 billion, based on new customer contracts and prevailing index-price forecasts. Goncalves said the outlook had “improved materially” since the previous earnings call.

He also pointed to a supportive trade environment, citing imports below historical levels, extended lead times and customers’ growing recognition of the value of a reliable domestic supply chain.

Cleveland-Cliffs Reports $3.2B In Liquidity

The company reported total liquidity of $3.2 billion as of September 30. Goncalves said: “We continued to reduce debt in Q3 and, with amplified free cash flow in Q4 and property sale proceeds, we expect a major debt reduction in the fourth quarter.” 

He added that the company remains on track to meet its target of net debt-to-EBITDA below 2.5x by mid-2027.

Separately, Cleveland-Cliffs plans to indefinitely idle the galvanizing lines at its Stelco operations in Canada amid an oversupplied galvanized steel market. Goncalves said the company made the decision because it had not seen, and did not anticipate, action to address the market imbalance. He said the company would focus on hot-rolled products while maintaining Stelco's total production tonnage, adding that approximately 2,000 Canadian jobs would be preserved.

How Retail Views CLF

On Stocktwits, sentiment for CLF turned  “Bullish” territory from “Bearish” a day ago, amid ‘high’ message volumes.CLF was also one of the trending tickers on the platform at the time of writing.

CLF shares have dropped over 10% year-to-date.

Also read: Michael Saylor’s Strategy Boosts STRC Buyback Program To $3B, Keeps BTC Buying Muted

For updates and corrections, email newsroom[at]stocktwits[dot]com.<