Cleveland-Cliffs (NYSE:CLF) Announces Earnings Results

Cleveland-Cliffs (NYSE:CLF) issued its earnings results on Monday. The mining company reported $0.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.04, FiscalAI reports. The business had revenue of $5.61 billion for the quarter, compared to analysts’ expectations of $5.69 billion. Cleveland-Cliffs had a negative net margin of 4.56% and a negative return on equity of 13.37%. The business’s revenue for the quarter was up 18.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.51) EPS.

Here are the key takeaways from Cleveland-Cliffs’ conference call:

• Q3 adjusted EBITDA more than doubled sequentially to $612 million, driven by higher shipments and selling prices plus better-than-expected costs. Management expects Q4 adjusted EBITDA of approximately $715 million.
• Cleveland-Cliffs reported strong progress on 2027 contract renewals, with more than half completed and customers generally seeking additional volume. Management estimates the contract resets could provide more than $1 billion of year-over-year EBITDA improvement before changes in underlying pricing indices.
• Management projected a path to more than $4 billion of adjusted EBITDA in 2027, supported by pricing momentum, contract repricing, stronger Stelco contributions, and the preservation of roughly 500,000 tons of 2027 production by deferring the Burns Harbor C furnace reline to 2028.
• Strong expected cash generation, property-sale proceeds, and improving working capital should support debt reduction. The company expects to reduce leverage below 2.5 times by mid-2027 and said it does not need to issue equity.
• Stelco’s Galvanneal business remains pressured by imports, resulting in temporary layoffs in Hamilton, Ontario; production and affected workers will return only if Canadian trade protections improve. U.S. contract negotiations with the USW also remain unresolved, although management described them as professional and productive.

Cleveland-Cliffs Stock Up 17.0%

Shares of NYSE:CLF opened at $14.18 on Tuesday. The firm has a fifty day moving average price of $12.05 and a two-hundred day moving average price of $11.29. The company has a market cap of $8.09 billion, a price-to-earnings ratio of -8.75, a PEG ratio of 5.73 and a beta of 2.09. The company has a debt-to-equity ratio of 1.32, a current ratio of 1.89 and a quick ratio of 0.63. Cleveland-Cliffs has a one year low of $7.73 and a one year high of $16.70.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Barclays lifted their price target on Cleveland-Cliffs from $10.00 to $11.00 and gave the company an “underweight” rating in a research report on Monday. JPMorgan Chase & Co. decreased their price objective on Cleveland-Cliffs from $13.00 to $12.00 and set a “neutral” rating on the stock in a research note on Friday, October 9th. Glj Research increased their price objective on Cleveland-Cliffs from $15.60 to $17.48 and gave the stock a “buy” rating in a report on Monday, September 21st. Weiss Ratings reissued a “sell (d-)” rating on shares of Cleveland-Cliffs in a report on Monday. Finally, Morgan Stanley restated an “equal weight” rating and issued a $12.50 target price (up from $12.00) on shares of Cleveland-Cliffs in a research note on Monday, June 22nd. Three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $12.75.

Key Cleveland-Cliffs News

Here are the key news stories impacting Cleveland-Cliffs this week:

• Positive Sentiment: Profitability returned. Cleveland-Cliffs reported third-quarter attributable net income of approximately $152 million, compared with a loss in the prior-year period. Adjusted EPS was $0.28, exceeding the $0.24 analyst consensus, while revenue rose 18.5% year over year to about $5.6 billion. Cleveland-Cliffs Posts Strongest Quarter in 3 Years
• Positive Sentiment: Operating momentum accelerated. Adjusted EBITDA reached $612 million, more than doubling sequentially and exceeding company guidance of $575 million. Stronger steel prices, higher volumes and improved operations were the main drivers. Cleveland-Cliffs Forecasts 2027 Adjusted EBITDA Above $4B
• Positive Sentiment: 2027 outlook was a major catalyst. Management expects adjusted EBITDA to exceed $4 billion in 2027, with steel-contract renewals alone projected to contribute roughly $1 billion. Investors viewed the forecast as evidence that improved pricing and U.S. trade protection could support a sustained earnings recovery. Cleveland-Cliffs: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Technical and trading sentiment improved. The shares moved above their 20-day moving average, while unusually heavy call-option buying indicated increased bullish speculation following the earnings release. Cleveland-Cliffs Stock: Is There Any Further Upside Left?
• Neutral Sentiment: Revenue was slightly below expectations. Sales of approximately $5.6 billion trailed the roughly $5.7 billion consensus, although the EPS and EBITDA beats outweighed the modest revenue shortfall. Cleveland-Cliffs Expects 2027 Will Be a Very Good Year
• Negative Sentiment: Canadian operations remain a risk. Chief Executive Lourenco Goncalves criticized Ottawa over the Stelco situation and blamed Canada for layoffs, highlighting potential political, labor and operating uncertainty around the business. Cleveland-Cliffs CEO Praises Trump and Blames Canada for Stelco Layoffs

Cleveland-Cliffs Company Profile

Cleveland-Cliffs Inc is an integrated North American steel producer headquartered in Cleveland, Ohio. The company operates across the steelmaking value chain, from mining and processing iron ore to producing and distributing finished steel products. Its operations include iron ore mines and pelletizing facilities, steel mills, finishing plants, and related manufacturing and distribution assets.

The company produces carbon steel, stainless steel, electrical steel, and other specialty products, including hot-rolled, cold-rolled, and galvanized sheet steel.