Cleveland-Cliffs Swings to Higher-Than-Expected Quarterly Earnings, Projects Core Profit Growth

08:44 AM EDT, 10/19/2026 (MT Newswires) -- Cleveland-Cliffs (CLF) swung to higher-than-expected third-quarter earnings on Monday buoyed by price and volume gains, while the steel producer forecasts a sequential rise in core profit for the ongoing three-month period. The company reported adjusted earnings of $0.28 a share for the quarter ended Sept. 30, compared with a loss of $0.45 the year before, surpassing the FactSet-polled consensus for non-GAAP EPS of $0.21. Revenue increased to $5.61 billion from $4.73 billion, but fell short of the Street's view for $5.7 billion. "(The) third quarter was our strongest quarter in three years," Chief Executive Lourenco Goncalves said in a statement. "Average selling price, sales volumes, and unit costs all moved in the right direction relative to (second-quarter) performance." For the fourth quarter, Cleveland-Cliffs anticipates adjusted earnings before interest, taxes, depreciation and amortization of about $715 million, boosted by higher prices, partially offset by seasonality and planned maintenance outages, according to Goncalves. In the third quarter, the metric jumped to $612 million from $143 million last year. The stock spiked 13% in the most recent premarket activity. It's down about 11% so far this year. Steel product sales volume inclined to 4.15 million net tons in the third quarter from 4.03 million net tons a year earlier. Average selling price improved to $1,177 per net ton of steel products from $1,032. Steelmaking revenue climbed to $5.45 billion from $4.56 billion. The trade environment continues to support a "healthy" US steel industry, with imports remaining "well below" historical levels and lead times extended, Goncalves said. For 2027, the steelmaker expects its adjusted EBITDA to exceed $4 billion. The guidance is higher than the $3.3 billion the company gave in the second quarter, with the increase driven by a combination of lower discounts on index-linked contracts, fixed-price resets and prevailing price forecasts, B. Riley Securities said in an emailed client note. "Our 2027 outlook has improved materially since our last earnings call, as several of the initiatives we identified as drivers of future earnings growth are developing more favorably than originally expected," Goncalves said. Goncalves also confirmed that Cleveland-Cliffs indefinitely idled the galvanizing lines at its Canadian unit Stelco, which it acquired two years ago, due to oversupply in the market. The company aims to bring back the employees affected by the suspension of operations as "soon as the current situation improves," according to Goncalves. Canadian Industry Minister Melanie Joly recently said the government could seek court orders or force the sale of Cleveland-Cliffs' Canadian assets over employment commitments the company made when it acquired Stelco, according to media reports. "As we concentrate on hot rolled products that actually have a market, total production tonnage at Stelco will be maintained, Stelco's contribution to Cliffs' EBITDA will further increase, and approximately 2,000 Canadian jobs are preserved," Goncalves said Monday. Steel Dynamics (STLD) is scheduled to report its latest financial results after the markets close Monday, while Nucor (NUE) releases its earnings later this month.