Cleveland-Cliffs (NYSE:CLF) Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Cleveland-Cliffs (NYSE:CLF) posted its earnings results on Monday. The mining company reported $0.28 earnings per share for the quarter, topping analysts’ consensus estimates of $0.24 by $0.04, FiscalAI reports. Cleveland-Cliffs had a negative net margin of 2.36% and a negative return on equity of 6.83%. The business had revenue of $5.61 billion for the quarter, compared to analyst estimates of $5.69 billion. During the same quarter in the prior year, the firm posted ($0.51) EPS. Cleveland-Cliffs’s revenue was up 18.5% on a year-over-year basis.

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 Trading Down 2.7%

Shares of Cleveland-Cliffs stock opened at $13.72 on Wednesday. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.87 and a quick ratio of 0.63. Cleveland-Cliffs has a 1 year low of $7.73 and a 1 year high of $15.48. The firm has a market cap of $7.83 billion, a PE ratio of -16.14, a PEG ratio of 5.68 and a beta of 2.09. The company has a 50 day simple moving average of $12.08 and a two-hundred day simple moving average of $11.33.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. UBS Group set a $13.00 price target on shares of Cleveland-Cliffs in a report on Monday, September 7th. Citigroup restated a “positive” rating on shares of Cleveland-Cliffs in a research report on Friday, July 24th. Bank of America decreased their price target on shares of Cleveland-Cliffs from $14.00 to $11.50 and set a “neutral” rating on the stock in a report on Thursday, July 9th. Glj Research upped their price target on shares of Cleveland-Cliffs from $15.60 to $17.48 and gave the stock a “buy” rating in a report on Monday, September 21st. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Cleveland-Cliffs in a research report on Monday. Three equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Cleveland-Cliffs has a consensus rating of “Hold” and a consensus price target of $13.20.

More Cleveland-Cliffs News

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

• Positive Sentiment: Strong Q3 earnings: Cleveland-Cliffs reported $0.28 in EPS, above the $0.24 consensus estimate, compared with a $0.51 loss in the year-ago quarter. Revenue increased 18.5% to $5.61 billion, although it was slightly below estimates. The company also reported $152 million in net income. Cleveland-Cliffs Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability improved sharply: Adjusted EBITDA more than doubled sequentially to $612 million, exceeding the company’s $575 million guidance and marking its strongest quarter in three years. Management expects steel contract renewals to contribute roughly $1 billion of EBITDA. Cleveland-Cliffs Three Key Takeaways
• Positive Sentiment: Raised long-term outlook: Cleveland-Cliffs forecast adjusted EBITDA above $4 billion in 2027, supported by stronger steel prices and improved operations. This has fueled expectations for additional earnings recovery and potential valuation expansion. Cleveland-Cliffs Forecasts 2027 Adjusted EBITDA Above $4 Billion
• Positive Sentiment: Positive trading signals: Unusually heavy call-option activity and a move above the 20-day moving average indicate increased speculative interest and near-term bullish momentum. Traders Buy High Volume of Call Options
• Neutral Sentiment: Recent rally invites profit-taking: Shares had already gained substantially following the earnings release, making the stock vulnerable to consolidation even as the fundamental outlook improves. Cleveland-Cliffs Declines as Profit Taking Follows Strong Quarter
• Negative Sentiment: Leverage remains a concern: Investors continue to question whether the earnings recovery can offset Cleveland-Cliffs’ debt burden and historically high earnings volatility. Cleveland-Cliffs Q3 Earnings Recovery Meets Leverage Doubts
• Negative Sentiment: Barclays issued a Sell rating, adding pressure to the stock’s valuation narrative and highlighting continued downside risk despite the improved quarter. Cleveland-Cliffs Receives a Sell from Barclays

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.