Cleveland-Cliffs ends seven-quarter losing streak with $0.28 EPS beat
As seen on the 24/7 Wall St. homepage on October 19, 2026.
Seven straight quarters of losses ended here, with profit returning on higher steel pricing and shipments. Management said 2027 adjusted EBITDA should exceed $4 billion, against a market cap under $7 billion.
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Cleveland-Cliffs posted adjusted earnings per share of $0.28 in Q3 2026, beating expectations and snapping a streak of seven consecutive quarterly losses. Higher average net selling prices per ton and larger steel shipment volumes drove the swing to profitability.
Adjusted EBITDA of $612 million cleared the company's own guidance and marked a sharp improvement from Q3 2025, while revenue rose year over year but came in marginally below the consensus estimate.
Management guided Q4 2026 adjusted EBITDA of approximately $715 million and projected full-year 2027 adjusted EBITDA exceeding $4 billion. With the market cap below $7 billion, that 2027 target implies a ratio investors in cyclical industrials rarely see outside a peak cycle.
CEO Lourenco Goncalves pointed to new customer contracts and prevailing index price forecasts behind the improved 2027 outlook, adding that imports well below historical levels continue to support domestic pricing. He also flagged a planned major debt reduction in Q4 funded by free cash flow and property sale proceeds.
One area of caution is Stelco, the Canadian subsidiary, where Cleveland-Cliffs made the decision to indefinitely idle its galvanizing lines due to what Goncalves described as a clearly oversupplied market for galvanized steel in Canada. Stelco's hot-rolled operations did turn into a positive EBITDA contributor in Q3, but the idling of the galvanizing lines signals ongoing structural pressure in that segment.
Mentioned: CLF