US Steel Giant Cleveland-Cliffs Beats Q3 Estimates, CEO Guides 2027 EBITDA Above $4 Billion

Cleveland-Cliffs Inc. (NYSE: CLF), one of the largest steel producers in the United States, reported third-quarter results on October 19, with Adjusted EBITDA reaching $612 million, beating the market consensus of $601 million. The stock surged over 16% following the announcement.

Revenues for the quarter were $5.6 billion, up from $4.7 billion in the same period last year, though slightly below the $5.7 billion expected by analysts. The company attributed the profit improvement primarily to rising steel prices, with the average benchmark price hitting approximately $1,250 per metric ton compared to $850 a year earlier.

Chairman and CEO Lourenco Goncalves stated that the trade environment continues to support a healthy American steel industry, noting that the current 50% tariff on imported steel helps boost domestic prices and reduce import competition. He revealed that based on new contracts already signed with clients and prevailing index price forecasts, the company expects its 2027 Adjusted EBITDA to exceed $4 billion. This figure is substantially higher than the $2.5 billion estimated by Wall Street analysts, reflecting management's confidence in future pricing power and contract value.

Additionally, Goncalves mentioned that due to an oversupplied galvanized steel market in Canada and a lack of government intervention, the company has decided to indefinitely idle galvanizing lines at its Stelco subsidiary. However, total production tonnage will be maintained by focusing on hot-rolled products, preserving approximately 2,000 Canadian jobs.