Cleveland-Cliffs reports Q3 2026 net income of $165 million

Cleveland-Cliffs Inc. (NYSE: CLF) reported third-quarter 2026 revenues of $5.6 billion and GAAP net income of $165 million, marking a return to profitability after a $134 million net loss in the second quarter. The company shipped 4.2 million net tons of steel during the period, with average net selling prices rising to $1,177 per net ton from $1,032 in the same quarter last year.

Chairman and CEO Lourenco Goncalves stated that the quarter represented the company's strongest performance in three years, with adjusted EBITDA reaching $612 million. This figure exceeded the $575 million guidance provided three months prior. Goncalves noted that average selling prices, sales volumes, and unit costs all improved relative to the second quarter. The company expects fourth-quarter adjusted EBITDA to increase further despite typical seasonality and planned maintenance outages.

Steel shipments in the third quarter were composed of 46% hot-rolled, 31% coated, 15% cold-rolled, 4% plate, and 4% stainless and electrical products. Revenue distribution was split among distributors and converters at $1.8 billion, direct automotive sales at $1.5 billion, infrastructure and manufacturing at $1.5 billion, and steel producers at $532 million. As of September 30, 2026, the company held $3.2 billion in total liquidity.

Goncalves indicated that the trade environment supports a healthy American steel industry, with imports remaining below historical levels and lead times extended. He stated that the 2027 outlook has improved materially due to favorable developments in identified growth drivers. Based on new contracts and prevailing index price forecasts, the company expects 2027 adjusted EBITDA to exceed $4 billion. For the fourth quarter of 2026, management projects adjusted EBITDA of approximately $715 million.

Regarding its Canadian operations, Goncalves described the third quarter as the strongest for Stelco since its acquisition two years ago. He noted that the Canadian hot-rolled market has improved, making Stelco a positive contributor to EBITDA. However, citing an oversupplied market for galvanized steel in Canada and a lack of anticipated government action, the company decided to indefinitely idle its galvanizing lines at Stelco. Goncalves stated that total production tonnage at Stelco will be maintained by concentrating on hot-rolled products, preserving approximately 2,000 Canadian jobs.