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

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

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 Stock Performance

Cleveland-Cliffs stock opened at $13.91 on Friday. Cleveland-Cliffs has a fifty-two week low of $7.73 and a fifty-two week high of $15.35. The firm’s 50 day simple moving average is $12.17 and its 200-day simple moving average is $11.42. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.87 and a quick ratio of 0.63. The company has a market cap of $7.94 billion, a P/E ratio of -16.37, a price-to-earnings-growth ratio of 4.97 and a beta of 2.09.

Trending Headlines about Cleveland-Cliffs

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

• Positive Sentiment: Cleveland-Cliffs’ quarterly earnings exceeded Wall Street expectations, while analysts cited steadier automotive steel demand as a supportive factor for the company’s outlook. Cleveland-Cliffs Surges After Earnings Beat as Auto Steel Demand Steadies
• Positive Sentiment: The stock is leading a broader rally among U.S. steelmakers, suggesting improving sentiment toward domestic steel producers even as a global steel fund declined. Cleveland-Cliffs Surges While Steel Fund Slips
• Positive Sentiment: A Cleveland-Cliffs director purchased 7,400 shares for nearly $100,000, increasing his direct ownership by about 13%. The insider buying may signal confidence in the company’s valuation and prospects. SEC Insider Transaction Filing
• Positive Sentiment: The consensus price target reportedly increased 10.73% to $14.38, reflecting somewhat improved expectations following the recent results. Cleveland-Cliffs Consensus Price Target Increased
• Neutral Sentiment: Analyst views remain mixed. JPMorgan raised its target to $13 but maintained a neutral rating, indicating limited upside at recent levels, while other analysts appear more constructive. JPMorgan Cleveland-Cliffs Rating
• Negative Sentiment: Canada has given Cleveland-Cliffs 15 days to reverse planned layoffs at its Stelco Ontario facility or potentially face sanctions, including a forced divestiture. The dispute creates regulatory, labor and operational uncertainty. Canada Gives Cleveland-Cliffs 15 Days to Reverse Planned Job Cuts

Analyst Ratings Changes

A number of brokerages have recently commented on CLF. Morgan Stanley lifted their target price on shares of Cleveland-Cliffs from $12.50 to $14.00 and gave the company an “equal weight” rating in a report on Tuesday. The Goldman Sachs Group reiterated a “neutral” rating and set a $13.00 target price on shares of Cleveland-Cliffs in a research report on Tuesday. Barclays upped their price target on shares of Cleveland-Cliffs from $11.00 to $12.00 and gave the company an “underweight” rating in a report on Thursday. JPMorgan Chase & Co. increased their price objective on Cleveland-Cliffs from $12.00 to $13.00 and gave the company a “neutral” rating in a research note on Thursday. Finally, B. Riley Financial lifted their target price on shares of Cleveland-Cliffs from $15.00 to $18.00 and gave the stock a “buy” rating in a research note on Thursday. Four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Cleveland-Cliffs presently has an average rating of “Hold” and a consensus target price of $13.82.

Insider Activity at Cleveland-Cliffs

In other news, Director Edilson Camara purchased 7,400 shares of the stock in a transaction that occurred on Thursday, October 22nd. The stock was acquired at an average price of $13.49 per share, with a total value of $99,826.00. Following the purchase, the director owned 64,717 shares in the company, valued at $873,032.33. This represents a 12.91% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.95% of the company’s stock.

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.