Cleveland-Cliffs Shares Jump 8% as Steelmaker Beats Profit Estimates and Forecasts Over $4 Billion EBITDA

NEW YORK — Shares of Cleveland-Cliffs rose nearly 8% on Monday after the steelmaker reported third-quarter profit that beat Wall Street expectations and issued an upbeat outlook for the fourth quarter and 2027.

Cleveland-Cliffs shares were up 95 cents, or 7.88%, at $13.07 in morning trading on the New York Stock Exchange, with more than 17 million shares changing hands. The company has a market value of about $7.5 billion.

The stock had surged as much as 16% in premarket trading from Friday's close of $12.12 before paring gains.

Results beat estimates

Cleveland-Cliffs reported adjusted earnings of 28 cents per share for the third quarter, above analysts' estimates of 22 cents, according to Investing.com.

Revenue came in at $5.60 billion, slightly below the consensus estimate of $5.71 billion, though the company said revenue rose on higher shipment volumes and selling prices.

CEO Lourenco Goncalves described the results as the company's strongest quarter in three years.

Strong outlook

The company forecast fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, of about $715 million, above analysts' consensus of about $695 million.

Looking further ahead, Cleveland-Cliffs said it expects adjusted EBITDA for 2027 to exceed $4 billion, citing new customer contracts and current steel price forecasts.

The company reported liquidity of $3.2 billion and said it remains on track to reduce its net leverage to below 2.5 times by mid-2027. Debt reduction has been a key focus for investors, as Cleveland-Cliffs carries about $7.7 billion in long-term debt.

Analysts turn more positive

Ahead of the results, Wells Fargo upgraded Cleveland-Cliffs to Overweight with a $14 price target, citing the company's steel pricing power and the potential for earnings to exceed expectations in late 2026 and 2027. GLJ Research raised its price target to $17.48.

Recovery from Stelco setback

The rally extends a recovery in Cleveland-Cliffs shares after a sell-off in late September tied to the company's announcement involving its Canadian subsidiary Stelco. Even with recent gains, the stock had lagged peers such as Nucor and Steel Dynamics this year.

Cleveland-Cliffs is also investing $200 million to expand production of grain-oriented electrical steel at its Butler Works plant in Pennsylvania, supported by a $75 million award from the U.S. Department of Energy. The specialized steel is used in electrical transformers, which are in high demand as utilities upgrade the power grid.

Trade protection supports industry

U.S. steelmakers have benefited from tariffs on imported steel, which have supported domestic prices. Cleveland-Cliffs, the largest producer of flat-rolled steel in North America, supplies major automakers and other manufacturers.

What's next

Investors will watch whether Cleveland-Cliffs can deliver on its ambitious 2027 earnings target and continue reducing debt. Steel prices, automotive demand and trade policy will remain key factors for the stock.