Cleveland-Cliffs Q3 adj EPS beats on improved pricing, sales volumes

Cleveland-Cliffs

Mon 11:11

Overview
US steel producer's Q3 revenue missed analyst expectations, adjusted EPS beat consensus
Company says improved pricing, sales volumes, and unit costs drove Q3 results
Company to indefinitely idle galvanizing lines at Stelco due to oversupplied market

Outlook
Company expects Q4 2026 adjusted EBITDA of about $715 mln
Cleveland-Cliffs expects 2027 adjusted EBITDA to exceed $4 bln

Result Drivers
PRICING AND VOLUMES - Co said improved average selling prices, higher sales volumes, and lower unit costs contributed to Q3 results
STELCO CONTRIBUTION - Improved Canadian hot-rolled market made Stelco a positive contributor to Q3 results

Company press release: ID:nBw259PBqa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$5.60 bln
$5.72 bln (8 Analysts)
Q3 Adjusted EPS
Beat
$0.28
$0.19 (9 Analysts)
Q3 EPS
 
$0.26
 
Q3 Net Income
 
$165 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy."
Wall Street's median 12-month price target for Cleveland-Cliffs Inc is $12.50, about 3.1% above its October 16 closing price of $12.12
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15,102 three months ago

Reuters Recommended Reads
Oct 16 - Canada exploring Stelco nationalization, industry minister says
Oct 19 - Freeport bets on chemical solution to reach copper leaching target
Oct 19 - Indonesia weighs relocating scrap metal smelters after Caesium-137 contamination

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)