Cleveland-Cliffs Lifts 2027 EBITDA Outlook Above $4 Billion
Cleveland-Cliffs reported third-quarter adjusted EBITDA of $612 million, beating its guidance and analyst estimates. Revenue rose about 18% year over year to $5.6 billion, slightly below expectations. Management projected 2027 adjusted EBITDA above $4 billion, well ahead of Wall Street's roughly $2.5 billion consensus, helped by higher steel prices and new contracts.
Cleveland-Cliffs posted $612 million in quarterly adjusted EBITDA, topping its own $575 million target and roughly $601 million expected by analysts. Sales rose about 18% from a year earlier to $5.6 billion, a bit shy of the $5.7 billion estimate. Adjusted profit per share was $0.28 versus $0.22 anticipated, and net income reached $165 million after a $134 million loss in the prior quarter.
Steel shipments climbed to about 4.15 million net tons from 4.03 million, average selling prices gained $53 per ton to $1,177, and per-ton costs dropped $17. Management linked its above-$4 billion 2027 EBITDA projection to fresh customer agreements and supportive steel prices, while tariffs and lower imports aid U.S. steelmakers.
Cleveland-Cliffs' stronger results and debt-reduction plans may improve job security for steelworkers and stability in steel-producing communities. Higher domestic steel prices could benefit producers and investors, but may also raise input costs for manufacturers of cars, appliances and construction materials, with some costs potentially passed to consumers. New contracts and less import pressure could support domestic output, though the wider effects on prices, supply chains and industrial employment remain uncertain and may vary by region and industry.