Cleveland-Cliffs returns to profit and forecasts stronger 2027 earnings

North American steel producer Cleveland-Cliffs (CLF) reported on October 19 that revenue reached $5.6 billion and net income was $165 million for the third quarter ended September 30, 2026. Higher sales volumes and selling prices helped the company return to profit. ^[1][2]

Third-quarter adjusted EBITDA was $612 million, up $326 million from the previous quarter and above its $575 million guidance; this measure excludes interest, taxes, depreciation and amortization, with additional adjustments, and is not net income or cash flow. The company expects that measure to exceed $4 billion in 2027—a forecast, not earnings already achieved.^[3]

Prices and production together determine whether the profit improvement lasts: higher steel prices increase revenue per ton, while greater output spreads fixed plant costs across more steel. Management expects momentum in pricing, contract renewals and plant utilization to continue into 2027; renewing contracts is a way for higher prices to carry into future sales.^[2][3][4]

That is an encouraging signal for other North American steelmakers, not evidence that rivals will achieve the same earnings growth. If higher steel prices persist, manufacturers buying steel must absorb the extra expense or charge their customers more, making the same price increase a potential margin burden for buyers rather than a benefit.^[2][4]

Impact

What to watch next

• The October 23 release of the U.S. S&P Global Manufacturing PMI for October—a business-activity survey—will offer a check on downstream demand for steel; continued factory expansion would support the volume and pricing outlook, while weakness would challenge it.