Cleveland-Cliffs (CVA) Q3 2026 Earnings Report
DE:CVA Q3 2026 EPS Results
- Actual EPS
- EUR 0.25
- Consensus EPS
- EUR 0.19
- Beat/Miss
- Beat by +EUR 0.06
- One Year Ago EPS
- -EUR 0.40
DE:CVA Q3 2026 Revenue Results
- Actual Revenue
- EUR 5.03B
- Expected Revenue
- EUR 5.08B
- Beat/Miss
- Missed by -EUR 47.29M
- YoY Revenue Growth
- +19.18%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/19/2026
- Time
- Before Open
- Conference Call
- Monday, October 19, 2026
Cleveland-Cliffs's next earnings date is estimated for February 15, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly optimistic, with Q3 adjusted EBITDA more than doubling sequentially, improving prices and costs, strong contract renewals, supportive U.S. trade conditions, a favorable 2027 outlook, and a stated path to substantial debt reduction. The main challenges were Stelco's exposed galvanized-steel business and temporary layoffs, the still-idled Dearborn furnace, higher expected Q4 costs, working-capital use, delayed asset-sale closings, and unresolved labor negotiations. The positive operational, commercial, and financial developments significantly outweighed the disclosed challenges.
Cleveland-Cliffs expects $715 million of adjusted EBITDA in Q4, approximately $100 million above Q3, with ASPs expected to increase by a similar amount as in Q3, call it, $45 to $55 a ton, while costs are expected to increase slightly; under prevailing market conditions, it could realistically reach an average of more than $1 billion of adjusted EBITDA per quarter in 2027 and sees a realistic path to more than $4 billion of EBITDA in 2027. Contract renewals should generate more than $1 billion of year over year EBITDA improvement before changes in the underlying pricing index, 2026 CapEx is still expected to be around 700 million, 2027 CapEx is expected to exceed just over a billion dollars, and the company expects to reduce leverage below its 2x-2.5x target by the middle of next year. Working capital will be likely neutral in Q4, most major property sales are expected to close in Q4, and postponing the Burns Harbor C-blast furnace reline to April 2028 preserves approximately 500 thousand tons of production in 2027; the Butler Works expansion adds 25% new production, Burns Harbor GALVANEAL will come online in early 2027 with more available in mid-2027, and the Middletown modernization is expected to be completely done in the first quarter of 30.
- Q3 Adjusted EBITDA More Than DoubledQ3 adjusted EBITDA was $612 million, more than double the $286 million generated in Q2 and $37 million above the prior guidance of $575 million. Shipments increased, selling prices rose as expected, and costs performed better than guided.
- Strong Q4 and 2027 EBITDA OutlookThe company expects Q4 adjusted EBITDA of $715 million, approximately $100 million above Q3. Under prevailing market conditions, management said Cleveland-Cliffs could realistically reach an average of more than $1 billion of adjusted EBITDA per quarter in 2027 and outlined a realistic path to more than $4 billion of EBITDA in 2027.
- Higher Shipments and Automotive VolumesQ3 shipments were 4.2 million net tons, compared with 4.0 million net tons in Q2. Q3 automotive shipments were the highest since Q3 2023, despite sequentially lower North American automotive production. Shipment levels are expected to remain strong in Q4, subject to typical holiday and cold-weather seasonality.
- Improved Selling PricesAverage net selling price increased by $53 per ton sequentially to $11.77 per ton, benefiting from rising market pricing in both the United States and Canada. Management expects a similar improvement from Q3 to Q4, with Q4 ASPs expected to increase by approximately $45 to $55 per ton.
- Excellent Unit Cost PerformanceUnit costs declined by $17 per net ton in Q3, exceeding the prior guidance of a $10 per-ton reduction and serving as the primary driver of the adjusted EBITDA beat. Higher production volumes and strong mill utilization were cited as major contributors.
- Strong 2027 Contract RenewalsNearly all customers want more steel under contract in 2027 than in 2026, and the company said it has been very successful renewing contracts. The aggregate improvements are expected to generate more than $1 billion of year-over-year EBITDA improvement before changes in the underlying pricing index. More than half of the renewals were completed, described as more than 55%, and no customer had rejected the proposed structure.
- More Favorable Contract StructureCustomers are increasingly accepting take-or-pay minimum tonnage commitments. More than 55% to 60% of clients had signed the new structure in one discussion, while more than half of the broader contract renewals had been completed in another. Management said customers are asking to raise minimums, fixed prices are being replaced by index-based pricing, and discounts are expected to be minor or nonexistent.
- Best Steel Pricing Environment in Three YearsThe company is currently selling steel under what management described as the best price environment in three years. U.S. index pricing increased by roughly $40 per ton each month for most of the year, and the order book showed no signals of a slowdown. Customers were described as more focused on securing volume than price.
- Supportive U.S. Trade EnvironmentManagement said stronger trade-law enforcement has resulted in stronger domestic production, higher utilization rates, more investment in steel facilities, and greater confidence from steel producers and consumers. Imports remain approximately 35% to 40% below the level before implementation of the 50% Section 232 national-security steel tariffs.
- Burns Harbor Reline Postponed to Preserve CapacityThe Burns Harbor C-blast furnace reline was postponed from mid-2027 to April 2028 because targeted maintenance and short-term capital extended the current campaign. The move preserves approximately 500,000 tons of production that was not included in the original 2027 plan, while maintaining operational reliability and allowing the company to use some 2027 CapEx for project prework.
- Middletown Works Modernization UnderwayThe company completed the rescoping of its $1 billion Middletown Works modernization project, including $500 million of Department of Energy support. The project includes a blast furnace rebuild, advanced material-handling infrastructure, artificial-intelligence-enabled process controls, and a cogeneration facility that will convert blast furnace gas into electricity and steam. Work has begun, with completion expected in the first quarter of 2030 while maintaining uninterrupted production.
- Additional Capacity and Product InitiativesCleveland-Cliffs is adding 25% new production of grain-oriented electrical steel at Butler Works. The company also plans to bring the Burns Harbor galvanizing line online for GALVANEAL exposed automotive parts in early 2027, with additional availability expected in mid-2027, and is working with automotive clients to reintroduce electro-galvanized steel for exposed parts.
- Stable 2027 Coal Contract PricingCoal contract negotiations concluded at rollover pricing for 2027. Management said coal and coke are the largest raw-material components of cost, and the year-over-year stability provides greater comfort in the outlook.
- Stelco Returning to ProfitabilityManagement said Stelco is finally profitable, with the Canadian government's hot-rolled tariff-rate quotas implemented in December 2025 and updated in June 2026 contributing to the improvement. The Canadian hot-rolled market achieved a similar $400-per-ton spot-price improvement in four months that took the U.S. market roughly 12 months.
- Expected Improvement in Cash Flow and DeleveragingQ3 working capital was intensive and temporarily limited cash inflows, but management expects working capital to be neutral in Q4 as the build declines. Most major property sales are contracted to close in Q4, and proceeds will be used to delever the balance sheet. The company expects to reduce leverage below its 2x-2.5x target by the middle of next year and plans to continue paying down debt beyond that point.
- No Equity Raise PlannedManagement said Cleveland-Cliffs does not need to issue stock and intends to use cash from operations to pay down debt, with the ABL as the primary target followed by the bonds.
- Asset Sale Proceeds Expected in Q4One small asset sale closed in Q3, while most major properties were contracted to close in Q4. Management continued to expect those transactions to close in Q4, although some buyers received extensions related to local-community or power-supply obstacles.
- Slab Contract Expiration BenefitThe company did not renew the five-year slab supply agreement with ArcelorMittal Calvert after its expiration. Management said the benefit of no longer selling slabs is reflected in the company's results.
- Standalone Strategic ConfidenceManagement said Cleveland-Cliffs remains comfortable operating as a standalone company and does not need outside technological help to serve its automotive or grain-oriented electrical steel customers. Discussions with POSCO remain ongoing.
DE:CVA Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 15, 2027 | 2026 (Q4) | 0.34- | -0.38 | ― | ― |
| Oct 19, 2026 | 2026 (Q3) | 0.190.25 | -0.4 | 162.22% (+0.65) | |
| Jul 23, 2026 | 2026 (Q2) | -0.19-0.18 | -0.45 | 60.00% (+0.27) | |
| Apr 20, 2026 | 2026 (Q1) | -0.38-0.36 | -0.82 | 56.52% (+0.46) | |
| Feb 09, 2026 | 2025 (Q4) | -0.55-0.38 | -0.61 | 36.76% (+0.22) | |
| Oct 20, 2025 | 2025 (Q3) | -0.40-0.40 | -0.29 | -36.36% (-0.11) | |
| Jul 21, 2025 | 2025 (Q2) | -0.64-0.45 | 0.1 | -554.55% (-0.54) | |
| May 07, 2025 | 2025 (Q1) | -0.73-0.82 | 0.16 | -611.11% (-0.98) | |
| Feb 24, 2025 | 2024 (Q4) | -0.55-0.61 | -0.04 | -1260.00% (-0.56) | |
| Nov 04, 2024 | 2024 (Q3) | -0.27-0.29 | 0.46 | -163.46% (-0.76) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.