TLDR CLF stock rallies 12.39% to $13.65 in premarket trading after strong Q3 results. Third-quarter revenue hits $5.6 billion as net income rebounds to $165 million. Adjusted EBITDA climbs to
Cleveland-Cliffs stock surged 12.39% to $13.65 in premarket trading Monday, October 19, after the steelmaker reported strong third-quarter results. The company returned to profit as revenue and steel prices increased. Its outlook for further growth also supported the rally.
Cleveland-Cliffs reported $5.6 billion in third-quarter revenue, up from $5.2 billion in the preceding second quarter. It earned $165 million after losing $134 million in the second quarter. Earnings reached $0.26 per diluted share, reversing a $0.25 loss.
Adjusted earnings reached $0.28 per share, versus a second-quarter loss of $0.20. Adjusted EBITDA climbed to $612 million from $286 million during the same three-month reporting period. The result beat management’s $575 million forecast and marked its strongest quarter in three years.
CLF shares closed Friday at $12.12, down 0.25% for the session. Monday’s premarket advance followed improvements in steel shipments, selling prices, and operating performance. The vertically integrated steelmaker supplies automotive, manufacturing, infrastructure, and distribution customers across North America.
The company shipped approximately 4.2 million net tons of steel during the latest reporting quarter. Steel product sales reached 4.15 million net tons, up from 4.03 million in the second quarter. Average selling prices increased to $1,177 per ton from $1,124 previously.
Within its steelmaking business, quarterly revenue increased to $5.45 billion, generating a $454 million gross margin. That margin exceeded the second quarter’s $113 million as prices and shipments improved. Hot-rolled products comprised 46% of sales volume, while coated products accounted for 31%.
Distributors and converters accounted for 34% of segment sales, while automotive customers represented 28%. Infrastructure and manufacturing contributed 28%, and steel producers supplied the remaining 10%. Stelco improved its operating performance in Canada, although Cleveland-Cliffs plans to idle its galvanizing lines indefinitely.
Cleveland-Cliffs forecasts approximately $715 million in fourth-quarter adjusted EBITDA despite seasonal weakness and planned maintenance. Higher selling prices should help, although rising costs and compensation expenses will offset some gains. The company ended the third quarter in September with $3.2 billion in liquidity.
Management expects increased cash flow and proceeds from planned property sales to support significant debt reduction. It targets net debt below 2.5 times EBITDA by mid-2027. Meanwhile, limited imports and stronger domestic market conditions have improved its outlook.
Cleveland-Cliffs now expects adjusted EBITDA to exceed $4 billion in 2027. Signed customer contracts and prevailing steel price forecasts underpin that longer-term projection. However, actual earnings will depend on market prices, demand, operating costs, and execution.
The post Cleveland-Cliffs (CLF) Stock: Soars on Strong Q3 Profit and Revenue Growth appeared first on Blockonomi.
