Cleveland-Cliffs jumps after its strongest quarter in three years
The steelmaker swung to a third-quarter profit and beat its own guidance; the stock was the morning's big mover.
Cleveland-Cliffs shares rose about 8% to around $13.10 in mid-morning trading, per CNBC's live quote at 10:10 AM ET, after gaining more than 10% before the open, per CNBC and the company's own site; Yahoo Finance put the premarket rise at more than 7%. It was the morning's standout mover after the steelmaker reported third-quarter results, its strongest quarter in three years, per the company's announcement.
Adjusted earnings of $0.28 a share beat the $0.22 analysts expected, per Yahoo Finance, while revenue of $5.6 billion - up 18% from a year earlier - came in slightly below the $5.71 billion consensus. The company swung to a GAAP profit of $165 million, or $0.26 a share, from a $134 million loss in the second quarter, and adjusted EBITDA came in at $612 million - more than double the prior quarter and above the $575 million guidance it gave three months ago, per the company. Its average selling price rose to $1,177 a ton from $1,032 a year earlier, per Yahoo Finance.
CEO Lourenco Goncalves said prices, volumes and costs all moved in the right direction, and that he expects fourth-quarter adjusted EBITDA to rise further. Based on contracts already signed, the company expects 2027 adjusted EBITDA to exceed $4 billion and remains on track to cut its leverage below 2.5 times net debt to EBITDA by the middle of next year, per the announcement. Steel names have been at the center of this year's tariff story - see this morning's five things for the wider market backdrop.
