Cleveland-Cliffs Projects Record EBITDA on Strong Q3 2026 Revenue
Cleveland-Cliffs reported Q3 2026 revenue of $5.6 billion, an 18.5% year-over-year increase, and net income of $165 million, driven by higher prices and strong automotive demand.
Cleveland-Cliffs delivered robust Q3 2026 results with 18.5% year-over-year revenue growth to $5.6 billion and adjusted EBITDA of $612 million. The performance, the company's strongest in three years, was driven by favorable pricing, volume, and a decline in unit costs.
Steel shipments reached 4.2 million net tons, a 3% increase from both the previous quarter and the prior year. The average net selling price rose to $1,177 per ton, up $53 from the previous quarter. The shipment mix for the quarter broke down as follows:
| Product Mix | Percentage of Shipments |
|---|---|
| Hot-rolled | 46% |
| Coated | 31% |
| Cold-rolled | 15% |
| Plate | 4% |
| Stainless and Electrical | 4% |
Chief Financial Officer Celso Goncalves highlighted the confluence of positive factors. "The third quarter of this year showed what happens when price, volume, mix and cost all move in a favorable direction," he said.
Strategic Investments and Trade Policy Support
The company's outlook is bolstered by significant U.S. government support and shifting trade dynamics. Cleveland-Cliffs secured $575 million in U.S. Department of Energy grants for five operational projects. It has also renewed annual price-fixed contracts for 2027, which are expected to boost 2027 EBITDA by more than $1 billion.
Demand for domestically produced steel continues to climb, particularly for data centers and energy projects. This is supported by a trade environment where U.S. steel imports have become less attractive due to higher global costs, logistics disruptions, and tariffs. In April 2026, U.S. Section 232 tariffs were shifted to 50% on steel, aluminum, and copper, and 25% on derivative goods.
CEO Lourenco Goncalves stated that a healthy domestic steel industry requires enforced trade laws and consequences for foreign producers dumping steel. The company forecasts 2027 adjusted EBITDA to exceed $4 billion.
Debt Reduction and Operational Adjustments
Financial discipline remains a top priority. Cleveland-Cliffs is focusing on paying down debt, aiming to reduce its net debt to less than 2.5 times EBITDA by mid-2027. To maximize current cash flow and operational reliability, the company has postponed the blast furnace relining at its Burns Harbor, Indiana facility by one year to April 2028.
Operational adjustments continue. The company plans to schedule maintenance outages in the fourth quarter of 2026. Meanwhile, its Canadian subsidiary, Stelco, delivered its strongest quarter since acquisition two years ago, though it indefinitely idled its galvanizing lines due to an oversupplied Canadian market for galvanized steel-a move the company says preserves approximately 2,000 Canadian jobs.
Looking ahead, Cleveland-Cliffs estimates its Q4 2026 adjusted EBITDA will rise to approximately $715 million. The company's commitment is clear: reducing net debt to less than 2.5 times EBITDA by mid-2027.
