WEBULL
WebtradeDownload

What Cleveland-Cliffs Stock's Earnings Turnaround Means For Shareholders

Simply Wall St · 1d ago
  • Cleveland-Cliffs reported third quarter 2026 sales of US$5,612 million and net income of US$152 million, compared with a loss a year earlier, while nine month sales reached US$15,760 million with a smaller loss than the prior period.
  • The shift from a quarterly loss to earnings, alongside reduced nine month losses, indicates operational and cost progress within Cleveland-Cliffs' steel and raw materials portfolio.
  • This article reviews how Cleveland-Cliffs' investment narrative is influenced by this earnings turnaround and the increased emphasis on profitability.

Compare Cleveland-Cliffs' earnings turnaround with other metals and materials players by scanning our hand picked list of solid balance sheet and fundamentals (23 results), which are now riding improved profitability and balance sheet strength.

Cleveland-Cliffs Investment Narrative Recap

Cleveland-Cliffs appeals to shareholders who believe tighter U.S. import controls, solid automotive relationships and ongoing cost work can turn a volatile steel producer into a more consistently profitable operator. The latest quarter moves in that direction, with US$5,612 million in sales and a return to quarterly earnings. The near term hinge remains keeping unit costs in check while making that profitability stick.

The key risk is still exposure to policy and input shocks. A loosening of trade protection or another spike in energy and industrial gases could quickly squeeze margins and slow progress on cash generation and leverage. On balance, this earnings report supports the improvement story rather than changing its core risk profile.

The most relevant development for that narrative is the third quarter and nine month earnings update to September 30, 2026. Investors now have concrete figures that show quarterly net income of US$152 million and a smaller year to date loss of US$230 million on US$15,760 million of sales. That provides a clearer view of where the business currently sits in the cycle.

Those numbers feed directly into the main catalysts. Cost work, footprint changes and DOE backed projects only matter if they appear in earnings and cash flow, and this quarter points in that direction without removing the concern that debt is not yet well covered by operating cash flow. For anyone tracking Cleveland-Cliffs, this report serves as a useful checkpoint on execution rather than a complete reset.

Cleveland-Cliffs' narrative projects US$23.6b revenue and US$1.3b earnings by 2029. This assumes 7.1% yearly revenue growth and an earnings increase of about US$2.2b from the current loss of US$866.0 million.

Uncover why Cleveland-Cliffs' fair value indicates a 12% potential downside to its current price, which leaves little room for error.

NYSE:CLF 1-Year Stock Price Chart
NYSE:CLF 1-Year Stock Price Chart

Exploring Other Perspectives

One bullish twist on Cleveland-Cliffs focuses on the Middletown Works rebuild and other modernization projects. The most optimistic analysts were already penciling in revenue of about US$24.5b and earnings near US$1.0b by 2029 before this earnings surprise. You can use those richer expectations to test how your own view might now shift.

Explore 3 other Cleveland-Cliffs fair value estimates, including one that suggests as much as 228% upside from the current price!

The Verdict Is Yours

Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

Looking For More Ideas Beyond Cleveland-Cliffs?

If this Cleveland-Cliffs update has sharpened your thinking, the next step is to widen your watchlist and stress test your approach against a broader set of opportunities.