Key Takeaways
- 🏭 Cleveland-Cliffs (CLF), America's big steelmaker, just reported its strongest quarter in three years.
- 💵 It made $5.6 billion in sales and swung to a $165 million profit, after a $134 million loss the quarter before.
- 📈 Shares rose about 9% on Monday, from a Friday close of $12.12.
- 🔮 The real spark was the future: Cliffs now expects its 2027 operating profit (EBITDA) to top $4 billion.
- ⚖️ Honest catch: sales actually missed forecasts, debt is high, and steel is a boom-and-bust business.
- 🔍 Want to dig deeper? Research Cleveland-Cliffs on Nemo.money, from $1.
The Short Version
Cleveland-Cliffs makes steel in the US and Canada. Its steel goes into cars, buildings, infrastructure and machines.
A year ago, and again last quarter, the company was losing money. On Monday, that changed. Cliffs posted a profit, higher prices and more steel shipped.
The stock jumped before the market opened. But the reason is bigger than one good quarter. Cliffs told investors that 2027 could be far better again.
That is a classic stock market lesson. Markets care most about what comes next.
People are searching:
- Why is Cleveland-Cliffs stock up today?
- Cleveland-Cliffs Q3 2026 earnings
- Is CLF a good stock to buy?
- What is EBITDA in simple words?
- Best steel stocks to research
📊 The Numbers in One Place
All figures are for the three months to 30 September 2026, from the company's results release.
- 💵 Sales: $5.6 billion, up from $4.7 billion a year ago (about 18% more).
- ✅ Profit: $165 million, versus a $234 million loss a year ago.
- 🧮 Adjusted earnings per share: $0.28, versus a $0.45 loss a year ago.
- ⚙️ Adjusted EBITDA: $612 million, more than double the $286 million in the quarter before.
- 🚚 Steel shipped: 4.2 million tons.
- 🏷️ Average price: $1,177 per ton, up from $1,032 a year ago.
- 🏦 Cash and credit available: $3.2 billion.
🔥 Why the Stock Jumped
Three things lined up.
- 🎯 Profit beat forecasts. Adjusted earnings of $0.28 a share beat the analyst average. Reported forecasts differ: Investing.com said $0.22, Benzinga and LSEG data said $0.19.
- 🛠️ It beat its own promise. Three months ago, Cliffs guided to $575 million of EBITDA. It delivered $612 million.
- 🚀 The 2027 outlook. Cliffs expects 2027 EBITDA to exceed $4 billion. For context, Investing.com reported the prior analyst average was about $2.64 billion.
CEO Lourenco Goncalves called it "our strongest quarter in three years." He pointed to higher selling prices, more steel shipped and lower costs.
He also said steel imports into the US remain well below normal levels. That helps US steelmakers charge more.
🧠 Quick Jargon Buster: What Is EBITDA?
EBITDA is profit before interest, tax and wear-and-tear on equipment.
- 🏭 It shows how much cash the factories make from day-to-day work.
- 🏦 It ignores debt costs. That matters for Cliffs, which owes a lot.
- 📏 So it is useful, but it is not the same as the money left for shareholders.
💡 The One Lesson
The stock market trades the future, not the past.
Cliffs' sales actually came in below forecasts ($5.6 billion versus about $5.7 billion). On a normal day, a sales miss can hurt a stock.
Instead, the shares jumped. Why? Because investors focused on the forecast for 2027.
When you read any earnings report, check three things:
- 📅 What happened last quarter.
- 🔭 What the company says will happen next (called "guidance").
- 🤔 How that guidance compares with what Wall Street expected.
The third one often moves the stock the most. Our guide on how to read an earnings report walks through this step by step.
⚖️ The Honest Catch
There is a real counter-case here.
- 📉 Sales missed. Revenue of $5.6 billion fell short of the roughly $5.7 billion analysts expected.
- 🎢 Steel is cyclical. Steel prices rise and fall with the economy. Good years can turn quickly. An Investing.com analysis notes Wells Fargo's 2027 model assumes hot-rolled steel near $1,000 a ton, against a spot price near $1,250.
- 🏦 Debt is heavy. Long-term debt was about $7.6 billion at the end of September, with $77 million in cash. Cliffs aims to bring debt below 2.5 times EBITDA by mid-2027. That is a target, not a done deal.
- 🎯 Analysts were cautious. Before the results, the average rating was "Hold". Reported average price targets were about $12.50–$12.60 (LSEG and Investing.com data), below where the stock is trading now.
- ⏪ Long-term picture. Even after a strong three months, Investing.com data showed the stock down about 25% over the past 12 months.
The other side: Cliffs has now beaten its own guidance, turned a profit, and raised its view of 2027. B. Riley Securities linked the bigger 2027 number to better contract pricing, per Finimize. If steel prices hold, the debt plan becomes easier.
We saw how debt can swing a stock in our recent piece on why CoreWeave dropped 15% in one day. The same question applies here: can profits grow faster than the debt bill?
📅 What to Watch Next
- 🏭 Steel Dynamics (STLD) reports after the US close on Monday 19 October.
- 🏭 Nucor (NUE) reports later this month.
- 🔎 Both will show whether higher steel prices are lasting across the industry. Each ticker is an example to research, not a recommendation.
- 📆 Cliffs says it expects about $715 million of EBITDA in the October–December quarter and a big cut in debt.
🙋 What It Means for You
- 🧩 Cleveland-Cliffs (CLF) is an example to research, not a recommendation.
- 🎢 A single cyclical stock can move a lot in both directions. Many investors keep this kind of stock as a small part of a wider mix.
- 🌍 If you want broad exposure instead of one company, our ETF explainer shows how index funds spread risk.
- 📏 Before buying any stock after a big jump, revisit our top 10 rules of investing.
📱 How to Research with Nemo.money
- 💲 Invest from $1 with fractional shares. You don't need $12 for a full CLF share.
- 🆓 Zero commission on US stocks.
- 🧭 Use Nemes to find themed ideas: how Nemes can help you find ideas.
- 💰 Cash waiting to be invested? Nemo.money pays 6% AER, paid daily in USD.
❓ FAQs
1. Why did Cleveland-Cliffs stock go up today?
Cliffs reported its strongest quarter in three years, beat profit forecasts and said it expects 2027 EBITDA to top $4 billion. That outlook was well above what analysts had expected.
2. Did Cleveland-Cliffs beat earnings?
On profit, yes. Adjusted earnings were $0.28 a share, above forecasts. On sales, no. Revenue of $5.6 billion was slightly below the roughly $5.7 billion expected.
3. What does Cleveland-Cliffs make?
It makes steel products, such as hot-rolled and coated steel, in the US and Canada. Its customers include carmakers, steel distributors, and infrastructure and manufacturing firms.
4. Is Cleveland-Cliffs a good stock to buy?
There are two sides. Supporters point to a return to profit, higher steel prices and a much bigger 2027 outlook. Critics point to heavy debt, a sales miss and the boom-and-bust nature of steel. Before the results, analysts rated it "Hold" on average. CLF is an example to research, not a recommendation.
5. Can I invest in Cleveland-Cliffs from the UAE?
Yes. CLF trades on the New York Stock Exchange. On Nemo.money you can research and invest in US stocks from $1 with fractional shares and zero commission.
Final Thoughts
Cleveland-Cliffs just showed how fast a beaten-down stock can turn when the outlook improves. But the same steel cycle that lifted it can also pull it down.
The smart move is not to chase the jump. It is to understand what moved it: guidance, prices and debt. Then decide if it fits your plan.
👉 Start researching on Nemo.money
Nemo = Never Miss Out.
Stay informed. Stay ahead.
ClevelandCliffs #CLF #SteelStocks #EarningsSeason #USStocks #InvestingUAE #NemoMoney #NeverMissOut
Terms and conditions apply. This is not investment advice. Past performance is not indicative of future results. Your capital is at risk. See website for Risk Disclosure. Exinity ME Ltd (https://nemo.money) is regulated by ADGM's Financial Services Regulatory Authority.
