{"success":true,"data":{"pressRelease":{"id":"172205","rtpr_id":"nBw259PBqa-20261019","ticker":"CLF","exchange":"NYSE","all_tickers":["CLF"],"title":"Cleveland-Cliffs Reports Third-Quarter 2026 Results","author":"Business Wire","published_at":"2026-10-19T10:00:00.469Z","article_body":"Cleveland-Cliffs Reports Third-Quarter 2026 Results\n\nCleveland-Cliffs Inc. (NYSE: CLF) today reported third-quarter results for the\nperiod ended September 30, 2026.\n\nThird-Quarter Consolidated Results\n\n\n * Revenues of $5.6 billion\n\n * Steel shipments of 4.2 million net tons\n\n * GAAP net income of $165 million\n\n * Adjusted EBITDA(2) of $612 million\n\n * GAAP net income of $0.26 per diluted share and adjusted net income(1) of $0.28\nper diluted share\n\n * Liquidity of $3.2 billion as of September 30, 2026\n\nThird-quarter 2026 consolidated revenues were $5.6 billion, compared to $5.2\nbillion in the second quarter of 2026.\n\nFor the third quarter of 2026, the Company recorded GAAP net income of $165\nmillion, or $0.26 per diluted share, with an adjusted net income(1) of $0.28\nper diluted share. This compares to a second quarter 2026 GAAP net loss of\n$134 million, or $0.25 per diluted share, with an adjusted net loss(1) of\n$0.20 per diluted share.\n\nFor the third quarter of 2026, the Company reported Adjusted EBITDA(2) of $612\nmillion, a $326 million improvement compared to Adjusted EBITDA(2 )of $286\nmillion recorded in the second quarter of 2026.\n\nCliffs’ Chairman and CEO, Lourenco Goncalves, said: “Third quarter was our\nstrongest quarter in three years, with adjusted EBITDA of $612 million, a\nnumber above the $575 million guidance we provided three months ago. Average\nselling price, sales volumes, and unit costs all moved in the right direction\nrelative to Q2 performance. We expect fourth quarter adjusted EBITDA to\nfurther increase, even with typical fourth-quarter seasonality and planned\nmaintenance outages. We continued to reduce debt in Q3 and, with amplified\nfree cash flow in Q4 and property sale proceeds, we expect a major debt\nreduction in the fourth quarter. With all that, we remain on track to reach\nour leverage target of under 2.5x net debt to EBITDA by the middle of next\nyear.\"\n\nMr. Goncalves added: \"The trade environment continues to support a healthy\nAmerican steel industry. Imports remain well below historical levels, lead\ntimes are extended, and our customers increasingly recognize the value of a\nreliable domestic supply chain. As a result, our 2027 outlook has improved\nmaterially since our last earnings call, as several of the initiatives we\nidentified as drivers of future earnings growth are developing more favorably\nthan originally expected. Based on the new contracts we have already signed\nwith our clients and prevailing index price forecasts, we would expect our\n2027 adjusted EBITDA to exceed $4 billion.\"\n\nMr. Goncalves concluded: \"Third quarter was Stelco’s strongest quarter since\nwe acquired the company two years ago. The Canadian hot-rolled market has\nimproved substantially, turning Stelco into a positive contributor to EBITDA\nin Q3. However, more needs to be done by the Canadian government to correct a\nclearly oversupplied market for galvanized steel in Canada. As we haven’t\nseen, and do not anticipate, any action aimed at improving the unsustainable\nsituation for galvanized steel, we made the difficult but necessary decision\nto indefinitely idle our galvanizing lines at Stelco. The employees impacted\nby this will be brought back to work as soon as the current situation\nimproves. In the meantime, as we concentrate on hot rolled products that\nactually have a market, total production tonnage at Stelco will be maintained,\nStelco’s contribution to Cliffs’ EBITDA will further increase, and\napproximately 2,000 Canadian jobs are preserved.”\n Steelmaking Segment Results \n   \n   Three Months Ended   Nine Months Ended   Three Months Ended \n \n \n \n \nSeptember 30, \nSeptember 30, \n     2026       2025       2026       2025     Jun. 30, 2026 \n External Sales Volumes - In Thousands                   \n Steel Products (net tons)   4,150       4,029       12,283       12,459       4,025   \n Selling Price - Per Net Ton                   \n Average net selling price per net ton of steel products $ 1,177     $ 1,032     $ 1,117     $ 1,009     $ 1,124   \n Operating Results - In Millions                   \n Revenues $ 5,447     $ 4,561     $ 15,256     $ 13,799     $ 5,052   \n Cash cost of goods sold   (4,762 )     (4,356 )     (14,086 )     (13,606 )     (4,703 ) \n Cash margin   685       205       1,170       193       349   \n Depreciation, depletion, and amortization   (231 )     (261 )     (698 )     (882 )     (236 ) \n Gross margin $ 454     $ (56 )   $ 472     $ (689 )   $ 113   \n\n\nThird-quarter 2026 steel product sales volumes of 4.2 million net tons\nconsisted of 46% hot-rolled, 31% coated, 15% cold-rolled, 4% plate, and 4%\nstainless and electrical.\n\nSteelmaking revenues of $5.4 billion included $1.8 billion, or 34%, of sales\nto the distributors and converters market; $1.5 billion, or 28%, of direct\nsales to the automotive market; $1.5 billion, or 28%, of sales to the\ninfrastructure and manufacturing market; and $532 million, or 10%, of sales to\nsteel producers.\n\nLiquidity and Cash Flow\n\nAs of September 30, 2026, the Company had $3.2 billion in total liquidity.\n\nOutlook\n\nThe Company expects fourth-quarter 2026 adjusted EBITDA(2) to be approximately\n$715 million, an increase from the third quarter as a result of increased\npricing, partially offset by seasonality, increased maintenance outages, input\ncosts and incentive compensation accruals.\n\nBased on 2027 contract changes and prevailing price forecasts, the Company\nwould expect 2027 adjusted EBITDA to exceed $4 billion.\n\nAdditional outlook details can be found on page 10 of the earnings\npresentation published this morning on clevelandcliffs.com/investors.\n\nConference Call\n\nCleveland-Cliffs Inc. will host a conference call this morning, October 19,\n2026, at 8:30 a.m. ET. The call will be broadcast live and archived on Cliffs'\nwebsite: www.clevelandcliffs.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.clevelandcliffs.com&esheet=54624274&newsitemid=20261019259231&lan=en-US&anchor=www.clevelandcliffs.com&index=1&md5=3faa82ef3724615b6bcfb4938e09b2a2)\n.\n\nAbout Cleveland-Cliffs Inc.\n\nCleveland-Cliffs is a leading North America-based steel producer with focus on\nvalue-added sheet products, particularly for the automotive industry. The\nCompany is vertically integrated from the mining of iron ore, production of\npellets and direct reduced iron, and processing of ferrous scrap through\nprimary steelmaking and downstream finishing, stamping, tooling, and tubing.\nHeadquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately\n25,000 people across its operations in the United States and Canada.\n\nForward-Looking Statements\n\nThis release contains statements that constitute \"forward-looking statements\"\nwithin the meaning of the federal securities laws. As a general matter,\nforward-looking statements relate to anticipated trends and expectations\nrather than historical matters. Forward-looking statements are subject to\nuncertainties and factors relating to our operations and business environment\nthat are difficult to predict and may be beyond our control. Such\nuncertainties and factors may cause actual results to differ materially from\nthose expressed or implied by the forward-looking statements. These statements\nspeak only as of the date of this release, and we undertake no ongoing\nobligation, other than that imposed by law, to update these statements.\nInvestors are cautioned not to place undue reliance on forward-looking\nstatements. Uncertainties and risk factors that could affect our future\nperformance and cause results to differ from the forward-looking statements in\nthis release include, but are not limited to: continued volatility of steel,\nscrap metal and iron ore market prices, which directly and indirectly impact\nthe prices of the products that we sell to our customers; uncertainties\nassociated with the highly competitive and cyclical steel industry and our\nreliance on the demand for steel from the automotive industry; potential\nweaknesses and uncertainties in global economic conditions, excess global\nsteelmaking capacity and production, prevalence of steel imports and reduced\nmarket demand; severe financial hardship, bankruptcy, temporary or permanent\nshutdowns or operational challenges of one or more of our major customers, key\nsuppliers or contractors, which, among other adverse effects, could disrupt\nour operations or lead to reduced demand for our products, increased\ndifficulty collecting receivables, and customers and/or suppliers asserting\nforce majeure or other reasons for not performing their contractual\nobligations to us; risks related to U.S. and Canadian government actions and\nother countries' reactions with respect to Section 232 of the Trade Expansion\nAct of 1962 (as amended by the Trade Act of 1974), the United\nStates-Mexico-Canada Agreement and/or other trade agreements, tariffs,\ntreaties or policies, as well as the uncertainty of obtaining and maintaining\neffective antidumping and countervailing duty orders to counteract the harmful\neffects of unfairly traded imports; impacts of extensive governmental\nregulation, including actual and potential environmental regulations relating\nto climate change and carbon emissions, and related costs and liabilities,\nincluding failure to receive or maintain required operating and environmental\npermits, approvals, modifications or other authorizations of, or from, any\ngovernmental or regulatory authority and costs related to implementing\nimprovements to ensure compliance with regulatory changes, including potential\nfinancial assurance requirements, and reclamation and remediation obligations;\npotential impacts to the environment or exposure to hazardous substances\nresulting from our operations; our ability to maintain adequate liquidity, our\nlevel of indebtedness and the availability of capital could limit our\nfinancial flexibility and cash flow necessary to fund working capital, planned\ncapital expenditures, acquisitions, and other general corporate purposes or\nongoing needs of our business, or to repurchase our common shares; our ability\nto reduce our indebtedness or return capital to shareholders within the\ncurrently expected timeframes or at all; adverse changes in credit ratings,\ninterest rates, foreign currency rates and tax laws; risks and uncertainties\nrelated to our ability to realize the anticipated synergies or other expected\nbenefits of any acquisitions, including the acquisition of Stelco, any\npotential transaction arising out of our Memorandum of Understanding with\nPOSCO and completing any proposed asset divestiture transactions; challenges\nto successfully implementing our business strategy to achieve operating\nresults in line with our guidance; the outcome of, and costs incurred in\nconnection with, lawsuits, claims, arbitrations or governmental proceedings\nrelating to commercial and business disputes, antitrust claims, environmental\nmatters, government investigations, occupational or personal injury claims,\nproperty-related matters, labor and employment matters, mineral royalty\ndisputes, or suits involving legacy operations and other matters; supply chain\ndisruptions or changes in the cost, quality or availability of energy sources,\nincluding electricity, natural gas and diesel fuel, water, critical raw\nmaterials and supplies, including iron ore, industrial gases, graphite\nelectrodes, scrap metal, chrome, zinc, other alloys, coke and metallurgical\ncoal, and critical manufacturing equipment and spare parts, including as a\nresult of geopolitical conflicts; problems or disruptions associated with\ntransporting products to our customers, moving manufacturing inputs or\nproducts internally among our facilities, or suppliers transporting raw\nmaterials and spare parts to us; our ability to implement strategic or\nsustaining capital projects on time and on budget, including our ability to\nsuccessfully complete the optimization and modernization project at our\nMiddletown Works steel plant; uncertainties associated with natural or\nhuman-caused disasters, adverse weather conditions, unanticipated geological\nconditions, critical equipment failures, infectious disease outbreaks,\ntailings dam failures and other unexpected events; cybersecurity incidents\nrelating to, disruptions in, or failures of, information technology systems\nthat are managed by us or third parties that host or have access to our data\nor systems, including the loss, theft or corruption of our or third parties'\nsensitive or essential business or personal information and the inability to\naccess or control systems; emerging risks related to the adoption and\nregulation of artificial intelligence, including our ability to achieve the\nexpected benefits of our adoption of information technology platforms that use\nartificial intelligence; liabilities and costs arising in connection with\nbusiness decisions to temporarily or indefinitely idle or permanently close an\noperating facility or mine, which could adversely impact the carrying value of\nassociated assets and give rise to impairment charges or closure and\nreclamation obligations, as well as uncertainties associated with resuming\nproduction at any previously idled operating facility or mine; our level of\nself-insurance and our ability to obtain sufficient third-party insurance to\nadequately cover potential adverse events and business risks; uncertainties\nassociated with our ability to meet customers’ and suppliers’\ndecarbonization goals and reduce our emissions in alignment with our own\nannounced targets; challenges to maintaining our social license to operate\nwith our stakeholders, including the impacts of our operations on local\ncommunities, reputational impacts of operating in a carbon-intensive industry\nthat produces greenhouse gas emissions, and our ability to foster a consistent\noperational and safety track record; our actual economic mineral reserves or\nreductions in current mineral reserve estimates, and any title defect or loss\nof any lease, license, option, easement or other possessory interest for any\nmining property; our ability to complete technical and economic studies to\ndetermine the potential for economic extraction of rare earth minerals at our\nmining properties, and the risk that rare-earth extraction at our properties\nmay not be economically viable; our ability to maintain satisfactory labor\nrelations with unions and our employees and to successfully renew expiring\ncollective bargaining agreements; unanticipated or higher costs associated\nwith pension and other postretirement benefits obligations resulting from\nchanges in the value of plan assets or contribution increases required for\nunfunded obligations, including for multiemployer plan withdrawal liability;\nuncertain availability or cost of skilled workers to fill critical operational\npositions and potential labor shortages caused by experienced employee\nattrition or otherwise, as well as our ability to attract, hire, develop and\nretain key personnel; and potential significant deficiencies or material\nweaknesses in our internal control over financial reporting.\n\nFor additional factors affecting the business of Cliffs, refer to Part I, Item\n1A. Risk Factors of our Annual Report on Form 10-K for the year ended December\n31, 2025, and other filings with the U.S. Securities and Exchange Commission.\n\nFINANCIAL TABLES FOLLOW\n CLEVELAND-CLIFFS INC. AND SUBSIDIARIES \n \n \n \nSTATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS \n   \n   Three Months Ended   Nine Months Ended   Three \n \n \n \nMonths \n \nSeptember 30, \nSeptember 30, \nEnded \n (In millions, except per share amounts)   2026       2025       2026       2025     Jun. 30, \n \n2026 \n Revenues $ 5,612     $ 4,734     $ 15,760     $ 14,297     $ 5,226   \n Operating costs:                   \n Cost of goods sold   (5,147 )     (4,780 )     (15,245 )     (14,951 )     (5,094 ) \n Selling, general and administrative expenses   (153 )     (130 )     (432 )     (400 )     (154 ) \n Restructuring and other charges   (1 )     (3 )     (4 )     (92 )     (3 ) \n Asset impairment   —       —   0   —       (39 )     —   \n Miscellaneous, net   —       (25 )     (30 )     (63 )     (24 ) \n Total operating costs   (5,301 )     (4,938 )     (15,711 )     (15,545 )     (5,275 ) \n Operating income (loss)   311       (204 )     49       (1,248 )     (49 ) \n Other income (expense):                   \n Interest expense, net   (148 )     (153 )     (452 )     (442 )     (156 ) \n Net periodic benefit credits other than service cost component   64       57       192       157       64   \n Changes in fair value of derivatives, net   (15 )     (10 )     (37 )     (34 )     (12 ) \n Other non-operating income   1       1       2       2       1   \n Total other expense   (98 )     (105 )     (295 )     (317 )     (103 ) \n Income (loss) from continuing operations before income taxes   213       (309 )     (246 )     (1,565 )     (152 ) \n Income tax benefit (expense)   (46 )     78       55       375       20   \n Income (loss) from continuing operations   167       (231 )     (191 )     (1,190 )     (132 ) \n Loss from discontinued operations, net of tax   (2 )     (3 )     (7 )     (3 )     (2 ) \n Net income (loss)   165       (234 )     (198 )     (1,193 )     (134 ) \n Net income attributable to noncontrolling interests   (13 )     (17 )     (32 )     (42 )     (11 ) \n Net income (loss) attributable to Cliffs shareholders $ 152     $ (251 )   $ (230 )   $ (1,235 )   $ (145 ) \n                     \n Earnings (loss) per common share attributable to Cliffs shareholders - basic                   \n Continuing operations $ 0.27     $ (0.51 )   $ (0.39 )   $ (2.49 )   $ (0.25 ) \n Discontinued operations   —       —       (0.01 )     —       —   \n   $ 0.27     $ (0.51 )   $ (0.40 )   $ (2.49 )   $ (0.25 ) \n                     \n Earnings (loss) per common share attributable to Cliffs shareholders - diluted                   \n Continuing operations $ 0.26     $ (0.51 )   $ (0.39 )   $ (2.49 )   $ (0.25 ) \n Discontinued operations   —       —       (0.01 )     —       —   \n   $ 0.26     $ (0.51 )   $ (0.40 )   $ (2.49 )   $ (0.25 ) \n\n CLEVELAND-CLIFFS INC. AND SUBSIDIARIES \n \n \n \nSTATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL POSITION \n   \n (In millions) September 30,   December 31, \n \n2026 \n2025 \n ASSETS       \n Current assets:       \n Cash and cash equivalents $ 77   $ 57 \n Accounts receivable, net   2,159     1,442 \n Inventories   4,694     4,772 \n Other current assets   174     164 \n Total current assets   7,104     6,435 \n Non-current assets:       \n Property, plant and equipment, net   9,186     9,481 \n Goodwill   1,782     1,814 \n Intangible assets, net   1,041     1,135 \n Pension and OPEB assets   589     469 \n Other non-current assets   640     678 \n TOTAL ASSETS $ 20,342   $ 20,012 \n LIABILITIES AND EQUITY       \n Current liabilities:       \n Accounts payable $ 2,327   $ 1,893 \n Accrued employment costs   527     517 \n Accrued expenses   310     396 \n Other current liabilities   628     496 \n Total current liabilities   3,792     3,302 \n Non-current liabilities:       \n Long-term debt   7,645     7,253 \n Pension and OPEB liabilities   593     655 \n Deferred income taxes   300     375 \n Asset retirement and environmental obligations   698     682 \n Other non-current liabilities   1,348     1,422 \n TOTAL LIABILITIES   14,376     13,689 \n TOTAL EQUITY   5,966     6,323 \n TOTAL LIABILITIES AND EQUITY $ 20,342   $ 20,012 \n\n CLEVELAND-CLIFFS INC. AND SUBSIDIARIES \n \n \n \nSTATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS \n   \n   Three Months Ended   Nine Months Ended \n \n \n \n \nSeptember 30, \nSeptember 30, \n (In millions)   2026       2025       2026       2025   \n OPERATING ACTIVITIES               \n Net income (loss) $ 165     $ (234 )   $ (198 )   $ (1,193 ) \n Adjustments to reconcile net income (loss) to net cash provided (used) by               \n operating activities: \n Depreciation, depletion and amortization   259       288       780       963   \n Pension and OPEB credits   (55 )     (48 )     (166 )     (130 ) \n Deferred income taxes   45       (78 )     (57 )     (381 ) \n Restructuring and other charges   1       3       4       92   \n Asset impairment   —       —       —       39   \n Other   36       63       166       126   \n Changes in operating assets and liabilities:               \n Accounts receivable, net   (116 )     (16 )     (723 )     (215 ) \n Inventories   (170 )     3       59       399   \n Income taxes   (2 )     5       —       15   \n Pension and OPEB payments and contributions   (43 )     (48 )     (116 )     (121 ) \n Payables, accrued employment and accrued expenses   135       (36 )     412       (31 ) \n Other, net   (31 )     (45 )     (32 )     (12 ) \n Net cash provided (used) by operating activities   224       (143 )     129       (449 ) \n INVESTING ACTIVITIES               \n Purchase of property, plant and equipment   (152 )     (157 )     (461 )     (421 ) \n Other investing activities   31       19       74       27   \n Net cash used by investing activities   (121 )     (138 )     (387 )     (394 ) \n FINANCING ACTIVITIES               \n Proceeds from issuance of senior notes   —       850       —       1,700   \n Borrowings (repayments) under ABL Facility, net   (61 )     (530 )     383       (713 ) \n Debt issuance costs   —       (12 )     —       (26 ) \n Other financing activities   (41 )     (22 )     (110 )     (108 ) \n Net cash provided (used) by financing activities   (102 )     286       273       853   \n Net increase in cash and cash equivalents   1       5       15       10   \n                 \n Cash, cash equivalents, and restricted cash at beginning of period   76       68       63       60   \n Effect of exchange rate changes on cash   —       —       (1 )     3   \n Cash, cash equivalents, and restricted cash at end of period   77       73       77       73   \n                 \n Restricted cash   —     $ (7 )     —     $ (7 ) \n                 \n Cash and cash equivalents at end of period $ 77     $ 66     $ 77     $ 66   \n\n\n(1) CLEVELAND-CLIFFS INC. AND SUBSIDIARIES\n\nADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE RECONCILIATION\n\nIn addition to the consolidated financial statements presented in accordance\nwith U.S. GAAP, the Company has presented adjusted net income (loss)\nattributable to Cliffs shareholders and adjusted earnings (loss) per common\nshare attributable to Cliffs shareholders - diluted. These measures are used\nby management, investors, lenders and other external users of our financial\nstatements to assess our operating performance and to compare operating\nperformance to other companies in the steel industry. Additionally, we believe\nthese measures are useful to assess the earnings power of the business because\nthey exclude items that may obscure underlying commercial and operating\ntrends, thereby providing additional insight into our true performance. The\npresentation of these measures is not intended to be considered in isolation\nfrom, as a substitute for, or as superior to, the financial information\nprepared and presented in accordance with U.S. GAAP. The presentation of these\nmeasures may be different from non-GAAP financial measures used by other\ncompanies. A reconciliation of these consolidated measures to their most\ndirectly comparable GAAP measures is provided in the table below.\n   Three Months Ended   Nine Months Ended   Three \n \n \n \nMonths \n \nSeptember 30, \nSeptember 30, \nEnded \n (In millions)   2026       2025       2026       2025     Jun. 30, \n \n2026 \n Net income (loss) attributable to Cliffs shareholders $ 152     $ (251 )   $ (230 )   $ (1,235 )   $ (145 ) \n Adjustments:                   \n Idled facilities credits (charges)(A)   (4 )     3       1       (245 )     (5 ) \n Currency exchange   (4 )     (20 )     (37 )     26       (19 ) \n Changes in fair value of derivatives, net   (15 )     (10 )     (37 )     (34 )     (12 ) \n Gain (loss) on disposal of assets, net   14       (2 )     23       (6 )     2   \n Amortization of inventory step-up   —       —       —       6       —   \n Severance   (2 )     (5 )     (3 )     (25 )     —   \n Other, net   (2 )     (3 )     (11 )     (4 )     (4 ) \n Income tax effect   4       9       16       68       8   \n Adjusted net income (loss) attributable to Cliffs shareholders $ 161     $ (223 )   $ (182 )   $ (1,021 )   $ (115 ) \n                     \n Income (loss) per common share attributable to Cliffs shareholders - diluted $ 0.26     $ (0.51 )   $ (0.40 )   $ (2.49 )   $ (0.25 ) \n Adjusted income (loss) per common share attributable to Cliffs shareholders - $ 0.28     $ (0.45 )   $ (0.32 )   $ (2.06 )   $ (0.20 ) \n diluted \n                     \n (A )Primarily includes asset impairments, accelerated depreciation, \n employee-related costs and asset retirement obligation charges \n\n\n(2 )CLEVELAND-CLIFFS INC. AND SUBSIDIARIES\n\nNON-GAAP RECONCILIATION - EBITDA AND ADJUSTED EBITDA\n\nIn addition to the consolidated financial statements presented in accordance\nwith U.S. GAAP, the Company has presented EBITDA and Adjusted EBITDA on a\nconsolidated basis. These measures are used by management, investors, lenders\nand other external users of our financial statements to assess our operating\nperformance and to compare operating performance to other companies in the\nsteel industry. Additionally, we believe these measures are useful to assess\nthe earnings power of the business because they exclude items that may obscure\nunderlying commercial and operating trends, thereby providing additional\ninsight into our true performance. The presentation of these measures is not\nintended to be considered in isolation from, as a substitute for, or as\nsuperior to, the financial information prepared and presented in accordance\nwith U.S. GAAP. The presentation of these measures may be different from\nnon-GAAP financial measures used by other companies. A reconciliation of these\nconsolidated measures to their most directly comparable GAAP measures is\nprovided in the table below. We are unable to reconcile, without unreasonable\neffort, our expected adjusted EBITDA for the fourth quarter of 2026 and\nfull-year 2027 to its most directly comparable GAAP financial measure, net\nincome, due to the uncertainty and inherent difficulty of predicting the\noccurrence and the financial impact of items impacting comparability. For the\nsame reasons, we are unable to address the probable significance of the\nunavailable information.\n   Three Months Ended   Nine Months Ended Three Months Ended \n \n \n \n \nSeptember 30, \nSeptember 30, \n (In millions)   2026       2025       2026       2025   Jun. 30, 2026 \n Net income (loss) $ 165     $ (234 )   $ (198 )   $ (1,193 ) $ (134 ) \n Less:                 \n Interest expense, net   (148 )     (153 )     (452 )     (442 )   (156 ) \n Income tax benefit (expense)   (46 )     78       55       375     20   \n Depreciation, depletion and amortization   (259 )     (288 )     (780 )     (963 )   (262 ) \n Total EBITDA $ 618     $ 129     $ 979     $ (163 ) $ 264   \n Less:                 \n EBITDA from noncontrolling interests   19       23       50       61     16   \n Idled facilities credits (charges)   (4 )     3       1       (245 )   (5 ) \n Currency exchange   (4 )     (20 )     (37 )     26     (19 ) \n Changes in fair value of derivatives, net   (15 )     (10 )     (37 )     (34 )   (12 ) \n Gain (loss) on disposal of assets, net   14       (2 )     23       (6 )   2   \n Amortization of inventory step-up   —       —       —       6     —   \n Severance   (2 )     (5 )     (3 )     (25 )   —   \n Other, net   (2 )     (3 )     (11 )     (4 )   (4 ) \n Total Adjusted EBITDA $ 612     $ 143     $ 993     $ 58   $ 286   \n                   \n EBITDA from noncontrolling interests includes the following:                 \n Net income attributable to noncontrolling interests $ 13     $ 17     $ 32     $ 42   $ 11   \n Depreciation, depletion and amortization   6       6       18       19     5   \n EBITDA from noncontrolling interests $ 19     $ 23     $ 50     $ 61   $ 16   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20261019259231/en/\n(https://www.businesswire.com/news/home/20261019259231/en/)\n\nMEDIA CONTACT: \n\nPatricia Persico\n\nSenior Director, Corporate Communications\n\n(216) 694-5316\n\nINVESTOR CONTACT: \n\nJames Kerr\n\nDirector, Investor Relations\n\n(216) 694-7719\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw259PBqa-20261019","title":"Cleveland-Cliffs Reports Third-Quarter 2026 Results","author":"Business Wire","ticker":"CLF","created":"2026-10-19T10:00:00.469Z","tickers":["CLF"],"exchange":"NYSE","article_body":"Cleveland-Cliffs Reports Third-Quarter 2026 Results\n\nCleveland-Cliffs Inc. (NYSE: CLF) today reported third-quarter results for the\nperiod ended September 30, 2026.\n\nThird-Quarter Consolidated Results\n\n\n * Revenues of $5.6 billion\n\n * Steel shipments of 4.2 million net tons\n\n * GAAP net income of $165 million\n\n * Adjusted EBITDA(2) of $612 million\n\n * GAAP net income of $0.26 per diluted share and adjusted net income(1) of $0.28\nper diluted share\n\n * Liquidity of $3.2 billion as of September 30, 2026\n\nThird-quarter 2026 consolidated revenues were $5.6 billion, compared to $5.2\nbillion in the second quarter of 2026.\n\nFor the third quarter of 2026, the Company recorded GAAP net income of $165\nmillion, or $0.26 per diluted share, with an adjusted net income(1) of $0.28\nper diluted share. This compares to a second quarter 2026 GAAP net loss of\n$134 million, or $0.25 per diluted share, with an adjusted net loss(1) of\n$0.20 per diluted share.\n\nFor the third quarter of 2026, the Company reported Adjusted EBITDA(2) of $612\nmillion, a $326 million improvement compared to Adjusted EBITDA(2 )of $286\nmillion recorded in the second quarter of 2026.\n\nCliffs’ Chairman and CEO, Lourenco Goncalves, said: “Third quarter was our\nstrongest quarter in three years, with adjusted EBITDA of $612 million, a\nnumber above the $575 million guidance we provided three months ago. Average\nselling price, sales volumes, and unit costs all moved in the right direction\nrelative to Q2 performance. We expect fourth quarter adjusted EBITDA to\nfurther increase, even with typical fourth-quarter seasonality and planned\nmaintenance outages. We continued to reduce debt in Q3 and, with amplified\nfree cash flow in Q4 and property sale proceeds, we expect a major debt\nreduction in the fourth quarter. With all that, we remain on track to reach\nour leverage target of under 2.5x net debt to EBITDA by the middle of next\nyear.\"\n\nMr. Goncalves added: \"The trade environment continues to support a healthy\nAmerican steel industry. Imports remain well below historical levels, lead\ntimes are extended, and our customers increasingly recognize the value of a\nreliable domestic supply chain. As a result, our 2027 outlook has improved\nmaterially since our last earnings call, as several of the initiatives we\nidentified as drivers of future earnings growth are developing more favorably\nthan originally expected. Based on the new contracts we have already signed\nwith our clients and prevailing index price forecasts, we would expect our\n2027 adjusted EBITDA to exceed $4 billion.\"\n\nMr. Goncalves concluded: \"Third quarter was Stelco’s strongest quarter since\nwe acquired the company two years ago. The Canadian hot-rolled market has\nimproved substantially, turning Stelco into a positive contributor to EBITDA\nin Q3. However, more needs to be done by the Canadian government to correct a\nclearly oversupplied market for galvanized steel in Canada. As we haven’t\nseen, and do not anticipate, any action aimed at improving the unsustainable\nsituation for galvanized steel, we made the difficult but necessary decision\nto indefinitely idle our galvanizing lines at Stelco. The employees impacted\nby this will be brought back to work as soon as the current situation\nimproves. In the meantime, as we concentrate on hot rolled products that\nactually have a market, total production tonnage at Stelco will be maintained,\nStelco’s contribution to Cliffs’ EBITDA will further increase, and\napproximately 2,000 Canadian jobs are preserved.”\n Steelmaking Segment Results \n   \n   Three Months Ended   Nine Months Ended   Three Months Ended \n \n \n \n \nSeptember 30, \nSeptember 30, \n     2026       2025       2026       2025     Jun. 30, 2026 \n External Sales Volumes - In Thousands                   \n Steel Products (net tons)   4,150       4,029       12,283       12,459       4,025   \n Selling Price - Per Net Ton                   \n Average net selling price per net ton of steel products $ 1,177     $ 1,032     $ 1,117     $ 1,009     $ 1,124   \n Operating Results - In Millions                   \n Revenues $ 5,447     $ 4,561     $ 15,256     $ 13,799     $ 5,052   \n Cash cost of goods sold   (4,762 )     (4,356 )     (14,086 )     (13,606 )     (4,703 ) \n Cash margin   685       205       1,170       193       349   \n Depreciation, depletion, and amortization   (231 )     (261 )     (698 )     (882 )     (236 ) \n Gross margin $ 454     $ (56 )   $ 472     $ (689 )   $ 113   \n\n\nThird-quarter 2026 steel product sales volumes of 4.2 million net tons\nconsisted of 46% hot-rolled, 31% coated, 15% cold-rolled, 4% plate, and 4%\nstainless and electrical.\n\nSteelmaking revenues of $5.4 billion included $1.8 billion, or 34%, of sales\nto the distributors and converters market; $1.5 billion, or 28%, of direct\nsales to the automotive market; $1.5 billion, or 28%, of sales to the\ninfrastructure and manufacturing market; and $532 million, or 10%, of sales to\nsteel producers.\n\nLiquidity and Cash Flow\n\nAs of September 30, 2026, the Company had $3.2 billion in total liquidity.\n\nOutlook\n\nThe Company expects fourth-quarter 2026 adjusted EBITDA(2) to be approximately\n$715 million, an increase from the third quarter as a result of increased\npricing, partially offset by seasonality, increased maintenance outages, input\ncosts and incentive compensation accruals.\n\nBased on 2027 contract changes and prevailing price forecasts, the Company\nwould expect 2027 adjusted EBITDA to exceed $4 billion.\n\nAdditional outlook details can be found on page 10 of the earnings\npresentation published this morning on clevelandcliffs.com/investors.\n\nConference Call\n\nCleveland-Cliffs Inc. will host a conference call this morning, October 19,\n2026, at 8:30 a.m. ET. The call will be broadcast live and archived on Cliffs'\nwebsite: www.clevelandcliffs.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.clevelandcliffs.com&esheet=54624274&newsitemid=20261019259231&lan=en-US&anchor=www.clevelandcliffs.com&index=1&md5=3faa82ef3724615b6bcfb4938e09b2a2)\n.\n\nAbout Cleveland-Cliffs Inc.\n\nCleveland-Cliffs is a leading North America-based steel producer with focus on\nvalue-added sheet products, particularly for the automotive industry. The\nCompany is vertically integrated from the mining of iron ore, production of\npellets and direct reduced iron, and processing of ferrous scrap through\nprimary steelmaking and downstream finishing, stamping, tooling, and tubing.\nHeadquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately\n25,000 people across its operations in the United States and Canada.\n\nForward-Looking Statements\n\nThis release contains statements that constitute \"forward-looking statements\"\nwithin the meaning of the federal securities laws. As a general matter,\nforward-looking statements relate to anticipated trends and expectations\nrather than historical matters. Forward-looking statements are subject to\nuncertainties and factors relating to our operations and business environment\nthat are difficult to predict and may be beyond our control. Such\nuncertainties and factors may cause actual results to differ materially from\nthose expressed or implied by the forward-looking statements. These statements\nspeak only as of the date of this release, and we undertake no ongoing\nobligation, other than that imposed by law, to update these statements.\nInvestors are cautioned not to place undue reliance on forward-looking\nstatements. Uncertainties and risk factors that could affect our future\nperformance and cause results to differ from the forward-looking statements in\nthis release include, but are not limited to: continued volatility of steel,\nscrap metal and iron ore market prices, which directly and indirectly impact\nthe prices of the products that we sell to our customers; uncertainties\nassociated with the highly competitive and cyclical steel industry and our\nreliance on the demand for steel from the automotive industry; potential\nweaknesses and uncertainties in global economic conditions, excess global\nsteelmaking capacity and production, prevalence of steel imports and reduced\nmarket demand; severe financial hardship, bankruptcy, temporary or permanent\nshutdowns or operational challenges of one or more of our major customers, key\nsuppliers or contractors, which, among other adverse effects, could disrupt\nour operations or lead to reduced demand for our products, increased\ndifficulty collecting receivables, and customers and/or suppliers asserting\nforce majeure or other reasons for not performing their contractual\nobligations to us; risks related to U.S. and Canadian government actions and\nother countries' reactions with respect to Section 232 of the Trade Expansion\nAct of 1962 (as amended by the Trade Act of 1974), the United\nStates-Mexico-Canada Agreement and/or other trade agreements, tariffs,\ntreaties or policies, as well as the uncertainty of obtaining and maintaining\neffective antidumping and countervailing duty orders to counteract the harmful\neffects of unfairly traded imports; impacts of extensive governmental\nregulation, including actual and potential environmental regulations relating\nto climate change and carbon emissions, and related costs and liabilities,\nincluding failure to receive or maintain required operating and environmental\npermits, approvals, modifications or other authorizations of, or from, any\ngovernmental or regulatory authority and costs related to implementing\nimprovements to ensure compliance with regulatory changes, including potential\nfinancial assurance requirements, and reclamation and remediation obligations;\npotential impacts to the environment or exposure to hazardous substances\nresulting from our operations; our ability to maintain adequate liquidity, our\nlevel of indebtedness and the availability of capital could limit our\nfinancial flexibility and cash flow necessary to fund working capital, planned\ncapital expenditures, acquisitions, and other general corporate purposes or\nongoing needs of our business, or to repurchase our common shares; our ability\nto reduce our indebtedness or return capital to shareholders within the\ncurrently expected timeframes or at all; adverse changes in credit ratings,\ninterest rates, foreign currency rates and tax laws; risks and uncertainties\nrelated to our ability to realize the anticipated synergies or other expected\nbenefits of any acquisitions, including the acquisition of Stelco, any\npotential transaction arising out of our Memorandum of Understanding with\nPOSCO and completing any proposed asset divestiture transactions; challenges\nto successfully implementing our business strategy to achieve operating\nresults in line with our guidance; the outcome of, and costs incurred in\nconnection with, lawsuits, claims, arbitrations or governmental proceedings\nrelating to commercial and business disputes, antitrust claims, environmental\nmatters, government investigations, occupational or personal injury claims,\nproperty-related matters, labor and employment matters, mineral royalty\ndisputes, or suits involving legacy operations and other matters; supply chain\ndisruptions or changes in the cost, quality or availability of energy sources,\nincluding electricity, natural gas and diesel fuel, water, critical raw\nmaterials and supplies, including iron ore, industrial gases, graphite\nelectrodes, scrap metal, chrome, zinc, other alloys, coke and metallurgical\ncoal, and critical manufacturing equipment and spare parts, including as a\nresult of geopolitical conflicts; problems or disruptions associated with\ntransporting products to our customers, moving manufacturing inputs or\nproducts internally among our facilities, or suppliers transporting raw\nmaterials and spare parts to us; our ability to implement strategic or\nsustaining capital projects on time and on budget, including our ability to\nsuccessfully complete the optimization and modernization project at our\nMiddletown Works steel plant; uncertainties associated with natural or\nhuman-caused disasters, adverse weather conditions, unanticipated geological\nconditions, critical equipment failures, infectious disease outbreaks,\ntailings dam failures and other unexpected events; cybersecurity incidents\nrelating to, disruptions in, or failures of, information technology systems\nthat are managed by us or third parties that host or have access to our data\nor systems, including the loss, theft or corruption of our or third parties'\nsensitive or essential business or personal information and the inability to\naccess or control systems; emerging risks related to the adoption and\nregulation of artificial intelligence, including our ability to achieve the\nexpected benefits of our adoption of information technology platforms that use\nartificial intelligence; liabilities and costs arising in connection with\nbusiness decisions to temporarily or indefinitely idle or permanently close an\noperating facility or mine, which could adversely impact the carrying value of\nassociated assets and give rise to impairment charges or closure and\nreclamation obligations, as well as uncertainties associated with resuming\nproduction at any previously idled operating facility or mine; our level of\nself-insurance and our ability to obtain sufficient third-party insurance to\nadequately cover potential adverse events and business risks; uncertainties\nassociated with our ability to meet customers’ and suppliers’\ndecarbonization goals and reduce our emissions in alignment with our own\nannounced targets; challenges to maintaining our social license to operate\nwith our stakeholders, including the impacts of our operations on local\ncommunities, reputational impacts of operating in a carbon-intensive industry\nthat produces greenhouse gas emissions, and our ability to foster a consistent\noperational and safety track record; our actual economic mineral reserves or\nreductions in current mineral reserve estimates, and any title defect or loss\nof any lease, license, option, easement or other possessory interest for any\nmining property; our ability to complete technical and economic studies to\ndetermine the potential for economic extraction of rare earth minerals at our\nmining properties, and the risk that rare-earth extraction at our properties\nmay not be economically viable; our ability to maintain satisfactory labor\nrelations with unions and our employees and to successfully renew expiring\ncollective bargaining agreements; unanticipated or higher costs associated\nwith pension and other postretirement benefits obligations resulting from\nchanges in the value of plan assets or contribution increases required for\nunfunded obligations, including for multiemployer plan withdrawal liability;\nuncertain availability or cost of skilled workers to fill critical operational\npositions and potential labor shortages caused by experienced employee\nattrition or otherwise, as well as our ability to attract, hire, develop and\nretain key personnel; and potential significant deficiencies or material\nweaknesses in our internal control over financial reporting.\n\nFor additional factors affecting the business of Cliffs, refer to Part I, Item\n1A. Risk Factors of our Annual Report on Form 10-K for the year ended December\n31, 2025, and other filings with the U.S. Securities and Exchange Commission.\n\nFINANCIAL TABLES FOLLOW\n CLEVELAND-CLIFFS INC. AND SUBSIDIARIES \n \n \n \nSTATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS \n   \n   Three Months Ended   Nine Months Ended   Three \n \n \n \nMonths \n \nSeptember 30, \nSeptember 30, \nEnded \n (In millions, except per share amounts)   2026       2025       2026       2025     Jun. 30, \n \n2026 \n Revenues $ 5,612     $ 4,734     $ 15,760     $ 14,297     $ 5,226   \n Operating costs:                   \n Cost of goods sold   (5,147 )     (4,780 )     (15,245 )     (14,951 )     (5,094 ) \n Selling, general and administrative expenses   (153 )     (130 )     (432 )     (400 )     (154 ) \n Restructuring and other charges   (1 )     (3 )     (4 )     (92 )     (3 ) \n Asset impairment   —       —   0   —       (39 )     —   \n Miscellaneous, net   —       (25 )     (30 )     (63 )     (24 ) \n Total operating costs   (5,301 )     (4,938 )     (15,711 )     (15,545 )     (5,275 ) \n Operating income (loss)   311       (204 )     49       (1,248 )     (49 ) \n Other income (expense):                   \n Interest expense, net   (148 )     (153 )     (452 )     (442 )     (156 ) \n Net periodic benefit credits other than service cost component   64       57       192       157       64   \n Changes in fair value of derivatives, net   (15 )     (10 )     (37 )     (34 )     (12 ) \n Other non-operating income   1       1       2       2       1   \n Total other expense   (98 )     (105 )     (295 )     (317 )     (103 ) \n Income (loss) from continuing operations before income taxes   213       (309 )     (246 )     (1,565 )     (152 ) \n Income tax benefit (expense)   (46 )     78       55       375       20   \n Income (loss) from continuing operations   167       (231 )     (191 )     (1,190 )     (132 ) \n Loss from discontinued operations, net of tax   (2 )     (3 )     (7 )     (3 )     (2 ) \n Net income (loss)   165       (234 )     (198 )     (1,193 )     (134 ) \n Net income attributable to noncontrolling interests   (13 )     (17 )     (32 )     (42 )     (11 ) \n Net income (loss) attributable to Cliffs shareholders $ 152     $ (251 )   $ (230 )   $ (1,235 )   $ (145 ) \n                     \n Earnings (loss) per common share attributable to Cliffs shareholders - basic                   \n Continuing operations $ 0.27     $ (0.51 )   $ (0.39 )   $ (2.49 )   $ (0.25 ) \n Discontinued operations   —       —       (0.01 )     —       —   \n   $ 0.27     $ (0.51 )   $ (0.40 )   $ (2.49 )   $ (0.25 ) \n                     \n Earnings (loss) per common share attributable to Cliffs shareholders - diluted                   \n Continuing operations $ 0.26     $ (0.51 )   $ (0.39 )   $ (2.49 )   $ (0.25 ) \n Discontinued operations   —       —       (0.01 )     —       —   \n   $ 0.26     $ (0.51 )   $ (0.40 )   $ (2.49 )   $ (0.25 ) \n\n CLEVELAND-CLIFFS INC. AND SUBSIDIARIES \n \n \n \nSTATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL POSITION \n   \n (In millions) September 30,   December 31, \n \n2026 \n2025 \n ASSETS       \n Current assets:       \n Cash and cash equivalents $ 77   $ 57 \n Accounts receivable, net   2,159     1,442 \n Inventories   4,694     4,772 \n Other current assets   174     164 \n Total current assets   7,104     6,435 \n Non-current assets:       \n Property, plant and equipment, net   9,186     9,481 \n Goodwill   1,782     1,814 \n Intangible assets, net   1,041     1,135 \n Pension and OPEB assets   589     469 \n Other non-current assets   640     678 \n TOTAL ASSETS $ 20,342   $ 20,012 \n LIABILITIES AND EQUITY       \n Current liabilities:       \n Accounts payable $ 2,327   $ 1,893 \n Accrued employment costs   527     517 \n Accrued expenses   310     396 \n Other current liabilities   628     496 \n Total current liabilities   3,792     3,302 \n Non-current liabilities:       \n Long-term debt   7,645     7,253 \n Pension and OPEB liabilities   593     655 \n Deferred income taxes   300     375 \n Asset retirement and environmental obligations   698     682 \n Other non-current liabilities   1,348     1,422 \n TOTAL LIABILITIES   14,376     13,689 \n TOTAL EQUITY   5,966     6,323 \n TOTAL LIABILITIES AND EQUITY $ 20,342   $ 20,012 \n\n CLEVELAND-CLIFFS INC. AND SUBSIDIARIES \n \n \n \nSTATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS \n   \n   Three Months Ended   Nine Months Ended \n \n \n \n \nSeptember 30, \nSeptember 30, \n (In millions)   2026       2025       2026       2025   \n OPERATING ACTIVITIES               \n Net income (loss) $ 165     $ (234 )   $ (198 )   $ (1,193 ) \n Adjustments to reconcile net income (loss) to net cash provided (used) by               \n operating activities: \n Depreciation, depletion and amortization   259       288       780       963   \n Pension and OPEB credits   (55 )     (48 )     (166 )     (130 ) \n Deferred income taxes   45       (78 )     (57 )     (381 ) \n Restructuring and other charges   1       3       4       92   \n Asset impairment   —       —       —       39   \n Other   36       63       166       126   \n Changes in operating assets and liabilities:               \n Accounts receivable, net   (116 )     (16 )     (723 )     (215 ) \n Inventories   (170 )     3       59       399   \n Income taxes   (2 )     5       —       15   \n Pension and OPEB payments and contributions   (43 )     (48 )     (116 )     (121 ) \n Payables, accrued employment and accrued expenses   135       (36 )     412       (31 ) \n Other, net   (31 )     (45 )     (32 )     (12 ) \n Net cash provided (used) by operating activities   224       (143 )     129       (449 ) \n INVESTING ACTIVITIES               \n Purchase of property, plant and equipment   (152 )     (157 )     (461 )     (421 ) \n Other investing activities   31       19       74       27   \n Net cash used by investing activities   (121 )     (138 )     (387 )     (394 ) \n FINANCING ACTIVITIES               \n Proceeds from issuance of senior notes   —       850       —       1,700   \n Borrowings (repayments) under ABL Facility, net   (61 )     (530 )     383       (713 ) \n Debt issuance costs   —       (12 )     —       (26 ) \n Other financing activities   (41 )     (22 )     (110 )     (108 ) \n Net cash provided (used) by financing activities   (102 )     286       273       853   \n Net increase in cash and cash equivalents   1       5       15       10   \n                 \n Cash, cash equivalents, and restricted cash at beginning of period   76       68       63       60   \n Effect of exchange rate changes on cash   —       —       (1 )     3   \n Cash, cash equivalents, and restricted cash at end of period   77       73       77       73   \n                 \n Restricted cash   —     $ (7 )     —     $ (7 ) \n                 \n Cash and cash equivalents at end of period $ 77     $ 66     $ 77     $ 66   \n\n\n(1) CLEVELAND-CLIFFS INC. AND SUBSIDIARIES\n\nADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE RECONCILIATION\n\nIn addition to the consolidated financial statements presented in accordance\nwith U.S. GAAP, the Company has presented adjusted net income (loss)\nattributable to Cliffs shareholders and adjusted earnings (loss) per common\nshare attributable to Cliffs shareholders - diluted. These measures are used\nby management, investors, lenders and other external users of our financial\nstatements to assess our operating performance and to compare operating\nperformance to other companies in the steel industry. Additionally, we believe\nthese measures are useful to assess the earnings power of the business because\nthey exclude items that may obscure underlying commercial and operating\ntrends, thereby providing additional insight into our true performance. The\npresentation of these measures is not intended to be considered in isolation\nfrom, as a substitute for, or as superior to, the financial information\nprepared and presented in accordance with U.S. GAAP. The presentation of these\nmeasures may be different from non-GAAP financial measures used by other\ncompanies. A reconciliation of these consolidated measures to their most\ndirectly comparable GAAP measures is provided in the table below.\n   Three Months Ended   Nine Months Ended   Three \n \n \n \nMonths \n \nSeptember 30, \nSeptember 30, \nEnded \n (In millions)   2026       2025       2026       2025     Jun. 30, \n \n2026 \n Net income (loss) attributable to Cliffs shareholders $ 152     $ (251 )   $ (230 )   $ (1,235 )   $ (145 ) \n Adjustments:                   \n Idled facilities credits (charges)(A)   (4 )     3       1       (245 )     (5 ) \n Currency exchange   (4 )     (20 )     (37 )     26       (19 ) \n Changes in fair value of derivatives, net   (15 )     (10 )     (37 )     (34 )     (12 ) \n Gain (loss) on disposal of assets, net   14       (2 )     23       (6 )     2   \n Amortization of inventory step-up   —       —       —       6       —   \n Severance   (2 )     (5 )     (3 )     (25 )     —   \n Other, net   (2 )     (3 )     (11 )     (4 )     (4 ) \n Income tax effect   4       9       16       68       8   \n Adjusted net income (loss) attributable to Cliffs shareholders $ 161     $ (223 )   $ (182 )   $ (1,021 )   $ (115 ) \n                     \n Income (loss) per common share attributable to Cliffs shareholders - diluted $ 0.26     $ (0.51 )   $ (0.40 )   $ (2.49 )   $ (0.25 ) \n Adjusted income (loss) per common share attributable to Cliffs shareholders - $ 0.28     $ (0.45 )   $ (0.32 )   $ (2.06 )   $ (0.20 ) \n diluted \n                     \n (A )Primarily includes asset impairments, accelerated depreciation, \n employee-related costs and asset retirement obligation charges \n\n\n(2 )CLEVELAND-CLIFFS INC. AND SUBSIDIARIES\n\nNON-GAAP RECONCILIATION - EBITDA AND ADJUSTED EBITDA\n\nIn addition to the consolidated financial statements presented in accordance\nwith U.S. GAAP, the Company has presented EBITDA and Adjusted EBITDA on a\nconsolidated basis. These measures are used by management, investors, lenders\nand other external users of our financial statements to assess our operating\nperformance and to compare operating performance to other companies in the\nsteel industry. Additionally, we believe these measures are useful to assess\nthe earnings power of the business because they exclude items that may obscure\nunderlying commercial and operating trends, thereby providing additional\ninsight into our true performance. The presentation of these measures is not\nintended to be considered in isolation from, as a substitute for, or as\nsuperior to, the financial information prepared and presented in accordance\nwith U.S. GAAP. The presentation of these measures may be different from\nnon-GAAP financial measures used by other companies. A reconciliation of these\nconsolidated measures to their most directly comparable GAAP measures is\nprovided in the table below. We are unable to reconcile, without unreasonable\neffort, our expected adjusted EBITDA for the fourth quarter of 2026 and\nfull-year 2027 to its most directly comparable GAAP financial measure, net\nincome, due to the uncertainty and inherent difficulty of predicting the\noccurrence and the financial impact of items impacting comparability. For the\nsame reasons, we are unable to address the probable significance of the\nunavailable information.\n   Three Months Ended   Nine Months Ended Three Months Ended \n \n \n \n \nSeptember 30, \nSeptember 30, \n (In millions)   2026       2025       2026       2025   Jun. 30, 2026 \n Net income (loss) $ 165     $ (234 )   $ (198 )   $ (1,193 ) $ (134 ) \n Less:                 \n Interest expense, net   (148 )     (153 )     (452 )     (442 )   (156 ) \n Income tax benefit (expense)   (46 )     78       55       375     20   \n Depreciation, depletion and amortization   (259 )     (288 )     (780 )     (963 )   (262 ) \n Total EBITDA $ 618     $ 129     $ 979     $ (163 ) $ 264   \n Less:                 \n EBITDA from noncontrolling interests   19       23       50       61     16   \n Idled facilities credits (charges)   (4 )     3       1       (245 )   (5 ) \n Currency exchange   (4 )     (20 )     (37 )     26     (19 ) \n Changes in fair value of derivatives, net   (15 )     (10 )     (37 )     (34 )   (12 ) \n Gain (loss) on disposal of assets, net   14       (2 )     23       (6 )   2   \n Amortization of inventory step-up   —       —       —       6     —   \n Severance   (2 )     (5 )     (3 )     (25 )   —   \n Other, net   (2 )     (3 )     (11 )     (4 )   (4 ) \n Total Adjusted EBITDA $ 612     $ 143     $ 993     $ 58   $ 286   \n                   \n EBITDA from noncontrolling interests includes the following:                 \n Net income attributable to noncontrolling interests $ 13     $ 17     $ 32     $ 42   $ 11   \n Depreciation, depletion and amortization   6       6       18       19     5   \n EBITDA from noncontrolling interests $ 19     $ 23     $ 50     $ 61   $ 16   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20261019259231/en/\n(https://www.businesswire.com/news/home/20261019259231/en/)\n\nMEDIA CONTACT: \n\nPatricia Persico\n\nSenior Director, Corporate Communications\n\n(216) 694-5316\n\nINVESTOR CONTACT: \n\nJames Kerr\n\nDirector, Investor Relations\n\n(216) 694-7719\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-10-19T10:00:00.848191448Z","server_sent_at_ms":1792404000848},"received_at":"2026-10-19T10:00:00.945Z","source_url":"https://www.businesswire.com/news/home/20261019259231/en/"},"analysis":{"id":"160346","press_release_id":"172205","analysis_json":{"industry":{"label":"Metals & Mining","sector":"Materials"},"redFlags":["indefinite idling of Stelco galvanizing lines amid Canadian oversupply","2027 EBITDA guidance depends on prevailing index price forecasts","long-term debt rose to $7.65B from $7.25B at year-end 2025; nine-month net loss of $230M still on the books"],"eventType":"earnings","narrative":"Cleveland-Cliffs reported Q3 2026 revenues of $5.6 billion and GAAP net income of $165 million ($0.26 diluted EPS), a sharp swing from the prior quarter's $134 million net loss.\n\nAdjusted EBITDA of $612 million was the strongest quarter in three years and beat the $575 million guidance set three months earlier, with steel shipments of 4.2 million net tons and average selling price up to $1,177 per net ton.\n\nManagement guided Q4 2026 adjusted EBITDA to approximately $715 million and said 2027 adjusted EBITDA should exceed $4 billion on new contracts and favorable steel pricing, with a leverage target of under 2.5x net debt/EBITDA by mid-2027.\n\nCliffs is indefinitely idling Stelco's galvanizing lines due to an oversupplied Canadian galvanized market, while maintaining total Stelco production tonnage on hot-rolled products.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"CLF's strongest quarter in three years with EBITDA beat and a bold 2027 >$4B EBITDA call -- cyclical inflection in domestic steel."},"keyFigures":{"eps":0.26,"revenue":5612000000,"guidance":"Q4 2026 adjusted EBITDA ~$715 million; 2027 adjusted EBITDA expected to exceed $4 billion","revenueYoy":"18.6% vs Q3 2025 revenue of $4,734M","customDimensions":{"liquidity":3200000000,"adjusted_eps":0.28,"adjusted_ebitda":612000000,"gaap_net_income":165000000,"prior_quarter_ebitda":286000000,"ebitda_beat_own_guidance":"$612M vs $575M guided","steel_shipments_net_tons":"4.2 million","net_debt_to_ebitda_target":"under 2.5x by mid-2027","avg_selling_price_per_net_ton":1177}},"quotedText":"Third quarter was our strongest quarter in three years, with adjusted EBITDA of $612 million, a number above the $575 million guidance we provided three months ago.","namedEntities":{"people":[{"name":"Lourenco Goncalves","role":"Chairman and CEO"},{"name":"Patricia Persico","role":"Senior Director, Corporate Communications"},{"name":"James Kerr","role":"Director, Investor Relations"}],"products":["hot-rolled steel","coated steel","cold-rolled steel","plate","stainless and electrical steel"],"companies":[{"name":"Cleveland-Cliffs Inc.","ticker":"CLF","relationship":"filer"},{"name":"Stelco","relationship":"subsidiary"},{"name":"POSCO","relationship":"memorandum of understanding partner"}],"dollarAmounts":[{"amount":"$5.6 billion","context":"Q3 2026 consolidated revenues"},{"amount":"$165 million","context":"Q3 2026 GAAP net income"},{"amount":"$612 million","context":"Q3 2026 adjusted EBITDA"},{"amount":"$3.2 billion","context":"total liquidity as of September 30, 2026"},{"amount":"$715 million","context":"expected Q4 2026 adjusted EBITDA"},{"amount":"$4 billion","context":"expected 2027 adjusted EBITDA floor"},{"amount":"$575 million","context":"prior Q3 EBITDA guidance that was exceeded"}]},"materialImpact":{"score":4,"reasoning":"Large-cap S&P 500 steelmaker swung from a Q2 loss to $165M GAAP net income with adjusted EBITDA of $612M beating its own $575M guidance, and issued strong forward guidance (Q4 ~$715M EBITDA; 2027 EBITDA >$4B). No consensus figures stated, so not a >10% surprise."},"tickerRelevance":{"others":[],"primary":"CLF"},"globalImportance":55,"audienceRelevance":60,"eventTypeSecondary":["guidance_update","restructuring"],"importanceComponents":{"tickerTier":"large-cap S&P 500, retail-favorite cyclical","eventGravity":"quarterly earnings beat vs own guidance plus strong 2027 outlook","sectorWeight":"steel cyclicality amplifies reaction","householdBrandBoost":"moderate"}},"event_type":"earnings","event_type_secondary":["guidance_update","restructuring"],"sentiment":"bullish","material_impact_score":4,"narrative":"Cleveland-Cliffs reported Q3 2026 revenues of $5.6 billion and GAAP net income of $165 million ($0.26 diluted EPS), a sharp swing from the prior quarter's $134 million net loss.\n\nAdjusted EBITDA of $612 million was the strongest quarter in three years and beat the $575 million guidance set three months earlier, with steel shipments of 4.2 million net tons and average selling price up to $1,177 per net ton.\n\nManagement guided Q4 2026 adjusted EBITDA to approximately $715 million and said 2027 adjusted EBITDA should exceed $4 billion on new contracts and favorable steel pricing, with a leverage target of under 2.5x net debt/EBITDA by mid-2027.\n\nCliffs is indefinitely idling Stelco's galvanizing lines due to an oversupplied Canadian galvanized market, while maintaining total Stelco production tonnage on hot-rolled products.","key_figures":{"eps":0.26,"revenue":5612000000,"guidance":"Q4 2026 adjusted EBITDA ~$715 million; 2027 adjusted EBITDA expected to exceed $4 billion","revenueYoy":"18.6% vs Q3 2025 revenue of $4,734M","customDimensions":{"liquidity":3200000000,"adjusted_eps":0.28,"adjusted_ebitda":612000000,"gaap_net_income":165000000,"prior_quarter_ebitda":286000000,"ebitda_beat_own_guidance":"$612M vs $575M guided","steel_shipments_net_tons":"4.2 million","net_debt_to_ebitda_target":"under 2.5x by mid-2027","avg_selling_price_per_net_ton":1177}},"named_entities":{"people":[{"name":"Lourenco Goncalves","role":"Chairman and CEO"},{"name":"Patricia Persico","role":"Senior Director, Corporate Communications"},{"name":"James Kerr","role":"Director, Investor Relations"}],"products":["hot-rolled steel","coated steel","cold-rolled steel","plate","stainless and electrical steel"],"companies":[{"name":"Cleveland-Cliffs Inc.","ticker":"CLF","relationship":"filer"},{"name":"Stelco","relationship":"subsidiary"},{"name":"POSCO","relationship":"memorandum of understanding partner"}],"dollarAmounts":[{"amount":"$5.6 billion","context":"Q3 2026 consolidated revenues"},{"amount":"$165 million","context":"Q3 2026 GAAP net income"},{"amount":"$612 million","context":"Q3 2026 adjusted EBITDA"},{"amount":"$3.2 billion","context":"total liquidity as of September 30, 2026"},{"amount":"$715 million","context":"expected Q4 2026 adjusted EBITDA"},{"amount":"$4 billion","context":"expected 2027 adjusted EBITDA floor"},{"amount":"$575 million","context":"prior Q3 EBITDA guidance that was exceeded"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:5c812bd9e28b810d","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-19T10:00:14.269Z","global_importance":55,"audience_relevance":60,"importance_components":{"tickerTier":"large-cap S&P 500, retail-favorite cyclical","eventGravity":"quarterly earnings beat vs own guidance plus strong 2027 outlook","sectorWeight":"steel cyclicality amplifies reaction","householdBrandBoost":"moderate"}},"durationMs":8977,"modelName":"glm-5.3-flashx"}}