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Cleveland-Cliffs reported Q3 FY2026 revenue of $5.6 billion, up 18.5% from $4.7 billion a year earlier. Revenue was 0.56% above the consensus, although both figures round to $5.6 billion. Adjusted earnings per share of $0.28 exceeded the $0.24 consensus.
In its filing, Cleveland-Cliffs attributed the increase in steel product revenue primarily to higher prices, greater shipments and a shift toward hot-rolled steel after a slab supply contract ended. The company also said non-steel product revenue rose, primarily because of its scrap business.
Cleveland-Cliffs reported gross margin of 8.29%, compared with −0.97% a year earlier, and operating margin of 5.54%, compared with −4.31%. The filing said higher hot-rolled steel prices contributed to the gross margin improvement, partly offset by higher costs of goods sold.
Diluted earnings per share were $0.26, compared with −$0.51 a year earlier. Cleveland-Cliffs reported free cash flow of $72.0 million, compared with −$300.0 million.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $5.6 billion | $4.7 billion | 18.5% |
| Diluted EPS | $0.26 | −$0.51 | — |
| Gross margin | 8.29% | −0.97% | 9.3 percentage points |
| Operating margin | 5.54% | −4.31% | 9.9 percentage points |
| Free cash flow | $72.0 million | −$300.0 million | — |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.28 | $0.24 | Beat by 16.7% |
| Revenue | $5.6 billion | $5.6 billion | Beat by 0.56% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its filing, Cleveland-Cliffs said steel market conditions improved during the quarter, citing higher hot-rolled steel prices, subdued imports and increasing demand. The company said it expected domestic steel demand to grow as tariffs support demand for domestically produced steel and imports remain unattractive.
Cleveland-Cliffs also said it had reduced its year-over-year cost per ton through steps including optimizing its facilities, reducing overhead and working through higher-cost inventory.
Guidance
Cleveland-Cliffs expects Q4 FY2026 adjusted EBITDA of approximately $715.0 million, with increased pricing partly offset by maintenance outages, input costs and other factors. For FY2027, the company expects adjusted EBITDA to exceed $4.0 billion, based on contract changes and prevailing price forecasts.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Free cash flow | Q4 FY2026 | Cleveland-Cliffs expects amplified free cash flow in the fourth quarter of fiscal 2026. | — | — |
| EBITDA, non-GAAP | FY2027 | $4.0 billion | — | New |
| EBITDA, non-GAAP | Q4 FY2026 | $715.0 million | — | New |
| Units, Galvanil for Exposed Parts | FY2027 | Cleveland-Cliffs expects more galvanil for exposed parts to be available in FY2027. | — | — |
| Capex | FY2026 | $700.0 million | — | New |
| Capex | Q4 FY2026 | Cleveland-Cliffs expects capital spending to pick up in Q4 FY2026. | — | — |