Key Highlights
- Second quarter earnings per share landed at -$0.20, falling short of projections by just $0.01; revenue reached $5.2B, aligning with forecasts
- Shares surged approximately 7% during pre-market hours following the earnings announcement
- Second quarter adjusted EBITDA reached $286 million, representing a threefold increase from the prior quarter
- Third quarter adjusted EBITDA forecast of approximately $575 million represents more than 100% growth from Q2 and significantly beats analyst expectations
- Annual steel shipment projections remain steady at 16.5ā17.0 million net tons
Shares of Cleveland-Cliffs settled at $9.45 ahead of the earnings announcement, reflecting a 3.18% decline over the preceding three-month period and a 13.38% decrease year-over-year. However, the quarterly results triggered a 6.88% surge in pre-market activity.
For the second quarter, the steelmaker reported an adjusted loss of $0.20 per share, falling marginally short of the Street’s consensus forecast of -$0.19. Revenue totaled $5.2 billion, meeting analyst projections precisely and representing a 9% increase from the $4.8 billion recorded in the same period of 2025.
While technically a miss, the earnings shortfall was negligible. The compelling narrative lies in the operational momentum building beneath the surface ā and the company’s forward trajectory.
The company’s adjusted EBITDA totaled $286 million during the quarter, marking a threefold expansion from the $95 million recorded in the first quarter. Chief Executive Lourenco Goncalves highlighted that this advancement occurred despite the company navigating prolonged maintenance shutdowns during April and May.
“The second quarter represented another milestone in our journey back to the robust earnings capacity this organization possesses,” Goncalves stated.
The company shipped 4.0 million net tons of steel products during Q2. Automotive sector sales accounted for 29% of direct shipments. The average net selling price climbed to $1,124 per ton, representing an increase from the $1,048 recorded in the first quarter.
Robust Q3 Projections Fuel Stock Rally
The forward-looking Q3 forecast captured investor attention and drove the stock’s upward movement. Cleveland-Cliffs projected adjusted EBITDA of roughly $575 million for the third quarter ā representing more than a 100% jump from Q2’s performance and substantially surpassing Wall Street’s expectations.
According to Goncalves, the domestic steel market is demonstrating strengthening demand conditions, reduced import pressure, and lengthening order lead times.
Management reaffirmed its full-year steel shipment outlook, maintaining the range of 16.5 to 17.0 million net tons.
As of June 30, 2026, Cleveland-Cliffs maintained liquidity of $3.1 billion. Management anticipates achieving its leverage objective of less than 2.5x debt-to-EBITDA ratio within the next twelve months.
Analyst Revisions Trended Downward
Over the 90-day period preceding the report, Cleveland-Cliffs experienced five downward EPS revisions with no upward adjustments. InvestingPro assigns the company a “fair performance” rating for financial health.
The pre-market surge to $10.26, representing an increase of $0.81 or 8.60%, demonstrates the market’s emphasis on the promising Q3 outlook over the minor Q2 earnings disappointment.
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