Cliffs: Q2 Improves, Q3 Stronger
Cleveland-Cliffs Narrows Q2 Loss, Forecasts Stronger Q3 Driven by Rising EBITDA
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Key Points
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For Q2 2026, Cleveland-Cliffs reported revenue of $5.226 billion and a GAAP net loss of $145 million, with basic/diluted loss per share of $0.25; for the first six months, revenue was $10.148 billion and GAAP net loss $382 million (basic/diluted $0.66 per share).
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In Q3 2026, adjusted EBITDA rose to $575 million, up from $286 million in the prior quarter, signaling a material quarter-over-quarter improvement; the company also disclosed insider selling of about $2.9 million over the last three months.
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The Form 8-K filing confirms Cleveland-Cliffs' Q2 2026 earnings release with Exhibit 99.1; the filing states that the information is being furnished and shall not be deemed filed.
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Investing.com noted that Q2 earnings per share were -$0.20, a miss against a -$0.19 consensus, with revenue around $5.2 billion in line with estimates, and analysts recorded five negative EPS revisions in the last 90 days.
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CEO Lourenco Goncalves commented on the domestic market, stating: "The domestic market remains strong as ongoing global tensions continue to underscore the importance of having a thriving domestic steel industry. Demand continues to improve, imports remain subdued, and lead times are extending further." He also noted that automotive volumes remained strong and were expected to rise in Q3.
Cleveland-Cliffs (NYSE: CLF) shares jumped nearly 7% after the steelmaker posted a stronger-than-expected third-quarter outlook, even as it missed Q2 earnings estimates by a hair. Yahoo Finance reported that Q2 revenue came in at $5.23 billion — up from $4.93 billion a year ago — while the company recorded a GAAP net loss of $145 million, or $0.25 per share.
The big story was Q3. Adjusted EBITDA — a measure of operating profit before certain costs — surged to $575 million, nearly double the $286 million posted in Q2. GuruFocus called it a significant rise that points to a clear recovery in operating performance.
Q2 Numbers Show Progress Despite Ongoing Losses
MarketScreener reported that Q2 sales of $5.226 billion topped the year-ago figure of $4.934 billion. But on a GAAP basis — meaning after all charges and costs — the company still lost money. The net loss for the first six months of 2026 reached $382 million, or $0.66 per share.
Investing.com noted that Q2 earnings per share came in at -$0.20, a miss against the -$0.19 analyst consensus. That said, Yahoo Finance pointed out the result still beat the Zacks estimate of -$0.21, marking a 4.76% earnings surprise. Analysts logged five negative EPS revisions in the past 90 days, showing continued caution on Wall Street.
CEO Points to Strong Demand and Rising Automotive Volumes
CEO Lourenco Goncalves struck an optimistic tone. He said: "The domestic market remains strong as ongoing global tensions continue to underscore the importance of having a thriving domestic steel industry. Demand continues to improve, imports remain subdued, and lead times are extending further."
Goncalves also flagged rising automotive sales as a key driver. Automotive volumes stayed strong in Q2 and were expected to climb further in Q3. The company said it returned to positive free cash flow and made progress paying down debt — two signs management says show the company's earnings power is coming back.
Q3 EBITDA Doubles as Steel Recovery Gains Momentum
The Q3 adjusted EBITDA figure of $575 million was the clearest sign yet of a turning point. That's up from $286 million in Q2 — a near-doubling in a single quarter. GuruFocus said the jump signals improved operating performance and resilience even in a tough steel market.
The company's Form 8-K filing confirmed the Q2 earnings release, with the results furnished — not filed — under SEC rules. Investors are now watching whether the EBITDA surge translates into sustained cash generation and lower debt levels in the quarters ahead.
Insider Selling and Analyst Caution Temper the Optimism
Not everyone is celebrating. Insiders sold roughly $2.9 million worth of Cleveland-Cliffs stock over the last three months. That kind of selling can signal that people close to the company are locking in gains — or hedging their bets — even as the stock rallies.
Yahoo Finance noted that analysts have posted five negative EPS revisions over the past 90 days. That means forecasters are still cutting their profit estimates. The stock's 7% jump shows the market liked the Q3 outlook, but the road to consistent profitability on a GAAP basis remains a work in progress.
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