0000764065-26-000097
SEC filingCleveland-Cliffs reported Q2 2026 revenues of $5.2B and adjusted EBITDA of $286M, up from $95M in Q1, with Q3 EBITDA guidance of $575M and full-year shipment guidance maintained at 16.5-17.0M tons.
Cleveland-Cliffs' Q2 2026 results show a robust sequential improvement as the company executes on its turnaround. Revenues of $5.2B rose $300M from Q1, driven by higher steel selling prices ($1,124/ton vs $1,048/ton) and strong automotive volumes. Adjusted EBITDA tripled to $286M ($95M in Q1), reflecting a $191M jump, as cash cost of goods sold rose only modestly. The Steelmaking segment cash margin increased to $349M from $136M in Q1. Operating cash flow turned positive to $230M, supporting liquidity of $3.1B.
Management's commentary highlights accelerating momentum: Q3 adjusted EBITDA is guided to ~$575M, more than double Q2, aided by higher utilization, extended lead times, and improving Canadian operations. Full-year guidance was reaffirmed: steel shipments of 16.5-17.0M tons, capex of $700M, and SG&A of $575M. The CEO expressed confidence in reaching the leverage target of under 2.5x debt-to-EBITDA by mid-2027, signaling strong free cash flow generation ahead.
The earnings release underscores a cyclical recovery in steel markets and Cliffs' operational leverage. The sequential improvement in margins, coupled with a bullish Q3 outlook, positions the company for a stronger second half. Investors should monitor the pace of debt reduction and the realization of Stelco synergies. Overall, the report indicates that Cliffs is on track to regain its earnings power, with EBITDA expected to surpass 2021 levels in the second half of 2026.