CLEVELAND, July 23, 2026, 10:06 EDT. New York Stock Exchange — Shares in Cleveland-Cliffs NYSE:CLF soared 17% as rising steel prices strengthened margins for the producer.
- Trading on the NYSE was underway. Cliffs was at $11.07, climbing 17.1%, as of 9:50 EDT.
- Steel volume for the second quarter declined 2.0% from the previous quarter. Average selling prices increased 7.3%.
- Cleveland-Cliffs Inc. expects third-quarter adjusted EBITDA to reach $575 million, more than double the second quarter’s figure with a 101% increase.
Shares of Cleveland-Cliffs Inc. NYSE:CLF rallied on Thursday after the steel producer projected third-quarter adjusted EBITDA of $575 million, marking a 101% jump from the previous quarter.
The surge is driven by unit economics rather than an increase in shipments. Steel shipments decreased to 4.025 million tons from 4.108 million tons. Meanwhile, average selling prices increased to $1,124 per ton from $1,048.
The calculated steel cash margin per ton rose to $86.71, up from $33.11 in the previous quarter and $32.17 in the same period last year.
Company data show a change in unit margin.
| Steelmaking measure | Q2 2026 | Q1 2026 | Q2 2025 |
|---|---|---|---|
| Sales, million tons | 4.025 | 4.108 | 4.290 |
| Average price per ton | $1,124 | $1,048 | $1,015 |
| Cash margin, million | $349 | $136 | $138 |
| Cash margin per ton | $86.71 | $33.11 | $32.17 |
Cash margin per ton is calculated using the reported steel cash margin alongside sales volume. The metric increased by 162% compared to the previous quarter, even though shipments declined.
Adjusted EBITDA increased to $286 million from $95 million in the previous quarter. The figure was $94 million in the same period last year. Chairman and CEO Lourenco Goncalves said, “Q3 adjusted EBITDA is expected to more than double Q2.” Cleveland-Cliffs Inc.
Revenue climbed to $5.226 billion, an increase of 5.9% compared with the same period last year. The net loss was reduced to $134 million from $473 million. Operating cash flow totaled $230 million.
An initial free-cash-flow estimate stands at approximately $73 million, factoring in operating cash flow minus $157 million spent on property.
The shift in earnings is underscored by the balance sheet. As of June 30, long-term debt was $7.70 billion. Thursday’s market capitalisation was close to $6.31 billion.
Nucor Corp. NYSE:NUE and Steel Dynamics Inc. NASDAQ:STLD advanced as well, though their gains were more modest.
| Company | Price at 9:50 EDT | Change on day | Market cap |
|---|---|---|---|
| Cleveland-Cliffs NYSE:CLF | $11.07 | +17.1% | $6.31 billion |
| Nucor NYSE:NUE | $242.11 | +2.6% | $55.46 billion |
| Steel Dynamics NASDAQ:STLD | $244.01 | +2.3% | $35.48 billion |
Cliffs’ surge is not largely driven by peer performance. The gap indicates investors were adjusting their view of the company’s operating leverage and profit prospects.
Cliffs maintained its shipment forecast for 2026 at 16.5 million to 17 million tons. Capital spending guidance also remains at approximately $700 million. As volume projections are steady, earnings will depend primarily on price, cost and plant utilization.
Automotive clients accounted for 29% of steelmaking revenue in the second quarter. The company’s management anticipates an increase in automotive volume for the third quarter, which would distribute fixed costs across higher output.
Potential risks persist. Steel prices, import levels and demand from the auto sector are subject to rapid changes. Cliffs’ long-term debt also outweighs its present equity value.
Cash will be the next focus. Investors are looking to see if the $575 million projection leads to greater debt reduction.
