American steel is back. Cleveland-Cliffs announced its strongest quarter in three years, with adjusted EBITDA of $612 million, surpassing its own guidance by nearly $40 million. The results, driven by automotive demand, higher prices, and tariffs, mark a sharp turnaround for the domestic steel industry.
CFO Celso Goncalves summed up the quarter on an earnings call Monday: "The third quarter of this year showed what happens when price, volume, mix and cost all move in a favorable direction."
Demand Surges as Customers Chase Volume
Steel shipments reached 4.2 million net tons, up 3% from both the prior year and the previous quarter. The mix included 46% hot-rolled, 31% coated, 15% cold-rolled, 4% plate, and 4% stainless and electrical. Shipments to North American automotive customers hit their highest level since Q3 2023.
Prices climbed alongside demand, with average net selling price up $53 per ton to $1,177. "Customers are more focused on securing volume than price at the moment," Goncalves said.
Costs Fall While Capacity Runs Full
Unit costs dropped $17 per net ton, beating expectations. Goncalves credited the company's "secret sauce": running mills at full capacity to meet order books.
Cleveland-Cliffs is also pushing out a blast furnace relining at Burns Harbor, Indiana, from mid-2027 to April 2028. "By safely pushing out the reline, we can capitalize on a highly favorable commercial environment, preserve valuable production capacity during a period of strong demand and pricing, and enhance cash generation while maintaining operational reliability," Goncalves said.
Tariffs and Government Support Fuel Growth
The company's momentum is bolstered by trade protections and federal backing. Cleveland-Cliffs is advancing five operational projects, including two expansions supported by $575 million in U.S. Department of Energy grants.
With tariffs shielding domestic producers and automotive demand robust, Cleveland-Cliffs is positioned to extend its streak. For American workers and investors, the message is clear: the steel industry is firing on all cylinders again.
