Cleveland-Cliffs Q3 EBITDA guide $575M, sub-2.5x leverage target

Cleveland-Cliffs (CLF) reported second-quarter adjusted EBITDA of $286 million and positive free cash flow. The steelmaker guided third-quarter adjusted EBITDA to $575 million on the earnings call. The company also reiterated a goal of reducing net leverage to below 2.5 times by next year.

The Q2 results came in a challenging pricing environment. The company generated free cash flow despite the conditions. The Q3 outlook implies a sequential improvement of more than double the second-quarter figure.

The leverage target shows the company expects continued cash flow generation to pay down debt. Cleveland-Cliffs has been working to strengthen its balance sheet after the AK Steel and ArcelorMittal USA acquisitions.

The earnings call covered market conditions and the company's cost structure. No specific volume or pricing guidance was provided beyond the EBITDA range.