Cleveland-Cliffs Outlines $1b Middletown Works Modernization

Corporate Action
โดย Simply Wall St·US·Read original
Summary · why it matters

Cleveland-Cliffs has drawn fresh investor attention after outlining a US$1b modernization of its Middletown Works plant, supported by a US$500m Department of Energy grant and aimed at cleaner, more efficient automotive-grade steel production. Shares recently reacted to the announcement, with a 1-day share price return of 4.93% and a 30-day share price return of 19.26%, while the year-to-date share price return is down 17.13% and the 5-year total shareholder return is down 53.75%. The most followed narrative currently values Cleveland-Cliffs at $11.65 per share, slightly above the last close of $11.27, pointing to a modest undervaluation based on detailed earnings and cash flow work discounted at 11.7%. Strategic footprint optimization, internal coke and feedstock integration, and direct moves to lower fixed costs and SG&A have already resulted in unit cost reductions, with ongoing initiatives expected to deliver further cost savings, driving enhanced free cash flow, lower leverage, and a structurally higher earnings profile through improved operating margins. Cleveland-Cliffs still faces meaningful risks if U.S. steel tariffs ease or if its blast furnace heavy footprint becomes less competitive as cleaner technologies gain traction.

Impact on stocks 1

Materials▲ · 1 stocks
Cleveland-Cliffs Inc
CLF
▲ PositiveCapitalrelevance

Outlines $1b modernization with DOE grant, cost reductions, and undervaluation narrative.

Theme Impact 1

Related news

▼

Tata Steel Seeks Fresh Government Funding as Port Talbot EAF Delayed

Tata Steel has approached the Department for Business, Innovation, Science and Technology in recent weeks to discuss a new multimillion-pound support package, according to Sky News. The request is in addition to the £500m grant awarded to Tata Steel in 2023 to build an electric arc furnace at Port Talbot, part of a £1.25bn investment in the site that was supposed to have the new EAF operational by early 2028. Delays to the grid connection timetable mean the EAF will now not be up and running until late 2028 or early 2029, and the company has calculated that rising project costs and foregone sales from the delay would significantly escalate its overall cost. The precise sum sought was unclear, though industry sources said it was likely to run to hundreds of millions of pounds, and Business Secretary Jonathan Reynolds has been briefed on the approach. The plan was aimed at preserving 5,000 steelmaking jobs across the UK, although 2,500 roles have already been lost as part of the transition, and the last of Port Talbot's blast furnaces closed in 2024. Tata Steel and the Department for Business both declined to comment.
TTST.LSE ▼
Critical Materials & Supply Chain ▼Energy Transition & Power Demand ▼
Sky News·7hRead more →
▲

Commercial Metals Targets Over $350 Million in TAG Program EBITDA Benefits by Fiscal 2027

Commercial Metals Company expects its TAG Transform, Advance, Grow program to deliver run-rate gross EBITDA benefits exceeding $250 million by the end of fiscal 2026, rising to more than $350 million by the end of fiscal 2027. Launched in 2024, the program spans more than 150 individual projects across the company's business segments and support functions, aimed at optimizing logistics, reducing input consumption, lowering costs and boosting energy efficiency. Backed by the program, CMC expects fiscal 2029 core EBITDA of $1.65 billion to $1.80 billion, a 106% surge at the midpoint from the $837 million delivered in fiscal 2025, with a core EBITDA margin of 15-16%. Separately, Cleveland-Cliffs is investing $1 billion to modernize its Middletown Works facility in Ohio, half of it funded by a $500 million U.S. Department of Energy award, while Carpenter Technology set a fiscal 2029 operating income target of $1.2 billion to $1.3 billion, up from $702 million reported in fiscal 2026. The Zacks Consensus Estimate puts CMC's fiscal 2026 sales at $9.18 billion, up 13.9% year over year, and earnings at $6.62 per share, up 111.5%.
CMC ▲CLF CRS
Critical Materials & Supply Chain ▲
Zacks Investment Research·23hRead more →
▲2impact 4

Steel Dynamics Guides Q3 Earnings to $5.34-$5.38 Per Share

Steel Dynamics expects third-quarter 2026 earnings of $5.34-$5.38 per share, well above the $3.69 it reported in the second quarter and the $2.74 it posted in the year-ago quarter. The company said stronger steel metal margins, record shipments, higher realized selling prices and lower scrap costs are projected to drive the significant sequential improvement in steel operations profitability, with healthy order activity, solid end-market demand and low customer inventories also supporting pricing conditions. Steel fabrication earnings are expected to improve modestly on higher shipments despite narrower metal spreads, and the backlog is nearly 50% above prior-year levels and extends through the first quarter of 2027, supported by demand from commercial construction, data centers, manufacturing and healthcare. Metals recycling earnings are expected to decline sequentially on lower metal spreads and slightly weaker shipments, while aluminum earnings are expected to improve meaningfully on higher shipments as the company advances its Columbus, MS aluminum flat rolled mill, where all three cold mills are operational and the first Continuous Annealing and Solution Heat line is expected to ship commercial material in the fourth quarter. Steel Dynamics has repurchased $261 million, or just under 1% of its common stock, so far in the third quarter, and is scheduled to report third-quarter 2026 results after market close on Oct. 19, 2026.
STLD ▲
Critical Materials & Supply Chain ▲
Zacks Investment Research·1dRead more →
© 2026 MarketDXNews