Algoma Steel Group Earnings Call Transcripts
Fiscal Year 2026
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Q3 adjusted EBITDA loss was $13.9 million, with underlying improvement for a second quarter despite low shipments during the EAF transition and LSP outage. Both EAF units are now in the production schedule, with Q4 shipments and underlying EBITDA expected to improve.
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Positive adjusted EBITDA was achieved, aided by insurance proceeds and a capacity utilization adjustment, despite lower shipment volumes and ongoing tariff headwinds. Plate sales hit a record, and the EAF transition nears completion, positioning for improved profitability as demand remains strong.
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Transition to electric arc furnace operations drove a challenging but strategically pivotal Q1 2026, with record plate sales, improved pricing, and a path to breakeven EBITDA by year-end. Liquidity remains strong, and strategic initiatives reinforce long-term growth.
Fiscal Year 2025
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Q4 and full year 2025 saw significant losses due to U.S. tariffs, lower shipments, and operational transition, but the EAF ramp-up and strategic pivot to the Canadian market are progressing. Plate products remain a bright spot, and liquidity is strong for ongoing transformation.
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Q3 2025 saw a CAD 87.1M Adjusted EBITDA loss and a CAD 485.1M net loss, driven by U.S. tariffs, lower shipments, and a CAD 503M impairment. The company is accelerating its EAF transition, secured CAD 500M in government support, and expects significant working capital and tax inflows next year.
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Q2 2025 saw a net loss of CAD 110.6 million and adjusted EBITDA loss of CAD 32.4 million amid severe U.S. tariffs and weak steel markets. The company achieved first steel from its EAF project, maintained strong liquidity, and is actively seeking government support while focusing on domestic market opportunities.
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Q1 2025 saw lower steel prices and higher costs, resulting in an adjusted EBITDA loss and net loss, but liquidity remains strong. Plate production ramped up, EAF project advanced despite weather delays, and tariff costs are expected to rise in Q2.
Fiscal Year 2024
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Q4 and FY2024 results were impacted by a major operational outage, but plate mill modernization and EAF project progress position the company for improved production and margin enhancement. Liquidity remains strong, with over CAD 900 million available, and FY2025 guidance anticipates higher shipments and continued ramp-up of new assets.