Steel Mills

Algoma posts narrower Q4 loss, braces for tariff impact as US shipments pause
Written by Ethan Bernard
March 12, 2025
Algoma Steel Inc.
Fourth quarter ended Dec. 31 | 2024 | 2023 | Change |
---|---|---|---|
Net sales | $590.3 | $615.4 | -4.1% |
Net earnings (loss) | $(66.5) | $(84.8) | 21.6% |
Per diluted share | $(0.61) | $(0.78) | 21.8% |
Full year ended Dec. 31 | |||
Net sales | $1,841.1 | $2,795.8 | -34.1% |
Net earnings (loss) | $(167.0) | $105.2 | -259% |
Per diluted share | $(1.54) | $0.70 | -320% |
Algoma Steel’s net loss narrowed in the fourth quarter vs. a year earlier amid economic uncertainty and tariff-related issues.
The Sault Ste. Marie, Ontario-based steelmaker posted a net loss of Canadian $66.5 million (US$46.2 million) in Q4’24, compared with a loss of CA$84.8 million a year earlier. Net sales fell 4% to CA$590.3 million (US$411 million) in the same comparison.
Shipments of 2,023,363 short tons (st) in Q4’24 declined 8% year over year.
EAF transition
Algoma CEO Michael Garcia said that despite economic headwinds, the company has kept a focus on two priorities: safety and the transition from a blast furnace to EAF steelmaker.
“I’m thrilled we are rapidly approaching the first arc in furnace one, with first steel production still expected in April,” he said in a statement after market close on Wednesday.
“We are about to enter the transition phase of the project, with rising steel production from the EAF augmenting output from our traditional blast furnace operations on the way to processing all of our steel through the EAFs around the end of 2026,” he added.
Garcia commented that a milestone in the project was reached in the fourth quarter with the commencement of cold commissioning.
The company said it has now contracted “substantially all remaining expected project costs.”
The cumulative investment stood at CAD$740.2 million as of Dec. 31. This includes CAD$67.8 million during Q4’24.
The contracted commitments now total ~CAD$880 million. This puts it “within 5% of the upper end of the previously announced budget range,” Algoma said.
Following the EAF transition, Algoma’s facility is expected to have an annual raw steel production capacity of ~3.7 million tons, “matching its downstream finishing capacity.”
The switch to EAF steelmaking is seen reducing the company’s annual carbon emissions by ~70%.
Tariff ‘turbulence’
Garcia noted that the transition comes amid “turbulence” in the North American market due to the evolving tariff situation on Canadian steel and aluminum imports to the US.
However, he said: “Given the deeply integrated North American supply chain, we believe rational dialogue will prevail between these close allies, restoring normal steel trade.”
Still, the Section 232 tariffs went into effect on Wednesday, March 12, though there has been another 30-day reprieve from a blanket tariff on Canadian imports.
Algoma said it is assessing the impact of all these tariffs and tariff threats. However, the company explained that the tariffs “are expected to have a material and adverse impact on the company’s financial position, results of operations and liquidity.”
An estimate of that impact could not be made at this time.
Algoma has temporarily paused shipments to the US. The company was waiting for the outcome of a meeting in Washington, D.C., between Canadian and US officials on Thursday, according to a report in the Sault Star.
A spokesperson with Algoma confirmed the media reports with SMU on Wednesday evening.
“At this time we have temporarily paused shipments to the US as we await outcome of discussions between Canadian and US Officials on Thursday,” the spokesperson said. “While Algoma won’t speculate on the meeting between officials, we think discussions between the two nations are a positive sign.”
The spokesperson noted the Algoma team remains in close consultation with its customers and the government “regarding the challenges this will present to our business.”
“We applaud the (Canadian) federal government on the swift action on steel and aluminum but note more needs to be done with respect to unfairly traded imports from the rest of the world,” the spokesperson concluded.

Ethan Bernard
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