Steel Mills

Algoma sees narrower Q2 loss but feels tariff sting

July 16, 2025

Algoma Steel expects a narrower sequential loss in the second quarter, but the company continues to be impacted by the US tariff situation.

The Sault Ste. Marie, Ontario-based steelmaker issued Q2’25 guidance for an adjusted EBITDA loss in the range of CAD$30 million to CAD$35 million (USD$22 million to $26 million). That compares to a loss of CAD$46.7 million in the previous quarter and adjusted EBITDA of CAD$37.7 million a year earlier.

Additionally, the company expects shipments of ~472,000 short tons in Q2’25. That’s up marginally from 469,731 st in the first quarter but down 6% from 503,152 st in the same period last year.

“Macroeconomic uncertainties and tariff policy continue to impact our sector,” Algoma CEO Michael Garcia said in a statement on Tuesday.

He added that, having achieved the first arc and first steel production from unit one of its EAF project, “We are forging ahead with our transformation into what is expected to be one of North America’s greenest producers of steel.”

As previously reported, Algoma began steel production on one of its two new EAFs last week.

Garcia noted that the Q2’25 guidance was in line with expectations and the company continues to experience strength in its plate business.

Recall that Algoma recently changed its financial calendar, with calendar Q2’25 corresponding to its fiscal Q1’25 a year ago.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.