Canada
January 9, 2026
Tariffs, blast furnace wind-down push Algoma further into red
Written by Laura Miller
Algoma Steel Group Inc. is preparing to report another significant quarterly loss as it winds down its blast furnace operations and ramps up electric-arc furnace steelmaking.
In earnings guidance released on Thursday, the Canadian steelmaker said it expects to report an adjusted EBITDA loss of CA$95 million to CA$105 million (~US$68 million to US$76 million) for the fourth quarter of 2025.
The expected loss is wider than the CA$87.1 million adjusted EBITDA loss posted in the prior quarter. In Q3’25, the Sault Ste. Marie, Ontario-based company reported a net loss of CA$485.1 million.
Additionally, Algoma says Q4 shipments should be in the range of 375,000 to 380,000 short tons. That is a decline of roughly 9-11% from the previous quarter’s shipments of just over 419,000 short tons.
“Our fourth-quarter results were in line with expectations, reflecting the continued impact of steel tariffs and the previously announced wind-down of our blast furnace operations, which are expected to conclude in the coming days,” explained Algoma CEO Rajat Marwah. Recall former CEO Michael Garcia retired from his position at the end of 2025.
Marwah further revealed the company’s first electric-arc furnace (EAF) unit is now operating six days per week. And the second EAF remains “on schedule.”
“As we move toward completing our transition to EAF steelmaking during the current quarter, we continue to optimize our existing assets and advance discussions with potential partners to expand our finishing capabilities,” Marwah added.
He said the company has “deliberately aligned” its strategy with Canada’s national interest of “strengthening domestic steelmaking capacity, supporting critical infrastructure and defence supply chains, and reinforcing Canada’s long-term industrial competitiveness.”
