Algoma scales back coil production as losses mount

Algoma Steel Inc.

Fourth quarter ended Dec. 31	2025	2024	Change
Net sales	$455.0	$590.3	-22.9%
Net earnings (loss)	$(364.7)	$(66.5)	-448%
Per diluted share	$(3.36)	$(0.61)	-451%
Twelve months ended Dec. 31
Net sales	$2,085.7	$2,461.7	-15.3%
Net earnings (loss)	$(984.9)	$(139.0)	-609%
Per diluted share	$(9.06)	$(1.54)	-488%

(in millions of Canadian dollars except per share)

Algoma Steel Inc. added to its mounting losses during the fourth quarter. Sales and shipments plummeted as ongoing trade tensions between Canada and the US force the Sault Ste. Marie, Ontario-based steelmaker to reconfigure its entire business model.

Results

Algoma posted Q4’25 sales of CA$455 million, down 23% from a year earlier. Shipments of 378,533 tons were off by 31%. The company’s net loss grew considerably, from CA$66.5 million in the year-ago quarter to CA$364.7 million in Q4’25.

For the year, sales were down 15% to CA$2,085.7 million, while the fourth-quarter results pushed 2025’s net loss to CA$984.9 million.

The company said the losses were “primarily due to tariff costs and lower steel shipments, particularly due to the S232 tariffs.” It also noted that the accelerated ramp-up of its electric-arc furnace steelmaking operations continues, further impacting results.

“The fourth quarter marked a pivotal moment in Algoma’s transformation,” said CEO Rajat Marwah. “While the 50% U.S. Section 232 tariffs (S232 Tariffs) created real headwinds, closing the American market to Canadian producers and driving domestic pricing well below historical norms, we responded with decisive action and emerged with a clearer, stronger strategic path forward.”

EAF pivot

Marwah said the company is encouraged by its new EAF, which is now operating on a continuous 24-hour schedule.

Algoma announced it is scaling back coil production to focus on discrete plate production. This is to align with domestic demand and to take advantage of its position as Canada’s sole producer of discrete plate, the company said.

“This strategic pivot is expected to substantially reduce tariff exposure, lower operating costs, and enhance overall cash efficiency as the EAF ramps up,” the Algoma said.

Once the EAF facilities are fully ramped, the company will have an annual raw steelmaking capacity of 3.7 million tons, equal to its downstream finishing capacity.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held various editorial positions with steel industry publications, associations, and mills since 2007. She joined the SMU team in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania.