Canada
April 1, 2026
Algoma anticipates another quarterly loss as shipments plummet
Written by Laura Miller
Algoma Steel Group Inc. released first-quarter earnings guidance, expecting to report a significant decline in shipments and adjusted EBITDA as the steelmaker continues its transition to electric-arc furnace steelmaking.
Sault Ste. Marie, Ontario-based Algoma expects to report steel shipments of ~220,000 short tons (st) for the quarter. That would mark a 42% sequential decline from 378,533 st in the previous quarter and a 53% decline from Q1’25 shipments of 469,731 st.
Along with the precipitous decline in shipments, Algoma expects negative adjusted earnings before income taxes, depreciation, and amortization, in the range of CA$-25 million to CA$-35 million (US$-18 million to US$-25 million).
To compare, the company posted adjusted EBITDA losses of CA$95.2 million in Q4’25 and CA$46.7 million in Q1’25.
The adjusted EBITDA forecast for Q1’26 includes a CA$90-95 million benefit of a capacity utilization adjustment, Algoma said. That represents excess fixed costs incurred during the quarter as the EAF ramps up.
“While near-term demand softness continues to weigh on shipment volumes, the structural cost improvements inherent to EAF steelmaking are expected to drive meaningful sequential improvement in Adjusted EBITDA,” noted Algoma CEO Rajat Marwah.
Marwah said the first quarter was “a defining moment in Algoma’s transformation” as it ended blast furnace and coke oven operations, fully transitioning to EAF steelmaking, “the culmination of years of planning and close to $1 billion of investment.”
The company reported its EAF continues to run around the clock.
Despite the losses, Algoma believes it is well-positioned as Canada’s only discrete plate producer to meet growing demand across infrastructure, construction, and defense.
