Algoma earnings tumble in Q1, tariff woes continue

Algoma Steel Inc.

First quarter ended March 31	2026	2025	% Change
Net sales	$296.9	$517.1	-42.6%
Net earnings (loss)	$(159.4)	$(24.5)	-550.6%
Per diluted share	$(1.46)	$(0.48)	-204.2%

(in millions of Canadian dollars except per share)

Algoma Steel’s profits fell precipitously in the first quarter as the company fully transitioned to electric-arc furnace (EAF) steelmaking and was impacted by a negative tariff environment.

The Sault Ste. Marie, Ontario-based steelmaker posted a net loss of Canadian $159.4 million (USD$116.1 million) in the first quarter, widening 551% from a loss of CAD$24.5 million a year earlier. Net sales fell 43% to CAD $296.9 million in the same comparison.

Shipments of 223,681 short tons (st) in Q1’26, down 52% from 469,731 st a year earlier, reflect the transition to EAF-only steelmaking and the pivot toward the Canadian plate market, Algoma said.

The company noted its year-over-year earnings were hit by the full transition to EAF steelmaking and the continuing effect of US steel tariffs.

“The first quarter of 2026 represented a genuine turning point for Algoma,” Rajat Marwah, Algoma CEO, said in a statement on Tuesday. “We permanently closed our blast furnace on Jan. 18, bringing 125 years of coal-based steelmaking to an end and completing what we set out to do: transform this company into a modern, low-carbon steel producer.”

Tariff response

Algoma said it had direct tariff costs of CAD$27.4 million in Q1’26 vs. CAD$10.5 million a year earlier.

“The 50% US Section 232 tariff on steel imports from Canada continued to define the operating landscape in the first quarter of 2026,” the company said.

Shipments to the US were 28% of total steel volumes in the quarter. That compares to the historical range of ~45–55%.

Algoma reiterated its commitment to concentrate on the production of discrete plate, where it enjoys a “pricing premium and a unique market position” as the only Canadian producer.

The company said it had record plate sales of 116,000 st in the quarter, with further upside expected as its “plate-first” strategy scales up.

EAF transition

Q1’26 was the first full quarter where all liquid steel production was sourced entirely from the company’s EAF facility.

Algoma said ramp-up activities are progressing in line with expectations and operations are currently running on a full 24-hour-per-day schedule.

“Construction activities on the second EAF unit are nearing completion with steel production expected in the third quarter of 2026,” the company said.

It added that plate demand from infrastructure, construction, and defense end-markets remained healthy in Q1.

Algoma expects plate production to increase sequentially as the EAF ramp-up continues through 2026.

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.