Canada
July 1, 2026
Algoma guides to lower Q2 shipments, but adjusted EBITDA to show profit
Written by Ethan Bernard
Algoma Steel Group expects lower shipments in the second quarter of 2026 but anticipates adjusted EBITDA to move back into the black.
The Sault Ste. Marie, Ontario-based steelmaker said in guidance on Tuesday that steel shipments are expected to be in the range of 175,000 to 180,000 tons in Q2’26. That’s off from 223,681 tons in Q1’26 and 472,056 tons a year earlier.
However, Algoma expects second-quarter adjusted EBITDA to be between CA$5 million and CA$15 million (US$3.5 million and US$10.6 million). That’s up from a loss of CA$28.7 million in the first quarter and a loss of CA$32.4 million in Q2’25.
The company noted the guidance for adjusted EBITDA includes the benefit of a final insurance settlement amount of CA$45 million related to the coke-making utility corridor incident in January 2024, as well as an expected capacity utilization adjustment benefit of approximately CA$50-55 million.
“The second quarter of 2026 demonstrated the continued resilience of our transformed business, with record plate sales and our first electric-arc furnace (EAF) unit continuing to ramp up as expected, even as broader market conditions continued to weigh on total shipment volumes,” CEO Rajat Marwah said in a statement.
He said the company looks forward to bringing its second EAF unit online in the second half of the year and beginning its ramp-up to full expected capacity. This will complete its transformation from blast furnace to EAF steelmaker.
“While tariffs remain a structural headwind, we continue to make strong progress on our pivot to a more Canada-centric strategy, and the recent rise in steel prices is encouraging,” Marwah said.
He again highlighted Algoma’s position as Canada’s only producer of discrete plate.
“We remain well-positioned to serve growing infrastructure, construction, and defense demand,” he said.
