Canada
July 30, 2026
Algoma narrows losses in Q2, highlights EAF transition
Written by Kristen DiLandro
Algoma Steel Inc.
| Second quarter ended June 30 | 2026 | 2025 | % Change |
|---|---|---|---|
| Net sales | $267.5 | $589.7 | -54.6% |
| Net earnings (loss) | ($96.0) | ($110.6) | 13.2% |
| Per diluted share | ($0.88) | ($1.02) | 13.7% |
| Six months ended June 30 | |||
| Net sales | $564.4 | $1,106.8 | -49% |
| Net earnings (loss) | ($34.3) | ($26.6) | 28.9% |
| Per diluted share | ($2.34) | ($1.24) | 88.7% |
Algoma Steel narrowed its net loss by 13% in the second quarter as the company’s electric-arc furnace (EAF) steelmaking ramped up further.
The Sault Ste. Marie, Ontario-based steelmaker posted a net loss of Canadian $96.0 million (USD$68.5 million) in the second quarter. Net sales fell 55% to CAD$267.5 million in the same comparison.
Shipments decreased to 181,473 short tons (st) in Q2 from 472,056 st in the prior-year quarter, reflecting its pivot towards Canadian plate market sales and the transition to EAF steelmaking exclusively.
Algoma’s leadership flagged trade relations between the US and Canada.
“While the 50% US Section 232 tariffs continue to effectively foreclose our traditional access to the US market, our pivot to a Canada-centric, plate-first strategy is working,” Algoma CEO Rajat Marwah said in a statement on Wednesday. “The second quarter demonstrated the resilience of our transformed business against a stubbornly challenging industry backdrop.”
Marwah added, “With commissioning activities commencing at the second EAF unit and first steel expected in the third quarter, we are entering the final phase of the most significant transformation in Algoma’s history.”
During the second quarter, Algoma and its insurers reached a financial resolution regarding the insurance claim arising from the January 2024 structural utility corridor collapse.
Algoma said the parties reached a full and final settlement of CAD$145.0 million, net of applicable deductibles. Of that amount, CAD$45.0 million was recognized in other income during the quarter.
