Algoma Steel Group Q2 Earnings Call Highlights

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Thu, July 30, 2026 astatine 11:04 AM CDT 7 min read

Key Points

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Adjusted EBITDA turned affirmative astatine C$13.8 million, supported by a C$45 cardinal security settlement, though excluding that payment the institution posted an adjusted EBITDA nonaccomplishment of astir C$31 million. Revenue fell sharply twelvemonth implicit twelvemonth arsenic EAF modulation enactment reduced shipments.
Plate shipments reached a 2nd consecutive grounds of 125,000 tons, portion mean nett income realization roseate 20.2% to C$1,361 per ton. Algoma is targeting astir 600,000 tons of yearly sheet accumulation by 2027, but planned third-quarter attraction is expected to temporarily trim volumes.
The EAF modulation is nearing completion, with the 2nd portion expected to nutrient its archetypal alloy precocious successful the 3rd quarter; however, tie-in enactment and attraction should marque Q3 the measurement trough, with shipments forecast 10%–20% beneath Q2. Algoma ended the 4th with astir C$437 cardinal successful disposable liquidity and expects astir C$200 cardinal successful taxation refunds during the remainder of 2026.

Algoma Steel Group (NASDAQ:ASTL) reported affirmative adjusted EBITDA successful its 2nd 4th of 2026 arsenic the institution continued its modulation to electrical arc furnace, oregon EAF, steelmaking, though little shipment volumes and planned operational enactment stay headwinds heading into the 3rd quarter.

Chief Executive Officer Rajat Marwah said the institution generated adjusted EBITDA of C$13.8 million, wrong its anterior guidance range. The effect included a C$45 cardinal last security colony and a C$54.7 cardinal capacity-utilization accommodation related to excess fixed costs from Algoma's erstwhile operating configuration.

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"As modulation costs are falling, realized pricing is rising, and the modulation we described to you past 4th is playing retired arsenic expected," Marwah said.

Plate Sales Set Another Record

Algoma shipped 181,000 tons during the quarter, somewhat supra its guidance scope of 175,000 to 180,000 tons but down from 472,000 tons successful the prior-year quarter. Chief Financial Officer Mike Moraca attributed the diminution to the modulation to EAF-only steelmaking and the company's deliberate displacement toward the Canadian sheet market.

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The institution reported grounds sheet shipments for a 2nd consecutive quarter, reaching 125,000 tons, compared with 116,000 tons successful the archetypal quarter. Marwah said request successful infrastructure, operation and defence extremity markets remained healthy.

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