Canada's Algoma Steel Q2 revenue falls

Algoma Steel

29/07/2026 22:44

Overview
Canada steel plate producer's Q2 revenue fell yr/yr
Adjusted EBITDA for Q2 turned positive and beat analyst expectations
Results reflect shift to EAF steelmaking and loss of U.S. market access from tariffs

Outlook
Company expects second EAF unit to begin steel production in Q3 2026
Algoma expects plate production to increase as EAF ramp-up progresses through 2026
Company projects excess fixed costs to be eliminated by Q4 2026 as EAF ramp-up completes

Result Drivers
RECORD PLATE SALES - Co said it achieved a second consecutive quarter of record plate sales as it pivots to a plate-first strategy
INSURANCE SETTLEMENT - Q2 results included a C$45 mln final insurance settlement related to the January 2024 utility corridor incident
HIGHER REALIZED PRICES - Average net sales realization per ton rose 20% yr/yr, reflecting improved product mix under the plate-first strategy

Company press release: ID:nGNX70ytRN

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$267.50 mln
C$279.65 mln (2 Analysts)
Q2 Net Loss
 
C$96 mln
 
Q2 Adjusted EBITDA
Beat
C$13.80 mln
-C$54.97 mln (3 Analysts)
Q2 Adjusted EBITDA Margin
 
5.2%
 

Analyst Coverage
The one available analyst rating on the shares is "hold"

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)