Canada's Algoma Steel Q2 revenue falls

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

Analyst Coverage

• The one available analyst rating on the shares is "hold"

Reuters Recommended Reads

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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.)