Algoma Steel released its fourth‑quarter 2025 financial results, reporting a net loss of C$364.7 million and GAAP earnings per share of –C$3.36, a sharp miss against analyst expectations of –C$0.61 to –C$0.70. Revenue fell 22.9% to C$455 million from C$590.3 million a year earlier, reflecting a 31.0% drop in steel shipments.
The decline was driven by a 31.0% reduction in shipments to 378,533 tons, within the company’s guidance range of 375,000‑380,000 tons. The lower volume, combined with lower domestic pricing due to U.S. Section 232 tariffs, pushed revenue down.
Adjusted EBITDA fell to a loss of C$95.2 million, a margin of –20.9%, compared with a –10.2% margin a year earlier. The widening loss reflects higher direct tariff costs of roughly C$225 million, increased raw‑material costs, and the impact of shutting down blast‑furnace operations.
The company continues its shift to electric arc furnace (EAF) steelmaking, with the first unit already operational and the second on schedule. A C$500 million government financing package from federal and Ontario sources is supporting the transition and strengthening the balance sheet.
CEO Rajat Marwah said the results were in line with expectations and that the company was “encouraged by the early performance of our first EAF.” CFO Michael Moraca noted that the government financing would help strengthen the balance sheet. Management maintained guidance for the full year, keeping adjusted EBITDA in the –C$95 million to –C$105 million range and shipments between 375,000 and 380,000 tons.
Investors reacted negatively, with the stock falling 9.35% in after‑hours trading and 3.37% on the day of the announcement, driven by the large EPS miss, widening net loss, and sharp revenue decline.
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