Algoma Steel Announced Notable Revenue Drop in Fiscal Q2
Steel News | 2024-11-11 20:06:44
A press release from the company stated that it had a net loss of $106.6 million as opposed to a net income of $31.1 million for the same quarter last year.
By Paul Ploumis
SEATTLE (Scrap Monster): Results for the second quarter of fiscal 2025, which concluded on September 30, 2024, were released by Algoma Steel Group Inc., a prominent manufacturer of hot and cold rolled steel sheet and plate products with headquarters in Ontario.
For the quarter, the company's consolidated revenue was $600.3 million. This is in contrast to the $732.6 million in revenue from the same period last year. Reduced steel shipments and realized prices are the primary causes of the revenue drop. The quarter's consolidated loss from operations was $83.6 million, while the same quarter in fiscal 2024 saw income of $36.8 million.
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A press release from the company stated that it had a net loss of $106.6 million as opposed to a net income of $31.1 million for the same quarter last year. Year-over-year, the adjusted EBITDA decreased from $81.0 million to $3.5 million. Additionally, in the second quarter of fiscal 2025, the EBITDA margin decreased from 11.1% in the previous year to 0.6%.
Algoma Steel Group's businesses produced $25.5 million in cash flows. Compared to 548,998 tons in the same quarter last year, the shipments came to 520,443 tons, a 5.2% decrease. As of September 30, 2024, there was $800 million in the liquidity position.
Algoma Steel CEO Michael Garcia stated that despite ongoing market challenges, the company produced strong operational performance.
