Algoma Steel Expects Q2 EBITDA Up to $15M
Steel News | 2026-07-01 05:57:51
Chief Executive Officer Rajat Marwah said the company delivered a solid quarter, mainly driven by record plate sales and the continued ramp-up of its first electric arc furnace (EAF).
By Paul Ploumis
SEATTLE (Scrap Monster): Canadian steelmaker Algoma Steel Group Inc. has released preliminary guidance for the second quarter of 2026. The company anticipates stable operational performance despite challenging market conditions.
The company expects total steel shipments to reach between 175,000 and 180,000 tons during the quarter ended June 30, 2026. Adjusted EBITDA is projected to range from CAD 5 million to CAD 15 million.
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Chief Executive Officer Rajat Marwah said the company delivered a solid quarter, mainly driven by record plate sales and the continued ramp-up of its first electric arc furnace (EAF). The operational performance remained strong, despite overall shipment volumes remaining under pressure due to softer market conditions. The recent rise in steel prices is encouraging, he said.
Marwah added that Algoma plans to commission its second EAF during the second half of 2026. This will mark the final stage of the company's transformation into a lower-carbon steel producer.
The CEO also acknowledged that steel tariffs continue to create challenges. However, he said Algoma is advancing its strategy of focusing more on the Canadian market. He added that rising demand from infrastructure, construction, and defence projects positions the company for future growth.
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Frequently Asked Questions
- What is Algoma Steel's Q2 2026 guidance?
The company expects steel shipments of 175,000–180,000 tons and adjusted EBITDA of CAD 5 million to CAD 15 million.
- What supported Algoma's performance during the quarter?
Record plate sales and the continued ramp-up of its first electric arc furnace helped offset softer overall market conditions.
- What are Algoma Steel's key priorities for the rest of 2026?
The company plans to commission its second EAF, complete its transition to lower-carbon steelmaking, and strengthen its focus on the Canadian market.
