Algoma Steel Q1 Net Loss Widens, Completes Historic EAF Transition

SEATTLE (Scrap Monster): Algoma Steel Group Inc. reported its financial results for the first quarter ended March 31, 2026, marking the completion of its historic transition from blast furnace steelmaking to electric arc furnace (EAF) production.

The company posted revenue of C$296.9 million, down from C$517.1 million a year earlier, while net loss widened to C$159.4 million from C$24.5 million. Adjusted EBITDA loss improved to C$28.7 million compared to C$46.7 million in the prior-year quarter, in line with guidance.

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CEO Rajat Marwah said the quarter marked a turning point as Algoma ended 125 years of coal-based steelmaking after permanently shutting its blast furnace on January 18. EAF Unit 1 is now fully operational on a 24-hour schedule, while Unit 2 is expected to begin production in the third quarter.

Algoma achieved record plate sales of 116,000 net tons as it advances its “plate-first” strategy, leveraging its unique position as Canada’s only producer of discrete plate steel.

The company faced C$27.4 million in direct U.S. Section 232 tariff costs during the quarter. Despite challenges, liquidity remained strong at approximately C$553 million.

Algoma expects further operational improvement as EAF production ramps up, with its modernization projected to reduce annual carbon emissions by 70% while strengthening Canada’s low-carbon steel supply chain.