Canada's Algoma Steel Q3 adjusted EBITDA loss narrows on reduced fixed costs
Overview
Canada steel producer's Q3 revenue fell sharply yr/yr amid EAF transition
Q3 adjusted EBITDA loss narrowed
Company restored full power at Lake Superior and began ramping up second EAF unit
Outlook
Company expects EAF Unit Two to contribute to production and shipments in Q4 2026
Algoma aims to increase production toward full capacity to meet infrastructure and defence demand
Leased turbine installation expected in Q4 2026, with no interruption to steelmaking operations
Result Drivers
PLATE-FIRST STRATEGY - Co said higher steel prices and increased plate sales mix helped drive net sales realization
LOWER FIXED COSTS - Co said reduced labour and other fixed costs contributed to improved adjusted EBITDA loss
LOWER SHIPMENTS - Co attributed lower shipments to EAF transition, U.S. Section 232 tariffs, and LSP outage
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | C$249.4 mln | ||
Q3 Loss Per Share | C$1.18 | ||
Q3 Net Loss | C$129.6 mln | ||
Q3 Adjusted EBITDA | -C$13.9 mln | ||
Q3 Operating Income | -C$94.5 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
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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.)