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Canada's Algoma Steel Q3 adjusted EBITDA loss narrows on reduced fixed costs

By Reuters News


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.


Reuters Recommended Reads

  • Oct 26 - Nucor beats Q3 sales estimates on steel mills unit growth

  • Oct 28 - Canada reports limited progress in trade talks with US

  • Oct 27 - Freeport-McMoRan Q3 revenue rises on higher copper prices


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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