Algoma Steel Posts Heavy Losses as EAF Transition Accelerates

Event summary

  • Algoma Steel reported a net loss of $364.7 million for Q4 2025, up from $66.5 million in the prior-year quarter, driven by tariff costs and lower shipments.
  • Full-year 2025 revenue fell to $2.086 billion from $2.462 billion in 2024, with shipments down 14% to 1.74 million tons.
  • The company completed its transition to electric arc furnace (EAF) steelmaking, shutting down blast furnace operations ahead of schedule.
  • Algoma secured $500 million in government-backed liquidity support to support its transformation.
  • The company signed a $250 million strategic arrangement with Hanwha Ocean for potential defense and industrial projects.

The big picture

Algoma Steel's heavy losses reflect the challenges of transitioning to EAF steelmaking amid U.S. trade restrictions. The company's strategic pivot to discrete plate production and government-backed liquidity support aim to stabilize operations, but sustained tariffs and market oversupply remain significant headwinds. The $250 million partnership with Hanwha Ocean signals a push into defense and industrial sectors, aligning with broader trends in domestic supply chain development.

What we're watching

Trade Policy Impact
How sustained U.S. Section 232 tariffs will affect Algoma's ability to access the American market and stabilize pricing.
EAF Ramp-Up
The pace at which Algoma can scale its EAF operations to achieve full production capacity and cost efficiencies.
Strategic Diversification
Whether Algoma's focus on discrete plate production and partnerships like Hanwha Ocean can offset declining coil revenues.