Algoma Steel Reports Narrower Loss as EAF Transition Progresses
Event summary
- Algoma Steel reported a net loss of $96 million for Q2 2026, narrower than the $110.6 million loss in Q2 2025.
- Adjusted EBITDA reached $13.8 million, supported by record plate sales and a $45 million insurance settlement.
- EAF Unit Two construction is nearing completion with first steel production expected in Q3 2026.
- Revenue declined to $267.5 million from $589.7 million due to the transition from blast furnace operations.
- U.S. Section 232 tariffs continue to disrupt traditional cross-border business, reducing U.S. shipments to 23% of total.
The big picture
Algoma Steel is navigating a pivotal transition from blast furnace to EAF steelmaking, aiming to reduce carbon emissions by 70%. The shift comes amid persistent trade disruptions from U.S. tariffs, forcing a strategic pivot toward the Canadian plate market. The company's ability to capitalize on infrastructure and defense demand will be critical as it completes its transformation.
What we're watching
- Execution Risk
- Whether Algoma can sustain profitability as it completes the EAF ramp-up and eliminates excess fixed costs.
- Market Dynamics
- How the Canadian steel market will respond to Algoma's plate-first strategy amid supply pressures.
- Regulatory Headwinds
- The potential impact of ongoing U.S. Section 232 tariffs on Algoma's ability to access the U.S. market.