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Algoma Steel Group (ASTL) investor relations material
Algoma Steel Group Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Achieved first steel production from the Electric Arc Furnace (EAF) project in July 2025, marking a major transformation milestone.
Faced challenging global steel market conditions, with significant impact from escalating U.S. tariffs and lower realized prices.
Net loss of $110.6M in Q2 2025, a significant decline from net income of $6.1M in the prior year quarter.
Maintained liquidity over $400M, with $82–83M in cash and $329M available under the revolving credit facility.
Strategic focus on ramping up EAF, optimizing product mix, and targeting domestic opportunities in defense, infrastructure, and clean manufacturing.
Financial highlights
Adjusted EBITDA loss of $32.4M (margin -5.5%) in Q2 2025, compared to positive $37.7M (margin 5.8%) year-over-year.
Steel revenue of $534M in Q2 2025, down 10.5–11% year-over-year, but up 15% sequentially.
Shipments were 472,000–472,056 tons, down from 503,000–503,152 tons in Q2 2024.
Cash used in operations totaled $37.9M, versus $12M generated in the prior year.
Tariff costs totaled $64.1M in the quarter, with U.S. shipments representing 54% of total volumes.
Outlook and guidance
EAF transition expected to add incremental tonnage, improve cost structure, and reduce annual carbon emissions by 70%.
Finished steel output expected to rise to 2.4–2.5M NT during transition, reaching 3.0–3.7M NT post-2027.
Maintenance CapEx expected at the lower end of $80–120M if weak market persists.
Company is exploring liquidity tools, including a $500M federal loan application.
Board will continue to evaluate future dividend declarations based on capital needs and financial performance.
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