Algoma Steel Group (ASTL) Q1 2025 earnings summary

Executive summary

• Q1 2025 results reflect challenging global steel market conditions, with lower realized pricing, higher production costs, and ongoing tariff and trade policy uncertainty.

• Shipments increased 4% year-over-year to approximately 470,000 tons, with plate product shipments up 11% sequentially to 91,000 tons.

• Adjusted EBITDA loss was $46.7 million, with a net loss of $24.5 million, compared to net income of $28 million in the prior year quarter.

• Construction and commissioning of the Electric Arc Furnace (EAF) project advanced, with first steel production expected in Q2 2025 and no material change to project cost or production expectations.

• Balance sheet remains strong with $226 million in cash and total liquidity of $587 million at quarter end.

Financial highlights

• Steel revenue was $463 million, down 18.5% year-over-year, with net sales realization per ton at $986, down 22% year-over-year.

• Cost per ton of steel sold averaged $1,137 in Q1, up 4% year-over-year due to higher utility costs and tariffs.

• Adjusted EBITDA margin was -9.0%, and net loss margin was -4.7% for Q1 2025.

• Cash generated by operations totaled $92.1 million, down from $121 million in the prior year period.

• Net loss per diluted share was ($0.48) for Q1 2025.

Outlook and guidance

• First steel production from EAF expected in Q2 2025, with EAF 2 production by end of 2025 and no material change to project cost or 2025 production targets.

• EAF transition expected to reduce annual carbon emissions by 70% and align raw steel capacity with finishing capacity at 3.0–3.7 million tons.

• Q2 2025 shipments expected to be higher quarter-over-quarter, with plate production approaching 100,000 tons and trending toward an annual run rate of 650,000 tons.

• Cost of production expected to decrease in Q2, with blended cost projected at $1,020–1,040 per ton.