Algoma Steel Group (ASTL) Q2 2026 earnings summary

Executive summary

• Achieved positive adjusted EBITDA of $13.8 million (CAD 13.8 million), supported by a $45 million insurance settlement, record plate sales, and capacity utilization adjustment.

• Completed transition to EAF-based steel production, ending 125 years of blast furnace operations; Unit 1 running 24/7 and Unit 2 nearing completion.

• Revenue for Q2 2026 was $267.5 million, down from $589.7 million year-over-year, reflecting lower shipment volumes due to EAF transition and loss of U.S. market access from tariffs.

• Plate shipments hit a record for the second consecutive quarter, reaching 125,000 tons, as the company pivots to a plate-first, Canada-centric strategy.

• Maintained unique position as Canada's only discrete plate producer, with strong demand from infrastructure, construction, and defense sectors.

Financial highlights

• Steel shipments were 181,473 tons, down 61.6% year-over-year, and steel revenue was $247 million, down 54% year-over-year.

• Adjusted EBITDA margin was 5.2%, up from (5.5%) in Q2 2025.

• Net loss was $96 million, improved from $110.6 million in the prior year quarter, aided by $45 million insurance proceeds.

• Average net sales realization per ton rose 20.2% year-over-year to $1,361.

• Cost per ton of steel sold was $1,411, up from $1,144 year-over-year, due to lower fixed cost absorption.

• Direct tariff costs fell to $18.7 million from $64.1 million year-over-year.

• Total available liquidity at quarter end was approximately $437 million.

Outlook and guidance

• Plate production expected to increase as EAF ramp-up continues through 2026.

• Third quarter shipments projected to be 10%-20% lower sequentially due to scheduled downtime for Unit 2 tie-in and maintenance.

• Capacity utilization adjustments projected to be eliminated by Q4 2026.

• Upon EAF transformation completion, annual raw steel capacity is expected to reach 3.7 million tons, with a 70% reduction in carbon emissions.

• Exit 2026 production run rate targeted at 1.5–2 million tons annually, with plate production aiming for 600,000 tons in 2027.