Algoma Steel Group (ASTL) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw a net loss of $485.1 million and adjusted EBITDA loss of $87.1 million, reflecting steep declines in shipments, revenue, and profitability amid challenging market and operational conditions.

• The company accelerated its transition to electric arc furnace (EAF) steelmaking, achieving key milestones and targeting full commissioning in early 2026.

• U.S. Section 232 tariffs closed the U.S. market, leading to lower shipments, higher costs, and a strategic focus on Canadian markets and value-added products.

• Secured $500 million (CAD 500 million) in government-backed liquidity support and expanded a $375 million ABL credit facility to reinforce financial flexibility.

• CEO Michael Garcia announced retirement; Rajat Marwah to become CEO and Michael Moraca to become CFO effective January 2026.

Financial highlights

• Revenue for Q3 2025 was $523.9 million, down from $600.3 million year-over-year; steel revenue was $473 million, down 12.2% year-over-year.

• Adjusted EBITDA loss of $87.1 million (margin of -16.6%) and net loss of $485.1 million, primarily due to a $503 million non-cash impairment.

• Shipments totaled 419,173 tons, down 12.7% year-over-year.

• Cash used in operating activities was $117.3 million; quarter-end liquidity at $337 million.

• Tariffs expense totaled $89.7 million, with Canadian sales prices down 40% due to tariffs, reducing revenue by $32 million.

Outlook and guidance

• EAF transformation is being accelerated, with full transition and commissioning expected in early 2026.

• Expect significant inventory drawdown starting Q4 and accelerating through 2026 as transition to EAF-based supply chain continues.

• CapEx expected to decrease as Blast Furnace and Coke Batteries shut down, reducing maintenance costs.

• Working capital release of $100–150 million expected over the next year.

• EAF transformation projected to reduce annual carbon emissions by 70% and match 3.7 million tons annual capacity.