Algoma Steel Group (ASTL) Q4 2025 earnings summary

Executive summary

• Completed transition from blast furnace to electric arc furnace (EAF) steelmaking ahead of schedule, permanently decommissioning blast furnace and coke-making operations.

• Fourth quarter and full-year 2025 results were significantly impacted by U.S. Section 232 tariffs, lower shipments, and accelerated EAF transition costs.

• EAF facility now operating 24/7, with product quality meeting specifications for both plate and coil.

• Announced a binding MOU with Hanwha Ocean for a potential US$250 million partnership, including possible beam mill development and product purchases.

• Workforce reduction of approximately 1,000 employees due to the accelerated transition away from blast furnace operations.

Financial highlights

• Q4 2025 revenue: $455.0 million (down from $590.3 million YoY); full-year 2025 revenue: $2,085.7 million (down from $2,461.7 million YoY).

• Q4 net loss: $364.7 million (vs. $66.5 million prior year); full-year net loss: $984.9 million (vs. $139.0 million prior year).

• Q4 Adjusted EBITDA loss: $95.2 million (margin -20.9%); full-year Adjusted EBITDA loss: $261.4 million (margin -12.5%).

• Q4 shipments: 378,533 tons (down 31% YoY); full-year shipments: 1,739,493 tons (down 14% YoY).

• Year-end cash: $77.5 million; unused revolving credit: $194.5 million; $417 million available under LETL Facility.

Outlook and guidance

• EAF ramp-up expected to reduce annual carbon emissions by 70% and align production with 3.7 million ton finishing capacity.

• Strategic pivot to discrete plate production aims to reduce tariff exposure and improve cash efficiency.

• Management confident in long-term benefits of EAF platform and product diversification.

• Further inventory release and cash tax recovery expected in 2026 as work-in-process inventories normalize.

• Full year 2026 shipments projected between 1 and 1.2 million tons, with a 50/50 split between plate and sheet.