Algoma losses deepen in Q4

Algoma Steel Group Inc., based in Sault Ste. Marie, Ontario, has released its fourth quarter and full year 2025 financial results, emphasizing that the shutdown of its blast furnace is complete and that it has fully transitioned to electric arc furnace (EAF) steelmaking.

The transition has occurred at the same time the Trump administration has made it cost prohibitive for U.S. steel purchasers to buy Canadian steel, placing a 50 percent tariff on the products.

Algoma’s financial figures for the fourth quarter and full year reflect the difficulties caused by those two coinciding circumstances.

In 2025, Algoma’s revenue of slightly more than CAD$2 billion ($1.46 billion) represented a 15 percent decline from the 2024 figure. The company says its net loss last year of about CAD$985 million ($719 million) marked a nearly 86 percent increase from the CAD$139 million ($101.5 million) lost in 2024.

Algoma’s difficulties continued into the fourth quarter, with the steelmaker losing nearly CAD$365 million ($266 million).

“The fourth quarter marked a pivotal moment in Algoma’s transformation,” Algoma CEO Rajat Marwah says. “While the 50 percent U.S. Section 232 tariffs created real headwinds, closing the American market to Canadian producers and driving domestic pricing well below historical norms, we responded with decisive action and emerged with a clearer, stronger strategic path forward.

“Operationally, we are encouraged by the early performance of our first EAF. The facility is now operating on a continuous 24-hour schedule, with furnace and melt shop systems performing as designed and product quality meeting specifications across both plate and hot-rolled coil grades.”

Algoma likely is using considerable volumes of ferrous scrap in its production, having reached a scrap supply joint venture arrangement with Ontario-based Triple M Metal in 2021.

“Successfully producing high-quality sustainable steel from the EAF at scale represents a critical milestone in our multiyear transition and reinforces our confidence in the long-term benefits of the new operating platform,” Marwah says.

“The recently announced CAD$500 million government liquidity facility strengthens our balance sheet as we ramp up EAF steelmaking and provides financial flexibility to pursue strategic opportunities supporting Canada’s emerging first-tier industrial and defense supply chains,” Chief Financial Officer Michael Moraca says.

Algoma says the successful ramping up of its EAF melt shop and system has coincided with its decision to wind down its blast furnace and coke oven operations ahead of the originally planned 2027 timeline, with production through that route ceasing shortly after Dec. 31, 2025.

“All liquid steel produced is now coming from the EAF facility," the firm says.

Without offering any revenue or income guidance, Marwah concludes, “As Canada’s sole producer of discrete plate, supported by our new EAF platform and modernized plate mill, Algoma is well positioned to play an important role in developing domestic steel capability for key strategic sectors while creating long-term value for our stakeholders.”