Algoma loses money, names new CEO

Sault Ste. Marie, Ontario-based Algoma Steel Group Inc. has released results for a money-losing third quarter of 2025 on the same day it announced its current CEO will be replaced by the firm’s chief financial officer (CFO).

In this year’s third quarter, Algoma experienced a net loss of CA$485 million ($348 million), with its operating loss being even higher.

The company has spent the first half of this decade investing in a large tonnage recycled steel-fed electric arc furnace (EAF) production line. The facility has been ramping up output in 2025, just in time to see Algoma confronted by a 50 percent tariff placed on Canadian steel in the United States, where many of its current and prospective buyers are located.

“Our third-quarter results were largely in line with our previously announced guidance as we continue to navigate a challenging steel market environment,” Algoma CEO Michael Garcia says. “The U.S. steel market remains largely closed to us, and broader market conditions continue to present headwinds.”

Referring to financial support announced earlier this year from the governments of Canada and Ontario, CFO Rajat Marwah says, “The CAD$500 million in liquidity [will] provide us with long-term financial flexibility and reinforce confidence in Algoma’s future. These facilities will strengthen our balance sheet, extend our liquidity runway and support the continued execution of our strategic transformation as we diversify end markets and optimize the business during this transitional period.”

On the same day it announced its third-quarter results, Algoma announced a planned leadership transition that will see Marwah replace Garcia as CEO next January. In late 2024, Garcia informed the Algoma board of directors he was considering retirement, at which time the board initiated a succession planning process.

Marwah has been with Algoma since 2008 and has played a central role in shaping the company’s long-term strategy, capital markets initiatives and business transformation, according to the firm.

Also effective Jan. 1, 2026, Michael Moraca, currently an Algoma vice president and treasurer, will be appointed CFO. Moraca has been with Algoma for more than a decade.

“On behalf of the board, I want to thank Mike for his strong leadership during a pivotal period for Algoma,” says Andy Harshaw, the company’s board chair. “Under his tenure, the company has strengthened its foundation, advanced its EAF project, and built an exceptional team. We are pleased to welcome Rajat as CEO and have every confidence that he will lead Algoma forward with clarity and purpose.”

In the meantime, Garcia says of Algoma’s near future, “In response to current market dynamics, we are accelerating our transition to EAF steelmaking, expediting our evolution into one of North America’s lowest-cost green steel producers. While we cannot control macro challenges or market access issues, we remain focused on what we can control: the successful execution of our transformation strategy. We are confident that the flexibility and structural cost advantages we are building through our investment in green steelmaking technology will serve us well across market cycles and create lasting value for all stakeholders.”