Monitor the ramp-up of EAF Unit Two and its contribution to production and shipments in Q4 2026. The resolution of the Haverhill coke supply dispute removes one legacy overhang. The 50% U.S. Section 232 tariffs remain in effect, limiting U.S. market access; the Company's pivot to a Canada-centric, plate-first strategy is key to navigating this. Watch for any further government steel support measures and the outcome of the replacement turbine financing.
Price Chart
Executive Summary
Algoma Steel reported Q3 2026 revenue of C$249.4M (down 52.4% YoY) and a net loss of C$129.6M (improved from a C$485.1M loss in Q3 2025, which included a C$503.4M impairment). Adjusted EBITDA loss was C$13.9M, in line with previously announced guidance. The results reflect the transition to EAF-only steelmaking, the impact of U.S. Section 232 tariffs, and a temporary LSP turbine outage. EAF Unit Two produced first steel on October 9, 2026, and ramp-up is underway.
Key Financial Metrics
Key Facts
- Revenue fell 52.4% YoY to C$249.4M from C$523.9M, driven by a 65.5% drop in steel shipments to 144,527 tons due to the EAF transition, tariffs, and the LSP outage.
- Net loss of C$129.6M improved from C$485.1M in Q3 2025, which included a C$503.4M non-cash impairment charge.
- Adjusted EBITDA loss of C$13.9M (margin -5.6%) improved from a C$87.1M loss (margin -16.6%) in Q3 2025, benefiting from higher steel prices, a greater share of plate shipments, and lower fixed costs.
- Average net sales realization per ton rose 33.7% YoY to C$1,510, reflecting higher steel prices and a richer product mix.
- Direct tariff costs were C$18.1M, down from C$89.7M in Q3 2025, as U.S.-bound shipments fell to 24% of total from 50%.
- Cash generated by operating activities was C$78.6M, including C$163.9M in income tax receivable collections.
- Total available liquidity at quarter end was approximately C$428M, including C$152.4M cash, C$232.5M undrawn revolver, and C$43.5M available under LETL Facilities.
- EAF Unit Two produced first steel on October 9, 2026; ramp-up is progressing as expected.
- The Company settled the Haverhill Coke Company dispute in October 2026 on confidential terms.
- No dividends were declared in Q3 2026.
Financial Impact
Revenue decline of C$274.5M YoY; net loss improved by C$355.5M YoY; Adjusted EBITDA loss improved by C$73.2M YoY.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Sheet & Strip | $42.4M | -87.0% |
| Plate | $175.8M | +19.8% |
Risk Factors
- Continued 50% U.S. Section 232 tariffs severely restrict access to the U.S. market, historically a key export destination.
- The Canadian steel market remains supply-pressured from domestic production, U.S. imports, and offshore offers at potentially below-market prices.
- EAF ramp-up may face operational challenges or delays; Unit Two only produced first steel after quarter end.
- The LSP turbine outage caused a temporary production halt; while power is restored, reliance on a single turbine for full capacity introduces operational risk.
- The Company is seeking financing for the replacement turbine; terms are not yet secured.
- Legal proceedings related to frustrated supply agreements remain ongoing; an adverse outcome could have a material adverse effect.
- The Company has a significant net pension and post-employment benefit obligation (C$268.5M total).
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001193125-26-436551 |
| Document: d154774dex992.htm | 0001193125-26-436551 |
| Document: d154774dex991.htm | 0001193125-26-436551 |
| 6-K Earnings Context (Synthetic) | 0001193125-26-436551 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 4d ago | 6-K | No price | awaiting T+5 | awaiting T+5 | No price |
Oct 28, 2026 4d ago | Press Release | $4.99 | awaiting T+5 | awaiting T+5 | $4.77 (−4.41%) |
Oct 19, 2026 13d ago | 25-NSE | $4.11 $4.80 | ▲ +16.79% | ▲ +16.71% | $4.77 (+16.06%) |
Oct 15, 2026 17d ago | 6-K | $4.03 $4.74 | ▲ +17.62% | ▲ +18.05% | $4.77 (+18.36%) |
Oct 15, 2026 17d ago | Press Release | $4.03 $4.74 | ▲ +17.62% | ▲ +18.05% | $4.77 (+18.36%) |
Oct 1, 2026 4w ago | Press Release | $4.34 $4.30 | ▲ +0.92% | ▲ +2.08% | $4.77 (−9.91%) |
Sep 2, 2026 8w ago | 6-K | $4.39 $4.30 | ▲ +1.94% | ▲ +0.98% | $4.77 (−8.78%) |
Aug 17, 2026 10w ago | 6-K | $4.09 $3.99 | ▲ +2.44% | ▲ +2.24% | $4.77 (−16.63%) |
Aug 16, 2026 11w ago | Institutional Cluster | $4.16 $4.01 | ▼ −3.61% | ▼ −2.42% | $4.77 (+14.66%) |
Jul 29, 2026 13w ago | Press Release | $3.84 $3.97 | ▼ −3.52% | ▲ +0.10% | $4.77 (−24.38%) |
US Market Status
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