Algoma Steel Q2 Revenue Plunges 55% to $267.5M, Adjusted EBITDA In Line at $13.8M
ASTL sits 41% above its 52-week low of $3.02.
Summary
Algoma Steel reported Q2 2026 revenue of $267.5 million, down 55% year-over-year, as the transition to electric arc furnace (EAF) production slashed shipments to 181,473 tons from 472,056 tons. Adjusted EBITDA came in at $13.8 million, matching prior guidance, but was heavily supported by a $45 million insurance settlement and a $54.7 million capacity utilization adjustment—without these, core operations remain deeply unprofitable. The net loss narrowed to $96 million from $110.6 million a year ago, with a loss per share of C$0.88. On the positive side, the company achieved a second consecutive quarter of record plate sales, and average realized steel prices rose 20% to $1,361 per ton, reflecting the plate-first strategy. EAF unit two is nearing completion with first steel expected in Q3 2026, which should help eliminate the capacity utilization adjustment by Q4. Liquidity remains solid at $437 million, but cash burn from operations was $79.4 million, and the 50% U.S. Section 232 tariffs continue to effectively foreclose traditional access to the U.S. market, making the pivot to a Canada-centric, plate-first strategy critical.
At the time of this announcement, ASTL was trading at $4.27 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $450M. The 52-week trading range was $3.02 to $6.18. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.