Canada's Algoma Steel Q1 net loss widens on lower steel shipments, elevated tariff costs

ReutersMay 12, 2026 9:43 PM

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Overview

Canada steel plate producer's Q1 revenue declined yr/yr, missing sole analyst estimate
Q1 adjusted EBITDA loss narrowed and beat analyst expectations
Company's Q1 net loss widened to $159.4 million, compared to a net loss of $24.5 million last year

Outlook

Algoma expects improvement in results as EAF Unit 1 ramps up and Unit 2 is commissioned
Company expects capacity utilization charge to decline and be eliminated by Q4 2026
Algoma expects plate production to increase sequentially through 2026 as EAF ramp-up continues

Result Drivers

EAF TRANSITION COSTS - Co said lower shipments and elevated tariff costs were due to the transition from blast furnace to electric arc furnace steelmaking
HIGHER TARIFFS - Direct tariff costs rose to C$27.4 mln from C$10.5 mln in the prior-year quarter, impacting results
PLATE SALES AND PRODUCT MIX - Record plate sales and improved product mix partially offset lower volumes and higher costs

Company press release: ID:nGNX6MN86p

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue		C$296.90 mln	C$335.40 mln (1 Analyst)
Q1 EPS		-C$1.46
Q1 Net Income		-C$159.40 mln
Q1 Adjusted EBITDA	Beat	-C$28.70 mln	-C$79.97 mln (3 Analysts)
Q1 Operating Income		-C$153.50 mln

Analyst Coverage

The one available analyst rating on the shares is "hold"

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

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