Algoma Steel Group Inc. Reports Financial Results for the Three Months Ended March 31, 2026

Q1 2026 Financial Performance

• Consolidated Revenue of $296.9 million, down from $517.1 million in Q1 2025.
• Net Loss reported at $159.4 million compared to a $24.5 million loss in the prior year period.
• Operating Loss was $153.5 million; Adjusted EBITDA Loss narrowed to $28.7 million from $46.7 million previously.
• Direct Tariff Costs increased to $27.4 million compared to $10.5 million in the prior year.

Financial Impact Analysis

• The net loss of $159.4 million is primarily driven by the one-time capacity utilization charge ($90.2M) and transition costs rather than operational failure.
• Management explicitly stated this charge reflects excess fixed costs from the previous configuration which will decline sequentially.
• Adjusted EBITDA performance was in line with March 31 guidance, indicating management's cost projections are accurate.
• Revenue decline is attributed to volume reduction during transition and tariff impacts rather than pricing failure (Net Sales Realization per ton increased to $1,193 from $986).

Business Model

• Algoma Steel Group Inc. is Canada's only producer of discrete plate steel.
• Historically reliant on blast furnace/basic oxygen furnace operations; currently transitioning to Electric Arc Furnace (EAF) technology.
• Strategic pivot focuses on the Canadian market ("plate-first") due to US Section 232 tariff restrictions closing the US export channel.