Algoma Central Corporation Reports Financial Results for Fiscal 2025

Executive Summary

• Algoma Central Corporation reported FY 2025 revenue of C$761.1 M (↑8% YoY) and net earnings of C$143.0 M (↑56% YoY).
• EBITDA increased to C$231.0 M, driven by higher volumes in Domestic Dry‑Bulk and Product Tanker segments and a one‑time C$71.5 M gain from the sale of an interest in its cement carrier joint venture.
• The fleet grew to 100 vessels, with eight new deliveries in 2025 and twelve vessels under construction for 2026; outlook highlights continued growth in grain, salt, and product tanker demand, while noting potential headwinds from U.S. steel tariffs and global supply‑chain costs.

Key Details

• Financial Highlights (FY 2025 vs. FY 2024)
• Revenue: C$761,056 k vs. C$703,444 k (+8%).
• Net earnings: C$143,025 k vs. C$91,638 k (+56%).
• Basic & diluted EPS: $3.53 vs. $2.29.
• EBITDA: C$230,987 k vs. C$200,494 k (+15%).
• Segment Performance
• Domestic Dry‑Bulk: Revenue C$405,072 k (+8%); operating earnings C$55,433 k (+30%). Volume increase of 10% and revenue days up 11%.
• Product Tankers: Revenue C$177,832 k (+20%); operating earnings C$22,046 k (↑134%) due to fleet expansion from 1 to 8 vessels.
• Ocean Self‑Unloaders: Revenue C$175,520 k (−1%); operating earnings C$23,588 k (↓40%) because of reduced revenue days from increased dry‑dockings.
• One‑time Items
• Gain on sale of cement carrier JV interest: C$71,517 k.
• Impairment reversal in FY 2024: C$13,015 k (net of amortization).
• Fleet Growth
• Delivered eight vessels in 2025; reached 100‑vessel global fleet milestone.
• Twelve vessels under construction; six slated for delivery in 2026.
• Outlook 2026
• Anticipated increase in grain and salt volumes; iron ore volumes expected to decline due to U.S. steel tariffs.
• Product tanker demand projected steady; all ten Canadian‑flagged tankers expected to remain fully employed.
• Ocean Self‑Unloaders: no dry‑dockings scheduled; new self‑unloader delivery in Q2 2026.
• Joint venture earnings expected to rise with two additional cement carrier vessels and mini‑bulker fleet expansion.
• Normal Course Issuer Bid – renewed on March 21 2025 to purchase up to 2,028,391 common shares (≈5% of outstanding). No purchases made in FY 2025.
• Dividend – Board approved quarterly dividend of $0.21 per share (paid March 2 2026), a 5% increase over the prior quarter.

Notable Quotes

• “We took delivery of eight vessels and reached a significant milestone … with the addition of our 100th vessel to our global fleet.” – Gregg Ruhl, President & CEO
• “Algoma continued to demonstrate market resilience amid global uncertainty in 2025.” – Christopher Lazarz, CFO