Canada based Algoma Steel Group Inc. (Algoma) issued its third quarter guidance addressing immediately how the impact of the power outage at Lake Superior Power (LSP) temporarily constrained electric arc furnace (EAF) production, and how third quarter results reflect lower shipment volumes and a less favorable sales mix because of it.
Algoma stated total steel shipments for the quarter are expected to be approximately 145,000 net tons in the third quarter ended September 30, 2026. Adjusted EBITDA is expected to be in the range of negative C$10 million to negative C$20 million. The adjusted EBITDA guidance includes the benefit of an expected capacity utilization adjustment of approximately C$50 million to C$55 million.
Chief financial officer, Michael Moraca, said of the period during the outage, “Consistent with our earlier updates, we used the outage period to accelerate planned maintenance and advance commissioning activities at EAF Unit Two, which will help reduce future planned downtime,” though he fully acknowledged the impact the unexpected outage caused on the quarterly results.
Chief executive officer Rajat Marwah also addressed the matter saying, “With power fully restored, planned outages behind us, our second furnace nearing commercial operation and steel prices improving, we believe that we are well-positioned as we enter the final phase of our transformation.”
Although Algoma did not give a date for their Q3 call or results, both are expected on or around October 30, 2026.
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