Canada based Algoma Steel Group Inc. released its third quarter figures, reporting a net loss on significantly lower shipments due to multiple factors, and highlighting that, since the end of the quarter, their second Electric Arc Furnace (EAF) came online and produced its first steel on October 9.
The company reported a net loss of C$129.6 million for the third quarter, compared to a loss of C$96.0 million in the second quarter of 2026, and C$485.1 million in the third quarter of 2025. Revenue for the third quarter was C$249.4 million, down 6.8 percent quarter on quarter from C$267.5 million and down 52.4 percent year on year from C$523.9 million.
Shipments totaled 144,527 tons in the third quarter, down 20.4 percent from 181,473 tons in the second quarter and down 65.5 percent from 419,173 tons in the third quarter of 2025. Average net sales per ton rose to C$1,510. That is up 10.9 percent from C$1,361 in the previous quarter and up 33.7 percent from C$1,129 a year earlier, reflecting higher steel prices and a greater share of plate in the sales mix.
The company cited three reasons for the drop in sales and earnings. First, the transition to EAF only steelmaking is still ramping up after halting all Blast Furnace (BF) operations on January 18, 2026. Second, the impact of US Section 232 tariffs on export sales has been significant. Third, the unexpected outage at its Lake Superior Power (LSP) generating facility slowed production, even though the time was used to bring forward previously scheduled maintenance to reduce future planned downtime, as previously reported by SteelOrbis.
Chief executive officer, Rajat Marwah, acknowledged this quarter's challenges while stated, “Earlier this month, we produced first steel at EAF Unit Two, a major milestone for Algoma and the result of years of disciplined execution by our employees and contractors… We are entering the final phase of the most significant transformation in Algoma's history.”
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