Canada-based steel producer, Algoma Steel, has announced its financial and operational results for the second quarter ended June 30 of the fiscal year 2025.
In the second quarter, the company registered a net loss of CAD 110.6 million, compared to net income of CAD 6.1 million in the same period last year, while its revenues totaled $589.7 million, compared to $650.5 million in the prior-year quarter, mainly due to weakening market conditions, particularly due to the Section 232 Tariffs, which impacted the Algoma’s export sales and resulted in over-supply of the Canadian market at lower prices.
In the second quarter, the company’s adjusted EBITDA was a loss of CAD 32.4 million and its EBITDA margin was 5.5 percent. The company’s shipments in Q2 totaled 472,056 mt, down by 6.5 percent from 503,152 mt in the same period last year.
In addition, as of June 30, 2025, the cumulative investment for the electric arc furnace (EAF) project was $881 million and the company expects the completion of the EAF project to be funded with cash-on-hand, cash generated through operations, and available borrowings under the company’s existing credit facility. Also, during the second quarter, the company incurred tariff-related costs of CAD 64.1 million.
Michael Garcia, Algoma’s Chief Executive Officer, said, “The second quarter of 2025 was a pivotal period for Algoma, during which we completed the preparations for our first production of Volta™—Algoma’s trademarked green steel. This milestone was realized in early July with the successful production of our inaugural steel in the first of our two state-of-the-art EAFs. While we delivered operational results for the quarter that were in line with our expectations, our financial performance continued to be impacted by ongoing tariff uncertainty and persistent weak steel market demand and pricing pressures. The uncertain market environment has created headwinds for shipments and pricing across the industry, but we remain focused on executing our strategic transformation.”
Mr. Garcia continued, “Achieving first arc and producing our first steel from the EAF in early July represents a historic accomplishment that marks the true beginning of our transition from a legacy higher-cost traditional steelmaker to one of the lowest-cost green steel producers in North America. While we can’t control market volatility and macro or geopolitical uncertainties, we are focused on what we can control: the safe operation of our assets and the completion of the EAF project, which provides us with a structural cost advantage that will serve us well through market cycles, creating lasting value for all stakeholders.”