Canada-based steel producer, Algoma Steel, has announced its financial and operational results for the third quarter ended September 30 of the fiscal year 2025.
In the third quarter, the company registered a net loss of CAD 485.1 million, compared to net loss of CAD 106.6 million in the same period last year, while its revenues totaled CAD 523.9 million, compared to CAD 600.3 million in the prior-year quarter, due to lower steel shipments partially offset by higher net sales realizations.
In the third quarter, the company’s adjusted EBITDA was a loss of CAD 87.1 million and its EBITDA margin was 16.6 percent. The company’s shipments in Q3 totaled 419,173 mt, down by 21.6 percent from 520,443 mt in the same period last year.
In addition, as of early July of 2025, the commissioning and ramp-up activities for Unit 1 of Algoma’s EAF project have progressed immensely. The furnace and associated melt shop assets have been performing well, achieving quality metrics across a broad range of plate and hot rolled coil product grades. The Q-One power system and other critical process components are performing as designed and supporting consistent metallurgical quality and process control. Algoma is expected to have an annual raw steel production capacity of approximately 3.7 million mt and is projected to reduce annual carbon emissions by around 70 percent.
Michael Garcia, the Algoma's Chief Executive Officer, said, "Our third quarter results were largely in line with our previously announced guidance as we continue to navigate a challenging steel market environment. The U.S. steel market remains largely closed to us, and broader market conditions continue to present headwinds. However, we have taken decisive action to strengthen our position during this period of uncertainty. Our focus remains on advancing our electric arc furnace transition, improving our cost structure, and positioning Algoma for sustainable profitability in the years ahead.”
Mr. Garcia concluded, "In response to current market dynamics, we are accelerating our transition to EAF steelmaking, expediting our evolution into one of North America's lowest-cost green steel producers. While we cannot control macro challenges or market access issues, we remain focused on what we can control, the successful execution of our transformation strategy. We are confident that the flexibility and structural cost advantages we are building through our investment in green steelmaking technology will serve us well across market cycles and create lasting value for all stakeholders.”