Algoma Steel sees Q3 adjusted EBITDA at negative C$10M to C$20M

Algoma Steel Group Inc. said on Thursday that it expects third-quarter steel shipments of about 145,000 tons and adjusted EBITDA of between negative C$10 million and negative C$20 million for the quarter ended September 30, 2026. The company said that guidance includes an expected capacity utilization adjustment of about C$50 million to C$55 million.

Chief executive Rajat Marwah said Algoma has installed a replacement turbine at Lake Superior Power and that the plant is now operating at full power. He said all electrical equipment on EAF Unit Two has been tested and that the company expects first heat in the coming days as it moves toward production and shipments from Unit Two in the fourth quarter.

Chief financial officer Michael Moraca said the Lake Superior Power turbine outage temporarily constrained electric arc furnace production and was expected to affect shipment volumes. He said the third-quarter results reflect lower shipment volumes and a less favourable sales mix, and that Algoma used the outage period to accelerate planned maintenance and advance commissioning activities at EAF Unit Two, which should help reduce future planned downtime.

Marwah also said planned outages are behind the company, its second furnace is nearing commercial operation and steel prices are improving.