Algoma Steel expects Q3 shipments of 145,000 tons

Algoma Steel Group Inc. said it expects total steel shipments for the quarter ended September 30, 2026 to be about 145,000 tons, with adjusted EBITDA in a range of negative C$10 million to negative C$20 million. The company said that guidance includes the benefit of an expected capacity utilization adjustment of about C$50 million to C$55 million.

Chief executive Rajat Marwah said the company has installed a replacement turbine at Lake Superior Power and that the plant is now operating at full power. He said Algoma appreciates the support and responsiveness of the Independent Electricity System Operator and Hydro One as it worked to restore reliable power and maintain operational continuity during the period.

Marwah 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 those impacts, including lower shipment volumes and a less favourable sales mix.

Moraca said the outage period was used to accelerate planned maintenance and advance commissioning activities at EAF Unit Two, which he said will help reduce future planned downtime.

Marwah said that with power fully restored, planned outages behind the company, the second furnace nearing commercial operation and steel prices improving, the company believes it is well-positioned as it enters the final phase of its transformation.