Algoma Steel Reports Q2 2026 Results Amid Transition to Electric Arc Furnaces
Algoma Steel Group Inc. (ASTL) reported its second-quarter financial results, marking a significant transitional period as the company shifts toward electric arc furnace (EAF) steelmaking. Despite reporting a net loss of $129.6 million and an adjusted EBITDA loss of $13.9 million, these figures represent a substantial improvement over the prior-year quarter's losses. The results were impacted by lower production volumes due to a Lake Superior Power outage and a strategic shift toward Canadian plate markets to mitigate 50% U.S. Section 232 tariffs. Looking ahead, management expects a significant ramp-up in production for the fourth quarter as the second EAF unit comes online. The company maintains strong liquidity with $428 million available and has received $124.5 million in government loan advances. With power restored and new equipment being integrated, Algoma aims to reach an exit production rate of 1.5 to 1.6 million tons by the end of next year.