Algoma Steel Group Reports Financial Results for the First Quarter 2025
Algoma Steel Group reported its Q1 2025 financial results, with consolidated revenue of $517.1 million and shipments of 470K tons. The company posted a net loss of $24.5 million and an Adjusted EBITDA loss of $46.7 million, which includes a $50 million insurance proceeds receivable.
Key highlights include an 11% quarter-over-quarter increase in plate product shipments and the anticipated first steel production from their new Electric Arc Furnace (EAF) during Q2 2025. The company maintains its total project cost estimates and 2025 EAF production expectations despite winter-related delays.
The quarter faced challenges including U.S. tariff uncertainty and subdued market conditions. Algoma incurred $10.5 million in tariff costs and experienced higher natural gas and electric power pricing. The company's EAF transformation aims to reduce annual carbon emissions by 70% and achieve a raw steel production capacity of 3.7 million tons. A quarterly dividend of US$0.05 per share was declared.
Algoma Steel Group ha comunicato i risultati finanziari del primo trimestre 2025, con ricavi consolidati pari a 517,1 milioni di dollari e spedizioni di 470.000 tonnellate. L'azienda ha registrato una perdita netta di 24,5 milioni di dollari e una perdita di EBITDA rettificato di 46,7 milioni di dollari, che include un credito assicurativo di 50 milioni di dollari.
I punti salienti comprendono un aumento dell'11% su base trimestrale nelle spedizioni di prodotti in lastra e la prevista prima produzione di acciaio dal nuovo forno elettrico ad arco (EAF) nel secondo trimestre 2025. Nonostante ritardi legati all'inverno, la società conferma le stime sui costi totali del progetto e le aspettative di produzione dell'EAF per il 2025.
Il trimestre ha affrontato sfide come l'incertezza sulle tariffe negli Stati Uniti e un mercato debole. Algoma ha sostenuto costi tariffari per 10,5 milioni di dollari e ha registrato un aumento dei prezzi del gas naturale e dell'energia elettrica. La trasformazione con l'EAF mira a ridurre le emissioni di carbonio annuali del 70% e a raggiungere una capacità di produzione di acciaio grezzo di 3,7 milioni di tonnellate. È stato dichiarato un dividendo trimestrale di 0,05 dollari USA per azione.
Algoma Steel Group informó sus resultados financieros del primer trimestre de 2025, con ingresos consolidados de 517,1 millones de dólares y envíos de 470 mil toneladas. La compañía registró una pérdida neta de 24,5 millones de dólares y una pérdida de EBITDA ajustado de 46,7 millones de dólares, que incluye un ingreso por seguros por 50 millones de dólares.
Los aspectos clave incluyen un aumento del 11% trimestral en los envíos de productos de planchas y la esperada primera producción de acero de su nuevo horno de arco eléctrico (EAF) durante el segundo trimestre de 2025. La empresa mantiene sus estimaciones totales de costos del proyecto y expectativas de producción del EAF para 2025, a pesar de los retrasos relacionados con el invierno.
El trimestre enfrentó desafíos como la incertidumbre sobre aranceles en EE.UU. y condiciones de mercado débiles. Algoma incurrió en costos arancelarios de 10,5 millones de dólares y experimentó un aumento en los precios del gas natural y la electricidad. La transformación con el EAF busca reducir las emisiones anuales de carbono en un 70% y alcanzar una capacidad de producción de acero crudo de 3,7 millones de toneladas. Se declaró un dividendo trimestral de 0,05 dólares estadounidenses por acción.
Algoma Steel Group는 2025년 1분기 재무 실적을 발표했으며, 연결 매출액은 5억 1,710만 달러이고 출하량은 47만 톤이었습니다. 회사는 2,450만 달러의 순손실과 4,670만 달러의 조정 EBITDA 손실을 기록했으며, 여기에는 5,000만 달러의 보험 수익금이 포함되어 있습니다.
주요 내용으로는 판재 제품 출하량이 전분기 대비 11% 증가했으며, 2025년 2분기에 새 전기로(EAF)에서 첫 강철 생산이 예상된다는 점이 있습니다. 회사는 겨울 관련 지연에도 불구하고 총 프로젝트 비용 추정치와 2025년 EAF 생산 기대치를 유지하고 있습니다.
이번 분기는 미국 관세 불확실성과 시장 침체라는 도전에 직면했습니다. Algoma는 1,050만 달러의 관세 비용을 부담했고 천연가스 및 전력 가격 상승도 경험했습니다. EAF 전환은 연간 탄소 배출량을 70% 감축하고 원강 생산 능력을 370만 톤으로 달성하는 것을 목표로 합니다. 분기별 주당 0.05달러의 배당금도 선언되었습니다.
Algoma Steel Group a publié ses résultats financiers du premier trimestre 2025, avec un chiffre d'affaires consolidé de 517,1 millions de dollars et des expéditions de 470 000 tonnes. La société a enregistré une perte nette de 24,5 millions de dollars et une perte d'EBITDA ajusté de 46,7 millions de dollars, incluant un produit d'assurance à recevoir de 50 millions de dollars.
Les points clés incluent une augmentation de 11 % des expéditions de produits en plaque par rapport au trimestre précédent et la première production d'acier attendue de leur nouveau four à arc électrique (EAF) au cours du deuxième trimestre 2025. La société maintient ses estimations de coûts totaux du projet et ses prévisions de production pour l'EAF en 2025 malgré des retards liés à l'hiver.
Le trimestre a été marqué par des défis tels que l'incertitude sur les tarifs américains et des conditions de marché faibles. Algoma a supporté des coûts tarifaires de 10,5 millions de dollars et a connu une hausse des prix du gaz naturel et de l'électricité. La transformation EAF vise à réduire les émissions annuelles de carbone de 70 % et à atteindre une capacité de production d'acier brut de 3,7 millions de tonnes. Un dividende trimestriel de 0,05 USD par action a été déclaré.
Algoma Steel Group meldete seine Finanzergebnisse für das erste Quartal 2025 mit einem konsolidierten Umsatz von 517,1 Millionen US-Dollar und Lieferungen von 470.000 Tonnen. Das Unternehmen verzeichnete einen Nettoverlust von 24,5 Millionen US-Dollar und einen bereinigten EBITDA-Verlust von 46,7 Millionen US-Dollar, einschließlich einer Versicherungsforderung in Höhe von 50 Millionen US-Dollar.
Wichtige Highlights sind ein 11%iger Anstieg der Plattenproduktlieferungen im Quartalsvergleich sowie die erwartete erste Stahlproduktion aus ihrem neuen Lichtbogenofen (EAF) im zweiten Quartal 2025. Trotz winterbedingter Verzögerungen hält das Unternehmen seine Gesamtkostenschätzungen für das Projekt und die Produktionserwartungen für den EAF im Jahr 2025 aufrecht.
Das Quartal war von Herausforderungen wie der Unsicherheit bezüglich US-Zöllen und einem schwachen Marktumfeld geprägt. Algoma hatte Zollkosten in Höhe von 10,5 Millionen US-Dollar und erlebte höhere Preise für Erdgas und Strom. Die EAF-Transformation zielt darauf ab, die jährlichen CO2-Emissionen um 70% zu reduzieren und eine Rohstahlproduktionskapazität von 3,7 Millionen Tonnen zu erreichen. Eine Quartalsdividende von 0,05 US-Dollar je Aktie wurde angekündigt.
- Insurance proceeds receivable of $50M expected in Q2 2025
- 11% quarter-over-quarter increase in plate product shipments to 91K tons
- Overall shipments increased 4.2% to 469,731 tons vs prior year
- Strong liquidity position with $226.5M cash and $360.9M unused credit facility
- EAF transformation on track with no material change in total project cost
- Expected 70% reduction in annual carbon emissions after EAF completion
- Net loss of $24.5M compared to net income of $28.0M in prior year
- Revenue declined to $517.1M from $620.6M year-over-year
- Adjusted EBITDA loss of $46.7M vs positive $41.5M in prior year
- Higher costs: $1,137 per ton vs $1,091 in prior year
- Lower steel pricing: $986 per ton vs $1,260 in prior year
- Tariff costs of $10.5M impacting margins
- EAF project delays due to harsh winter conditions
- Market volatility and tariff uncertainty affecting operations
Insights
Algoma Steel reported a $24.5M loss despite $50M insurance receivable, facing pricing pressure and tariff costs while maintaining dividend and advancing EAF project.
Algoma Steel's Q1 2025 results reveal significant operational challenges, with a net loss of $24.5 million compared to net income of $28.0 million in the prior-year quarter. The Adjusted EBITDA loss of $46.7 million (including a $50 million insurance receivable) represents a stark reversal from the $41.5 million positive EBITDA in Q1 2024. Without this insurance benefit, the actual operational performance would be substantially worse.
Revenue declined to $517.1 million from $620.6 million year-over-year, primarily due to pricing pressure in weakening market conditions. Average realized steel price dropped to $986 per ton, a significant decrease from $1,260 in the prior-year period. This price deterioration more than offset the modest 4.2% increase in shipment volumes to 469,731 tons.
The $10.5 million in tariff costs directly impacted profitability, reflecting the U.S. Section 232 tariffs on Canadian steel. These tariffs are creating price imbalances between U.S. and Canadian markets while increasing competitive pressure from imports into Canada – a structural challenge that may persist.
Despite these headwinds, Algoma maintains solid liquidity with $226.5 million in cash and $360.9 million in unused credit availability. The company continues to generate positive operating cash flow of $92.1 million, though down from $121.2 million in the prior-year quarter. The maintained quarterly dividend of US$0.05 per share suggests management confidence in the medium-term outlook despite current difficulties.
Algoma's EAF transition advances to Q2 production despite winter delays, promising 70% emissions reduction while navigating tariff-driven market volatility.
Algoma's transformative Electric Arc Furnace project represents a fundamental shift in its production capability and environmental footprint. Despite experiencing delays from unusually harsh winter conditions, the company has made significant progress by commissioning critical systems including the Fume Treatment Plant and Water Treatment Plant, positioning the furnace, and energizing the substation.
The company now expects first steel production from the initial EAF during Q2 2025, with no material change to the total project cost or 2025 production expectations. This is a crucial milestone in Algoma's strategic transformation toward more environmentally sustainable and cost-effective steel production.
As of March 31, 2025, the cumulative EAF investment reached $823.6 million, including $83.4 million during Q1 2025. With contracted commitments now totaling approximately $880 million, Algoma anticipates completing the remaining work within 5% of the upper end of their previously announced budget range – a relatively modest contingency given the project's scale and complexity.
Upon completion, the EAF facility is expected to reduce Algoma's annual carbon emissions by approximately 70% while maintaining an annual raw steel production capacity of approximately 3.7 million tons. This transition comes at a pivotal time as Algoma navigates significant market volatility from U.S. tariffs on Canadian steel, which are creating pricing imbalances between markets. The EAF's improved cost structure could provide crucial operational flexibility during these challenging trade conditions, though current tariff uncertainty continues to create significant headwinds for Canadian steel producers.
Consolidated Revenue of
Shipments of 470K Tons, with an
Net Loss of
First Steel Production from Transformative Electric Arc Furnace (“EAF”) Expected During Q2 2025 With no Material Change in Both Total Project Cost and 2025 EAF Production Expectations
SAULT STE. MARIE, Ontario, April 29, 2025 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of hot and cold rolled steel sheet and plate products, today announced results for its first quarter ended March 31, 2025.
Unless otherwise specified, all amounts are in Canadian dollars.
Business Highlights and First Calendar Quarter 2025 to First Calendar Quarter 2024 Comparisons
- First quarter operational results in-line with expectations.
- Consolidated revenue of
$517.1 million , compared to$620.6 million in the prior-year quarter. - Consolidated loss from operations of
$139.9 million , compared to income from operations of$3.1 million in the prior-year quarter. - Net loss of
$24.5 million , compared to net income of$28.0 million in the prior-year quarter. - Adjusted EBITDA loss of
$46.7 million and Adjusted EBITDA margin of (9.0% ), compared to Adjusted EBITDA of$41.5 million and6.7% in the prior-year quarter (see “Non-GAAP Measures” below). - Cash generated by operating activities of
$92.1 million , compared to$121.2 million in the prior-year quarter. - Shipments of 469,731 tons, compared to 450,966 tons in the prior-year quarter.
- Paid quarterly dividend of US
$0.05 /share.
Michael Garcia, the Company's Chief Executive Officer, commented, "The first quarter of 2025 was an intense period of activity at our site, set against a backdrop of ongoing market challenges. Our financial and operational results were broadly in line with expectations, despite headwinds from tariff uncertainty and subdued demand and pricing in the steel market. At the same time, we advanced construction on our transformative EAF project. While unusually harsh winter conditions delayed progress, we used the opportunity to advance other EAF project work not on the critical path. In parallel, we commissioned several critical systems, including the fume treatment plant and the water treatment plant, positioned the furnace itself, and energized the substation. We now anticipate first steel production from our initial EAF during Q2, with no material change to our total project cost and our 2025 EAF production expectations.”
"We reach this milestone during a period of significant volatility in the North American steel market, with evolving U.S. tariffs—including those on Canadian steel and aluminum—adding uncertainty and driving increased imports into the Canadian market. Despite these challenges, we remain confident that our shift to EAF steelmaking will fundamentally improve our cost structure and enhance our resilience in turbulent market conditions. We believe that we are positioning Algoma to be a strategic force in the North American steel industry for decades to come, all while reinforcing our steadfast commitment to safety and sustainability and that this is the beginning of our journey to becoming a producer of green steel in North America and to delivering long-term value for all stakeholders."
First Quarter 2025 Financial Results
First quarter revenue totaled
Loss from operations was
Net loss in the first quarter was
Adjusted EBITDA in the first quarter (inclusive of the
See “Non-GAAP Measures” below for an explanation of Adjusted EBITDA and a reconciliation of net (loss) income to Adjusted EBITDA.
Electric Arc Furnace
In November 2021, the Company’s Board of Directors (the “Board”) authorized the Company to construct two new state of the art EAFs to replace its existing blast furnace and basic oxygen steelmaking operations. Progress in the first quarter of 2025 was impacted by unusually harsh winter conditions, which caused some delays. During this period, the Company advanced additional EAF project work not on the critical path and commissioned several critical systems, including the Fume Treatment Plant and the Water Treatment Plant, positioned the furnace itself, and energized the substation. This progress supports the transition to hot commissioning with first steel production from the initial EAF is expected during Q2 2025, representing a major milestone in the Company’s transformation to EAF-based steelmaking.
The Company has contracted substantially all remaining expected project costs. As of March 31, 2025, the cumulative investment was
Following the transformation to EAF steelmaking, Algoma’s facility is anticipated to have an annual raw steel production capacity of approximately 3.7 million tons, matching its downstream finishing capacity, which is expected to reduce the Company’s annual carbon emissions by approximately
Potential Tariff Impacts
In the first quarter of 2025, the President of the United States has issued various executive orders imposing tariffs on products imported from Canada, including (i) tariffs under the International Emergency Economic Powers Act (“IEEPA Tariffs”), applying a
The currently imposed tariffs and the ongoing threat of sustained and/or additional tariffs has contributed to volatility in steel demand and pricing in both the U.S. and Canadian markets, with concerns over supply chain disruptions leading to fluctuations in purchasing patterns. Additionally, uncertainty surrounding trade policies has impacted the U.S. dollar exchange rate, which in turn affects the Company’s sales and cost structure by influencing raw material costs, pricing competitiveness, and cross-border trade dynamics. In many cases, it is not feasible to pass on the tariff cost to customers. Unlike the U.S. market, which is predominantly contract-based, the Canadian steel market operates largely on spot transactions. Over recent months, an increasing imbalance in demand and pricing has emerged between the U.S. and Canadian markets, with Canadian transactional pricing falling below U.S. pricing. This trend is believed to be driven by oversupply in the Canadian market from domestic producers and an increase in import offers from other countries priced below prevailing domestic levels.
To the extent U.S. tariffs have, and may continue to, impact export sales, contribute to oversupply in the Canadian market, result in reduced transactional pricing, or lead to retaliatory tariffs on U.S. imports into Canada—or otherwise cause increases in input prices or reduced availability of inputs in Canada—the Company’s ability to maintain its current cost structure or level of operations may be materially and adversely affected. This may result in reduced production levels, higher costs, and lower operating margins, any of which could have a material adverse effect on the Company’s financial position, results of operations, and liquidity. During the quarter ended March 31, 2025, the Company incurred tariff-related costs of
Liquidity
At quarter end, the Company had cash of
Quarterly Dividend
The Board has declared a regular quarterly dividend in the amount of US
Conference Call and Webcast Details
A webcast and conference call will be held on Wednesday, April 30, 2025 at 11:00 a.m. EDT to review the Company’s results for the quarter ended March 31, 2025, discuss recent events, and conduct a question-and-answer session.
The live webcast and archived replay of the conference call can be accessed on the Investors section of the Company’s website at www.algoma.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally by dialing 877-425-9470 or 201-389-0878, respectively. Upon dialing in, please request to join the Algoma Steel Earnings Call. To access the replay of the call, dial 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13753077.
Consolidated Financial Statements and Management's Discussion and Analysis
The Company's unaudited condensed interim financial statements for the three month periods ended March 31, 2025 and 2024, and Management's Discussion & Analysis thereon are available under the Company's profile on SEDAR+ at www.sedarplus.com. These documents are also available on the Company’s website, www.algoma.com, and shareholders may receive hard copies of such documents free of charge upon request by contacting IR@algoma.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains “forward-looking information” under applicable Canadian securities legislation and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”), including statements regarding imposed and threatened tariffs, including the impact, timing and resolution thereof, trends in imports into and exports from Canada and the pricing of steel, Algoma’s expectation to continue to pay a quarterly dividend, Algoma’s transition to EAF steelmaking, including the progress, costs (and resulting cost structure) and timing of completion of the Company’s EAF project, expected timing for first EAF steel production and for a complete transition to EAF steelmaking, the Company’s expected annual raw steel production capacity and reduction in carbon emissions following completion of the EAF project, Algoma’s future as a leading producer of green steel, global supply chain disruptions on costs, transformation journey, ability to deliver greater and long-term value, ability to offer North America a secure steel supply and a sustainable future, and investment in its people, and processes, the expected timing of Algoma’s receipt of payment of the
Non-GAAP Financial Measures
To supplement our financial statements, which are prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IASB”) (“IFRS Accounting Standards”), we use certain non-GAAP measures to evaluate the performance of Algoma. These terms do not have any standardized meaning prescribed within IFRS Accounting Standards and, therefore, may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS Accounting Standards measures by providing a further understanding of our financial performance from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS Accounting Standards.
Adjusted EBITDA, as we define it, refers to net income (loss) before amortization of property, plant, equipment and amortization of intangible assets, finance costs, interest on pension and other post-employment benefit obligations, income taxes, foreign exchange loss (gain), finance income, carbon tax, changes in fair value of warrant, earnout and share-based compensation liabilities, share-based compensation related to the Company’s Omnibus Long Term Incentive Plan, certain inventory write-downs and legal settlement. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue for the corresponding period. Adjusted EBITDA is not intended to represent cash flow from operations, as defined by IFRS Accounting Standards, and should not be considered as alternatives to net profit (loss) from operations, or any other measure of performance prescribed by IFRS Accounting Standards. Adjusted EBITDA, as we define and use it, may not be comparable to Adjusted EBITDA as defined and used by other companies. We consider Adjusted EBITDA to be a meaningful measure to assess our operating performance in addition to IFRS Accounting Standards. It is included because we believe it can be useful in measuring our operating performance and our ability to expand our business and provide management and investors with additional information for comparison of our operating results across different time periods and to the operating results of other companies. Adjusted EBITDA is also used by analysts and our lenders as a measure of our financial performance. In addition, we consider Adjusted EBITDA margin to be a useful measure of our operating performance and profitability across different time periods that enhance the comparability of our results. However, these measures have limitations as analytical tools and should not be considered in isolation from, or as alternatives to, net income, cash flow from operations or other data prepared in accordance with IFRS Accounting Standards. Because of these limitations, such measures should not be considered as measures of discretionary cash available to invest in business growth or to reduce indebtedness. We compensate for these limitations by relying primarily on our IFRS Accounting Standards results using such measures only as supplements to such results. See the financial tables below for a reconciliation of net income (loss) to Adjusted EBITDA.
About Algoma Steel Group Inc.
Based in Sault Ste. Marie, Ontario, Canada, Algoma is a fully integrated producer of hot and cold rolled steel products including sheet and plate. Driven by a purpose to build better lives and a greener future, Algoma is positioned to deliver responsive, customer-driven product solutions to applications in the automotive, construction, energy, defense, and manufacturing sectors. Algoma is a key supplier of steel products to customers in North America and is the only producer of discrete plate products in Canada. Its state-of-the-art Direct Strip Production Complex (“DSPC”) is one of the lowest-cost producers of hot rolled sheet steel (“HRC”) in North America.
Algoma is on a transformation journey, modernizing its plate mill and adopting electric arc technology that builds on the strong principles of recycling and environmental stewardship to significantly lower carbon emissions. Today Algoma is investing in its people and processes, working safely, as a team to become one of North America's leading producers of green steel.
As a founding industry in their community, Algoma is drawing on the best of its rich steelmaking tradition to deliver greater value, offering North America the comfort of a secure steel supply and a sustainable future.
| Algoma Steel Group Inc. Condensed Interim Consolidated Statements of Financial Position (Unaudited) | |||||||
| As at, | March 31, 2025 | December 31, 2024 | |||||
| expressed in millions of Canadian dollars | |||||||
| Assets | |||||||
| Current | |||||||
| Cash | $ | 226.5 | $ | 266.9 | |||
| Restricted cash | 0.1 | 0.1 | |||||
| Taxes receivable | 99.3 | 84.3 | |||||
| Accounts receivable, net | 266.1 | 227.6 | |||||
| Inventories, net | 693.9 | 879.2 | |||||
| Prepaid expenses and deposits | 29.9 | 42.8 | |||||
| Other assets | 5.4 | 5.5 | |||||
| Total current assets | $ | 1,321.2 | $ | 1,506.4 | |||
| Non-current | |||||||
| Property, plant and equipment, net | $ | 1,751.9 | $ | 1,662.7 | |||
| Intangible assets, net | 0.5 | 0.5 | |||||
| Other assets | 16.5 | 16.6 | |||||
| Total non-current assets | $ | 1,768.9 | $ | 1,679.8 | |||
| Total assets | $ | 3,090.1 | $ | 3,186.2 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current | |||||||
| Bank indebtedness | $ | 0.4 | $ | 0.4 | |||
| Accounts payable and accrued liabilities | 313.4 | 319.1 | |||||
| Taxes payable and accrued taxes | 42.8 | 41.6 | |||||
| Current portion of other long-term liabilities | 3.1 | 3.2 | |||||
| Current portion of governmental loans | 25.0 | 25.0 | |||||
| Current portion of environmental liabilities | 3.9 | 4.2 | |||||
| Warrant liability | 12.9 | 52.2 | |||||
| Earnout liability | 5.1 | 10.1 | |||||
| Share-based payment compensation liability | 19.3 | 34.5 | |||||
| Total current liabilities | $ | 425.9 | $ | 490.3 | |||
| Non-current | |||||||
| Senior secured lien notes | $ | 498.4 | $ | 498.4 | |||
| Long-term governmental loans | 130.7 | 133.6 | |||||
| Accrued pension liability | 174.2 | 178.3 | |||||
| Accrued other post-employment benefit obligation | 206.8 | 206.2 | |||||
| Other long-term liabilities | 28.2 | 26.7 | |||||
| Environmental liabilities | 34.0 | 33.3 | |||||
| Deferred income tax liabilities | 108.8 | 110.9 | |||||
| Total non-current liabilities | $ | 1,181.1 | $ | 1,187.4 | |||
| Total liabilities | $ | 1,607.0 | $ | 1,677.7 | |||
| Shareholders' equity | |||||||
| Capital stock | $ | 975.5 | $ | 974.8 | |||
| Accumulated other comprehensive income | 442.0 | 439.6 | |||||
| Retained earnings | 69.9 | 102.0 | |||||
| Contributed deficit | (4.3 | ) | (7.9 | ) | |||
| Total shareholders' equity | $ | 1,483.1 | $ | 1,508.5 | |||
| Total liabilities and shareholders' equity | $ | 3,090.1 | $ | 3,186.2 | |||
| Algoma Steel Group Inc. Condensed Interim Consolidated Statements of Net (Loss) Income (Unaudited) | |||||||
| Three month period ended | March 31, 2025 | March 31, 2024 | |||||
| expressed in millions of Canadian dollars, except for per share amounts | |||||||
| Revenue | $ | 517.1 | $ | 620.6 | |||
| Operating expenses | |||||||
| Cost of sales | $ | 626.1 | $ | 585.4 | |||
| Administrative and selling expenses | 30.9 | 32.1 | |||||
| (Loss) income from operations | $ | (139.9 | ) | $ | 3.1 | ||
| Other (income) and expenses | |||||||
| Finance income | $ | (2.8 | ) | $ | (1.2 | ) | |
| Finance costs | 17.8 | 9.7 | |||||
| Interest on pension and other post-employment benefit obligations | 4.0 | 4.9 | |||||
| Foreign exchange loss (gain) | 0.9 | (15.8 | ) | ||||
| Other income | (50.0 | ) | - | ||||
| Change in fair value of warrant liability | (39.1 | ) | (15.3 | ) | |||
| Change in fair value of earnout liability | (4.4 | ) | (3.4 | ) | |||
| Change in fair value of share-based compensation liability | (15.4 | ) | (4.8 | ) | |||
| $ | (89.0 | ) | $ | (25.9 | ) | ||
| (Loss) income before income taxes | $ | (50.9 | ) | $ | 29.0 | ||
| Income tax (recovery) expense | (26.4 | ) | 1.0 | ||||
| Net (loss) income | $ | (24.5 | ) | $ | 28.0 | ||
| Net (loss) income per common share | |||||||
| Basic | $ | (0.23 | ) | $ | 0.26 | ||
| Diluted | $ | (0.48 | ) | $ | 0.10 | ||
| Algoma Steel Group Inc. Condensed Interim Consolidated Statements of Cash Flows (Unaudited) | |||||||
| March 31, 2025 | March 31, 2024 | ||||||
| expressed in millions of Canadian dollars | |||||||
| Operating activities | |||||||
| Net (loss) income | $ | (24.5 | ) | $ | 28.0 | ||
| Items not affecting cash: | |||||||
| Depreciation of property, plant and equipment and intangible assets | 35.0 | 34.8 | |||||
| Deferred income tax recovery | (2.0 | ) | (5.2 | ) | |||
| Pension funding in excess of expense | (1.8 | ) | (1.2 | ) | |||
| Post-employment benefit funding in excess of expense | (1.7 | ) | (2.1 | ) | |||
| Unrealized foreign exchange loss (gain) on: | |||||||
| accrued pension liability | 0.2 | (5.7 | ) | ||||
| post-employment benefit obligations | 0.2 | (5.8 | ) | ||||
| Finance costs | 17.8 | 9.7 | |||||
| Loss on disposal of property, plant and equipment | - | 0.5 | |||||
| Interest on pension and other post-employment benefit obligations | 4.0 | 4.9 | |||||
| Other income | (50.0 | ) | - | ||||
| Accretion of governmental loans and environmental liabilities | 4.0 | 7.8 | |||||
| Unrealized foreign exchange loss (gain) on government loan facilities | 0.2 | (3.4 | ) | ||||
| Decrease in fair value of warrant liability | (39.1 | ) | (15.3 | ) | |||
| Decrease in fair value of earnout liability | (4.4 | ) | (3.4 | ) | |||
| Decrease in fair value of share-based compensation liability | (15.4 | ) | (4.8 | ) | |||
| Other | 4.6 | (1.0 | ) | ||||
| $ | (72.9 | ) | $ | 37.8 | |||
| Net change in non-cash operating working capital | 165.4 | 84.1 | |||||
| Environmental liabilities paid | (0.4 | ) | (0.7 | ) | |||
| Cash generated by operating activities | $ | 92.1 | $ | 121.2 | |||
| Investing activities | |||||||
| Acquisition of property, plant and equipment | $ | (127.0 | ) | $ | (120.4 | ) | |
| Cash used in investing activities | $ | (127.0 | ) | $ | (120.4 | ) | |
| Financing activities | |||||||
| Bank indebtedness repaid, net | $ | (0.1 | ) | $ | (5.1 | ) | |
| Governmental loans received | - | 15.5 | |||||
| Repayment of governmental loans | (6.3 | ) | (2.5 | ) | |||
| Interest paid | (1.1 | ) | (0.1 | ) | |||
| Dividends paid | - | (7.1 | ) | ||||
| Other | 2.2 | (0.4 | ) | ||||
| Cash (used in) generated by financing activities | $ | (5.3 | ) | $ | 0.3 | ||
| Effect of exchange rate changes on cash | $ | (0.2 | ) | $ | 2.1 | ||
| Cash | |||||||
| (Decrease) increase in cash | (40.4 | ) | 3.2 | ||||
| Opening balance | 266.9 | 94.7 | |||||
| Ending balance | $ | 226.5 | $ | 97.9 | |||
| Algoma Steel Group Inc. Reconciliation of Net (Loss) Income to Adjusted EBITDA | |||||||
| millions of dollars | Three months ended March 31, 2025 | Three months ended March 31, 2024 | |||||
| Net (loss) income | $ | (24.5 | ) | $ | 28.0 | ||
| Depreciation of property, plant and equipment and amortization of intangible assets | 35.0 | 34.8 | |||||
| Finance costs | 17.8 | 9.7 | |||||
| Interest on pension and other post-employment benefit obligations | 4.0 | 4.9 | |||||
| Income tax (recovery) expense | (26.4 | ) | 1.0 | ||||
| Foreign exchange loss (gain) | 0.9 | (15.8 | ) | ||||
| Finance income | (2.8 | ) | (1.2 | ) | |||
| Inventory adjustments (depreciation on property, plant and equipment in inventory) | 1.0 | (3.9 | ) | ||||
| Carbon tax | 3.5 | 6.4 | |||||
| Decrease in fair value of warrant liability | (39.1 | ) | (15.3 | ) | |||
| Decrease in fair value of earnout liability | (4.4 | ) | (3.4 | ) | |||
| Decrease in fair value of share-based payment compensation liability | (15.4 | ) | (4.8 | ) | |||
| Share-based compensation | 3.7 | 1.2 | |||||
| Adjusted EBITDA (i) | $ | (46.7 | ) | $ | 41.6 | ||
| Net (loss) income Margin | (4.7 | %) | 4.5 | % | |||
| Net (loss) income / ton | $ | (52.2 | ) | $ | 62.1 | ||
| Adjusted EBITDA Margin (ii) | (9.0 | %) | 6.7 | % | |||
| Adjusted EBITDA / ton | $ | (99.4 | ) | $ | 92.2 | ||
| (i) See "Non-IFRS Financial Measures" in this Press Release for information regarding the limitations of using Adjusted EBITDA. | |||||||
| (ii) Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of revenue. | |||||||
For more information, please contact:
Michael Moraca
Vice President – Corporate Development & Treasurer
Algoma Steel Group Inc.
Phone: 705.945.3300
E-mail: IR@algoma.com
FAQ
What caused Algoma Steel (ASTL) Q1 2025 net loss of $24.5 million?
When will Algoma Steel (ASTL) complete its Electric Arc Furnace transition in 2025?
How are US tariffs affecting Algoma Steel's (ASTL) operations in 2025?
What is Algoma Steel's (ASTL) dividend payment for Q1 2025?
How much cash does Algoma Steel (ASTL) have available in Q1 2025?
