Algoma Steel (ASTL) projects Q2 2026 shipments and Adjusted EBITDA range
Rhea-AI Filing Summary
Algoma Steel Group Inc. issued guidance for its quarter ended June 30, 2026. The company expects total steel shipments between 175,000 and 180,000 tons and projects Adjusted EBITDA between $5 million and $15 million, all in Canadian dollars.
The Adjusted EBITDA guidance includes a $45 million final insurance settlement related to a January 2024 coke-making utility corridor incident and an expected capacity utilization adjustment of approximately $50 million to $55 million. Management highlighted record plate sales, ongoing ramp-up of its first electric arc furnace unit, plans to bring a second unit online in the second half of 2026, and an anticipated carbon emissions reduction of about 70% once the EAF transition is complete.
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Insights
Guidance shows modest EBITDA underpinned by large one-time items.
Algoma Steel projects Q2 2026 Adjusted EBITDA of $5–$15 million on shipments of 175,000–180,000 tons. That range is supported by a $45 million insurance settlement and a capacity utilization adjustment of about $50–$55 million, both clearly called out as specific benefits.
The guidance underscores how much current earnings depend on these items while the core business faces softer shipment volumes. Management also emphasizes record plate sales, ramp-up of the first electric arc furnace and plans to start the second unit in the second half of 2026, targeting roughly 70% emissions reduction when fully transitioned.
For investors, this paints a mixed picture: near-term results are heavily influenced by non-recurring and adjustment factors, while the longer-term thesis hinges on completing the EAF transformation and capturing demand in infrastructure, construction and defence, alongside managing structural headwinds such as tariffs.
Key Figures
Key Terms
Adjusted EBITDA financial
electric arc furnace (EAF) technical
capacity utilization adjustment financial
non-GAAP financial measures financial
industrial decarbonization initiatives other
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of June 2026
Commission File Number 001-40924
ALGOMA STEEL GROUP INC.
(Exact name of Registrant as specified in its charter)
N/A
(Translation of Registrant’s name into English)
105 West Street
Sault Ste. Marie, Ontario
P6A 7B4, Canada
(705) 945-2351
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☐ Form 40-F ☒
EXHIBIT INDEX
| Exhibit Number | Description | |
| 99.1 | Press release dated June 30, 2026. | |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Algoma Steel Group Inc. | ||||
| Date: June 30, 2026 | By: | /s/ John Naccarato | ||
| Name: John Naccarato | ||||
| Title: Vice President Strategy and Chief Legal Officer | ||||
3
Exhibit 99.1
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MEDIA RELEASE
June 30, 2026
Algoma Steel Group Inc. Provides Guidance for the Second Quarter 2026
SAULT STE. MARIE, Ontario, June 30, 2026 - Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of steel plate and hot rolled sheet products, today provided guidance for its quarter ended June 30, 2026. Unless otherwise specified, all amounts are in Canadian dollars.
Total steel shipments for the quarter are expected to be in the range of 175,000 tons to 180,000 tons and Adjusted EBITDA is expected to be in the range of $5 million to $15 million. Note that the guidance for Adjusted EBITDA includes the benefit of a final insurance settlement amount of $45 million related to the coke-making utility corridor incident in January 2024, as well as an expected capacity utilization adjustment benefit of approximately $50 million to $55 million.
Rajat Marwah, Chief Executive Officer of Algoma, commented, “The second quarter of 2026 demonstrated the continued resilience of our transformed business, with record plate sales and our first electric arc furnace (EAF) unit continuing to ramp up as expected, even as broader market conditions continued to weigh on total shipment volumes. We look forward to bringing our second EAF unit online in the second half of the year and beginning its ramp up to our full expected capacity, completing our transformation. While tariffs remain a structural headwind, we continue to make strong progress on our pivot to a more Canada-centric strategy, and the recent rise in steel prices is encouraging. As Canada’s only producer of discrete plate, we remain well-positioned to serve growing infrastructure, construction, and defence demand.”
About Algoma Steel
Based in Sault Ste. Marie, Ontario, Algoma is a leading Canadian producer of high-quality plate and sheet steel products, proudly supporting critical sectors including energy, defence, automotive, shipbuilding, and infrastructure. Guided by a purpose to build better lives and a greener future, Algoma is shaping the next generation of sustainable steelmaking in Canada.
With the transition to electric arc furnace (EAF) steelmaking and a modernized plate mill, Algoma is redefining how steel is made in Canada. Powered by Ontario’s clean electricity grid, this transformation represents one of the largest industrial decarbonization initiatives in North America and is expected to reduce carbon emissions by approximately 70% once fully transitioned. These advancements provide stability for continued investment in diversification projects aligned with Canada’s evolving needs.
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This new chapter also introduces Volta™, the brand for all steel produced through Algoma’s EAF technology. Volta delivers the same trusted performance customers rely on, with significantly lower emissions—produced safely, sustainably, and proudly in Canada.
Building on more than a century of steelmaking expertise, Algoma continues to invest in its people, processes, and technologies to strengthen domestic supply chains and deliver responsible, Canadian-made steel that helps build a better tomorrow.
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 expected steel shipments and Adjusted EBITDA for the second quarter of 2026, expected benefits from insurance settlements and capacity utilization adjustments, Algoma’s transition to EAF steelmaking, the timing and ramp-up of EAF units, the Company’s expected reduction in carbon emissions following completion of the EAF project, Algoma’s future as a leading producer of green steel, Algoma’s modernization of its plate mill facilities, transformation journey, the Company’s Canada-centric business strategy, its competitive positioning in infrastructure, construction, and defence markets, ability to deliver greater and long-term value, ability to offer North America a secure steel supply and a sustainable future, continued investment in diversification projects, and investment in its people and processes. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “design,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions. Many factors could cause actual future events to differ materially from the forward-looking statements in this document. Readers should also consider the other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Information” in Algoma’s Annual Information Form, filed by Algoma with applicable Canadian securities regulatory authorities (available under the Company’s SEDAR+ profile at www.sedarplus.ca) and with the Securities and Exchange Commission (the “SEC”), as part of Algoma’s Annual Report on Form 40-F (available at www.sec.gov), as well as in Algoma’s current reports with the Canadian securities regulatory authorities and the SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Algoma assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
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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 IPO and LETL Warrants, earnout and share-based compensation liabilities and derivative, share-based compensation related to the Company’s Omnibus Long Term Incentive Plan, certain inventory adjustments, impairment loss, legal settlement, severance costs and stranded inventory. 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 an alternative 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.
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For more information, please contact:
Michael Moraca
Chief Financial Officer
Algoma Steel Inc.
Phone: 705.945.3300
E-mail: IR@algoma.com