Algoma Steel (ASTL) sees Q1 loss as $1B EAF shift cuts emissions 70%
Rhea-AI Filing Summary
Algoma Steel Group issued preliminary guidance for its quarter ended March 31, 2026. The company expects total steel shipments of approximately 220,000 tons and Adjusted EBITDA in a range of negative $25 million to negative $35 million, reflecting weaker near-term demand.
The Adjusted EBITDA outlook includes a capacity utilization adjustment of $90 million to $95 million, representing excess fixed costs while its new Electric Arc Furnace ramps up. Management highlights that blast furnace and coke oven operations have been fully wound down after close to $1 billion of investment, completing Algoma’s transition to EAF steelmaking under its low‑carbon Volta™ brand.
The company emphasizes structural cost benefits from EAF technology and notes that, powered by Ontario’s grid, the transition is expected to reduce carbon emissions by approximately 70%, positioning Algoma as a Canadian supplier of lower‑carbon plate and sheet steel to infrastructure, construction, defense, and other sectors.
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Insights
Algoma guides to a near-term EBITDA loss while completing a major EAF transition.
Algoma expects Q1 2026 Adjusted EBITDA between negative $25 million and negative $35 million, including a $90 million–$95 million capacity utilization adjustment tied to underused assets as its Electric Arc Furnace ramps. This points to a quarter of operating pressure during a critical transition phase.
Management notes roughly $1 billion invested to wind down blast furnace and coke operations and fully shift to EAF steelmaking, branded as Volta™. They highlight structural cost improvements from EAF technology and a projected 70% cut in carbon emissions, which could matter for long-term competitiveness and regulatory trends.
In the near term, guidance shows lower shipments at about 220,000 tons and negative profitability, while medium-term potential hinges on realizing EAF cost advantages and serving demand in infrastructure, construction, defense, and other sectors as the new configuration stabilizes.
Key Figures
Key Terms
Adjusted EBITDA financial
Electric Arc Furnace (EAF) technical
capacity utilization adjustment financial
forward-looking statements regulatory
non-GAAP measures financial
Omnibus Long Term Incentive Plan financial
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 March 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 March 31, 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: March 31, 2026 | By: | /s/ John Naccarato | ||||
| Name: John Naccarato | ||||||
| Title: Vice President Strategy and Chief Legal Officer | ||||||
3
Exhibit 99.1
MEDIA RELEASE
March 31, 2026
Algoma Steel Group Inc. Provides Guidance for the First Quarter 2026
SAULT STE. MARIE, Ontario, March 31, 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 March 31, 2026. Unless otherwise specified, all amounts are in Canadian dollars.
Total steel shipments for the quarter are expected to be approximately 220,000 tons and Adjusted EBITDA is expected to be in the range of negative $25 million to negative $35 million. The guidance for expected Adjusted EBITDA includes the benefit of a capacity utilization adjustment that is expected to be in the range of $90 million to $95 million. This represents the excess fixed costs incurred in the quarter despite lower production volumes as the Electric Arc Furnace (EAF) ramps up.
Rajat Marwah, Chief Executive Officer of Algoma, commented, “The first quarter of 2026 marked a defining moment in Algoma’s transformation. With the wind-down of our blast furnace and coke oven operations now complete, we have fully transitioned to EAF steelmaking, the culmination of years of planning and close to $1 billion of investment. Our EAF is running around the clock, producing Volta™, our sustainable low-carbon steel brand, at scale for the Canadian market. While near-term demand softness continues to weigh on shipment volumes, the structural cost improvements inherent to EAF steelmaking are expected to drive meaningful sequential improvement in Adjusted EBITDA. As Canada’s only producer of discrete plate, we are well-positioned to serve growing demand across infrastructure, construction, and defense, and to build on the foundation we have put in place.”
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 anticipated improvements in Adjusted EBITDA, ability to serve growing demand across infrastructure, construction, and defense, expected future demand for steel, Algoma’s transition to EAF steelmaking, the Company’s expected reduction in carbon
emissions following completion of the EAF project, Algoma’s future as a leading producer of green steel, t Algoma’s modernization of its plate mill facilities, 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, and statements regarding the Company’s strategy, plans or future financial or operating performance. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “hope,” “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.com) and with 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.
About Algoma Steel Group Inc.
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, defense, 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%. These advancements provide stability for continued investment in diversification projects aligned with Canada’s evolving needs.
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.
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 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 loss to Adjusted EBITDA.
For more information, please contact:
Michael Moraca
Chief Financial Officer
Algoma Steel Group Inc.
Phone: 705.945.3300
E-mail: IR@algoma.com