Catch up on the essentials
- Algoma Steel Group Inc. told investors on October 1 that it expects total steel shipments of approximately 145,000 tons for the quarter ended September 30, 2026, down from 419,173 tons in the same period a year earlier.
- The company noted that the range includes an expected capacity utilization adjustment of roughly $50 million to $55 million, without which the underlying loss would be larger.
- CEO Rajat Marwah said the company used the outage window to accelerate planned maintenance and advance commissioning of EAF Unit Two, with "first heat in the coming days" expected as it moves toward fourth-quarter production and shipments from the second furnace.
Selected from this article · 2026-10-02
Read on for the full pictureAlgoma cuts third-quarter shipment outlook to roughly 145,000 tons
Algoma Steel Group Inc. told investors on October 1 that it expects total steel shipments of approximately 145,000 tons for the quarter ended September 30, 2026, down from 419,173 tons in the same period a year earlier. The Canadian plate and hot-rolled sheet producer, headquartered in Sault Ste. Marie, Ontario, attributed the shortfall to a turbine outage at its Lake Superior Power (LSP) generating facility in Ontario that constrained electric arc furnace (EAF) production. The company said it has since installed a replacement turbine and that the plant is operating at full power.
Adjusted EBITDA guided to a loss despite capacity-utilization benefit
Algoma guided third-quarter Adjusted EBITDA to a range of negative $10 million to negative $20 million. The company noted that the range includes an expected capacity utilization adjustment of roughly $50 million to $55 million, without which the underlying loss would be larger. All guidance figures are stated in Canadian dollars unless otherwise indicated. Shares of Algoma (NASDAQ: ASTL; TSX: ASTL) fell 2.4% to $4.01 in after-hours trading following the release.
Management links the outage to lower volumes and a less favorable mix
CFO Michael Moraca said the LSP outage had been expected to affect shipment volumes and that third-quarter results "reflect those impacts, including lower shipment volumes and a less favourable sales mix." CEO Rajat Marwah said the company used the outage window to accelerate planned maintenance and advance commissioning of EAF Unit Two, with "first heat in the coming days" expected as it moves toward fourth-quarter production and shipments from the second furnace. Marwah added that with power restored, planned outages behind the company, the second furnace nearing commercial operation and steel prices improving, Algoma "is well-positioned as we enter the final phase of our transformation."
EAF transition and grid support
Algoma thanked the Independent Electricity System Operator and Hydro One for support during the restoration, underscoring the role of Ontario's grid in stabilizing operations. The Sault Ste. Marie complex serves critical sectors including energy, defense, automotive, shipbuilding and infrastructure. Algoma said EAF Unit Two has completed electrical testing and is approaching first heat, a step the company has framed as central to its shift toward lower-emission electric arc steelmaking.
Other developments
Separately, the Saudi Exchange (Tadawul) announced that listing and trading of Watani Iron Steel Co. shares in its Main Market will commence on Tuesday, October 6, 2026.
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