Algoma Posts C$129.6 Million Net Loss as Steel Shipments Fall 65.5%

Key Facts

Algoma Steel posted a net loss of C$129.6 million, or C$1.18 per basic and diluted share, in the third quarter of 2026. The company recorded a net loss of C$485.1 million, or C$4.46 per share, in the same period of 2025. Consolidated revenue fell to C$249.4 million from C$523.9 million a year earlier. Steel shipments also declined 65.5% to 144,527 tonnes, compared with 419,173 tonnes. The results showed an improvement in the year-over-year net loss alongside a sharp decline in revenue and shipments.

Algoma attributed much of the year-over-year improvement in its operating loss to a non-cash impairment charge of C$503.4 million recorded in the third quarter of 2025. In the latest quarter, adjusted earnings before interest, taxes, depreciation and amortization recorded a loss of C$13.9 million, compared with a loss of C$87.1 million a year earlier. The measure excluded C$53.1 million in capacity utilization costs. The chief financial officer said the adjusted loss "was in line with our previously announced guidance." He added that higher steel prices, a greater share of plate steel and lower fixed costs partly offset the temporary impact of the Lake Superior Power outage.

Algoma’s average net revenue per tonne of steel sold rose 33.7% to C$1,510, from C$1,129 a year earlier. The company attributed the increase to higher steel prices and a greater share of plate steel in its sales mix. Meanwhile, shipments to the United States fell to 24% of the total, compared with 50% in the same period. Direct tariff costs were C$18.1 million, versus C$89.7 million a year earlier. The company said the 50% U.S. Section 232 tariff on steel imports from Canada remained in effect during the quarter.

Shipments were also affected by Algoma’s transition to electric arc furnaces and a power outage that began on August 17, 2026. The company resumed electric arc furnace production on August 29, according to its statement. Algoma ended the quarter with approximately C$428 million in available liquidity as of September 30. This included C$152.4 million in cash, C$232.5 million available under its revolving credit facility and C$43.5 million available for drawdown under government loan facilities. These figures provide a picture of the resources available to the company during its operational transition.

After the quarter ended, the second electric arc furnace unit produced its first batch of liquid steel on October 9. Algoma expects the unit to contribute to production and shipments in the fourth quarter of 2026. The company says expected annual capacity after the transition is complete will be about 3.7 million tonnes of raw steel. It also targets an approximately 70% reduction in annual emissions compared with pre-transition levels. The unit’s start-up follows a quarter marked by lower shipments and the resumption of production after the power outage.

Farmland Partners recorded gross operating revenue of $9.777 million in the third quarter, down 13.1% from $11.251 million a year earlier. Net operating income fell to $6.56 million from $8 million, a decline of 18%. The company said asset value reductions in California in response to macroeconomic factors included a $12 million impairment, compared with $1 million in the same period. It also sold a California property for about $1 million, with a loss on sale of less than $0.1 million. The company made no property acquisitions in the first nine months of 2026, while selling three properties for about $17.4 million.

Farmland lowered its 2026 AFFO per-share guidance compared with the previous quarter, and tied the headline of its revised earnings release to credit loss reserves and litigation risks. In October, a Texas appeals court sent most of the company’s claims against Sabrepoint back to litigation. A Louisiana appeals court affirmed an award of about $3.5 million, including pre-judgment interest and court costs, and Farmland said it intends to continue its appeal. The company had $115.3 million in available liquidity on September 30, including $7.9 million in cash and $107.4 million in undrawn facilities, while its debt-to-estimated enterprise value ratio was about 34%. On October 27, the company declared a quarterly cash distribution of $0.09 per share, payable on January 15, 2027, to shareholders of record on January 4.

Farmland repurchased 1,652,147 shares during the quarter at a weighted average price of $10.32 per share. It said its fully diluted common shares outstanding totaled 42,271,225 as of October 23, 2026. Algoma shares closed at $4.8 and Farmland shares at $10.32 on October 27, according to EL7 data. The buybacks and announced distributions place some of the company’s capital decisions alongside its declining operating revenue and revised AFFO guidance. The company set January 4, 2027, as the record date for the next distribution, which will be paid on January 15.