Algoma expects adjusted loss of C$10 million to C$20 million and shipments of 145,000 tonnes
Key Facts
Algoma Steel expected to ship about 145,000 tonnes of steel in the quarter ended September 30, 2026, with adjusted EBITDA ranging from a loss of C$10 million to C$20 million, according to guidance issued by the company on October 1. The loss estimate included an expected energy utilization adjustment benefit of C$50 million to C$55 million. The guidance came as a turbine outage at the Lake Superior Power plant was temporarily limiting electric arc furnace output. The chief financial officer said the expected impact of the outage extended to shipment volumes and sales mix. The company had said the second furnace unit would begin production and shipments during the fourth quarter.
The expected shipment figure of about 145,000 tonnes defined the level of activity on which Algoma based its guidance for the quarter ended September 30. By contrast, the adjusted earnings range allowed for a loss of C$10 million to C$20 million, including the expected energy utilization adjustment in the estimate. The adjustment was valued at C$50 million to C$55 million, according to the company’s statement. This means the guidance combined an estimate for shipments with the expected financial impact of energy use, amid constraints on furnace output caused by the turbine outage. The impact cited by the chief financial officer was not limited to volumes; it also included sales mix.
The chief financial officer said the Lake Superior Power turbine outage “temporarily constrained electric arc furnace output” and was expected to affect shipment volumes. The officer also pointed to a less favorable sales mix, adding another dimension to the outage’s impact on quarterly results. These effects were included in the guidance the company issued before the end of the period, with shipments of about 145,000 tonnes of steel expected. Algoma thus linked the disruption to power and electric arc furnace production with the volumes it could ship and its sales mix during the quarter. Restoring the plant’s capacity and enabling more consistent output were tied to the operating schedule for the second unit in the following quarter, according to the timetable announced by the company.
Regarding the furnace production expansion, Algoma said on October 1 that electrical equipment in the second electric arc furnace unit had been tested. It added that it expected the first heat in the following days, paving the way for production and shipments from the unit to begin in the fourth quarter of 2026. This timing followed the company’s announcement that the unit’s production and shipments would begin in the fourth quarter. Bringing the unit online is a step tied to increasing electric arc furnace output, while the power plant turbine outage had temporarily constrained that output during the third quarter. The company scheduled a call and webcast to discuss the period’s results on October 29, 2026, at 11:00 a.m. Eastern time.
In trading, Algoma shares, listed under the ticker ASTL, closed at 4.8 on October 27, 2026, according to EL7 data. The price data did not specify a currency, so the figure reflects only the recorded closing level. The close came ahead of the company’s third-quarter results call, scheduled for October 29 at 11:00 a.m. Eastern time. The call is due to give the company an opportunity to present the period’s results at the announced time, after its October 1 guidance set out the expected adjusted loss range and shipment volume. The following period was also scheduled to include the start of production and shipments from the second unit during the fourth quarter.