Algoma Steel is leaning harder into the Canadian market as US tariffs continue to choke off its access to the US market, CEO Rajat Marwah told analysts Thursday. Investors weren’t impressed. Shares fell about 10% to $5.35 on the Toronto Stock Exchange.
Revenue came in at $267.5 million for the quarter, roughly half of the $589.7 million Algoma posted a year earlier. A $96 million net loss narrowed from $110.6 million in the same quarter last year. Algoma moved 181,000 tons of steel during the quarter, a steep drop from 472,000 tons a year earlier, though much of that decline reflects the ongoing shutdown of legacy blast furnace capacity rather than lost orders alone.
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The plate strategy is the one part of the pivot that’s clearly working. Plate volumes climbed to about 125,000 tons for the quarter, up from 116,000 tons in Q1 — a second straight quarter of record plate sales. “We expect plate production to continue to increase as our ramp-up progresses through 2026,” Marwah said.
The defense push is more mixed. Algoma’s memorandum of understanding with Hanwha Ocean, a South Korean shipbuilder, is now suspended, since the deal was contingent on Hanwha winning the Canadian Patrol Submarine Project, and Canada instead chose ThyssenKrupp Marine Systems.
Its other defense bet, a joint venture with armoured-vehicle maker Roshel called Roshel Algoma Defence, is still moving forward, building out domestic ballistic-steel manufacturing.
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Marwah said the beam strategy hasn’t changed either, calling the market for structural beams available and worth pursuing.
The quarter caps a difficult year. Algoma’s Q4 net loss hit $364.7 million in results reported in March, with direct tariff costs totaling $225 million for 2025 and roughly 1,000 layoffs despite $500 million in emergency government loans. A shrinking net loss and record plate sales look like real progress, even if the company is still losing money every quarter.
