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Algoma Steel Group Inc. Stock Price: Quote, Forecast, Splits & News (ASTL)

Perplexity Finance

Company Profile

Algoma Steel Group Inc. Price & Performance (ASTL)

Stock Performance

Updated Apr 17, 8:00 PM UTC

Algoma Steel Group Inc.

$4.80USD

+$0.09 (+1.91%)

After Hours

-$0.0084 (-0.17%)

Open

$4.80

Market Cap

$503.32M

Year High

$12.14

High

$4.89

P/E Ratio

-4.6

Year Low

$4.17

Low

$4.75

Dividend Yield

4.17%

Volume

639.56K

Latest News

Analysts Signal Mixed Outlook for Algoma Steel Group Amid Price Volatility
Apr 16, 2025
Algoma Steel Group shares rebounded 3.52% to $4.71 on Wednesday, yet remain down over 16% in the last ten days. Technical indicators suggest continued short-term weakness, with a wide trading range forecasted. Despite recent gains, long-term signals remain negative, and volatility is expected to persist.12
Workforce Reductions and Tariffs Challenge Algoma Steel’s Stability
Mar 26, 2025
Recent U.S. tariffs have forced Algoma Steel to lay off employees, with the CEO warning of further cuts if new Canadian customers aren’t secured. The company has also paused exports to the U.S., creating uncertainty for its workforce and raising questions about operational resilience in a shifting trade environment.34
Institutional Investors Maintain Confidence as Algoma Steel Shares Hit Lows
Apr 17, 2025
Despite Algoma Steel Group’s shares reaching a new 52-week low and negative earnings, institutional ownership remains high at nearly 70%. Analysts offer a moderate buy consensus, but the company’s weak earnings and low price-to-book ratio highlight ongoing risks for investors amid challenging market conditions.56

What's Happening

Peers

Earnings

Report Date

—

Rev Estimate

—

Avg 1d Change

4.65%

Report Period

Q3 2025

EPS Estimate

—

Implied Move 1d

—

Transcript

11m 13s

Earnings conference call for the three and nine month period ended 12/31/2024. Leading today's call are Michael Garcia, our Chief Executive Officer and Rajat Marwa, our Financial Officer. As a reminder, this call is being recorded and will be be made available for replay later today in the Investors section of Algoma Steel's corporate website at www.algoma.com. I would like to remind you that comments made on today's call may contain forward looking statements within the meaning of applicable securities law. Which involve assumptions and inherent risks and uncertainties. Actual results may differ materially from statements made today.

11m 51s

In addition, our financial statements are prepared in accordance with IFRS accounting standard which differs from U. S. GAAP. And our discussion today includes references to certain non GAAP financial measures. Last evening, we posted an earnings presentation to accompany today's prepared remarks. The slides for today's call can be found in the Investors section of our corporate website. With that in mind, I would ask everyone on today's call to read the legal disclaimers on Slide two of the accompanying earnings presentation and to also refer to the risks and assumptions outlined in the management discussion analysis for the three and nine month periods ended December 31. Please note that our financial statements are prepared using the U. S. Dollar as our functional currency and the Canadian dollar as our presentation currency. As previously reported, the company has changed its fiscal year end from March 31 to December 31, resulting in a nine month fiscal reporting period ended 12/31/2024. [indiscernible] ease of comparison, we will focus our comments today on the three and twelve month periods ended 12/31/2024 and 2023. Please note all amounts referred to on today's call are in Canadian dollars unless otherwise noted. Following our prepared remarks, we will conduct a question and answer session.

13m 7s

I will now turn the call over to our Chief Executive Officer, Michael Garcia. Mike? Thank you, Mike, and good morning, everyone. Thank you for joining us to discuss our fourth quarter and full year calendar 2024 results. Employee safety remains our foremost priority at Algoma Steel. I'm pleased to report significant improvements in our lost time injury our electric arc furnace project [indiscernible] and first steel expected in April, our site continues to be a hub of activity. Making our safety focus more critical than ever. Before diving into the details, I want to highlight three important themes. Our quarterly results reflect the continued challenging conditions across global steel markets, particularly due to tariff uncertainty, during the quarter. Our balance sheet and liquidity position remained strong. With over $267,000,000 in cash quarter end and total liquidity of $630,000,000 We are well funded to complete our transformative EAF project on budget and on schedule. [indiscernible] are in the final stages of EAF commissioning and expect first steel production in April. Our fourth quarter results aligned with our previously disclosed guidance for both shipments and adjusted EBITDA. These results reflect the challenging market conditions we've experienced particularly in the second half of twenty twenty four.

14m 37s

Steel pricing was affected by U. S. Election uncertainty, interest rate concerns, soft demand, and tariff and trade war tensions. All of which have influenced our customers' buying behavior. In summary, softer realized steel prices and higher cost more than offset higher shipments. Leading to an overall decline in revenues. As well as adjusted EBITDA. And cash flow generation compared to the prior year. Our plate shipments for calendar Q4 twenty twenty four reached approximately [indiscernible] up from 73,000 tons in calendar Q3 twenty twenty four. Looking ahead, we expect our Q1 twenty twenty five plate production as we look to capitalize on our position as Canada's only discrete plate producer and execute a steady ramp up towards our expected annual run rate capacity of over 650,000 net tons. We are evaluating market conditions as they are changing rapidly. And we are dynamically adjusting our product mix between plate and coil products where possible based on capacity and contractual obligations. This approach continues to provide mix benefits as we focus on higher margin products. Now for an update on our transformational electric arc furnace project. Despite the harsh winter, including particularly heavy snowfall in November and December, cold commissioning activities began in the fourth calendar quarter of twenty twenty four and are progressing in the first quarter of twenty twenty five.

16m 11s

These activities include the installation, test including EAF charging cranes, as well as the fume treatment plant and water treatment plant. This phased approach allows for thorough assessment and adjustment before transitioning With work advancing as planned, first deal production is expected in April 2025, marking a significant milestone in the project's execution. Have no changes to our expected final budget and are excited to begin EAF operations in 2025. And despite navigating challenging conditions, we remain well positioned with our balance sheet and liquidity profile. When both furnaces are up and running, we expect to see improved operational matching steel production to our downstream finishing capacity. As of 12/31/2024, cumulative investment for our EAF project was at $740,000,000 including $68,000,000 during the calendar fourth quarter of twenty twenty four. All material aspects of the project have been contracted we anticipate completing the remainder of the project including those structured as time and material agreements within 5% of the upper end Regarding the evolving tariff situation, between The U. S. And Canada and its potential impact on our business, the implementation of tariffs on Canadian steel and aluminum imports has introduced even more uncertainty into the North American steel market.

17m 56s

We expect the Canadian government swift and appropriate response will support the industry as we weather the impact of tariffs. Given the deeply integrated North American supply chain, we believe rational dialogue will prevail between these two close allies restoring normal steel trade between Canada and The U. S. We expect these tariffs to pose a significant challenge, we we expect that our transition to EAF steelmaking will strengthen our cost structure and enhance our ability to navigate market uncertainties over the long term. In summary, despite very challenging market and weather continued our ramp in plate production, and achieved the final steps toward the first steel production at the EAS. [indiscernible] As I've said before, near term uncertainty in steel markets and uncertainty around tariffs cannot diminish our excitement for what's happening at our site and the tremendous step I'd like to once again thank all of our employees for their hard work, dedication and professionalism. Thank you. And I will now turn the call over to Roger for a deeper dive into our financials. Rajit?

19m 9s

Thanks, Mike. Good morning and thank you all for joining the call. As a reminder, all numbers are expressed in Canadian dollars unless otherwise noted.

19m 19s

Our calendar fourth quarter results included adjusted EBITDA that was a loss of $60,300,000 and cash used in operating activities of $76,900,000 We finished the quarter with a strong balance sheet including $2.60 $67,000,000 of cash and $362,000,000 under our revolving credit facility. Now let me dive into the key drivers of our results. We shipped 549,000 tons in the quarter, up 6.3% versus the prior year quarter. Net sales realization averaged nine seventy six per ton compared to $10.79 dollars per ton in the prior year period.

20m 2s

The decrease versus the prior year level reflects weakening market conditions, partially offset by improvement in value added mix as a proportion of sales.

20m 13s

Clay pricing continued to enjoy premium relative to hot rolled COVID during the quarter. This resulted in steel revenue of $536,000,000 in the quarter, down 3.8% versus the prior year period. [indiscernible] As the lower realized prices more than offset higher shipments. On the cost side, Algoma's cost per ton of steel products sold averaged $10.32 dollars in the quarter, very similar to the prior year period.

20m 41s

Cash used in operations totaled 7 and compared to a use of $47,000,000 in the prior year period.

20m 49s

Inventories at the December 2024 were $879,000,000 compared to $887,000,000 at the December 2023. Looking forward, we remain on track to release approximately $100,000,000 of working capital from March 24 to March 25. Now let me run through the full calendar year comparisons. We shipped 2,000,000 net tons for the full year 2024 compared to 2,200,000 net tons in the prior year. Net sales realizations average eleven oh seven per ton down 5.6% versus the prior year reflective of softer market conditions, on average across the calendar partially offset by improvements in value added product mix, as a proportion of steel sales. This resulted in steel revenue of $2,200,000,000 compared to 2,600,000,000.0 in the prior year. On the cost side, Algoma's cost of steel products sold averaged $10.54 dollars per ton for the year, an increase of 7.4% over the prior year. [indiscernible] The main drivers of this increase were higher variable cost, on account of greater consumption of purchased coke, and lower shipment volume. Adjusted EBITDA for the full year was $22,300,000 representing an adjusted EBITDA margin of 0.9% compared to adjusted EBITDA of $319,000,000 and an adjusted EBITDA margin of 11.2% in calendar 2023. The decrease was mainly attributable to lower shipments lower price realization and higher cost.

22m 24s

Cash flow from operating activities for calendar 2024 was $82,000,000 compared to $269,000,000 in calendar 2023. The decrease year over year was primarily due to factors previously discussed. We remain focused on driving down working capital levels and continue to expect a release of working capital as we transition to EF. Also on the cash flow front, we expect to receive an advance on insurance payouts related to the Futility Corridor and Blast Furnace outage a year ago. With the balance of payout expected by year end. Before I turn it back to Mike, let me make a few comments on our calendar first quarter twenty twenty five results. To date. Due to persistently weak market demand on account of trade uncertainty, we reduced our order book during the current quarter. Coupled with a brief unplanned outage at a blast furnace in February, we expect shipment this quarter to be sequentially lower likely in the mid-four hundred thousand ton range. Along with lower pricing, this is expected to result in adjusted EBITDA that is sequentially lower as compared to Despite the near term weakness, and trade uncertainty, steel pricing has jumped the last several weeks and we expect those price improvements will start to be reflected in our results next quarter.

23m 49s

I'll now like to turn the call back to Michael Garcia for closing comments.

23m 53s

Mike?

23m 54s

Thanks, Rajit. In summary, despite very challenging market, and weather conditions, maintained our focus on the safe operation of existing facilities, continued our ramp in plate production and achieved the final steps toward the on time first ARC of the EAF project. 2025 represents an exciting time in the story of Algoma. As we expect to commence first deal in April, with a ramp in production and first arc at the second furnace coming at the end of the year. This will usher in the next phase of our company that defines the future of Algoma. Provides the foundation for long term value creation for our stakeholders and solidifies our leadership position at the forefront of green steel production in North America. As I've said before, the near term uncertainty in steel markets and at our site and the tremendous step forward it represents for our company and community. Thank you very much for your continued interest in Algoma Steel. At this point, we would be happy to take your questions. Operator, please give the instructions for the Q and A session.

25m 4s

Thank you. Thank you. Our first question is from the line of David Ocampo with Cormark Securities. Please proceed with your questions.

25m 40s

Hi. Thanks for taking my questions. Just the first one, here, Rajat. Maybe you can clarify a little bit, I think quite catch it on the blast furnace outage that happened in the quarter.

25m 50s

How many weeks was it out for? And what's the expected cost of bringing that back online?

25m 56s

Yes, it was it was not out for a long time. It was a couple of days. To a week and it was regular. It was not a significant issue that led to it, so not significant cost involved with it. It was more to do with the the heavy snow, the extreme weather condition that we faced during this period, which was not expected leading to more ice and the water going into the furnace, which creates some issues. So it was for couple of days to a week.

26m 32s

But no additional cost.

26m 35s

Okay.

26m 36s

And then maybe just turning the page to tariffs, which I imagine will be front and center for you guys. But when we look at crude prices and think about your cost profile as a blast furnace operator, are you guys still able to generate positive EBITDA or at least breakeven EBITDA with a 25% tariff on your shipments to The U. S?

26m 58s

Yes.

26m 59s

When you start When you start looking at where the pricing is right now, actually it's gone to $9.50 as you see the print on CRU.

27m 8s

It It starts breaking even to a little bit money. On the on the current cost side on the coils that go into into The U. S. So your assumption is right that it's it's gone higher than what we were saying and David, this is Mike. Plates also gone up even even more than coil, I think since inauguration date, both products are up 30% to 35% Got you. And then that's for at least for the index that we're seeing for crude prices and maybe that pertains more to The U. S. I'm curious what you guys are seeing [indiscernible] Canadian sheet prices, especially given that there could be potential oversupply with clips moving some of the Stelcos ship leads down to the down to to The U. S. To avoid those tariffs. [indiscernible] The Canadian market has has shown different dynamics than The U. S. Market in the last couple of months. It's I would say, oversupplied with coil right now. And [indiscernible] undersupplied with plate. So the announcements by by Canada yesterday putting a tariff on on U. S. Steel will will help. There's about 3,500,000 tons of U. S. Steel in the Canadian market over the last twelve months.

28m 45s

So So that's an opportunity for both coil, but more so even plate to start moving up in price in the Canadian market.

28m 59s

I guess if you had a crystal ball, like how much of a discount do you think Canadian cheap prices will be versus the crew index once those tariffs do come into play? I know it's a bit of a tougher question to answer, but perhaps you can provide some color there.

29m 18s

When you leaving the dynamics on products and customers and preferences, if you simply look at the math, if Canada is oversupplied and there's 25% tariffs, so you will you will at least see closer to the 25% variation. In the price in U. S. Versus Canada because there's more sheet available in Canada. Versus versus the demand. So that's that's a simple math. When you look at it and that does not include dynamics around specific type of hot rolled or little value add preference customer wise and other things.

29m 58s

So it will range from, let's say, 20 to 25%, maybe 28%. But again, just a guess, nobody knows how the market will settle. But logically, that's where that's where the math that's how the math works.

30m 14s

Okay. I'll hop back in the queue. I'll let ask some questions first.

30m 18s

Thanks, David. Thanks. Our next questions are from the line of Katya Jancic with BMO Capital Markets. Hi. Thank you for taking my question.

30m 30s

Maybe staying on the tariff, If these tariffs stick, and you just mentioned $950 crude price, you're essentially breaking even. Are you thinking of taking any mitigating impacts like for example, are you looking at potentially lowering costs? Is there anything you can actually do at this point? To mitigate what's going on?

30m 57s

Hi, Gotcha.

30m 58s

This is Mike.

30m 59s

Obviously, lowering cost is always our focus and [indiscernible] with being a couple weeks away from from EAF production, that is biggest lever that we have to lower cost as a company and as we ramp up that EAF production and eventually decommission our blast furnace and [indiscernible] will reset our cost basis significantly. With that being said, we've been pursuing an aggressive cost for really several months now, even before tariffs were the threat that they are now And we've realized gains. There's more cost savings initiatives that we're pursuing. So that's kind of an ongoing thing at all costs. Or at all times, I would say.

32m 1s

And just on on the numbers, the numbers keep changing so quickly from the market per perspective and and how they will stick in the market has yet to be seen, but when you start doing the math, our our cost is, as I've said, is around $6.50 for a hot rolled coil. Full in. And U. S. And we've been been working on lot of cost reduction, but assuming that where it is, I mean, the math is easy to do on what it will what it will cost us or how much money we'll make on what pricing. And that's only for the sheet side without value added without plate.

32m 44s

Just to clarify, you said $650,000,000 is the all in cost for HSE right now for heat? Correct. And then maybe just on the insurance you're expecting to get in and maybe more specifically what the timing of that is?

33m 6s

Sure. So we do expect to come in. We are working on some advance over the next month or so. And thereafter, we expect everything to get settled during this calendar year.

33m 26s

And how much of the hundred million dollars is in the next month? For near term?

33m 32s

Anywhere from $20,000,000 to $25,000,000 And then I think Rajad, you mentioned before on the working capital release, Can you just remind us how much and the timing?

33m 47s

Sure. So we will see $100,000,000 working capital release in this quarter, which is what I've mentioned in the past, when we were fiscal year, expecting $100,000,000 to come by March 2025 and we'll see that reduction. And continuing on that part, we'll see more reduction coming as we transition to EAF. As the stock of iron ore and coal and coke comes down and we put scrap in. But that probably will come over over this year and next most of it coming in the next year.

34m 25s

And the tariffs did not change the 100,000,000 you're expecting to release in this quarter? No. Okay. I'll hop back into the queue. Thank you.

34m 38s

Thanks.

34m 39s

Thank you, Katya.

34m 41s

Our next question is from the line of Ian Gillies with Stifel. Please proceed with your questions.

34m 47s

Good morning, everyone. Good morning.

34m 52s

Just a clarifying comment. You mentioned breakeven at 09:50 CRU. Is that on the consolidated on a consolidated sales basis? Is that only on The U. S. On U. S. Related sales?

35m 8s

I did say and I just want to clarify that that at 09:50 you do the math, our cost is $650,000,000 so we'll make some money. It's not just breaking even.

35m 19s

And the breakeven probably is lower than that when you look at 25% tariff. So So that's just to clarify. And the cost will be $650,000,000 for us for for hot rolled coil U. S. And plate definitely the cost will be higher, but the pricing is substantially higher.

35m 43s

Understood. Does that clarify?

35m 46s

Yes, that's helpful. Thank you. As it pertains to toggling between HRC and plate, can you maybe talk a little bit about where you think you could get plate production to this year in the event that tariffs happened for the entirety of the year and how you can go about toggling like really toggling that piece just because there's been a bit of push and pull the last year on what you thought you might actually produce in calendar year 2025?

36m 17s

Sherry, and so we shipped 82,000 tons of plate last quarter. I think you'll see a directionally higher ramp up in plate in the quarters to come. Our next kind of intermediate goal for play is reaching 40,000 ton per month level, I think that we're very confident of that. It takes a combination of and you get this this typical debate in a steel company is do we have to have the operations and demonstrate a capability first or we do we have to have the sales first? And the ops guy will say, well, we had the sales, I'd be there. And the sales guy would be, well, we had what the customer wants, we would be there. So I think you actually need both almost simultaneously. You have to demonstrate the the delivery performance, the quality and the reliability as a supplier to the customer at the same time that you kind of need sales to put in in front of your mill to to to ramp up. We feel very confident about getting to this next intermediate step of of 40,000 tons and then going beyond that as the year progresses. It's the plate market in Canada is is rapidly changing.

37m 48s

We're the only discrete plate producer in Canada.

37m 53s

But even with that being said, it's and it's not a humongously large market, but in the last twelve months, there was more U. S. Sold plate in the Canadian market than Algoma sold plate. So that gives us a great opportunity with the tariffs that the announced that the Canadian government announced yesterday.

38m 14s

To go out and capture more market share and more plate sales in Canada. We've already in the last twenty four hours had discussions with plate buyers in Edmonton and with the [indiscernible] the folks in the supply chain for the two Canadian icebreaker ships that were announced. We've made lots of marine plate in Algoma's history. [indiscernible] the defense spending and shipbuilding starts to ramp up in the Canadian market, we see that as a great opportunity, especially if the government implements a buy Canadian requirements for that build. So I think that's how we see the plate ramp up in here at the company. Again, it's a it's a really important opportunity for us and we're focused on it, especially during this uncertain time of of tariffs.

39m 16s

Understood. That's helpful. There's been a lot of commentary in and around the Canadian government supporting the steel industry. I'm just curious as to whether it becomes something more than just retaliatory tariffs And whether you think something more along the lines of government loans or government grants may become available not just to Algoma to the broader steel industry and whether that would be something you're amenable to?

39m 47s

Yes. I mean, I've seen the same public company public comments that you've seen about support for the industries affected, vocal support that we're going we're going to protect Canadian workers, we'll We'll have their I'm trying to channel my inner Doug Ford here. But we've seen the same comments and I can tell you that we have already engaged in one on one discussions with government officials at both the provincial and the federal level on exactly what that means. And what what mechanism or what form that pledge of support might take. So there's nothing I can disclose now, but but those discussions are ongoing.

40m 38s

Understood. Last one for me. In the event tariffs get worse from here and they move higher, And you think about the operating platform [indiscernible] do you continually continue running the furnace at close or near to 100% utilization just to keep it full and so on and so forth and stockpile inventory? Or do you try and reduce throughput in manage your sales volumes that way?

41m 10s

Well, I mean, as you know, Ian, when you're running a blast it's very it's very difficult to model a better financial result with a with a blast furnace that you aren't running at full So So that's what we're dealing with at least for the next twelve to eighteen months while we ramp up the EAF.

41m 42s

So then your question was about inventory. It's difficult to just build a stock of coil inventory without a customer because there isn't great amounts of standard spec hot rolled coil that you can just put on the ground and have a high degree of comfort that you're going to sell that coil easily in the spot market or with customers. With plate, you we're certainly going to take the opportunity because plate is so important to us. This year. We need to rebuild our plate slab stock a little bit. We do have plate a plate stocking program that where we put plate in stock, finished plate without customers assigned yet and we sell out of that. So we'll make sure that both the inventory levels in those two items are are where they need to be to support the opportunities on the plate side of our business. But in general, we're not going to put thousands of tons of coil on the ground in the hope that the the tariffs go down and we can then start shipping coils into The U. S. To customers. That we have or would go acquire.

43m 1s

Does that help? Understood. Yes, I know that helps. And last one for me and likely at the margin, but just curious whether you anticipate receiving any carbon tax rebates in 2025?

43m 16s

Ian, we are expecting the first payment, which was probably around $7000000.7500000.0 dollars dollars dollars for surely to come. And the second one is in [indiscernible] under discussion, so we'll see how it goes through. But we are expecting $7000000.7500000.0 dollars to come this year. Understood.

43m 39s

Thank you very much. I'll turn the call back over.

43m 42s

Thanks, Ian.

43m 45s

Our next questions are from a follow-up from the line of David Ocampo with KeyBanc. Cormark Securities. Please proceed with your questions. [indiscernible] Thanks. I just wanted to circle back on my previous question about Canadian discount prices that's happening in the market. But more specifically that you guys have a pretty large contracted order book and I think that's all based on crew prices. So are your customers or Canadian customers giving any pushback if spot prices in Canada are at a 20% to 25% discount relative to crew?

44m 19s

So, David, most of the contracts that we have are in U. S. Very little in Canada Canadian market mostly works on spot and that's why you're seeing this kind of anomaly also happening in [indiscernible] So Canadian pricing are lower and most of it is spot The U. S. Car is on contract and it goes through CRU.

44m 44s

Okay. And then just the last one, just on the EAF ramp, first production expected in April. But I was hoping you guys could provide a little bit more color on how much production you guys can expect on a quarter by quarter basis until you you're fully ramped in twelve months? Sure. So our plan for the full year, the remaining nine months is is around just over 200,000 tons of EAF production. The majority of that will will be on EAF the first EAF that we're starting up in a a couple of weeks. And it'll be a pretty a relatively steep ramp on the towards the back half of the year.

45m 30s

We want to be making our first EAF steel The plan is in April as we shared there won't be significant amounts of steel produced in second calendar quarter. Then there'll be more in the in the third and I would say much more in the fourth, if if that helps. Okay. And then Rajat, you think the $650,000,000 breakeven that's on a combined basis between the EAF and Blast Furnace or is that one or the other?

46m 5s

That's this year on the blast furnace. EAF [indiscernible] EF will be as I mentioned, we have most of the fixed cost on the EF barring some. So the additional tonnage that's coming from the EAF give contribution. Because most of the fixed cost is there. So that will be scrap and other variable cost. Electrodes and others and less the selling price. So it will be on contribution. Once it's done, as we said, Ef will be scrap plus $2.20. For us, dollars 200 to $2.20 for us for full conversion.

46m 42s

And that's how it will play out.

46m 47s

Okay, that's perfect. That's all for me. Thank you.

46m 50s

Thanks, David. Our next questions are a follow-up from the line of Katya Jancyk Please proceed with your question.

46m 59s

Hi. Thank you for taking my question again.

47m 3s

On the volume for this year, so if we have 200,000 tons from the EIF, how to think about and the first two, you already said mid 400. How to think about the volume in the rest of the year from the blast furnace overall? And then Algoma how to think about the split between plate and nature given that maybe there's a lot more opportunity on the plate side? Correct.

47m 28s

So it will be [indiscernible] anywhere from 2,000,000 to 2,200,000 tons on the in the total. I mean, you can take 2,100,000 to 2,200,000 just to just to narrow the range. From overall shipment for the calendar year, And on the plate side, we will see higher shipment for sure. It will probably average around 35 or for the balance of the year, 35 or 1,000 tons a month. To 40,000 tons a month. So that will be our our shipment on the plate side and overall 2.1 to 2.2.

48m 11s

Okay. Thank you.

48m 14s

Thank you. At this time, I would like to turn the floor back to Michael Maraca for closing remarks.

48m 22s

Thank you again for your participation in our fourth quarter twenty twenty four earnings conference call and your continued interest in Algoma Steel. [indiscernible] We look forward to updating you on our results and progress when we report our calendar first results later this spring. Thank you.

48m 39s

May disconnect your lines at this time. We thank you for your participation and have a wonderful day. [indiscernible]

Key Insights

Algoma Steel reported challenging Q4 and full-year 2024 results, with adjusted EBITDA loss of $60.3M in Q4 and $22.3M for the year, reflecting weaker steel prices, higher costs, and ongoing market/tariff uncertainty; full-year shipments were 2.0M tons, down from 2.2M tons in 2023.
The company maintains a strong liquidity position with $267M in cash and $630M in total liquidity at year-end, supporting the on-budget, on-schedule completion of its Electric Arc Furnace (EAF) project; first steel production from EAF is expected in April 2025, with over 200,000 tons of EAF production targeted for the remainder of 2025.
Q1 2025 shipments are expected to be sequentially lower (mid-400,000 ton range) due to weak demand and a brief blast furnace outage; adjusted EBITDA is also expected to be lower, but recent steel price increases are anticipated to benefit future quarters.
The company expects to release approximately $100M in working capital by March 2025 and receive $20–25M in insurance advances soon, with the balance by year-end; additional working capital reductions are expected as the EAF transition progresses.
Management is dynamically adjusting product mix to focus on higher-margin plate products, targeting a ramp to 35,000–40,000 tons/month of plate shipments; total 2025 shipments are forecasted at 2.1–2.2M tons, with plate volumes rising due to Canadian market opportunities and new tariffs on U.S. steel imports.

Recent Transcripts

Challenging steel market conditions led to lower revenue and EBITDA, but EAF project remains on track.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	CA$2B	CA$1.8B	CA$3.8B	CA$2.8B	CA$2.8B
Cost of Revenue	CA$2B	CA$1.6B	CA$2.3B	CA$2.4B	CA$2.5B
Gross Profit	-CA$80M	CA$157M	CA$1.5B	CA$390M	CA$307M
Gross Profit %	-4.1%	8.8%	40%	14%	11%
R&D Expenses	CA$0	CA$0	CA$0	CA$0	CA$0

2020

2021

2022

2023

2024

Revenue

CA$2B

CA$1.8B

CA$3.8B

CA$2.8B

Cost of Revenue

CA$2B

CA$1.6B

CA$2.3B

CA$2.4B

CA$2.5B

Gross Profit

-CA$80M

CA$157M

CA$1.5B

CA$390M

CA$307M

Gross Profit %

-4.1%

8.8%

40%

14%

11%

R&D Expenses

CA$0

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	-CA$176M	-CA$76M	CA$858M	CA$299M	CA$105M
Dep. & Amort.	CA$128M	CA$87M	CA$87M	CA$95M	CA$115M
Def. Tax	-CA$4.3M	CA$100K	CA$102M	-CA$12M	CA$1.2M
Stock Comp.	CA$0	CA$14M	CA$5.7M	-CA$13M	CA$1.2M
Chg. in WC	CA$34M	-CA$138M	-CA$21M	-CA$179M	CA$33M

2020

2021

2022

2023

2024

Net Income

-CA$176M

-CA$76M

CA$858M

CA$299M

CA$105M

Dep. & Amort.

CA$128M

CA$87M

CA$95M

CA$115M

Def. Tax

-CA$4.3M

CA$100K

CA$102M

-CA$12M

CA$1.2M

Stock Comp.

CA$0

CA$14M

CA$5.7M

-CA$13M

CA$1.2M

Chg. in WC

CA$34M

-CA$138M

-CA$21M

-CA$179M

CA$33M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	CA$265M	CA$21M	CA$915M	CA$247M	CA$98M
ST Investments	CA$0	CA$0	CA$0	CA$0	CA$0
Cash & ST Inv.	CA$265M	CA$21M	CA$915M	CA$247M	CA$98M
Receivables	CA$249M	CA$275M	CA$402M	CA$291M	CA$235M
Inventory	CA$437M	CA$415M	CA$480M	CA$723M	CA$808M

2020

2021

2022

2023

2024

Cash

CA$265M

CA$21M

CA$915M

CA$247M

CA$98M

ST Investments

CA$0

Cash & ST Inv.

CA$265M

CA$21M

CA$915M

CA$247M

CA$98M

Receivables

CA$249M

CA$275M

CA$402M

CA$291M

CA$235M

Inventory

CA$437M

CA$415M

CA$480M

CA$723M

CA$808M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Overview
Latest News
Earnings
Income Statement
Cash Flow
Balance Sheet
Related

Earnings

Report Date

—

Rev Estimate

—

Avg 1d Change

4.65%

Report Period

Q3 2025

EPS Estimate

—

Implied Move 1d

—

Transcript

11m 13s

11m 51s

13m 7s

14m 37s

16m 11s

17m 56s

19m 9s

Thanks, Mike. Good morning and thank you all for joining the call. As a reminder, all numbers are expressed in Canadian dollars unless otherwise noted.

19m 19s

20m 2s

The decrease versus the prior year level reflects weakening market conditions, partially offset by improvement in value added mix as a proportion of sales.

20m 13s

20m 41s

Cash used in operations totaled 7 and compared to a use of $47,000,000 in the prior year period.

20m 49s

22m 24s

23m 49s

I'll now like to turn the call back to Michael Garcia for closing comments.

23m 53s

Mike?

23m 54s

25m 4s

Thank you. Thank you. Our first question is from the line of David Ocampo with Cormark Securities. Please proceed with your questions.

25m 40s

Hi. Thanks for taking my questions. Just the first one, here, Rajat. Maybe you can clarify a little bit, I think quite catch it on the blast furnace outage that happened in the quarter.

25m 50s

How many weeks was it out for? And what's the expected cost of bringing that back online?

25m 56s

26m 32s

But no additional cost.

26m 35s

Okay.

26m 36s

26m 58s

Yes.

26m 59s

When you start When you start looking at where the pricing is right now, actually it's gone to $9.50 as you see the print on CRU.

27m 8s

28m 45s

So So that's an opportunity for both coil, but more so even plate to start moving up in price in the Canadian market.

28m 59s

29m 18s

29m 58s

So it will range from, let's say, 20 to 25%, maybe 28%. But again, just a guess, nobody knows how the market will settle. But logically, that's where that's where the math that's how the math works.

30m 14s

Okay. I'll hop back in the queue. I'll let ask some questions first.

30m 18s

Thanks, David. Thanks. Our next questions are from the line of Katya Jancic with BMO Capital Markets. Hi. Thank you for taking my question.

30m 30s

30m 57s

Hi, Gotcha.

30m 58s

This is Mike.

30m 59s

32m 1s

32m 44s

33m 6s

Sure. So we do expect to come in. We are working on some advance over the next month or so. And thereafter, we expect everything to get settled during this calendar year.

33m 26s

And how much of the hundred million dollars is in the next month? For near term?

33m 32s

Anywhere from $20,000,000 to $25,000,000 And then I think Rajad, you mentioned before on the working capital release, Can you just remind us how much and the timing?

33m 47s

34m 25s

And the tariffs did not change the 100,000,000 you're expecting to release in this quarter? No. Okay. I'll hop back into the queue. Thank you.

34m 38s

Thanks.

34m 39s

Thank you, Katya.

34m 41s

Our next question is from the line of Ian Gillies with Stifel. Please proceed with your questions.

34m 47s

Good morning, everyone. Good morning.

34m 52s

Just a clarifying comment. You mentioned breakeven at 09:50 CRU. Is that on the consolidated on a consolidated sales basis? Is that only on The U. S. On U. S. Related sales?

35m 8s

I did say and I just want to clarify that that at 09:50 you do the math, our cost is $650,000,000 so we'll make some money. It's not just breaking even.

35m 19s

35m 43s

Understood. Does that clarify?

35m 46s

36m 17s

37m 48s

We're the only discrete plate producer in Canada.

37m 53s

38m 14s

39m 16s

39m 47s

40m 38s

41m 10s

41m 42s

43m 1s

Does that help? Understood. Yes, I know that helps. And last one for me and likely at the margin, but just curious whether you anticipate receiving any carbon tax rebates in 2025?

43m 16s

43m 39s

Thank you very much. I'll turn the call back over.

43m 42s

Thanks, Ian.

43m 45s

44m 19s

44m 44s

45m 30s

46m 5s

46m 42s

And that's how it will play out.

46m 47s

Okay, that's perfect. That's all for me. Thank you.

46m 50s

Thanks, David. Our next questions are a follow-up from the line of Katya Jancyk Please proceed with your question.

46m 59s

Hi. Thank you for taking my question again.

47m 3s

47m 28s

48m 11s

Okay. Thank you.

48m 14s

Thank you. At this time, I would like to turn the floor back to Michael Maraca for closing remarks.

48m 22s

48m 39s

May disconnect your lines at this time. We thank you for your participation and have a wonderful day. [indiscernible]

Key Insights

Algoma Steel reported challenging Q4 and full-year 2024 results, with adjusted EBITDA loss of $60.3M in Q4 and $22.3M for the year, reflecting weaker steel prices, higher costs, and ongoing market/tariff uncertainty; full-year shipments were 2.0M tons, down from 2.2M tons in 2023.
The company maintains a strong liquidity position with $267M in cash and $630M in total liquidity at year-end, supporting the on-budget, on-schedule completion of its Electric Arc Furnace (EAF) project; first steel production from EAF is expected in April 2025, with over 200,000 tons of EAF production targeted for the remainder of 2025.
Q1 2025 shipments are expected to be sequentially lower (mid-400,000 ton range) due to weak demand and a brief blast furnace outage; adjusted EBITDA is also expected to be lower, but recent steel price increases are anticipated to benefit future quarters.
The company expects to release approximately $100M in working capital by March 2025 and receive $20–25M in insurance advances soon, with the balance by year-end; additional working capital reductions are expected as the EAF transition progresses.
Management is dynamically adjusting product mix to focus on higher-margin plate products, targeting a ramp to 35,000–40,000 tons/month of plate shipments; total 2025 shipments are forecasted at 2.1–2.2M tons, with plate volumes rising due to Canadian market opportunities and new tariffs on U.S. steel imports.