Canada-based steel producer, Algoma Steel, has announced its financial and operational results for the first quarter ended March 31 of the fiscal year 2025.
In the first quarter, the company registered a net loss of CAD 24.5 million, compared to net income of CAD 28.0 million in the same period last year, while its revenues totaled CAD 517.1 million, compared to CAD 620.6 million in the prior-year quarter, mainly due to lower pricing that resulted from weakening market conditions.
In the first quarter, the company’s adjusted EBITDA amounted to CAD 46.7 million and its EBITDA margin was 9.0 percent. The company’s shipments in Q1 totaled 469,731 mt, up by 4.2 percent from 450,966 mt in the same period last year.
In addition, the company stated that it experienced delays of construction of two new state of the art electric arc furnaces due to harsh winter conditions during the first quarter. Also, during the first quarter, the company incurred tariff-related costs of CAD 10.5 million due to the tariffs from the United States.
“The first quarter of 2025 was an intense period of activity at our site, set against a backdrop of ongoing market challenges. Our financial and operational results were broadly in line with expectations, despite headwinds from tariff uncertainty and subdued demand and pricing in the steel market. At the same time, we advanced construction on our transformative EAF project. While unusually harsh winter conditions delayed progress, we used the opportunity to advance other EAF project work not on the critical path. In parallel, we commissioned several critical systems, including the fume treatment plant and the water treatment plant, positioned the furnace itself, and energized the substation. We now anticipate first steel production from our initial EAF during Q2, with no material change to our total project cost and our 2025 EAF production expectations,” says Michael Garcia, CEO of Algoma Steel.
Garcia continues, “We reach this milestone during a period of significant volatility in the North American steel market, with evolving U.S. tariffs—including those on Canadian steel and aluminum—adding uncertainty and driving increased imports into the Canadian market. Despite these challenges, we remain confident that our shift to EAF steelmaking will fundamentally improve our cost structure and enhance our resilience in turbulent market conditions. We believe that we are positioning Algoma to be a strategic force in the North American steel industry for decades to come, all while reinforcing our steadfast commitment to safety and sustainability and that this is the beginning of our journey to becoming a producer of green steel in North America and to delivering long-term value for all stakeholders.”