Steel Mills

Algoma's net loss narrows in Q4; braces for tariff impact

Written by Ethan Bernard

March 12, 2025

Algoma Steel Inc.

Fourth quarter ended Dec. 3120242023% Change
Net sales$590.3$615.4-4.1%
Net earnings (loss)$(66.5)$(84.8)21.6%
Per diluted share$(0.61)$(0.78)21.8%
Full year ended Dec. 31
Net sales$1,841.1$2,795.8-34.1%
Net earnings (loss)$(167.0)$105.2-258.6%
Per diluted share$(1.54)$0.70-320%
(in millions of Canadian dollars except per share)

Algoma Steel’s net loss narrowed in the fourth quarter vs. a year earlier amid economic uncertainty and tariff-related issues.

The Sault Ste. Marie, Ontario-based steelmaker posted a net loss of Canadian $66.5 million (USD$46.2 million) in Q4’24, compared with a loss of CAD$84.8 million a year earlier. Net sales fell 4% to CAD$590.3 million (USD$411 million) in the same comparison.

Shipments of 2,023,363 short tons (st) in Q4’24 declined 8% year over year.

EAF transition

Algoma CEO Michael Garcia said that despite economic headwinds, the company has kept a focus on two priorities: safety and the transition from a blast furnace to EAF steelmaker.

“I’m thrilled we are rapidly approaching the first arc in furnace one, with first steel production still expected in April,” he said in a statement after market close on Wednesday.

“We are about to enter the transition phase of the project, with rising steel production from the EAF augmenting output from our traditional blast furnace operations on the way to processing all of our steel through the EAFs around the end of 2026,” he added.

Garcia commented that a milestone in the project was reached in the fourth quarter with the commencement of cold commissioning.

The company said it has now contracted “substantially all remaining expected project costs.”

The cumulative investment stood at CAD$740.2 million as of Dec. 31. This includes CAD$67.8 million during Q4’24.

The contracted commitments now total ~CAD$880 million. This puts it “within 5% of the upper end of the previously announced budget range,” Algoma said.

Following the EAF transition, Algoma’s facility is expected to have an annual raw steel production capacity of ~3.7 million tons, “matching its downstream finishing capacity.”

This change is seen reducing the company’s annual carbon emissions by ~70%.

Tariff ‘turbulence’

Garcia noted that the transition comes amid “turbulence” in the North American market due to the evolving tariff situation on Canadian steel and aluminum imports to the US.

However, he said: “Given the deeply integrated North American supply chain, we believe rational dialogue will prevail between these close allies, restoring normal steel trade.”

Still, the Section 232 tariffs went into effect on March 12, though there has been another 30-day reprieve from a blanket tariff on Canadian imports.

Algoma said it is assessing the impact of all these tariffs and tariff threats. However, the company explained that the tariffs “are expected to have a material and adverse impact on the company’s financial position, results of operations and liquidity.”

An estimate of that impact could not be made at this time.

According to a report in the Sault Star, Algoma has temporarily paused shipments to the US. The company was waiting for the outcome of a meeting in Washington, D.C., between Canadian and US officials on Thursday.

A request for comment after market close was sent to Algoma, but no response was immediately available.   

Ethan Bernard

Ethan Bernard is a reporter and editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.

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