Core Insights - Algoma Steel Group Inc. is undergoing a significant transformation in response to the 50% US Section 232 tariff, which has fundamentally altered the Canadian steel market landscape [5][9][23] - The company is pivoting its commercial strategy towards the Canadian market, focusing on high-value products and reducing exposure to tariff-distorted global markets [12][13][24] - Financial results for Q4 2025 reflect challenges, including lower shipments and elevated costs, but the company is positioned for future growth with government-backed liquidity support [9][21][27] Financial Performance - For Q4 2025, Algoma Steel reported an adjusted EBITDA loss of CAD 95.2 million, with a margin of -20.9%, and cash used in operating activities of CAD 3 million [14][15] - Shipments decreased by 31% year-over-year to 378,000 net tons, primarily due to the impact of US tariffs [15][19] - Net sales realizations averaged CAD 1,077 per ton, up from CAD 976 in the prior year, reflecting a better product mix despite weaker market conditions [15][20] Operational Developments - The company has successfully wound down its blast furnace and coke oven operations, with its first Electric Arc Furnace (EAF) running on a full 24-hour schedule [6][10][24] - Cumulative investment in the EAF project reached CAD 920 million, with an expected total cost of approximately CAD 987 million [11][20] - Algoma Steel is Canada's only producer of discrete plate, which is not subject to the same oversupply dynamics affecting coil pricing, and demand for plate products remains strong [9][10][12] Strategic Partnerships - In January 2026, Algoma Steel announced a binding MOU with Hanwha Ocean Company Limited, valued at USD 250 million, which includes a significant contribution towards developing a structural steel beam mill [12][27] - This partnership positions Algoma Steel as a critical player in Canada's defense and industrial supply chain, aligning with national industrial priorities [12][13][27] Market Outlook - The company anticipates total shipments for 2026 to be between 1,000,000 and 1,200,000 tons, with a mix of approximately 50% plate and 50% sheet products [30] - Plate pricing is holding up better than sheet pricing, with a 15% to 20% discount compared to the index, while sheet pricing remains approximately 40% lower [35][36] - The company expects improved pricing and cost performance in Q1 2026, despite lower shipment volumes [22][30]

Financial Data and Key Metrics Changes - The fourth quarter results included an Adjusted EBITDA loss of CAD 95.2 million, reflecting an Adjusted EBITDA margin of -20.9% and cash used in operating activities of CAD 3 million [11][12] - For the full year 2025, Adjusted EBITDA was a loss of CAD 261.4 million, representing an adjusted EBITDA margin of -12.5%, compared to a gain of CAD 22.4 million and a margin of 0.9% in 2024 [16] - The company finished the quarter with CAD 77 million in cash, CAD 195 million available under the revolving credit facility, and CAD 417 million under the Large Enterprise Tariff Loan facility [12] Business Line Data and Key Metrics Changes - Shipments in the fourth quarter were 378,000 net tons, down 31% year-over-year, largely due to the impact of U.S. tariffs [12][15] - For the full year, shipments totaled 1.7 million net tons, compared to 2 million net tons in 2024 [15] - Steel revenue for the fourth quarter was CAD 408 million, down 23.9% year-over-year, as lower shipment volumes offset higher realized prices [13] Market Data and Key Metrics Changes - The Canadian market experienced an oversupply of coil, driving domestic transaction prices as much as 40% below comparable U.S. levels [6] - Plate pricing continued to enjoy a significant premium relative to hot-rolled coil, driven by resilient demand [13] - The Canadian dollar strengthened approximately 5% over 2025, impacting financial results when converted from U.S. dollars [11] Company Strategy and Development Direction - The company is pivoting its commercial strategy towards the Canadian market, exiting blast furnace and coke oven operations, and focusing on high-value products [5][10] - A binding MOU with Hanwha Ocean Co Ltd was announced, with a potential value of CAD 250 million, indicating a strategic shift towards defense and industrial supply chains [9] - The company aims to optimize for margin quality rather than volume, reducing exposure to tariff-distorted global markets [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2025 as a challenging year due to the 50% U.S. Section 232 tariff, which dismantled the cross-border business model [18] - The company is committed to exploring product diversification initiatives to support Canadian industrial policy [19] - Management expressed confidence in the direction of the company, highlighting the foundation for long-term value creation [21] Other Important Information - The company has absorbed CAD 225 million in direct tariff costs for the full year, reflecting a structural shift in the industry [7] - Accelerated depreciation of blast furnace and basic oxygen steelmaking assets was captured in the cost of sales during the quarter [14] - The company is aware of pending litigation with U.S. Steel regarding an iron ore supply agreement [17] Q&A Session Summary Question: What are the expectations for full year shipments and their split between plate and sheet? - The company expects total shipments between 1 and 1.2 million tons for the year, with a 50/50 mix between plate and sheet products [24][25] Question: How exposed are energy costs to the current spot market? - The company generates power from its own natural gas-fired power plant and consumes power from the grid, which is subject to Ontario's spot rate pricing [26] Question: What is the current status of plate pricing in Canada? - Plate pricing is holding up better than sheet pricing, with a 15%-20% discount compared to the index, while sheet pricing is approximately 40% lower [34] Question: What are the expected milestones for the beam mill project? - The company is working on engineering, cost estimates, and timelines for the beam mill project, with a focus on supporting the Canadian market [37] Question: What is the expected CapEx for the full year? - The company does not expect any change in the total project budget for the EAF, with sustaining CapEx expected to be around CAD 80 million a year [39]

Financial Data and Key Metrics Changes - The fourth quarter results included an Adjusted EBITDA loss of CAD 95.2 million, reflecting an Adjusted EBITDA margin of -20.9% and cash used in operating activities of CAD 3 million [14][15] - For the full year 2025, Adjusted EBITDA was a loss of CAD 261.4 million, representing an adjusted EBITDA margin of -12.5%, compared to a gain of CAD 22.4 million and a margin of 0.9% in 2024 [19] - The company finished the quarter with CAD 77 million in cash, CAD 195 million available under the revolving credit facility, and CAD 417 million under the Large Enterprise Tariff Loan facility [15] Business Line Data and Key Metrics Changes - Shipments in the fourth quarter were 378,000 net tons, down 31% year-over-year, largely due to the impact of U.S. tariffs [15] - For the full year 2025, total shipments were 1.7 million net tons, compared to 2 million net tons in 2024 [18] - Net sales realizations averaged CAD 1,080 per ton for the full year, down from CAD 1,107 per ton in the prior year, reflecting softer market conditions [19] Market Data and Key Metrics Changes - Shipments to the U.S. were approximately 30% lower than the average U.S. sales over the previous three quarters as the company began its exit from the U.S. market [9] - Plate pricing continued to enjoy a significant premium relative to hot-rolled coil, driven by resilient demand, while sheet pricing was reported to be 40% lower than the index [16][37] - The Canadian dollar strengthened approximately 5% over the course of 2025, impacting financial results [14] Company Strategy and Development Direction - The company is pivoting its commercial strategy towards the Canadian market, exiting blast furnace and coke oven operations, and focusing on high-value products [7][12] - A binding MoU with Hanwha Ocean Co., Ltd. was announced, with a potential value of CAD 250 million, indicating a strategic repositioning towards defense and industrial supply chains [11] - The company aims to evolve from a cross-border commodity producer to a Canadian-focused steel supplier, optimizing for margin quality rather than volume [12] Management's Comments on Operating Environment and Future Outlook - The management acknowledged that 2025 was the most challenging year for Canadian steel producers due to the 50% U.S. Section 232 tariff, which dismantled the cross-border business model [21] - The company is committed to exploring product diversification initiatives to support Canadian industrial policy and has implemented mitigation programs for affected employees [22] - The foundation for long-term value creation is in place, with confidence in the company's direction moving forward [24] Other Important Information - The company absorbed CAD 225 million in direct tariff costs for the full year, which are considered a structural shift rather than cyclical headwinds [9] - Accelerated depreciation of blast furnace and basic oxygen steelmaking assets was captured in the cost of sales during the quarter [17] Q&A Session Summary Question: What are the expectations for full year shipments and their split between plate and sheet? - The company expects total shipments between 1 and 1.2 million tons for the year, with a mix of roughly 50/50 between plate and sheet [27][28] Question: How exposed are energy costs to the current spot market? - The company generates power from its own natural gas-fired power plant and consumes power from the grid, which is subject to Ontario's spot rate pricing [29] Question: What is the current status of plate pricing in Canada? - Plate pricing is holding up better than sheet pricing, with government measures helping to stabilize the market [36][37] Question: What are the expected milestones for the beam mill project? - The company is working on engineering, cost estimates, and timelines for the beam mill project, with a focus on supporting the Canadian market [39][40] Question: What is the expected CapEx for the full year? - The company does not expect any change in the total project budget for the EAF, with sustaining CapEx expected to be around CAD 80 million a year [42] Question: How is the scrap supply situation? - The scrap availability and supply are progressing well, with the joint venture working effectively [43]

Financial Data and Key Metrics Changes - The fourth quarter Adjusted EBITDA was a loss of CAD 95.2 million, reflecting an Adjusted EBITDA margin of -20.9% and cash used in operating activities of CAD 3 million [13][14] - For the full year 2025, Adjusted EBITDA was a loss of CAD 261.4 million, representing an adjusted EBITDA margin of -12.5%, compared to a gain of CAD 22.4 million and a margin of 0.9% in 2024 [18] - The company finished the quarter with CAD 77 million in cash and CAD 195 million available under its revolving credit facility [14] Business Line Data and Key Metrics Changes - Shipments in the fourth quarter were 378,000 net tons, down 31% year-over-year, primarily due to the impact of U.S. tariffs [14][15] - For the full year, total shipments were 1.7 million net tons, compared to 2 million net tons in 2024 [17] - Net sales realizations averaged CAD 1,080 per ton for the full year, down from CAD 1,107 per ton in the prior year [17] Market Data and Key Metrics Changes - The Canadian dollar strengthened approximately 5% over 2025, moving from CAD 1.44 per USD at year-end 2024 to CAD 1.37 at December 31, 2025 [12] - Plate pricing remained resilient, with a premium over hot-rolled coil, while sheet pricing was approximately 40% lower than the index [36] Company Strategy and Development Direction - The company is pivoting its commercial strategy towards the Canadian market, exiting blast furnace and coke oven operations, and focusing on high-value products [6][11] - A binding MoU with Hanwha Ocean Co., Ltd. was announced, with a potential value of CAD 250 million, indicating a strategic shift towards defense and industrial supply chains [10][11] - The company aims to optimize for margin quality rather than volume, reducing exposure to tariff-distorted global markets [11] Management's Comments on Operating Environment and Future Outlook - The management acknowledged 2025 as a challenging year due to the 50% U.S. Section 232 tariff, which fundamentally altered the business model for Canadian steel producers [20] - The company is committed to exploring product diversification initiatives and applauded government measures to support the Canadian steel industry [22][23] - Management expressed confidence in the company's direction and the foundation for long-term value creation [24] Other Important Information - The company absorbed CAD 225 million in direct tariff costs for the full year, reflecting a structural shift in the industry [8] - Accelerated depreciation and stranded inventory costs were captured in the cost of sales during the quarter [16] Q&A Session Summary Question: What are the expectations for full year shipments? - The company expects total shipments between 1 and 1.2 million tons for the year, with a ramp-up in capacity at EAF [26] Question: What is the expected mix between plate and sheet? - The mix is anticipated to be roughly 50/50 between plate and sheet products [28] Question: How exposed are energy costs to the current spot market? - The company generates power from its own natural gas-fired power plant and consumes power from the grid, which is subject to Ontario's spot rate pricing [29] Question: What is the current status of plate pricing in Canada? - Plate pricing is holding up better than sheet pricing, with government initiatives helping to stabilize the market [36] Question: What are the critical milestones for the beam mill project? - The company is working on engineering, cost estimates, and timelines for the beam mill project, with demand in Canada exceeding supply [40] Question: What is the expected CapEx for the full year? - The company does not expect any change in the total project budget for the EAF, with sustaining CapEx expected to be around CAD 80 million a year [42]

Commission (the "SEC"), as part of Algoma's Annual Report on Form 40 - F (available at www.sec.gov), as well as in Algoma's current reports with the Canadian securities regulatory authorities and the SEC. Given these risks, uncertainties and other factors, readers should not place undue reliance on forward ‐looking statements or information as a prediction of actual results. The forward ‐looking statements and information reflects management's current expectations and beliefs regarding future events and ope ...

分组1 - Algoma Steel Group Inc. reported a quarterly loss of $2.11 per share, significantly worse than the Zacks Consensus Estimate of $0.32, representing an earnings surprise of -759.38% [1] - The company had a loss of $0.44 per share in the same quarter last year, indicating a deterioration in performance year-over-year [1] - Over the last four quarters, Algoma Steel has surpassed consensus EPS estimates two times [2] 分组2 - Legato Merger reported revenues of $326.39 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 4.85% and down from $421.91 million year-over-year [2] - The stock has added about 4.9% since the beginning of the year, while the S&P 500 has declined by 0.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.61 on revenues of $368.93 million, and for the current fiscal year, it is -$1.96 on revenues of $1.1 billion [7] 分组3 - The Zacks Industry Rank for Steel - Producers is currently in the bottom 16% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8] - Another company in the same industry, Commercial Metals, is expected to report quarterly earnings of $1.28 per share, reflecting a year-over-year change of +392.3% [9] - Commercial Metals' revenues are projected to be $1.98 billion, up 13% from the year-ago quarter [10]

The Canadian steelmaker reported a quarterly loss of C$364.7 million, compared with a loss of C$66.5 million a year earlier. ...

Core Insights - Algoma Steel Group Inc. has completed its transition to electric arc furnace (EAF) steelmaking, marking a significant operational shift and aiming for long-term sustainability in steel production [4][17][33] - The company reported substantial financial losses for both the fourth quarter and the full year of 2025, primarily due to U.S. tariffs and reduced steel shipments [5][6][12] Financial Performance - Fourth quarter revenue was $455.0 million, down from $590.3 million in the prior year, with a consolidated loss from operations of $449.7 million compared to a loss of $124.8 million in the previous year [5][8] - For the full year 2025, revenue totaled $2,085.7 million, a decrease from $2,461.7 million in 2024, with a net loss of $984.9 million compared to a net loss of $139.0 million in the prior year [6][13] - Adjusted EBITDA for the fourth quarter was a loss of $95.2 million, resulting in an Adjusted EBITDA margin of (20.9%), while for the full year, the loss was $261.4 million with a margin of (12.5%) [10][14] Operational Developments - The EAF facility is now operating continuously, producing high-quality steel and achieving operational metrics as planned, which is crucial for the company's transition strategy [4][16][17] - The company has ceased blast furnace operations ahead of the original 2027 timeline, focusing on discrete plate production to align with market demands and reduce tariff exposure [21][33] Strategic Initiatives - Algoma secured a $500 million government-backed liquidity facility to support its transition to EAF steelmaking and enhance financial flexibility [22][24] - A strategic partnership with Hanwha Ocean Co. Ltd. was established, potentially worth $250 million, aimed at diversifying product offerings and customer base [23] Market Environment - The company faced significant challenges due to U.S. Section 232 tariffs, which restricted access to the U.S. market and led to lower domestic pricing, impacting revenue [19][20] - Canadian transactional pricing was reported to be up to 40% lower than U.S. levels, contributing to revenue losses [20]

Core Viewpoint - Algoma Steel Group Inc. is set to release its 2025 fourth quarter and full year financial results on March 11, 2026, with a subsequent conference call scheduled for March 12, 2026, to discuss these results and recent developments [1][2] Company Overview - Algoma Steel, based in Sault Ste. Marie, Ontario, is a prominent Canadian producer of high-quality plate and sheet steel products, serving critical sectors such as energy, defense, automotive, shipbuilding, and infrastructure [3] - The company is committed to sustainable steelmaking, aiming to build better lives and a greener future [3] Industry Transformation - Algoma is transitioning to electric arc furnace (EAF) steelmaking and modernizing its plate mill, which is one of the largest industrial decarbonization initiatives in North America, expected to reduce carbon emissions by approximately 70% once fully implemented [4] - This transformation is powered by Ontario's clean electricity grid, providing stability for ongoing investments in diversification projects aligned with Canada's evolving needs [4] Product Innovation - The company has introduced Volta™, a brand for all steel produced through its EAF technology, which offers the same performance as traditional products but with significantly lower emissions [5] - Algoma continues to invest in its workforce, processes, and technologies to enhance domestic supply chains and deliver responsible, Canadian-made steel [5]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - A safer approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Algoma Steel Group Inc. (ASTL) Analysis - Algoma Steel Group Inc. (ASTL) has shown a price increase of 14.6% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, ASTL's stock has gained 27.5%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - ASTL has a Momentum Score of B, suggesting it is an opportune time to invest in the stock to capitalize on its momentum [6] Group 3: Earnings Estimates and Valuation - ASTL has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest and drive prices higher [7] - The stock is currently trading at a Price-to-Sales ratio of 0.31, indicating it is undervalued, as investors pay only 31 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides ASTL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify potential winning stock picks based on individual investing styles [9]