Financial Performance - Shipping volume for Q2 2025 was 472K NT, a slight increase from 470K NT in Q1 2025 but a 6% decrease from 503K NT in Q2 2024[21] - Steel Revenue in Q2 2025 reached $534 million, up 15% from $463 million in Q1 2025 but down 11% from $597 million in Q2 2024[21] - Adjusted EBITDA for Q2 2025 was $(32) million, an increase of $15 million from $(47) million in Q1 2025 but a decrease of $70 million from $38 million in Q2 2024[21] - Net Income in Q2 2025 was $(111) million, down $86 million from $(25) million in Q1 2025 and down $117 million from $6 million in Q2 2024[21] - Adjusted EBITDA margin for Q2 2025 was -55%[21, 22] Strategic Initiatives - The company is progressing with its Electric Arc Furnace (EAF) transformation, with the first heat achieved in July 2025[39] - The EAF project is expected to reduce emissions by 70% and improve GHG performance[39] - Algoma commenced quarterly dividend of $005 per share[39] Market Factors - Increased US tariffs of 50% on imported steel and aluminum have disrupted global steel markets[36] - Tariffs on imported pig iron into the US are also expected to impact market dynamics[36]

Company Performance - Algoma Steel Group Inc. reported a quarterly loss of $0.74 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.45, and compared to a loss of $0.05 per share a year ago, indicating a significant decline in performance [1] - Legato Merger, part of the Zacks Steel - Producers industry, posted revenues of $426.19 million for the quarter ended June 2025, slightly surpassing the Zacks Consensus Estimate by 0.15%, but down from $475.44 million year-over-year [2] - The earnings surprise for Algoma Steel was -64.44%, while Legato Merger has surpassed consensus EPS estimates two times over the last four quarters [1][2] Stock Performance - Legato Merger shares have decreased by approximately 37.4% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The current consensus EPS estimate for Legato Merger for the upcoming quarter is -$0.65 on revenues of $436.28 million, and for the current fiscal year, it is -$1.74 on revenues of $1.69 billion [7] Industry Outlook - The Steel - Producers industry is currently ranked in the bottom 12% of over 250 Zacks industries, indicating a challenging environment for companies within this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment and stock performance [5][6]

Core Insights - Algoma Steel Group Inc. reported consolidated revenue of $589.7 million for the second quarter of 2025, a decrease from $650.5 million in the same quarter of the previous year [5][7] - The company experienced a net loss of $110.6 million, compared to a net income of $6.1 million in the prior-year quarter, primarily due to lower steel shipment volumes and pricing pressures [7][19] - The company achieved its first arc and first steel production from its Electric Arc Furnace (EAF) project, marking a significant milestone in its transition to green steel production [4][11] Financial Performance - Revenue for the second quarter was $589.7 million, down from $650.5 million year-over-year, with steel revenue specifically at $534.4 million compared to $597.4 million [5][7] - The average revenue per ton of steel sold decreased to $1,249 from $1,293 in the prior-year quarter [5] - The loss from operations was $85.1 million, significantly higher than the loss of $12.5 million in the previous year, attributed to lower revenues and increased costs from tariffs [6][7] Tariff Impact - Tariff costs for the second quarter totaled $64.1 million, impacting the company's financial performance due to ongoing tariff uncertainty and market conditions [6][16] - The U.S. imposed a 50% Section 232 tariff on steel exports from Canada, contributing to a structural imbalance in the Canadian market and resulting in lower pricing [14][15] - Canadian net sales realizations were reported to be up to 40% lower than U.S. levels, leading to an estimated revenue impact of $30 million [15][16] Operational Developments - The company completed preparations for its first production of Volta™, its trademarked green steel, with successful production achieved in early July 2025 [4][11] - The EAF project is expected to provide a structural cost advantage and reduce annual carbon emissions by approximately 70% [13][28] - As of June 30, 2025, the cumulative investment in the EAF project was $881 million, with funding expected from cash on hand and operations [12][19] Liquidity and Capital Allocation - At the end of the quarter, the company had cash of $82.5 million and unused availability under its Revolving Credit Facility of $329.1 million [17] - The Board of Directors decided to suspend the regular quarterly dividend of approximately US$5.2 million to preserve liquidity amid ongoing market uncertainties [19]

Core Viewpoint - Algoma Steel Group Inc. is facing significant challenges due to the ongoing 50% Section 232 tariff on Canadian steel, which is impacting its operations and outlook, while the company is actively seeking solutions to enhance liquidity and maintain competitiveness in the market [2][3][5]. Company Overview - Algoma Steel is a leading Canadian producer of hot and cold rolled steel sheet and plate products, and it is the only independent and publicly owned steelmaker in Canada [2][8]. - The company is nearing completion of a C$900 million investment in electric arc furnace steelmaking, aimed at reducing its carbon footprint and improving cash flow generation [2][9]. Trade and Tariff Impact - The current trade impasse and tariff environment are causing a structural imbalance in the Canadian steel market, prompting Algoma to consider various alternatives to bolster liquidity [3][4]. - Algoma is exploring targeted liquidity tools, including an application for $500 million under the federal Large Enterprise Tariff Loan (LETL) program, to support its operations and strategic diversification [4][5]. Strategic Initiatives - The company is modernizing its plate mill and adopting electric arc technology to lower carbon emissions and enhance its position as a leading producer of green steel in North America [9][10]. - Algoma emphasizes the importance of a strong Canadian steel industry for the country's economic strength, environmental goals, and national security [5].

Company Overview - Algoma Steel Group Inc. (ASTL) is expected to report a year-over-year decline in earnings due to lower revenues for the quarter ended June 2025, with a consensus estimate of a loss of $0.45 per share, representing a significant change of -800% [1][3] - Revenues are anticipated to be $425.54 million, reflecting a decrease of 10.5% compared to the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on July 29, and the stock price may increase if the actual results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model compares the Most Accurate Estimate to the Zacks Consensus Estimate, providing insights into potential earnings surprises [6][7] - A positive Earnings ESP reading is a strong indicator of an earnings beat, especially when combined with a favorable Zacks Rank [9] Industry Context - Nucor (NUE), another player in the steel producers industry, is expected to report earnings of $2.62 per share for the same quarter, indicating a year-over-year change of -2.2% [17] - Nucor's revenues are projected to be $8.41 billion, up 4.1% from the previous year, with a positive Earnings ESP of +0.69%, suggesting a likely earnings beat [18]

Core Viewpoint - Algoma Steel Group Inc. has filed a base shelf prospectus and a registration statement to maintain financial flexibility, allowing potential future offerings of various securities over a 25-month period, although there is no immediate intention to raise capital [1][2]. Company Overview - Algoma Steel is a leading Canadian producer of hot and cold rolled steel sheet and plate products, based in Sault Ste. Marie, Ontario [5]. - The company is a fully integrated producer and key supplier of steel products in North America, being the only producer of discrete plate products in Canada [5]. - Algoma's Direct Strip Production Complex (DSPC) is noted as one of the lowest-cost producers of hot rolled sheet steel in North America [5]. Strategic Initiatives - Algoma is undergoing a transformation journey, modernizing its plate mill and adopting electric arc technology to significantly lower carbon emissions [6]. - The company is focused on building a greener future and investing in its people and processes to become a leading producer of green steel in North America [6]. Market Position - As a founding industry in its community, Algoma aims to deliver greater value and ensure a secure steel supply for North America [7].

Core Viewpoint - Algoma Steel Group Inc. is set to release its Q2 2025 financial results on July 29, 2025, with a conference call scheduled for July 30, 2025, to discuss the results and recent developments [1][3] Financial Performance - Total steel shipments for the quarter are expected to be approximately 472,000 tons [2] - Adjusted EBITDA is anticipated to be in the range of ($30) million to ($35) million [2] Company Strategy and Operations - The CEO highlighted that the results were in line with expectations, particularly noting strength in the plate business despite macroeconomic uncertainties and tariff policies affecting the sector [3] - Algoma is advancing its transformation into one of North America's greenest steel producers, having achieved first arc and first steel production from its electric arc furnace project [3][8] Company Overview - Algoma is a fully integrated producer of hot and cold rolled steel products, including sheet and plate, and is a key supplier in North America [7] - The company is modernizing its plate mill and adopting electric arc technology to significantly lower carbon emissions, emphasizing its commitment to environmental stewardship [8]

Core Insights - Algoma Steel Group Inc. (ASTL) has achieved its first steel production at Unit One of its new electric arc furnace (EAF) project, marking a significant milestone for the company [1][8] - The EAF project is the largest industrial decarbonization initiative in Canada, enabling the production of green steel with potential carbon emissions reduction of up to 70% [2][8] - The steel produced is branded as "Volta," which is powered by Ontario's clean electricity grid, aligning with the increasing demand for environmentally friendly products [3][8] Company Performance - ASTL's stock has declined by 14.3% over the past year, while the industry has seen a larger decline of 23.8% [5] - Currently, ASTL holds a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to other stocks in the Basic Materials sector [6] - In contrast, other companies in the sector, such as Royal Gold, Inc. (RGLD) and Coeur Mining, Inc. (CDE), have shown stronger performance and higher Zacks Ranks [6][7][9]

Core Viewpoint - Algoma Steel Group Inc. has achieved its first steel production at its new electric arc furnace project, marking a significant milestone in its transformation towards producing green steel with a potential reduction in carbon emissions by up to 70 percent [1][2]. Company Overview - Algoma Steel is a leading Canadian producer of hot and cold rolled steel sheet and plate products, based in Sault Ste. Marie, Ontario [6]. - The company is a fully integrated producer and key supplier of steel products in North America, recognized for its Direct Strip Production Complex, which is one of the lowest-cost producers of hot rolled sheet steel in the region [6]. Transformation and Innovation - The first steel production from the electric arc furnace (EAF) project is part of Algoma's largest industrial decarbonization initiative in Canada, reflecting years of planning and execution since the project began in November 2021 [3]. - The EAF technology is expected to significantly lower carbon emissions, aligning with the company's commitment to environmental stewardship and recycling [7]. Product Development - All steel produced through the EAFs will be branded as Volta, which aims to deliver the same performance as existing products but with dramatically lower emissions, leveraging Ontario's clean electricity grid [4]. - The introduction of Volta is part of Algoma's strategy to support the growth of a low-carbon economy [4]. Leadership Perspective - The President and CEO of Algoma expressed pride in reaching this critical milestone, emphasizing the company's determination to innovate and lead in the steel industry during a period of trade uncertainty [3].

Company Overview - Algoma Steel Group Inc. is a leading Canadian producer of hot and cold rolled steel sheet and plate products, based in Sault Ste. Marie, Ontario [6] - The company is a key supplier of steel products in North America and the only producer of discrete plate products in Canada [6] Annual Meeting Results - All nominees listed in the management information circular were elected as directors, with a total of 64,907,782 votes cast [2] - The appointment of Deloitte LLP as the Company's auditors for the 2025 calendar year was approved by a majority of votes [2] - A non-binding advisory resolution on executive compensation was also approved by a majority at the Meeting [3] Transformation and Sustainability Initiatives - Algoma is on a transformation journey, modernizing its plate mill and adopting electric arc technology to lower carbon emissions [7] - The company aims to become one of North America's leading producers of green steel, focusing on recycling and environmental stewardship [7] - Algoma is committed to investing in its people and processes to enhance safety and teamwork [7] Market Position and Strategy - Algoma's Direct Strip Production Complex (DSPC) is recognized as one of the lowest-cost producers of hot rolled sheet steel in North America [6] - The company emphasizes delivering responsive, customer-driven product solutions across various sectors, including automotive, construction, energy, defense, and manufacturing [6][8]