Algoma Steel Group Reports Fiscal Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Algoma Steel Group Inc. reported its fiscal fourth quarter and full year results, highlighting a net income of CAD 28.0 million for Q4, a significant improvement from a net loss of CAD 20.4 million in the prior-year quarter [1][4][6] - The company reaffirmed its outlook on the transformative Electric Arc Furnace (EAF) project, which is expected to position Algoma as one of the greenest steel producers in North America [3][8] - Algoma strengthened its liquidity by issuing US$350 million in Senior Secured Second Lien Notes, enhancing its balance sheet flexibility [3][12] Fiscal 2024 Fourth Quarter Comparisons - Consolidated revenue for Q4 was CAD 620.6 million, down from CAD 677.4 million in the prior-year quarter [1][4] - Consolidated income from operations decreased to CAD 3.1 million from CAD 21.7 million year-over-year [1][4] - Adjusted EBITDA for Q4 was CAD 41.5 million, with an Adjusted EBITDA margin of 6.7%, compared to CAD 47.9 million and 7.1% in the prior-year quarter [1][5] Fiscal 2024 Full Year Comparisons - Total consolidated revenue for fiscal 2024 was CAD 2,795.8 million, slightly up from CAD 2,778.5 million in the previous year [2][6] - Net income for the full year was CAD 105.2 million, down from CAD 298.5 million in the prior year [2][6] - Adjusted EBITDA for the year was CAD 312.7 million, with an Adjusted EBITDA margin of 11.2%, compared to CAD 452.3 million and 16.3% the previous year [2][7] Operational Highlights - Shipments in Q4 totaled 450,966 tons, a decrease of 21.1% from 571,647 tons in the prior-year quarter [1][5] - The company completed the latest upgrade related to the plate mill modernization project, which is expected to enhance financial performance [3][11] - The EAF project is budgeted between CAD 825 million to CAD 875 million, with approximately CAD 800 million contracted [8] Financial Position and Liquidity - Cash flows generated from operations in Q4 were CAD 121.2 million, compared to CAD 95.4 million in the prior-year quarter [1][5] - The company declared a quarterly dividend of US$0.05 per share, payable on July 19, 2024 [13] - The issuance of US$350 million in Senior Secured Second Lien Notes is intended for general corporate purposes, adding strength to the balance sheet [3][12]