Algoma Steel (US:ASTL) Globenewswireยท2025-04-29 21:30Core Insights - Algoma Steel Group Inc. reported a consolidated revenue of $517.1 million for Q1 2025, down from $620.6 million in the same quarter of the previous year, reflecting ongoing market challenges and lower pricing in the steel market [6][5][8] - The company experienced a net loss of $24.5 million in Q1 2025, compared to a net income of $28.0 million in Q1 2024, primarily due to lower realized pricing and higher input costs, partially offset by a $50 million insurance receivable [8][9][6] - Algoma is advancing its transition to Electric Arc Furnace (EAF) steelmaking, with first steel production expected in Q2 2025, which is anticipated to improve cost structure and reduce carbon emissions by approximately 70% [11][13][29] Financial Performance - Revenue for Q1 2025 was $517.1 million, a decrease of 16.6% from $620.6 million in Q1 2024 [6][8] - Steel revenue was $463.2 million, down from $568.1 million year-over-year, with the average realized price of steel dropping to $986 per ton from $1,260 per ton [6][9] - The company reported an Adjusted EBITDA loss of $46.7 million, resulting in an Adjusted EBITDA margin of (9.0%), compared to an Adjusted EBITDA of $41.5 million and a margin of 6.7% in the prior-year quarter [9][35] Operational Highlights - Shipments increased by 4.2% to 469,731 tons in Q1 2025, compared to 450,966 tons in Q1 2024 [9][6] - The company incurred tariff-related costs of $10.5 million during the quarter, contributing to operational losses [7][17] - Construction on the EAF project is progressing, with critical systems commissioned despite delays caused by harsh winter conditions [11][5] Market Environment - The North American steel market is experiencing significant volatility due to evolving U.S. tariffs, which have added uncertainty and increased imports into Canada [5][16] - The Canadian steel market is facing oversupply issues, leading to lower transactional pricing compared to the U.S. market [16][17] - The company is positioned to become a strategic force in the North American steel industry, focusing on safety, sustainability, and the production of green steel [5][29][28] Liquidity and Dividends - As of March 31, 2025, the company had cash of $226.5 million and unused availability under its Revolving Credit Facility of $360.9 million [18] - A quarterly dividend of US$0.05 per share has been declared, payable on May 30, 2025 [19]