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]