Algoma Steel Group Q1 2026 Earnings Call: Complete Transcript

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Summary

Algoma Steel Group transitioned to a afloat electrical arc furnace (EAF) operation, permanently halting blast furnace operations successful January 2026.

The institution reported adjusted EBITDA nonaccomplishment of $28.7 cardinal for Q1 2026, with a absorption connected high-value sheet products and improved nett alloy revenues.

Strategic initiatives see a associated task with Rochelle Inc. for ballistic alloy accumulation and an MOU with Hanwha Ocean for imaginable improvement of a structural beam mill.

Shipments were down 52.4% year-over-year owed to the modulation from blast furnace to EAF, but mean nett income realization accrued by 21% owed to a merchandise premix shift.

Management expects improved show and reduced costs arsenic the EAF level stabilizes and aims for break-even EBITDA by Q4 2026.

The institution faces challenges from the US Section 232 tariff connected alloy imports from Canada, incurring $27.4 cardinal successful nonstop tariff costs this quarter.

Liquidity remains beardown with $553 cardinal successful full disposable liquidity, supported by revolving recognition and LETL facilities.

Full Transcript

OPERATOR

Greetings and invited to the Algoma Steel Group archetypal 4th 2026 net call. At this time, each participants are successful a perceive lone mode. A question and reply league volition travel the ceremonial presentation. If anyone should necessitate relation assistance, delight property prima zero connected your telephone keypad. As a reminder, this league is being recorded. It is present my pleasance to present Laura Devoney, Vice President of Human Resources and Corporate Affairs. Please spell ahead.

Laura Devoney (Vice President of Human Resources and Corporate Affairs)

Good greeting everyone and invited to Algoma Steel Group Inc.'s archetypal 4th 2026 net league call. My sanction is Laura Devoney, Vice President of Human Resources and Corporate affairs and I volition beryllium moderating today's call. Leading the prepared remarks are Rajat Marwa, our Chief Executive Officer and Michael Morocco, our Chief Financial Officer. As a reminder, this telephone is being recorded and volition beryllium made disposable for replay aboriginal contiguous successful the Investors conception of Algoma Steel's firm website astatine www.algoma.com. I would similar to punctual you that comments made connected today's telephone whitethorn incorporate guardant looking statements wrong the meaning of applicable information laws which impact assumptions and inherent risks and uncertainties. Actual results whitethorn disagree materially from statements made today. In addition, our fiscal statements are prepared successful accordance with IFRS, which differs from US GAAP and our treatment contiguous includes references to definite non IFRS fiscal measures. Last evening we posted an net presumption to travel today's prepared remarks. The slides for today's telephone tin beryllium recovered successful the Investors conception of our firm website. With that successful mind, I would inquire everyone connected today's telephone to work the ineligible disclaimers connected Slide 2 of the accompanying net presumption and to besides notation to risks and assumptions outlined successful Algoma Steel's archetypal 4th 2026 Management's Discussion and analysis. Please enactment that our fiscal statements are prepared utilizing the US Dollar arsenic our functional currency and the Canadian dollar arsenic our presumption currency. Please besides enactment that amounts referred to connected today's telephone are successful Canadian dollars unless different noted. Following our prepared remarks, we volition behaviour a question and reply session. I volition present crook the telephone implicit to our Chief Executive Officer, Rajat.