ASTL

Interested in Algoma Steel Group Inc.? Here are five stocks we like better. Adjusted EBITDA turned positive at C$13.8 million, supported by a C$45 million insurance settlement, although excluding that benefit the company posted an adjusted EBITDA loss of about C$31 million. Revenue fell sharply year over year as EAF transition work reduced shipments. Plate shipments reached a second consecutive record of 125,000 tons, while average net sales realization rose 20.2% to C$1,361 per ton. Algoma is targeting roughly 600,000 tons of annual plate production by 2027, but planned third-quarter maintenance is expected to temporarily reduce volumes. The EAF transition is nearing completion, with the second unit expected to produce its first steel late in the third quarter; however, tie-in work and maintenance should make Q3 the volume trough, with shipments forecast 10%–20% below Q2. Algoma ended the quarter with approximately C$437 million in available liquidity and expects about C$200 million in tax refunds during the rest of 2026. Algoma Steel Group (NASDAQ:ASTL) reported positive adjusted EBITDA in its second quarter of 2026 as the company continued its transition to electric arc furnace, or EAF, steelmaking, though lower shipment volumes and planned operational work remain headwinds heading into the third quarter. Chief Executive Officer Rajat Marwah said the company generated adjusted EBITDA of C$13.8 million, within its prior guidance range. The result included a C$45 million final insurance settlement and a C$54.7 million capacity-utilization adjustment related to excess fixed costs from Algoma’s previous operating configuration. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now “As transition costs are falling, realized pricing is rising, and the transition we described to you last quarter is playing out as expected,” Marwah said. Algoma shipped 181,000 tons during the quarter, slightly above its guidance range of 175,000 to 180,000 tons but down from 472,000 tons in the prior-year quarter. Chief Financial Officer Mike Moraca attributed the decline to the transition to EAF-only steelmaking and the company’s deliberate shift toward the Canadian plate market. → 3 Value ETFs to Consider as Growth Stocks Lag Behind The company reported record plate shipments for a second consecutive quarter, reaching 125,000 tons, compared with 116,000 tons in the first quarter. Marwah said demand in infrastructure, construction and defense end markets remained healthy. Average net sales realization increased 20.2% year over year to C$1,361 per ton, driven by an improved product mix under the company’s plate-first strategy. Algoma is Canada’s only producer of discrete plate, according to management. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Marwah said plate production could increase further as the EAF ramp-up progresses. During the question-and-answer session, he said the company aims to reach about 600,000 tons of plate production in 2027, up from a current annualized level approaching 500,000 tons. However, Moraca said planned maintenance at the plate mill during the third quarter could result in slightly lower plate volumes for the period, with a somewhat greater mix of sheet production. Algoma’s first EAF unit operated on a 24-hour schedule during the quarter, marking the company’s first full quarter in which all liquid steel production came from its EAF platform. The company permanently halted its legacy blast furnace operations on Jan. 18, 2026. Construction of Algoma’s second EAF unit is nearing completion, with commissioning and testing of critical equipment underway. Management expects the unit to produce its first steel later in the third quarter. The third quarter will include scheduled downtime for the operational tie-in of Unit 2, as well as maintenance at the melt shop, the first EAF unit and the company’s power generation plant. Moraca said these activities are intended to position Algoma to enter the fourth quarter with both units online and able to increase output. As a result, Algoma expects third-quarter shipments to be 10% to 20% lower than second-quarter levels. Moraca described the quarter as the expected “trough quarter” for volumes during the transition, while saying underlying EBITDA performance excluding capacity-utilization adjustments should continue to improve sequentially. Once fully transitioned, Algoma expects its facility to have annual raw-steel capacity of about 3.7 million tons and to reduce annual carbon emissions by about 70% from pre-EAF levels. Marwah said the company expects an exit production run rate of 1.5 million to 2 million tons as it moves into calendar 2027. Second-quarter consolidated revenue was C$267.5 million, down from C$589.7 million a year earlier, including C$247 million in steel revenue. Cost per ton of steel products sold was C$1,411, compared with C$1,144 in the prior-year quarter, primarily reflecting lower fixed-cost absorption at reduced production volumes. The cost metric excludes the C$54.7 million capacity-utilization adjustment. Algoma recorded a C$134.2 million operating loss, compared with an C$85.1 million operating loss in the prior-year period. Its net loss narrowed to C$96 million from C$110.6 million, with the insurance proceeds partly offsetting a larger operating loss. Excluding the C$45 million insurance benefit, adjusted EBITDA was a loss of about C$31 million, which Moraca said represented an improvement of approximately C$1 million from the prior-year quarter despite lower shipment volumes. The insurance settlement completed the company’s claim related to a January 2024 utility corridor collapse, resulting in total recovery of C$145 million net of applicable deductibles. Cash used in operating activities totaled C$79.4 million during the quarter. Algoma ended the quarter with C$62.6 million in cash, C$206.7 million of unused availability under its revolving credit facility and C$168 million available under LETL facilities, for total available liquidity of about C$437 million. The company drew C$124.5 million under the LETL facilities during the quarter to support operations and complete the EAF transition. Moraca said Algoma expects approximately C$200 million in income-tax refunds over the remainder of 2026. The company also expects lower capacity-utilization costs, reduced capital intensity and the startup of Unit 2 to support liquidity and progress toward cash-flow breakeven. Algoma incurred C$18.7 million in direct costs from U.S. Section 232 tariffs during the quarter, down from C$64.1 million in the prior-year period as it reduced shipments to the U.S. The 50% tariff on Canadian steel imports remains a structural challenge, while management said Canadian coil pricing continued to trail U.S. benchmark pricing amid domestic oversupply. The company continues to pursue a Canada-centric, plate-first strategy and is evaluating opportunities for green-steel sales in other markets, including Europe. Marwah also said Algoma is engaging with participants in Canadian defense and infrastructure programs. Algoma’s memorandum of understanding with Hanwha Ocean was suspended after the Canadian government selected TKMS as preferred bidder for the Canadian Patrol Submarine Project. Marwah said the company’s strategy to pursue structural steel beam production remains unchanged, while its Roshel Algoma Defence joint venture continues to establish ballistic-steel capabilities in Canada. Algoma Steel Group Inc is a North American steel producer headquartered in Sault Ste. Marie, Ontario. The company operates a modern electric arc furnace (EAF) complex and an integrated rolling mill, enabling it to transform scrap and direct reduced iron into a wide range of steel products. Algoma Steel Group returned to public markets in 2021 with listings on both the Toronto Stock Exchange and the Nasdaq under the symbol ASTL. Founded in 1901 as Algoma Steel Corporation, the company grew to become one of Canada’s leading steelmakers before undergoing restructuring in the early 2000s. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Algoma Steel Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a critical milestone with the first full quarter of liquid steel production sourced entirely from the Electric Arc Furnace (EAF) platform, marking the end of legacy blast furnace operations. Delivered record plate shipments of 125,000 tons, driven by a deliberate 'plate-first' strategy to leverage Algoma's position as Canada's only discrete plate producer. Realized a 20% year-over-year increase in average net sales realization to $1,361 per ton, primarily due to an improved product mix favoring higher-value plate over sheet. Managed a challenging industry backdrop characterized by domestic oversupply in the coil market and structural headwinds from U.S. Section 232 tariffs. Reported positive adjusted EBITDA of $13.8 million, supported by a final $45 million insurance settlement and a $54.7 million capacity utilization adjustment as transition costs decline. Advanced the Roshel Algoma Defence joint venture to establish a Canadian center of excellence for ballistic steel, reinforcing the company's role in the national defense supply chain. Expect first steel production from the second EAF unit later this quarter, representing the final major milestone in the company's technological transformation. Anticipate third-quarter shipments to be the 'trough' of the transition, with volumes projected to be 10% to 20% lower due to scheduled maintenance and Unit 2 tie-in activities. Targeting a production run rate of 1.5 million to 2 million tons as the company exits the 2026 calendar year and enters 2027. Liquidity position is expected to be bolstered by approximately $200 million in income tax refunds and the collection of $45 million in insurance receivables. Projecting a meaningful improvement in cost per ton as fixed cost absorption increases with the ramp-up of Unit 2 and the total elimination of legacy transition costs by the fourth quarter. Capacity utilization adjustments of $54.7 million were recognized to account for excess fixed costs from the previous operating configuration, a figure expected to reach zero by Q4. Direct tariff costs totaled $18.7 million for the quarter, a significant reduction from $64.1 million in the prior year as the company pivots away from U.S.-bound shipments. The binding MOU with Hanwha Ocean has been suspended following the Canadian government's selection of a different bidder for the submarine program, though the strategic rationale for structural beams remains. Ongoing legal proceedings regarding certain supply agreements continue, with management asserting that the unforeseen tariff environment has frustrated these contracts. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the projected 10% to 20% volume drop is primarily due to bulked maintenance activities at the power plant and melt shop to prepare for Unit 2. The goal is to complete all preventative maintenance now so both units can move up the capacity curve simultaneously starting in the fourth quarter. Management aims to grow plate production to approximately 600,000 tons in 2027, up from the current run rate of roughly 500,000 tons. Confidence in demand is supported by Canadian infrastructure projects and potential 'green steel' export opportunities to jurisdictions like Europe. The primary financial goal is reaching cash flow breakeven through cost reductions and volume increases rather than seeking new external debt. Near-term liquidity will be supported by $200 million in statutory tax refunds and the final $45 million insurance payout. Despite the MOU suspension, Algoma remains focused on the structural beam market and is engaging with the new preferred bidder for the submarine program. Management emphasized that Algoma's role as a domestic producer of both plate and beams is critical for Canadian infrastructure and defense regardless of the specific prime contractor.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Generated positive adjusted EBITDA of $13.8 million, in line with guidance, despite a challenging industry backdrop. Delivered a second consecutive quarter of record plate sales, with shipments of 125,000 tons, up from 116,000 tons in Q1. Average net sales realization rose 20% year-over-year to $1,361 per ton, driven by improved product mix under the plate-first strategy. Transition costs are declining meaningfully and are on track to be fully eliminated by the fourth quarter of 2026. Construction of the second EAF unit is nearing completion, with first steel production expected later in the quarter, positioning the company for increased capacity. Shipments fell sharply to 181,000 tons from 472,000 tons in the prior year quarter due to the EAF transition and pivot to Canadian markets. Cost per ton of steel products sold increased to $1,411 from $1,144, reflecting lower fixed cost absorption during the ramp-up. The company incurred $18.7 million in direct tariff costs from U.S. Section 232 tariffs, though down from the prior quarter. Third-quarter shipments are expected to decline 10% to 20% sequentially due to planned maintenance and tie-in activities for Unit 2. The strategic MOU with Hanwha Ocean was suspended after the Canadian government selected a different preferred bidder for the submarine program. Warning! GuruFocus has detected 7 Warning Signs with ASTL. Is ASTL fairly valued? Test your thesis with our free DCF calculator. Q: What is the expected production run rate as the second EAF comes online, and how does the demand environment in Canada support that level of production, especially on the sheet side?A: Rajat Marwa, CEO: Our exit run rate will be 1.5 to 2 million tons when we get into the 2027 calendar year. Ramping up plate production is our first priority. For sheet, it depends on how the market plays out next year. We are also looking at supplying green steel to other jurisdictions, like Europe, where demand is increasing. Q: Can you provide an update on a realistic outcome for plate production in 2027, given customer demands?A: Rajat Marwa, CEO: Our plate production is growing and is closer to half a million tons a year. We plan to grow it further to 600,000 tons next year. We feel comfortable that we can meet the available demand at that level. Q: Given the Canadian government selected TKMS over Hanwha for the submarine program, how do you intend to pivot and service defense demand?A: Rajat Marwa, CEO: Our strategy to pivot into beams is not changing, as that market is available. We are engaging with all parties, including the new contractor. The steel needed for submarines and infrastructure will be plate and beams, and we are focused on being involved in all these programs as a Canadian producer. Q: Is the sequential decline in Q3 volumes purely due to demand and seasonality, or is it due to maintenance work?A: Mike Maraca, CFO: It is related to maintenance activities. We are consolidating all maintenance, including work at the power plant, preventative maintenance at the first EAF unit, and tie-in activities for Unit 2, so we can enter Q4 with both units online and move up the capacity curve. Q: How should we think about the mix between plate and sheet in Q3?A: Mike Maraca, CFO: There will be maintenance activities at the plate mill as well, so it will be close, but we may see slightly less plate and a little more volume on the sheet mill for this quarter. Q: Given the maintenance, how should we think about costs in Q3?A: Mike Maraca, CFO: The capacity utilization charge will come down as costs are eliminated. However, with lower volume, we will have lower fixed cost absorption. You should see pricing improving, and costs being around the same as where they were. Q: Is there any change to your cost targets as the second EAF mill comes online?A: Mike Maraca, CFO: No. As the denominator increases, we will see a significant improvement in fixed cost absorption as we exit Q4 into next year. Volume is the biggest lever for improving costs. Q: Any update on the potential LSP monetization?A: Mike Maraca, CFO: We feel that asset is very important and will continue to serve us. The best way to monetize it depends on the available revenue stream. We don't have an update at this time, but it provides us flexibility in a world where power demand is only going up. Q: As you work through the LATL loan, would the intention be to move to the ABL or source other financing?A: Mike Maraca, CFO: We have supportive cash items coming through the rest of the year, including a $45 million insurance settlement and a $200 million tax refund. Beyond that, we are working to drive costs down and improve revenue to get the business to cash flow break-even, which is goal number one. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Adjusted EBITDA of $13.8 Million, In-Line with Previously Announced Expectations Second Consecutive Quarter of Record Plate Sales as Plate-First Strategy Scales EAF Unit Two Construction Nearing Completion, with First Steel Production Expected in the Third Quarter of 2026 SAULT STE. MARIE, Ontario, July 29, 2026 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of steel plate and hot-rolled sheet products, today announced results for the three-month period ended June 30, 2026. Unless otherwise specified, all amounts are in Canadian dollars. Business Highlights and Second Quarter 2026 to Second Quarter 2025 Comparisons Comparisons between Q2 2026 and Q2 2025 were significantly impacted by the transition from legacy blast furnace operations to the Company’s Electric Arc Furnace (“EAF”) platform. In the prior-year quarter, the Company produced steel exclusively from its legacy blast furnace operations, which were permanently halted on January 18, 2026 after the unprecedented 50% U.S. Section 232 tariff fundamentally altered and permanently disrupted the Company's historical cross-border business model, effectively foreclosing its traditional access to the U.S. market. In the second quarter of 2026, all liquid steel production was sourced from the Company’s first EAF unit, which continues to ramp up. Consolidated revenue of $267.5 million, compared to $589.7 million in the prior-year quarter. Consolidated loss from operations of $134.2 million, compared to a loss from operations of $85.1 million in the prior-year quarter. Net loss of $96.0 million, compared to a net loss of $110.6 million in the prior-year quarter. Adjusted EBITDA of $13.8 million and Adjusted EBITDA margin of 5.2%, inclusive of a $45.0 million final insurance settlement and a $54.7 million capacity utilization adjustment, compared to an Adjusted EBITDA loss of $32.4 million and Adjusted EBITDA margin of (5.5%) in the prior-year quarter. See “Non-GAAP Financial Measures” below. Direct tariff costs of $18.7 million, compared to $64.1 million in the prior-year quarter. Cash used in operating activities of $79.4 million, compared to $37.9 million in the prior-year quarter. Shipments of 181,473 tons, compared to 472,056 tons in the prior-year quarter, reflecting the transition to EAF-only steelmaking and the continued pivot toward the Canadian plate market. Rajat Marwah, the Company’s Chief Executive Officer, commented, “The second quarter demonstrated the resilience of our transformed business against a stubbornly challenging industry backdrop. We delivered a second consecutive quarter of record plate sales, our first EAF unit continued to ramp up as expected, and transition costs declined meaningfully from the first quarter. With commissioning activities commencing at the second EAF unit and first steel expected in the third quarter, we are entering the final phase of the most significant transformation in Algoma’s history.” Mr. Marwah continued, “While the 50% U.S. Section 232 tariffs continue to effectively foreclose our traditional access to the U.S. market, our pivot to a Canada-centric, plate-first strategy is working. As Canada’s only producer of discrete plate, we are uniquely positioned to serve growing infrastructure, construction, and defence demand, and the recent rise in steel prices is encouraging. We are grateful for the continued support of the federal and provincial governments as we complete this transition and build a stronger, more sustainable Canadian steel industry.” Michael Moraca, the Company’s Chief Financial Officer, commented, “Adjusted EBITDA of $13.8 million came in line with our previously disclosed guidance, supported by record plate sales, a 20% increase in average net sales realization per ton versus the prior-year quarter, and the benefit of a $45.0 million final insurance settlement. Results also include a $54.7 million capacity utilization adjustment tied to excess fixed costs from our previous operating configuration, down from $90.2 million in the first quarter and on track to be eliminated by the fourth quarter as the EAF ramp-up continues. We ended the quarter with approximately $437 million in total available liquidity, and with capital expenditures well below peak EAF construction levels, we remain focused on disciplined cash management as we complete the ramp-up and position the business for improved profitability.” Second Quarter 2026 Financial Results Second quarter revenue totaled $267.5 million, compared to $589.7 million in the prior-year quarter. Steel revenue was $247.0 million, compared to $534.4 million in the prior-year quarter. Average net sales realization per ton of steel sold was $1,361, compared to $1,132 in the prior-year quarter, an increase of 20.2%, reflecting improved product mix under the Company’s plate-first strategy. Loss from operations was $134.2 million, compared to a loss of $85.1 million in the prior-year quarter. The year-over-year increase was primarily due to lower steel shipments resulting from the continued impact of U.S. Section 232 tariffs, which significantly restricted the Company's historical U.S. export business. This was partially offset by increased plate shipment volume, lower labour and other fixed costs, and a $2.1 million decrease in administrative and selling expenses. Net loss in the second quarter was $96.0 million, compared to a net loss of $110.6 million in the prior-year quarter. The decrease primarily reflects $45.0 million in insurance proceeds recognized in other income and a foreign exchange gain of $18.8 million, compared to a foreign exchange loss of $31.5 million in the prior-year quarter. These items were partially offset by the higher loss from operations and a $38.9 million decrease in income tax recovery. Adjusted EBITDA in the second quarter was $13.8 million, resulting in an Adjusted EBITDA margin of 5.2%. This compares to an Adjusted EBITDA loss of $32.4 million, or an Adjusted EBITDA margin of (5.5%), in the prior-year quarter. Adjusted EBITDA in the quarter includes the benefit of the $45.0 million final insurance settlement related to the January 2024 utility corridor incident. Average realized price of steel net of freight and non-steel revenue was $1,361 per ton, compared to $1,132 per ton in the prior-year quarter. Cost per ton of steel products sold was $1,411, compared to $1,144 in the prior-year quarter, primarily reflecting lower fixed-cost absorption at reduced production volumes during the EAF ramp-up. Shipments for the second quarter decreased by 61.6% to 181,473 tons, compared to 472,056 tons in the prior-year quarter. See “Non-GAAP Financial Measures” below for an explanation of Adjusted EBITDA and a reconciliation of net loss to Adjusted EBITDA. Insurance Settlement During the second quarter, the Company and its insurers reached a full and final settlement of $145.0 million, net of applicable deductibles, in respect of the January 2024 structural utility corridor collapse, of which $45.0 million was recognized in other income in the quarter. Electric Arc Furnace The second quarter of 2026 was the second full quarter in which all liquid steel production was sourced entirely from the Company’s EAF facility. Ramp-up activities continue to progress in line with expectations. The Unit One EAF furnace and associated melt shop assets are performing as designed, with quality metrics achieved across a range of plate and hot-rolled coil product grades, and operations continue on a full 24-hour-per-day schedule. Construction activities on the second EAF unit are nearing completion, with first steel production expected in the third quarter of 2026. The capacity utilization adjustment of $54.7 million in the quarter represents excess fixed costs carried by the Company beyond what was required to operate the EAF and its supplied downstream operations at the volumes produced, primarily labour, equipment leases and rentals, fixed utilities, and maintenance costs associated with legacy assets. These costs declined from $90.2 million in the first quarter and are expected to decline further over the next three months and be fully eliminated by the fourth quarter of 2026. As Canada’s only producer of discrete plate, the Company holds a unique competitive position in this segment. Plate demand from infrastructure, construction, and defence end-markets remained healthy during the quarter, supporting a second consecutive quarter of record plate sales, and the Company expects plate production to continue to increase as the EAF ramp-up progresses through 2026. Following completion of the EAF transformation, Algoma’s facility is expected to have an annual raw steel production capacity of approximately 3.7 million tons and is projected to reduce annual carbon emissions by approximately 70% from pre-EAF levels. Trade Environment and Strategic Response The 50% U.S. Section 232 tariff on steel imports from Canada remained in effect throughout the second quarter, with product coverage continuing to expand across downstream and derivative steel products, further disrupting established North American supply chains. The Company incurred $18.7 million in direct tariff costs in the quarter, compared to $64.1 million in the prior-year quarter, reflecting the deliberate reduction of U.S.-bound volumes. Shipments to the United States represented 23% of total steel shipments in the quarter, compared to 54% in the prior-year quarter and a historical range of approximately 45% to 55%. The Canadian steel market remains supply-pressured, with domestic coil pricing held down by oversupply from domestic producers displaced from the U.S. market, the continued presence of U.S. steel in the Canadian market, and import offers priced at less-than-fair-value. Algoma’s strategic response, concentrating production on discrete plate, where it enjoys a pricing premium and a unique market position, is designed to mitigate these dynamics. On April 7, 2026, the Company announced the formation of Roshel Algoma Defence Solutions, a joint venture with Roshel Inc., a Canadian-owned defence manufacturer of armoured vehicles. The joint venture is expected to support the development of domestic ballistic steel and related manufacturing capabilities in Canada. Algoma’s Memorandum of Understanding with Hanwha Ocean Co. Ltd. (“Hanwha Ocean”), announced in January 2026, has been suspended. The MOU was subject to Hanwha Ocean being awarded and entering into an effective contract under the Canadian Patrol Submarine Project (“CPSP”) and the negotiation and execution of definitive agreements with the Company. On July 6, 2026, the Government of Canada announced that Thyssenkrupp Marine Systems was selected under the CPSP procurement process. Liquidity At June 30, 2026, the Company had cash of $62.6 million, unused availability under its Revolving Credit Facility of $206.7 million, and $168.0 million available to draw under the LETL Facilities, for total available liquidity of approximately $437 million. During the second quarter, the Company received $124.5 million in governmental loan advances under the LETL Facilities to support operations and the completion of the EAF transition. Capital expenditures in the quarter were $29.0 million, compared to $97.4 million in the prior-year quarter, reflecting the substantial completion of EAF construction. No dividends were declared during the quarter. Conference Call and Webcast Details A webcast and conference call will be held on Thursday, July 30, 2026 at 11:00 a.m. EDT to review the Company’s results for the three-month period ended June 30, 2026, discuss recent events, and conduct a question-and-answer session. The live webcast and archived replay of the conference call can be accessed on the Investors section of the Company’s website at ir.algoma.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally by dialing 877-425-9470 or 201-389-0878, respectively. Upon dialing in, please request to join the Algoma Steel Second Quarter 2026 Conference Call. To access the replay of the call, dial 844-512-2921 (domestic) or 412-317-6671 (international) and enter passcode 13761609. Consolidated Financial Statements and Management’s Discussion and Analysis The Company’s condensed interim consolidated financial statements for the three and six-month periods ended June 30, 2026 and Management’s Discussion & Analysis thereon are available under the Company’s profile on the U.S. Securities and Exchange Commission’s (“SEC”) EDGAR website at www.sec.gov and under the Company’s profile on SEDAR+ at www.sedarplus.ca. These documents are also available on the Company’s website, www.algoma.com, and shareholders may receive hard copies of such documents free of charge upon request by contacting [email protected]. Cautionary Statement Regarding Forward-Looking Statements This news release contains “forward-looking information” under applicable Canadian securities legislation and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”), including statements regarding imposed and threatened tariffs, including the impact, timing and resolution thereof, trends in the pricing of steel, Algoma’s transition to EAF steelmaking and the expected benefits thereof, the expected timing of completion of construction and commencement of production at the Company’s second EAF unit, the expected timing and amount of reduction and elimination of capacity utilization adjustments and other costs associated with the EAF ramp-up, expected growth in the Company’s plate production and shipment volumes, the Company’s expected annual raw steel production capacity and reduction in carbon emissions, Algoma’s future as a leading producer of green steel, the potential impacts of inflationary pressures, the Company’s ability to preserve and strengthen near-term liquidity and financial flexibility, the availability and receipt of governmental funding and support, the potential benefits of the Roshel Algoma Defence joint venture and sovereign ballistic steel capabilities, labor availability, global supply chain disruptions on costs, and the Company’s strategy, plans or future financial or operating performance. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including those set forth in “Risk Factors” and “Cautionary Note Regarding Forward-Looking Information” in Algoma’s Annual Information Form, filed under the Company’s SEDAR+ profile at www.sedarplus.ca and with the SEC as part of Algoma’s Annual Report on Form 40-F at www.sec.gov. Forward-looking statements speak only as of the date they are made. Algoma assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Non-GAAP Financial Measures To supplement our financial statements, which are prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IASB”) (“IFRS Accounting Standards”), we use certain non-GAAP measures to evaluate the performance of Algoma. These terms do not have any standardized meaning prescribed within IFRS Accounting Standards and, therefore, may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS Accounting Standards measures by providing a further understanding of our financial performance from management’s perspective. EBITDA refers to net income or loss before depreciation of property, plant, equipment and amortization of intangible assets, finance costs, interest on pension and other post-employment benefit obligations and income taxes. Adjusted EBITDA refers to EBITDA before foreign exchange loss (gain), finance income, carbon tax, changes in fair value of IPO and LETL Warrants, earnout rights, share-based compensation liabilities, share-based compensation related to the Company’s Omnibus Long Term Incentive Plan, derivatives, certain inventory adjustments, impairment loss, legal settlements and legacy contracts, severance costs, stranded inventory and capacity utilization. Legal settlements and legacy contracts includes costs associated with the resolution of claims, settlements, legacy contractual matters and related legal costs. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue for the corresponding period. Adjusted EBITDA is not intended to represent cash flow from operations, as defined by IFRS Accounting Standards. We consider Adjusted EBITDA to be a meaningful measure to assess our operating performance in addition to IFRS Accounting Standards. See the financial tables below for a reconciliation of net loss to Adjusted EBITDA. About Algoma Steel Based in Sault Ste. Marie, Ontario, Algoma is a leading Canadian producer of high-quality plate and sheet steel products, proudly supporting critical sectors including energy, defence, automotive, shipbuilding, and infrastructure. Guided by a purpose to build better lives and a greener future, Algoma is shaping the next generation of sustainable steelmaking in Canada. With the transition to electric arc furnace (EAF) steelmaking and a modernized plate mill, Algoma is redefining how steel is made in Canada. Powered by Ontario’s clean electricity grid, this transformation represents one of the largest industrial decarbonization initiatives in North America and is expected to reduce carbon emissions by approximately 70% once fully transitioned. These advancements provide stability for continued investment in diversification projects aligned with Canada’s evolving needs. This new chapter also introduces Volta™, the brand for all steel produced through Algoma’s EAF technology. Volta delivers the same trusted performance customers rely on, with significantly lower emissions—produced safely, sustainably, and proudly in Canada. Building on more than a century of steelmaking expertise, Algoma continues to invest in its people, processes, and technologies to strengthen domestic supply chains and deliver responsible, Canadian-made steel that helps build a better tomorrow. For more information, please contact: Michael MoracaChief Financial Officer Algoma Steel Group Inc.Phone: 705.945.3300E-mail: [email protected]

Algoma Steel Group Inc. (ASTL) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly loss of $0.51 per share in its upcoming report, which represents a year-over-year change of +31.1%. Revenues are expected to be $210.15 million, down 50.7% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 41.18% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Legato Merger, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Legato Merger will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Legato Merger would post a loss of$0.78 per share when it actually produced a loss of -$1.06, delivering a surprise of -35.90%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Legato Merger doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Nucor (NUE), another stock in the Zacks Steel - Producers industry, is expected to report earnings per share of $4.57 for the quarter ended June 2026. This estimate points to a year-over-year change of +75.8%. Revenues for the quarter are expected to be $9.87 billion, up 16.7% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Nucor has been revised 6.3% up to the current level. Nevertheless, the company now has an Earnings ESP of +0.27%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Nucor will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Algoma Steel Group Inc. (ASTL) : Free Stock Analysis Report Nucor Corporation (NUE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Steel Dynamics (STLD) came out with quarterly earnings of $3.69 per share, beating the Zacks Consensus Estimate of $3.56 per share. This compares to earnings of $2.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.65%. A quarter ago, it was expected that this steel producer and metals recycler would post earnings of $2.79 per share when it actually produced earnings of $2.78, delivering a surprise of -0.36%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Steel Dynamics, which belongs to the Zacks Steel - Producers industry, posted revenues of $6.09 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 17.05%. This compares to year-ago revenues of $4.57 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Steel Dynamics shares have added about 39% since the beginning of the year versus the S&P 500's gain of 8.9%. While Steel Dynamics has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Steel Dynamics was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.24 on $5.87 billion in revenues for the coming quarter and $16.91 on $22.3 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Steel - Producers is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Algoma Steel Group Inc. (ASTL), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29. This company is expected to post quarterly loss of $0.51 per share in its upcoming report, which represents a year-over-year change of +31.1%. The consensus EPS estimate for the quarter has been revised 41.2% lower over the last 30 days to the current level. Algoma Steel Group Inc.'s revenues are expected to be $210.15 million, down 50.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report Algoma Steel Group Inc. (ASTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SAULT STE. MARIE, Ontario, July 16, 2026 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of steel plate and hot rolled sheet products, announced today that the Company will release its 2026 second quarter financial results after the market closes on Wednesday, July 29, 2026. A webcast and conference call will be held on Thursday, July 30, 2026 at 11:00 a.m. Eastern Time to review the Company’s results, discuss recent events, and conduct a question-and-answer session. The live webcast and archived replay of the conference call can be accessed on the Investors section of the Company’s website at www.ir.algoma.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally by dialing 877-425-9470 or 201-389-0878, respectively. Upon dialing in, please request to join the Algoma Steel Group Inc. Second Quarter 2026 Earnings Call. To access the replay of the call, dial 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13761609. About Algoma Steel Based in Sault Ste. Marie, Ontario, Algoma is a leading Canadian producer of high-quality plate and sheet steel products, proudly supporting critical sectors including energy, defence, automotive, shipbuilding, and infrastructure. Guided by a purpose to build better lives and a greener future, Algoma is shaping the next generation of sustainable steelmaking in Canada. With the transition to electric arc furnace (EAF) steelmaking and a modernized plate mill, Algoma is redefining how steel is made in Canada. Powered by Ontario’s clean electricity grid, this transformation represents one of the largest industrial decarbonization initiatives in North America and is expected to reduce carbon emissions by approximately 70% once fully transitioned. These advancements provide stability for continued investment in diversification projects aligned with Canada’s evolving needs. This new chapter also introduces Volta™, the brand for all steel produced through Algoma’s EAF technology. Volta delivers the same trusted performance customers rely on, with significantly lower emissions—produced safely, sustainably, and proudly in Canada. Building on more than a century of steelmaking expertise, Algoma continues to invest in its people, processes, and technologies to strengthen domestic supply chains and deliver responsible, Canadian-made steel that helps build a better tomorrow. Cautionary Statement Regarding Forward-Looking Statements This news release contains “forward-looking information” under applicable Canadian securities legislation and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”), including statements regarding the timing for the release of its financial results and the anticipated impact of Algoma’s EAF project on carbon emissions. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “design,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions. Many factors could cause actual future events to differ materially from the forward-looking statements in this document. Readers should consider the risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Information” in Algoma’s annual information form, filed by Algoma with the Ontario Securities Commission (the “OSC”) (available under the company’s SEDAR+ profile at www.sedarplus.ca) and with the SEC (available at www.sec.gov) as part of its annual report on Form 40-F, as well as in Algoma’s quarterly and current reports filed with the OSC and SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Algoma assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. For more information, please contact: Michael MoracaChief Financial Officer Algoma Steel Group Inc.Phone: 705.945.3300E-mail: [email protected]

SAULT STE. MARIE, Ontario, June 30, 2026 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of steel plate and hot rolled sheet products, today provided guidance for its quarter ended June 30, 2026. Unless otherwise specified, all amounts are in Canadian dollars. Total steel shipments for the quarter are expected to be in the range of 175,000 tons to 180,000 tons and Adjusted EBITDA is expected to be in the range of $5 million to $15 million. Note that the guidance for Adjusted EBITDA includes the benefit of a final insurance settlement amount of $45 million related to the coke-making utility corridor incident in January 2024, as well as an expected capacity utilization adjustment benefit of approximately $50 million to $55 million. Rajat Marwah, Chief Executive Officer of Algoma, commented, “The second quarter of 2026 demonstrated the continued resilience of our transformed business, with record plate sales and our first electric arc furnace (EAF) unit continuing to ramp up as expected, even as broader market conditions continued to weigh on total shipment volumes. We look forward to bringing our second EAF unit online in the second half of the year and beginning its ramp up to our full expected capacity, completing our transformation. While tariffs remain a structural headwind, we continue to make strong progress on our pivot to a more Canada-centric strategy, and the recent rise in steel prices is encouraging. As Canada's only producer of discrete plate, we remain well-positioned to serve growing infrastructure, construction, and defence demand.” About Algoma Steel Based in Sault Ste. Marie, Ontario, Algoma is a leading Canadian producer of high-quality plate and sheet steel products, proudly supporting critical sectors including energy, defence, automotive, shipbuilding, and infrastructure. Guided by a purpose to build better lives and a greener future, Algoma is shaping the next generation of sustainable steelmaking in Canada. With the transition to electric arc furnace (EAF) steelmaking and a modernized plate mill, Algoma is redefining how steel is made in Canada. Powered by Ontario’s clean electricity grid, this transformation represents one of the largest industrial decarbonization initiatives in North America and is expected to reduce carbon emissions by approximately 70% once fully transitioned. These advancements provide stability for continued investment in diversification projects aligned with Canada’s evolving needs. This new chapter also introduces Volta™, the brand for all steel produced through Algoma’s EAF technology. Volta delivers the same trusted performance customers rely on, with significantly lower emissions—produced safely, sustainably, and proudly in Canada. Building on more than a century of steelmaking expertise, Algoma continues to invest in its people, processes, and technologies to strengthen domestic supply chains and deliver responsible, Canadian-made steel that helps build a better tomorrow. Cautionary Statement Regarding Forward-Looking Statements This news release contains “forward-looking information” under applicable Canadian securities legislation and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”), including statements regarding expected steel shipments and Adjusted EBITDA for the second quarter of 2026, expected benefits from insurance settlements and capacity utilization adjustments, Algoma’s transition to EAF steelmaking, the timing and ramp-up of EAF units, the Company’s expected reduction in carbon emissions following completion of the EAF project, Algoma’s future as a leading producer of green steel, Algoma’s modernization of its plate mill facilities, transformation journey, the Company’s Canada-centric business strategy, its competitive positioning in infrastructure, construction, and defence markets, ability to deliver greater and long-term value, ability to offer North America a secure steel supply and a sustainable future, continued investment in diversification projects, and investment in its people and processes. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “design,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions. Many factors could cause actual future events to differ materially from the forward-looking statements in this document. Readers should also consider the other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Information” in Algoma’s Annual Information Form, filed by Algoma with applicable Canadian securities regulatory authorities (available under the Company’s SEDAR+ profile at www.sedarplus.ca) and with the Securities and Exchange Commission (the “SEC”), as part of Algoma’s Annual Report on Form 40-F (available at www.sec.gov), as well as in Algoma’s current reports with the Canadian securities regulatory authorities and the SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Algoma assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Non-GAAP Financial Measures To supplement our financial statements, which are prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IASB”) (“IFRS Accounting Standards”), we use certain non-GAAP measures to evaluate the performance of Algoma. These terms do not have any standardized meaning prescribed within IFRS Accounting Standards and, therefore, may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS Accounting Standards measures by providing a further understanding of our financial performance from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS Accounting Standards. Adjusted EBITDA, as we define it, refers to net income (loss) before amortization of property, plant, equipment and amortization of intangible assets, finance costs, interest on pension and other post-employment benefit obligations, income taxes, foreign exchange loss (gain), finance income, carbon tax, changes in fair value of IPO and LETL Warrants, earnout and share-based compensation liabilities and derivative, share-based compensation related to the Company’s Omnibus Long Term Incentive Plan, certain inventory adjustments, impairment loss, legal settlement, severance costs and stranded inventory. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue for the corresponding period. Adjusted EBITDA is not intended to represent cash flow from operations, as defined by IFRS Accounting Standards, and should not be considered as an alternative to net profit (loss) from operations, or any other measure of performance prescribed by IFRS Accounting Standards. Adjusted EBITDA, as we define and use it, may not be comparable to Adjusted EBITDA as defined and used by other companies. We consider Adjusted EBITDA to be a meaningful measure to assess our operating performance in addition to IFRS Accounting Standards. It is included because we believe it can be useful in measuring our operating performance and our ability to expand our business and provide management and investors with additional information for comparison of our operating results across different time periods and to the operating results of other companies. Adjusted EBITDA is also used by analysts and our lenders as a measure of our financial performance. In addition, we consider Adjusted EBITDA margin to be a useful measure of our operating performance and profitability across different time periods that enhance the comparability of our results. However, these measures have limitations as analytical tools and should not be considered in isolation from, or as alternatives to, net income, cash flow from operations or other data prepared in accordance with IFRS Accounting Standards. Because of these limitations, such measures should not be considered as measures of discretionary cash available to invest in business growth or to reduce indebtedness. We compensate for these limitations by relying primarily on our IFRS Accounting Standards results using such measures only as supplements to such results. For more information, please contact: Michael MoracaChief Financial OfficerAlgoma Steel Inc. Phone: 705.945.3300E-mail: [email protected]

SAULT STE. MARIE, Ontario, June 23, 2026 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of steel plate and hot rolled sheet products, announced today the results of voting at its annual meeting of shareholders (the “Meeting”) held on June 23, 2026. All of the nominees listed in the management information circular prepared in connection with the Meeting were elected as directors of the Company. The Company received proxies and virtual votes at the Meeting as set out below: The Company reports that the appointment of Deloitte LLP as the Company’s auditors for the 2026 calendar year was passed by a majority of the votes represented at the Meeting. The Company also reports that the non-binding advisory resolution on executive compensation, outlined in the management information circular dated April 30, 2026, was approved at the Meeting. The circular is available on SEDAR+ and the Securities and Exchange Commission’s (“SEC”) EDGAR website. The Company’s full report of voting results on matters presented at the Meeting can be found under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov. Cautionary Statement Regarding Forward-Looking Statements This news release contains “forward-looking information” under applicable Canadian securities legislation and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”), including statements regarding Algoma’s transition to electric arc furnace (EAF) steelmaking, the Company’s expected reduction in carbon emissions following completion of the EAF project, Algoma’s future as a leading producer of green steel, Algoma’s modernization of its plate mill facilities, transformation journey, ability to deliver greater and long-term value, ability to offer North America a secure steel supply and a sustainable future, and investment in its people and processes. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “design,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions. Many factors could cause actual future events to differ materially from the forward-looking statements in this document. Readers should also consider the other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Information” in Algoma’s Annual Information Form, filed by Algoma with applicable Canadian securities regulatory authorities (available under the company’s SEDAR+ profile at www.sedarplus.ca) and with the SEC, as part of Algoma’s Annual Report on Form 40-F (available at www.sec.gov), as well as in Algoma’s current reports with the Canadian securities regulatory authorities and SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Algoma assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. About Algoma Steel Based in Sault Ste. Marie, Ontario, Algoma is a leading Canadian producer of high-quality plate and sheet steel products, proudly supporting critical sectors including energy, defense, automotive, shipbuilding, and infrastructure. Guided by a purpose to build better lives and a greener future, Algoma is shaping the next generation of sustainable steelmaking in Canada. With the transition to electric arc furnace (EAF) steelmaking and a modernized plate mill, Algoma is redefining how steel is made in Canada. Powered by Ontario’s clean electricity grid, this transformation represents one of the largest industrial decarbonization initiatives in North America and is expected to reduce carbon emissions by approximately 70% once fully transitioned. These advancements provide stability for continued investment in diversification projects aligned with Canada’s evolving needs. This new chapter also introduces Volta™, the brand for all steel produced through Algoma’s EAF technology. Volta delivers the same trusted performance customers rely on, with significantly lower emissions—produced safely, sustainably, and proudly in Canada. Building on more than a century of steelmaking expertise, Algoma continues to invest in its people, processes, and technologies to strengthen domestic supply chains and deliver responsible, Canadian-made steel that helps build a better tomorrow. For more information, please contact: Michael MoracaChief Financial Officer Algoma Steel Group Inc.Phone: 705.945.3300E-mail: [email protected]

Interested in Algoma Steel Group Inc.? Here are five stocks we like better. Algoma completed a major turnaround by permanently shutting its blast furnace on Jan. 18 and becoming a fully electric arc furnace operation, which management says marks a “defining moment” but also makes Q1 a transitional, higher-cost quarter. Q1 results were pressured by the transition, with shipments falling 52.4% and revenue down 42.4%, while the company posted an adjusted EBITDA loss of $28.7 million and a large $90.2 million capacity utilization charge tied to excess fixed costs. Management remains optimistic that results will improve as EAF output ramps and transition costs fade, while Algoma leans into a plate-first strategy, defense initiatives and liquidity of roughly $553 million to support the path back toward breakeven EBITDA by Q4. Algoma Steel Group (NASDAQ:ASTL) said its fiscal first quarter of 2026 marked a major operational transition as the company permanently halted blast furnace operations and continued ramping up its new electric arc furnace platform, while navigating lower shipments, elevated transition costs and U.S. steel tariffs. Chief Executive Officer Rajat Marwah said the Jan. 18 shutdown of blast furnace operations ended 125 years of coal-based integrated steelmaking at Algoma and more than 50 years of production at its No. 7 Blast Furnace. He described the move as “a defining moment” for the company and said Algoma is now “a fully electric arc furnace operation.” → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Marwah told investors that the first quarter was “a transitional quarter by design,” with low shipments and elevated costs as the company wound down one production route and scaled another. He said Algoma views the quarter as the company’s adjusted EBITDA trough, with performance expected to improve as electric arc furnace production increases, operations stabilize and transition-related costs are removed. Chief Financial Officer Michael Moraca said Algoma shipped approximately 224,000 net tons in the quarter, down 52.4% from the prior-year period. He noted that the year-ago quarter reflected production from a fully operating blast furnace platform, which no longer exists. → MercadoLibre Boldly Invests in Growth: Discount Deepens Steel revenue was $266.9 million, down 42.4% from the prior-year period, as lower shipment volumes more than offset stronger realized pricing. Algoma’s average net sales realization rose 21% to $1,193 per ton from $986 per ton a year earlier, reflecting a deliberate mix shift toward discrete plate products. Marwah said the company achieved record plate sales of 116,000 net tons during the quarter and expects further upside as its “plate-first strategy” scales. He said demand in infrastructure, construction and defense end markets remains healthy, and emphasized Algoma’s position as Canada’s only producer of discrete plate. → MP Materials Is Quietly Building a Rare Earth Powerhouse On the electric arc furnace ramp, Marwah said the Unit 1 furnace and associated melt shop are “performing as designed,” with quality metrics achieved across a range of plate and hot rolled coil grades. He said the Q-One power system and other key components have demonstrated stable performance on a full 24-hour-per-day schedule. Algoma reported an adjusted EBITDA loss of $28.7 million, or a negative 9.7% margin, compared with an adjusted EBITDA loss of $46.7 million, or a negative 9% margin, in the prior-year quarter. Moraca said the improvement in absolute terms was driven primarily by improved product mix. The company recorded a $90.2 million capacity utilization charge in the quarter, which Moraca said reflected excess fixed costs carried beyond what was needed to operate the electric arc furnace and downstream operations at current production volumes. He said those costs primarily related to labor, fixed utilities, equipment and maintenance, and are expected to decline over the next two quarters and be fully eliminated by the fourth quarter. During the question-and-answer session, Moraca said the capacity utilization adjustment should trend down “in a pretty linear fashion” from $90 million in the first quarter to zero in the fourth quarter. He also said Algoma still expects to be on a pathway to breakeven EBITDA by the fourth quarter. Algoma’s cost per ton of steel products sold was $1,180, compared with $1,137 a year earlier. Moraca said the increase reflected $27.4 million in tariff costs and reduced fixed cost absorption at lower production volumes. The cost metric excludes the $90 million capacity utilization charge. Marwah said the 50% U.S. Section 232 tariff on steel imports from Canada continues to define the company’s operating landscape. Algoma incurred $27.4 million in direct tariff costs in the quarter, down from the prior quarter as it reduced volumes shipped to the United States. Marwah said Algoma is “more exposed to tariff than virtually any steel company in North America” and called the company’s focus on plate, de-emphasizing coil and orienting more toward the Canadian market the appropriate strategic response. He said the Canadian market remains supply-pressured, with coil pricing constrained by domestic oversupply, import offers and the presence of U.S. Steel in the Canadian market. In response to analyst questions, Marwah said Algoma is being disciplined in coil orders and taking business that “makes sense,” while plate volumes are increasing. Moraca said overall shipments are expected to be slightly lower in the second quarter, with plate volumes expected to be slightly higher and coil volumes flexed lower because of market conditions. Algoma ended the quarter with $65.3 million in cash, $195 million of unused availability on its revolving credit facility and $292 million remaining under its LETL facilities, for total available liquidity of approximately $553 million. Moraca said the company drew $126 million under the LETL facilities during the quarter, net of paid-in-kind interest, largely to offset operating cash consumption and support the transition. Capital expenditures were $20.4 million, down from $127 million in the prior-year quarter when electric arc furnace construction activity was much higher. Moraca said Algoma expects its maintenance capital spending profile to run meaningfully below its historical sustaining capital level of approximately $120 million annually as it operates a newer, lower-maintenance electric arc furnace facility. He also said expected positive cash flow items in 2026 include approximately $200 million related to income tax refunds and remaining insurance proceeds tied to a previously disclosed claim. Algoma highlighted two strategic initiatives tied to Canadian industrial and defense supply chains. Marwah pointed to the April announcement of Roshel Algoma Defence, a joint venture with Roshel Inc. intended to establish a Canadian center of excellence for ballistic steel production. He said the venture is designed to provide full-cycle capabilities including fabrication, forming, welding and machining in Canada. Marwah also discussed Algoma’s binding memorandum of understanding with Hanwha Ocean, announced in January and valued at up to $250 million. The arrangement includes a potential $200 million contribution toward development of a structural beam mill and up to $50 million in anticipated product purchases tied to the Canadian Patrol Submarine Program. He said the agreement remains subject to Hanwha Ocean being awarded the contract and definitive agreements being executed. In response to an analyst question, Marwah said the defense market is a smaller portion of overall steel consumption in Canada, similar to the U.S. market, but said Algoma is looking at the full supply chain and value-added opportunities such as fabrication, assembly and welding. Marwah said the company is also working on an overseas sales strategy, with trials being planned and supply-chain discussions underway. He said Algoma does not expect much supply to occur in the current quarter or the next but expects work to be finalized toward year-end, with product supply beginning after that. “The path back to profitability runs through scale, more EAF production, more plate tons, and a cost structure that improves with every additional heat we cast,” Marwah said. “We are not there yet, but the trajectory is the right one, and we have the liquidity to execute.” Algoma Steel Group Inc is a North American steel producer headquartered in Sault Ste. Marie, Ontario. The company operates a modern electric arc furnace (EAF) complex and an integrated rolling mill, enabling it to transform scrap and direct reduced iron into a wide range of steel products. Algoma Steel Group returned to public markets in 2021 with listings on both the Toronto Stock Exchange and the Nasdaq under the symbol ASTL. Founded in 1901 as Algoma Steel Corporation, the company grew to become one of Canada’s leading steelmakers before undergoing restructuring in the early 2000s. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Algoma Steel Group Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Algoma Steel Group Inc (NASDAQ:ASTL) successfully transitioned to a fully electric arc furnace operation, marking a significant transformation in its production process. The company achieved record plate sales of 116,000 net tonnes, driven by a strategic shift towards higher-value plate products. Algoma Steel Group Inc (NASDAQ:ASTL) has a unique competitive position as Canada's only producer of discrete plate, which supports its pricing resilience. The company has established a joint venture with Rochelle, Inc. to create a Canadian Center of Excellence for ballistic steel production, enhancing its role in Canada's defense industrial base. Algoma Steel Group Inc (NASDAQ:ASTL) has a binding MOU with Hanwha Ocean, potentially valued at up to US $250 million, which could further strengthen its position in Canada's defense sector. The company faced a significant decline in shipment volumes, down 52.4% compared to the prior-year period, due to the transition from blast furnace to electric arc furnace operations. Algoma Steel Group Inc (NASDAQ:ASTL) incurred Canadian $27.4 million in direct tariff costs due to the 50% U.S. Section 232 tariff on steel imports from Canada. The Canadian market remains supply-pressured, with coil pricing affected by domestic oversupply and import offers. Adjusted EBITDA for the quarter was a loss of $28.7 million, reflecting ongoing transition-related costs and reduced fixed cost absorption. The company is still in the ramp-up phase of its new electric arc furnace platform, which has yet to stabilize and achieve full operational efficiency. Warning! GuruFocus has detected 10 Warning Signs with ASTL. Is ASTL fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide some guidance on how the capacity utilization adjustment is expected to trend down in Q2 and Q3, and what should we expect for Q4 EBITDA? A: We anticipate a linear reduction in the capacity utilization adjustment from $90 million this quarter to zero by Q4. Our expectation is to break even on EBITDA by the fourth quarter, assuming no significant changes in input or steel prices. Michael Marrocca, CFO Q: How do you expect volumes to trend in Q2, and what is the market's appetite for higher production levels, particularly for plate and coil? A: We expect shipments to be directionally lower in the next quarter. On the plate side, we aim to ship as much as possible, while the coil market faces constraints due to oversupply in Canada. We are disciplined in our approach to coil orders to ensure profitability. Michael Marrocca, CFO and Rajat Marwa, CEO Q: Will lower sheet volumes in Q2 be offset by higher plate volumes, and how should we think about overall volumes? A: We expect plate volumes to be slightly higher as we capture more market share in Canada. However, overall volumes are anticipated to be slightly lower due to adjustments in coil volumes. Michael Marrocca, CFO Q: Can you discuss your current sourcing of scrap and its pricing dynamics? A: Scrap is primarily sourced from Canada, with some from the U.S. Pricing follows the North American index and is not influenced by the dynamics between Canada and the U.S., unlike sheet pricing, which is affected by oversupply and tariffs. Rajat Marwa, CEO Q: How significant is the defense market in Canada, and what value does the defense JV bring? A: The defense market is smaller compared to other sectors, but there is significant spending expected. The JV provides a full solution, including fabrication and assembly, with Canadian labor and materials, adding value beyond just steel supply. Rajat Marwa, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.