Shellacked by U.S tariffs and low shipments, Algoma Steel Group Inc. endured a fourth-quarter net loss of $365 million, compared to $66.5 million lost in the same quarter last year.
For the full year, the Sault steelmaker’s net loss was $985 million, compared to a $139-million loss in 2024.
But Algoma’s game-changing conversion to electric arc furnace (EAF) steelmaking has gone swimmingly well, company officials said tonight.
“Operationally, we are encouraged by the early performance of our first EAF,” Rajat Marwah, the company’s chief executive officer, said in a news release issued after the close of markets.
“The facility is now operating on a continuous 24-hour schedule, with furnace and melt shop systems performing as designed and product quality meeting specifications across both plate and hot-rolled coil grades,” Marwah said.
“Successfully producing high-quality sustainable steel from the EAF at scale represents a critical milestone in our multi-year transition and reinforces our confidence in the long-term benefits of the new operating platform.”
In its news release, Algoma added the following:
“Since achieving first arc and first steel production in early July, commissioning and ramp-up activities for Algoma’s EAF project have continued to progress in-line with expectations.
“The operational furnace and associated melt shop assets are performing as designed, with quality metrics achieved across a broad range of plate and hot-rolled coil product grades.
“The Q-One power system and other critical process components have demonstrated stable and reliable performance, supporting consistent metallurgical quality and process control.
“During the fourth quarter of 2025, the company transitioned EAF operations to a full 24-hour-per-day schedule, a significant step forward from the limited operating cadence maintained in the prior period.
“This acceleration coincided with the company’s decision to wind down its blast furnace and coke oven operations ahead of the originally planned 2027 timeline, with production through that route ceasing shortly after December 31, 2025.
“All liquid steel produced is now coming from the EAF facility. To align its product strategy with the realities of the current Canadian market, Algoma intends to focus on the manufacturing and sale of discrete plate and will scale back coil production as the EAF ramps up.
“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, matching its downstream finishing capacity, and is projected to reduce annual carbon emissions by approximately 70 per cent from pre-EAF levels.”
Despite its fourth-quarter fiscal shellacking, Algoma Steel is still solvent.
On Dec. 31, it had $77.5 million in cash, plus $195 million available in a revolving credit facility, plus $417 million available to draw under a federal government program providing liquidity to large companies facing financial distress due to tariffs.
Additional information is currently being added to this article.