Algoma Steel Reports Q2 Loss Amid Shift to Canadian Markets

Algoma Steel Group Inc. reported a net loss of $96 million for the second quarter ending June 30, 2026, a slight improvement from the $110.6 million loss in the same period last year. Despite the narrowing loss, consolidated revenue plummeted to $267.5 million from $589.7 million year-over-year, and shares fell 10 percent to $5.35 on the Toronto Stock Exchange.

The company is transitioning from legacy blast furnace operations, which ceased on January 18, 2026, to electric arc furnace (EAF) steel production. This transformation was accelerated by a 50 percent U.S. Section 232 tariff that constrained exports to the United States, leading to more than 1,000 layoffs. Consequently, U.S. shipments dropped to 23 percent of total volume, compared to 54 percent the previous year.

To mitigate these losses, Algoma is pivoting toward the Canadian market, focusing on steel plates and structural beams for the defense, construction, and infrastructure sectors. The company formed Roshel Algoma Defence through a partnership with Roshel Inc. However, a memorandum of understanding with Hanwha Ocean Co., Ltd. was suspended after the Canadian government selected Thyssenkrupp Marine Systems as the preferred supplier for its submarine program. CEO Rajat Marwah stated that the company is entering the final phase of its transformation, with a second EAF unit expected to produce steel in the third quarter of 2026.