Algoma Steel Provides Q1 2026 Guidance, Expects Improved EBITDA

Canadian steel producer forecasts lower shipments but sequential EBITDA improvement as it completes transition to electric arc furnace.

Mar. 31, 2026 at 10:12pm

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Algoma Steel Group Inc., a leading Canadian producer of steel plate and hot rolled sheet products, provided guidance for its first quarter ended March 31, 2026. Total steel shipments are expected to be around 220,000 tons, while Adjusted EBITDA is forecast in the range of negative $25 million to negative $35 million. The company noted that near-term demand softness continues to impact shipment volumes, but the structural cost improvements from its transition to electric arc furnace (EAF) steelmaking are expected to drive meaningful sequential improvement in Adjusted EBITDA.

Why it matters

Algoma's transition to EAF steelmaking, which is expected to reduce carbon emissions by around 70%, represents one of the largest industrial decarbonization initiatives in North America. As Canada's only producer of discrete plate, the company is well-positioned to serve growing demand across infrastructure, construction, and defense sectors as it builds on its over century-long steelmaking expertise.

The details

Algoma has fully transitioned to EAF steelmaking, the culmination of years of planning and close to $1 billion of investment. The company's EAF is now running around the clock, producing its sustainable low-carbon steel brand, Volta. While near-term demand softness continues to impact shipment volumes, Algoma expects the structural cost improvements inherent to EAF steelmaking to drive meaningful sequential improvement in Adjusted EBITDA.

  • Algoma provided guidance for its quarter ended March 31, 2026.

The players

Algoma Steel Group Inc.

A leading Canadian producer of high-quality plate and sheet steel products, proudly supporting critical sectors including energy, defense, automotive, shipbuilding, and infrastructure.

Rajat Marwah

Chief Executive Officer of Algoma.

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What they’re saying

“The first quarter of 2026 marked a defining moment in Algoma's transformation. With the wind-down of our blast furnace and coke oven operations now complete, we have fully transitioned to EAF steelmaking, the culmination of years of planning and close to $1 billion of investment.”

— Rajat Marwah, Chief Executive Officer

The takeaway

Algoma's transition to electric arc furnace steelmaking, one of the largest industrial decarbonization initiatives in North America, positions the company to serve growing demand in key sectors while significantly reducing its carbon emissions. Despite near-term demand softness, the structural cost improvements of EAF are expected to drive improved financial performance going forward.