Algoma Steel Group Inc. announced its financial results for the first quarter ended March 31, 2025, reporting consolidated revenue of $517.1 million, down from $620.6 million in the prior-year quarter. The company recorded a net loss of $24.5 million, compared to a net income of $28.0 million in the same period last year. Adjusted EBITDA for the quarter was a loss of $46.7 million, including a $50.0 million insurance receivable, resulting in a negative 9.0% margin.
Shipments for the first quarter increased by 4.2% to 469,731 tons, but the average realized price of steel net of freight and non-steel revenue decreased to $986 per ton from $1,260 per ton. The company incurred $10.5 million in tariff-related costs during the quarter, contributing to a loss from operations of $139.9 million.
First steel production from the initial Electric Arc Furnace (EAF) is now expected during the second quarter of 2025, with cumulative investment reaching $823.6 million as of March 31, 2025. Algoma confirmed it is currently subject to a 25% Section 232 tariff on steel imported into the United States, which has contributed to market volatility and oversupply in the Canadian market.
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