Algoma Steel Group Inc

Canada plans to spend more than C$11 billion, or about $7.9 billion, on six new Coast Guard icebreakers to be built by Chantier Davie Canada at its shipyard in Lévis, Quebec. Prime Minister Mark Carney said the first steel will be cut next fall, the first ship delivered five years later, and the full fleet in service five years after that. The vessels will replace aging heavy and medium icebreakers used along Canada’s east coast in winter and across the Arctic in summer. The program is part of Carney’s effort to modernize Canada’s military and expand domestic defense production, and it could provide a long pipeline of work for Canadian steelmakers, equipment suppliers, and marine contractors, including Algoma Steel Group.

The United States and Canada are close to a trade deal that would lower tariffs on certain steel and aluminum imports from 50% to 25% and reduce tariffs on Canadian auto imports to 15% from 25%, according to a Bloomberg report on August 20, 2026, citing sources close to the negotiations. Details are still being finalized and may not apply to all goods at the same rate. Some downstream products could still face different tariff levels. The progress comes after President Donald Trump said the US had reached a deal with Canada and temporarily suspended the 50% tariffs to allow talks before a Friday deadline. The proposal under discussion would give Canada terms similar to those for the United Kingdom, which received 25% steel tariffs, and Japan and South Korea, which received 15% auto tariffs. Canadian Prime Minister Mark Carney said negotiators are moving toward the best possible deal for the country's strategic industrial sectors, but tariffs of 15% to 25% remain far above historical norms and could create domestic political pressure, as well as pressure on Mexico, which has not yet reached a deal with the US. Financial markets responded positively, with the Canadian dollar strengthening to around 1.3809 per US dollar, its strongest level since June 1. Algoma Steel Group shares jumped 16.6% in Toronto, while US steel producers such as Nucor fell 5.9% and Century Aluminum dropped 4.6%. Canada is the largest source of US aluminum imports, accounting for roughly half of total US consumption, but US industry groups are pressing against tariff cuts covering all products, warning that around 125,000 American aluminum industry jobs could be affected.

Algoma Steel and South Bow shares rose after President Trump announced a tentative deal to stave off potential new 50% duties on $20 billion worth of Canadian imports. Algoma Steel surged 14.5% in Thursday's trading, while South Bow initially jumped before paring gains to 0.8% after Trump indicated the cross-border Keystone XL pipeline project could be revived. Algoma has been hard hit by Trump administration tariffs aimed at the steel industry, and the company warned the earlier 50% U.S. Section 232 tariff had fundamentally altered and permanently disrupted its cross-border business model. The company's Q2 shipments to the U.S. represented 23% of total steel shipments, down sharply from 54% in the year-earlier quarter and a historical range of 45%-55%. United Steelworkers union national director Marty Warren said existing tariffs continue to hurt Canadian steel, aluminum, copper, forestry, automotive, and other industries.

Algoma Steel Group Inc. reported adjusted EBITDA of $13.8 million for the three months ended June 30, 2026, in line with its previously announced expectations and marking a second consecutive quarter of record plate sales. The result, which compares to an adjusted EBITDA loss of $32.4 million in the prior-year quarter, included a $45.0 million final insurance settlement and a $54.7 million capacity utilization adjustment tied to excess fixed costs from the company's legacy blast furnace operations. Revenue fell to $267.5 million from $589.7 million a year earlier, while net loss narrowed to $96.0 million from $110.6 million, as the company continued its transition to electric arc furnace steelmaking after permanently halting its blast furnace in January 2026. Shipments dropped 61.6% to 181,473 tons, reflecting the deliberate reduction of U.S.-bound volumes under the 50% Section 232 tariff, but average net sales realization per ton rose 20.2% to $1,361. Construction of the second EAF unit is nearing completion, with first steel production expected in the third quarter of 2026, and the company ended the quarter with approximately $437 million in total available liquidity.