Algoma Steel Group Reports Fiscal Second Quarter 2025 Financial Results
Algoma Steel Group reported fiscal Q2 2025 results with consolidated revenue of $600.3 million, down from $732.6 million in the prior-year quarter. The company posted a net loss of $106.6 million, compared to net income of $31.1 million last year. Adjusted EBITDA was $3.5 million with a 0.6% margin. Steel shipments decreased to 520,443 tons from 548,998 tons.
The company's Electric Arc Furnace (EAF) project remains on schedule, with commissioning activities set to begin by end of 2024. Total contracted commitments are now approximately $870 million. The company announced a change in fiscal year end from March 31 to December 31, and declared a quarterly dividend of US$0.05 per share.
Algoma Steel Group ha riportato i risultati del secondo trimestre fiscale 2025 con un fatturato consolidato di 600,3 milioni di dollari, in calo rispetto ai 732,6 milioni dello stesso trimestre dell'anno precedente. L'azienda ha registrato una perdita netta di 106,6 milioni di dollari, rispetto a un guadagno netto di 31,1 milioni di dollari dell'anno scorso. L'EBITDA rettificato è stato di 3,5 milioni di dollari con un margine dello 0,6%. Le spedizioni di acciaio sono diminuite a 520.443 tonnellate, rispetto alle 548.998 tonnellate.
Il progetto Electric Arc Furnace (EAF) dell'azienda rimane in programma, con le attività di commissioning che inizieranno entro la fine del 2024. Gli impegni contrattuali totali ammontano ora a circa 870 milioni di dollari. L'azienda ha annunciato un cambiamento nella scadenza dell'anno fiscale da 31 marzo a 31 dicembre e ha dichiarato un dividendo trimestrale di 0,05 dollari per azione.
Algoma Steel Group informó los resultados del segundo trimestre fiscal 2025 con ingresos consolidados de 600,3 millones de dólares, una disminución respecto a los 732,6 millones del trimestre del año anterior. La compañía registró una pérdida neta de 106,6 millones de dólares, en comparación con un ingreso neto de 31,1 millones de dólares el año pasado. El EBITDA ajustado fue de 3,5 millones de dólares con un margen del 0,6%. Los envíos de acero disminuyeron a 520.443 toneladas desde 548.998 toneladas.
El proyecto de Electric Arc Furnace (EAF) de la compañía sigue según lo previsto, con actividades de puesta en marcha programadas para comenzar a finales de 2024. Los compromisos contratados totalizan ahora aproximadamente 870 millones de dólares. La compañía anunció un cambio en el cierre del año fiscal de 31 de marzo a 31 de diciembre y declaró un dividendo trimestral de 0,05 dólares por acción.
Algoma Steel Group은 2025 회계 연도 2분기 실적을 보고했으며, consolidated revenue는 6억 3백만 달러로, 전년도 분기의 7억 3천 2백 6십만 달러에서 감소했습니다. 회사는 작년 3천 1백 1십만 달러의 순이익에 비해 1억 6백 6십만 달러의 순손실을 기록했습니다. 조정된 EBITDA는 3백 5십만 달러이며, 마진은 0.6%입니다. 철강 출하는 520,443톤으로 548,998톤에서 감소했습니다.
회사의 전기 아크로 및 가마(EAF) 프로젝트는 일정대로 진행되고 있으며, 2024년 말까지 커미셔닝 활동이 시작될 예정입니다. 총 계약된 약정 금액은 현재 약 8억 7천만 달러입니다. 회사는 회계 연도 종료일을 3월 31일에서 12월 31일로 변경하고, 주당 0.05달러의 분기 배당금을 선언했습니다.
Algoma Steel Group a annoncé les résultats du deuxième trimestre fiscal 2025, avec un chiffre d'affaires consolidé de 600,3 millions de dollars, en baisse par rapport aux 732,6 millions de dollars du trimestre de l'année précédente. L'entreprise a enregistré une perte nette de 106,6 millions de dollars, contre un bénéfice net de 31,1 millions de dollars l'année dernière. L'EBITDA ajusté s'est élevé à 3,5 millions de dollars, avec une marge de 0,6%. Les expéditions d'acier ont diminué à 520 443 tonnes contre 548 998 tonnes.
Le projet Electric Arc Furnace (EAF) de l'entreprise reste dans les délais, avec les activités de mise en service prévues pour débuter d'ici la fin de 2024. Les engagements contractuels totalisent maintenant environ 870 millions de dollars. L'entreprise a annoncé un changement de la date de clôture de l'exercice fiscal du 31 mars au 31 décembre et a déclaré un dividende trimestriel de 0,05 USD par action.
Algoma Steel Group hat die Ergebnisse für das zweite Quartal des Geschäftsjahres 2025 bekanntgegeben, mit einem konsolidierten Umsatz von 600,3 Millionen Dollar, ein Rückgang von 732,6 Millionen Dollar im Vorjahresquartal. Das Unternehmen verzeichnete einen Nettoverlust von 106,6 Millionen Dollar im Vergleich zu einem Nettogewinn von 31,1 Millionen Dollar im letzten Jahr. Das bereinigte EBITDA betrug 3,5 Millionen Dollar mit einer Marge von 0,6%. Die Stahlverkäufe fielen auf 520.443 Tonnen von 548.998 Tonnen.
Das Electric Arc Furnace (EAF) Projekt des Unternehmens liegt im Zeitplan, die Inbetriebnahme ist für Ende 2024 angesetzt. Die gesamten vertraglichen Verpflichtungen belaufen sich nun auf etwa 870 Millionen Dollar. Das Unternehmen gab eine Änderung des Geschäftsjahresendes vom 31. März auf den 31. Dezember bekannt und erklärte eine vierteljährliche Dividende von 0,05 US-Dollar pro Aktie.
- EAF project remains on schedule with commissioning to begin by end of 2024
- Insurance proceeds of $32.1 million received in Q2
- Strong liquidity position with $452.0 million cash and $342.8 million unused credit facility
- Expected 70% reduction in annual carbon emissions after EAF transformation
- Revenue declined 18.1% year-over-year to $600.3 million
- Net loss of $106.6 million compared to profit last year
- Adjusted EBITDA dropped to $3.5 million from $81.0 million year-over-year
- Steel shipments decreased 5.2% to 520,443 tons
- Average realized price per ton declined to $1,036 from $1,213
Insights
The Q2 FY2025 results reveal significant challenges with a concerning shift from profitability to loss. Key metrics show substantial deterioration:
The EAF transformation project remains a critical focus, with
The fiscal year-end change to December 31 and maintained quarterly dividend of
The steel market conditions remain challenging, evidenced by Algoma's declining realized prices (
The EAF project represents a transformative shift in production capability, with potential annual raw steel capacity of 3.7 million tons. This alignment with downstream finishing capacity of 3 million tons should optimize operational efficiency. The scheduled commissioning by end of 2024 positions Algoma as an early mover in North American green steel production, potentially capturing premium pricing in an increasingly ESG-conscious market.
Second Quarter Results In-Line with Previously Announced Expectations
Transformative Electric Arc Furnace (EAF) Commissioning Activities Expected to Start on Schedule During the Fourth Quarter of Calendar 2024; Substantially all of Expected Project Budget Now Fully Contracted
Change in Fiscal Year end from March 31 to December 31, beginning December 31, 2024
SAULT STE. MARIE, Ontario, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of hot and cold rolled steel sheet and plate products, today announced results for its fiscal second quarter ended September 30, 2024.
Unless otherwise specified, all amounts are in Canadian dollars.
Business Highlights and Fiscal 2025 to Fiscal 2024 Second Quarter Comparisons
- Consolidated revenue of
$600.3 million , compared to$732.6 million in the prior-year quarter, mainly attributable to lower steel shipments and realized prices. - Consolidated loss from operations of
$83.6 million , compared to income of$36.8 million in the prior-year quarter. - Net loss of
$106.6 million , compared to net income of$31.1 million in the prior-year quarter. - Adjusted EBITDA of
$3.5 million and Adjusted EBITDA margin of0.6% , compared to$81.0 million and11.1% in the prior-year quarter (See “Non-IFRS Measures” below). - Cash flows generated from operations of
$25.5 million , compared to$57.2 million in the prior-year quarter. - Shipments of 520,443 tons, compared to 548,998 tons in the prior-year quarter.
- Paid quarterly dividend of US
$0.05 /share.
Michael Garcia, the Company’s Chief Executive Officer, commented, “Our fiscal second quarter results reflect solid operational performance in the face of persistent market headwinds, allowing us to deliver shipments and Adjusted EBITDA within our previous guidance ranges. Despite challenging market conditions, our planned ramp up in plate production following completion of our plate mill modernization project continued in the quarter and the associated benefits from a greater mix of value-added products helped offset a steep decline in steel prices.”
Mr. Garcia continued, “This is an incredibly exciting time at our site as we prepare to initiate commissioning activities on schedule for our transformative EAF project. Our project team has worked tirelessly alongside our vendors including equipment providers and subcontractors to secure substantially all remaining budgeted items, significantly reducing remaining project budget risk. Our contracted commitments now total approximately
Garcia continued, “We are also excited to announce that Algoma’s EAF project is eligible under Ontario’s Ministry of the Environment, Conservation and Parks Emissions Performance Program. Under this program, Algoma has applied for, and expects to receive, reimbursement for carbon taxes paid since 2022, driving down the net cash costs of the EAF project. We remain on target to achieve steel production at the first EAF by the end of the first quarter 2025, positioning us among North America’s greenest steel producers as we seek to deliver enhanced long-term shareholder value.”
Second Quarter Fiscal 2025 Financial Results
Second quarter revenue totaled
Loss from operations was
Net loss in the second quarter was
Adjusted EBITDA in the second quarter was
Electric Arc Furnace
The Company has made substantial progress on the construction of two new state-of-the-art electric arc furnaces (“EAF”) to replace its existing blast furnace and basic oxygen steelmaking operations. The project continues to advance on time with commissioning activities set to begin by calendar 2024 year-end and steel production expected by the end of the first calendar quarter of 2025. As of September 30, 2024, the cumulative investment was approximately
Algoma’s EAF project qualifies for the Ontario Ministry of the Environment, Conservation and Parks Emissions Performance Program. Under this program, the Company has applied for and expects to receive reimbursement for carbon taxes paid since 2022. These reimbursements are anticipated to reduce the project’s net cash cost, and along with cash-on-hand, operating cash flow, and available borrowings from the Company’s existing undrawn credit facility, provide ample liquidity to fund the balance of the project.
Following the transformation to EAF steelmaking, the Company is anticipated to have an annual raw steel production capacity of approximately 3.7 million tons, matching its downstream finishing capacity of over 3 million tons, which is expected to reduce the Company’s annual carbon emissions by approximately
Balance Sheet and Liquidity
At quarter end, the Company had cash of
Quarterly Dividend
The Board has declared a regular quarterly dividend in the amount of US
Change in Fiscal Year
The Company today announced that its Board of Directors has approved a change in Algoma’s fiscal year end from March 31 to December 31. This change is being made to better align Algoma’s reporting calendar with other companies in the industry. Algoma’s current fiscal year will end on December 31, 2024, resulting in a nine-month reporting period from April 1, 2024 to December 31, 2024. Algoma plans to provide reclassified historical financial information in the first quarter of 2025 to assist investors in evaluating the impact the change in fiscal year will have on the reported annual operating results for the years ending December 31, 2023 and 2024.
Normal Course Issuer Bid
On August 29, 2024 the Company announced the renewal of its normal course issuer bid (NCIB) after receiving approval from the Toronto Stock Exchange, authorizing the Company to acquire up to a maximum of 5,206,153 shares, or
Conference Call and Webcast Details
A webcast and conference call will be held on Thursday, November 7, 2024 at 11:00 a.m. EDT to review the Company’s fiscal second quarter results, discuss recent events, and conduct a question-and-answer session.
The live webcast and archived replay of the conference call can be accessed on the Investors section of the Company’s website at www.algoma.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally by dialing 877-425-9470 or 201-389-0878, respectively. Upon dialing in, please request to join the Algoma Steel Second Quarter Conference Call. To access the replay of the call, dial 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13749211.
Consolidated Financial Statements and Management's Discussion and Analysis
The Company's unaudited condensed interim financial statements for the three and six month periods ended September 30, 2024, and September 30, 2023, and Management's Discussion & Analysis thereon are available under the Company’s profile on the U.S. Securities and Exchange Commission’s (“SEC”) EDGAR website at www.sec.gov and under the Company's profile on SEDAR+ at www.sedarplus.com. These documents are also available on the Company’s website, www.algoma.com, and shareholders may receive hard copies of such documents free of charge upon request by contacting IR@algoma.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains “forward-looking information” under applicable Canadian securities legislation and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”), including statements regarding trends in the pricing of steel, Algoma’s expectation to continue to pay a quarterly dividend, Algoma’s transition to EAF steelmaking, including the progress, expected costs and timing of completion and commissioning of the Company’s EAF project and for its start of steel production, Algoma’s annual raw steel production capacity and reduced carbon emissions upon completion of the EAF project, Algoma's maintenance of the NCIB and potential use thereof, Algoma’s future as a leading producer of green steel, Algoma’s modernization of its plate mill facilities, transformation journey, ability to deliver greater and long-term value, ability to offer North America a secure steel supply and a sustainable future, and investment in its people, and processes, and statements regarding Algoma's available liquidity and the change of its fiscal year end, and the Company’s strategy, plans or future financial or operating performance. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “design,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions. Many factors could cause actual future events to differ materially from the forward-looking statements in this document. Readers should also consider the other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Information” in Algoma’s Annual Information Form, filed by Algoma with applicable Canadian securities regulatory authorities (available under the Company’s SEDAR+ profile at www.sedarplus.ca) and with the SEC, as part of Algoma’s Annual Report on Form 40-F (available at www.sec.gov), as well as in Algoma’s current reports with the Canadian securities regulatory authorities and SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Algoma assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Non-IFRS Financial Measures
To supplement our financial statements, which are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”), we use certain non-IFRS measures to evaluate the performance of Algoma. These terms do not have any standardized meaning prescribed within IFRS and, therefore, may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of our financial performance from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.
Adjusted EBITDA, as we define it, refers to net income (loss) before amortization of property, plant, equipment and amortization of intangible assets, finance costs, interest on pension and other post-employment benefit obligations, income taxes, foreign exchange loss (gain), finance income, carbon tax, changes in fair value of warrant, earnout and share-based compensation liabilities, earnout and share-based compensation liabilities, and share-based compensation related to performance share units. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue for the corresponding period. Adjusted EBITDA is not intended to represent cash flow from operations, as defined by IFRS, and should not be considered as alternatives to net profit (loss) from operations, or any other measure of performance prescribed by IFRS. Adjusted EBITDA, as we define and use it, may not be comparable to Adjusted EBITDA as defined and used by other companies. We consider Adjusted EBITDA to be a meaningful measure to assess our operating performance in addition to IFRS measures. It is included because we believe it can be useful in measuring our operating performance and our ability to expand our business and provide management and investors with additional information for comparison of our operating results across different time periods and to the operating results of other companies. Adjusted EBITDA is also used by analysts and our lenders as a measure of our financial performance. In addition, we consider Adjusted EBITDA margin to be a useful measure of our operating performance and profitability across different time periods that enhance the comparability of our results. However, these measures have limitations as analytical tools and should not be considered in isolation from, or as alternatives to, net income, cash flow from operations or other data prepared in accordance with IFRS. Because of these limitations, such measures should not be considered as measures of discretionary cash available to invest in business growth or to reduce indebtedness. We compensate for these limitations by relying primarily on our IFRS results using such measures only as supplements to such results. See the financial tables below for a reconciliation of net income (loss) to Adjusted EBITDA.
About Algoma Steel Group Inc.
Based in Sault Ste. Marie, Ontario, Canada, Algoma is a fully integrated producer of hot and cold rolled steel products including sheet and plate. Driven by a purpose to build better lives and a greener future, Algoma is positioned to deliver responsive, customer-driven product solutions to applications in the automotive, construction, energy, defense, and manufacturing sectors. Algoma is a key supplier of steel products to customers in North America and is the only producer of discrete plate products in Canada. Its state-of-the-art Direct Strip Production Complex (“DSPC”) is one of the lowest-cost producers of hot rolled sheet steel (HRC) in North America.
Algoma is on a transformation journey, modernizing its plate mill and adopting electric arc technology that builds on the strong principles of recycling and environmental stewardship to significantly lower carbon emissions. Today Algoma is investing in its people and processes, working safely, as a team to become one of North America's leading producers of green steel.
As a founding industry in their community, Algoma is drawing on the best of its rich steelmaking tradition to deliver greater value, offering North America the comfort of a secure steel supply and a sustainable future as your partner in steel.
| Algoma Steel Group Inc. Condensed Interim Consolidated Statements of Net (Loss) Income (Unaudited) | |||||||||
| Three months ended September 30, | Six months ended September 30, | ||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| expressed in millions of Canadian dollars, except for per share amounts | |||||||||
| Revenue | $600.3 | $1,250.8 | |||||||
| Operating expenses | |||||||||
| Cost of sales | $647.2 | $1,281.0 | |||||||
| Administrative and selling expenses | 36.7 | 31.0 | 65.9 | 54.4 | |||||
| (Loss) income from operations | ($83.6 | ) | ($96.1 | ) | |||||
| Other (income) and expenses | |||||||||
| Finance income | ($7.0 | ) | ( | ) | ($12.4 | ) | ( | ) | |
| Finance costs | 19.2 | 5.4 | 35.6 | 10.5 | |||||
| Interest on pension and other post-employment benefit obligations | 5.3 | 4.8 | 10.7 | 9.6 | |||||
| Foreign exchange loss (gain) | 9.6 | (11.6 | ) | 2.8 | (0.6 | ) | |||
| Other income | (32.1 | ) | - | (32.1 | ) | - | |||
| Change in fair value of warrant liability | 27.3 | 0.3 | 11.7 | (17.2 | ) | ||||
| Change in fair value of earnout liability | 5.4 | (0.7 | ) | 2.9 | (2.7 | ) | |||
| Change in fair value of share-based compensation liability | 12.5 | (1.3 | ) | 6.7 | (5.3 | ) | |||
| $40.2 | ( | ) | $25.9 | ( | ) | ||||
| (Loss) income before income taxes | ($123.8 | ) | ($122.0 | ) | |||||
| Income tax (recovery) expense | (17.2 | ) | 11.9 | (21.5 | ) | 51.2 | |||
| Net (loss) income | ($106.6 | ) | ($100.5 | ) | |||||
| Net (loss) income per common share | |||||||||
| Basic | ($0.98 | ) | ($0.93 | ) | |||||
| Diluted | ($0.98 | ) | ($0.93 | ) | |||||
| Algoma Steel Group Inc. Condensed Interim Consolidated Statements of Financial Position (Unaudited) | ||||
| As at, | September 30, 2024 | March 31, 2024 | ||
| expressed in millions of Canadian dollars | ||||
| Assets | ||||
| Current | ||||
| Cash | $452.0 | |||
| Restricted cash | 0.1 | 3.9 | ||
| Taxes receivable | 36.1 | 20.0 | ||
| Accounts receivable, net | 253.7 | 246.7 | ||
| Inventories, net | 792.6 | 807.8 | ||
| Prepaid expenses and deposits | 52.2 | 80.5 | ||
| Other assets | 5.2 | 5.7 | ||
| Total current assets | $1,591.9 | |||
| Non-current | ||||
| Property, plant and equipment, net | $1,496.0 | |||
| Intangible assets, net | 0.6 | 0.7 | ||
| Other assets | 7.4 | 7.6 | ||
| Total non-current assets | $1,504.0 | |||
| Total assets | $3,095.9 | |||
| Liabilities and Shareholders' Equity | ||||
| Current | ||||
| Bank indebtedness | $0.3 | |||
| Accounts payable and accrued liabilities | 293.2 | 286.8 | ||
| Taxes payable and accrued taxes | 50.4 | 30.1 | ||
| Current portion of other long-term liabilities | 3.3 | 1.4 | ||
| Current portion of governmental loans | 23.8 | 16.2 | ||
| Current portion of environmental liabilities | 2.7 | 3.1 | ||
| Warrant liability | 56.3 | 44.9 | ||
| Earnout liability | 12.3 | 13.8 | ||
| Share-based payment compensation liability | 38.5 | 31.9 | ||
| Total current liabilities | $480.8 | |||
| Non-current | ||||
| Senior secured lien notes | $463.5 | |||
| Long-term governmental loans | 130.2 | 127.4 | ||
| Accrued pension liability | 216.4 | 238.0 | ||
| Accrued other post-employment benefit obligation | 235.6 | 229.5 | ||
| Other long-term liabilities | 16.0 | 17.0 | ||
| Environmental liabilities | 38.4 | 35.2 | ||
| Deferred income tax liabilities | 101.2 | 98.0 | ||
| Total non-current liabilities | $1,201.3 | |||
| Total liabilities | $1,682.1 | |||
| Shareholders' equity | ||||
| Capital stock | $968.5 | |||
| Accumulated other comprehensive income | 279.7 | 267.1 | ||
| Retained earnings | 173.6 | 288.4 | ||
| Contributed deficit | (8.0 | ) | (17.0 | ) |
| Total shareholders' equity | $1,413.8 | |||
| Total liabilities and shareholders' equity | $3,095.9 | |||
| Algoma Steel Group Inc. Condensed Interim Consolidated Statements of Cash Flows (Unaudited) | |||||||||
| Three months ended September 30, | Six months ended September 30, | ||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||
| expressed in millions of Canadian dollars | |||||||||
| Operating activities | |||||||||
| Net (loss) income | ($106.6 | ) | ($100.5 | ) | |||||
| Items not affecting cash: | |||||||||
| Depreciation of property, plant and equipment and intangible assets | 36.3 | 25.3 | 69.5 | 48.6 | |||||
| Deferred income tax expense (recovery) | 8.7 | (3.9 | ) | 3.4 | (10.9 | ) | |||
| Pension funding (in excess of) below expense | (2.8 | ) | (0.3 | ) | (4.7 | ) | 0.9 | ||
| Post-employment benefit funding in excess of expense | (2.3 | ) | (1.5 | ) | (4.0 | ) | (3.4 | ) | |
| Unrealized foreign exchange loss (gain) on: | |||||||||
| accrued pension liability | 3.0 | (4.3 | ) | 0.6 | (0.2 | ) | |||
| post-employment benefit obligations | 3.1 | (4.9 | ) | 0.8 | - | ||||
| Finance costs | 19.2 | 5.4 | 35.6 | 10.5 | |||||
| Loss on disposal of property, plant and equipment | - | - | 1.1 | - | |||||
| Interest on pension and other post-employment benefit obligations | 5.3 | 4.8 | 10.7 | 9.6 | |||||
| Other income | (32.1 | ) | - | (32.1 | ) | - | |||
| Accretion of governmental loans and environmental liabilities | 6.1 | 3.8 | 10.0 | 7.4 | |||||
| Unrealized foreign exchange loss (gain) on government loan facilities | 2.1 | (3.1 | ) | 0.8 | (0.5 | ) | |||
| Increase (decrease) in fair value of warrant liability | 27.3 | 0.3 | 11.7 | (17.2 | ) | ||||
| Increase (decrease) in fair value of earnout liability | 5.4 | (0.7 | ) | 2.9 | (2.7 | ) | |||
| Increase (decrease) in fair value of share-based compensation liability | 12.5 | (1.3 | ) | 6.7 | (5.3 | ) | |||
| Other | 8.7 | 2.1 | 9.9 | 3.6 | |||||
| ($6.1 | ) | $22.4 | |||||||
| Net change in non-cash operating working capital | 31.9 | 6.6 | 16.1 | 21.5 | |||||
| Environmental liabilities paid | (0.3 | ) | (2.2 | ) | (0.5 | ) | (2.8 | ) | |
| Cash generated by operating activities | $25.5 | $38.0 | |||||||
| Investing activities | |||||||||
| Acquisition of property, plant and equipment | ($89.4 | ) | ( | ) | ($187.7 | ) | ( | ) | |
| Insurance proceeds for property damage | 27.9 | - | 27.9 | - | |||||
| Cash used in investing activities | ($61.5 | ) | ( | ) | ($159.8 | ) | ( | ) | |
| Financing activities | |||||||||
| Bank indebtedness repaid, net | $0.0 | ( | ) | $0.0 | ( | ) | |||
| Transaction costs on bank indebtedness | - | (0.7 | ) | - | (1.7 | ) | |||
| Restricted cash | 3.8 | - | 3.8 | - | |||||
| Senior secured lien notes issued | - | - | 472.6 | - | |||||
| Transaction costs on senior secured lien notes | - | - | (4.1 | ) | - | ||||
| Governmental loans received | 12.9 | 23.8 | 27.4 | 42.3 | |||||
| Repayment of governmental loans | (2.5 | ) | (2.5 | ) | (5.0 | ) | (5.0 | ) | |
| Interest paid | - | (0.1 | ) | (0.1 | ) | (0.2 | ) | ||
| Dividends paid | (14.2 | ) | (13.9 | ) | (14.2 | ) | (13.9 | ) | |
| Other | 0.9 | (0.3 | ) | 0.4 | (0.3 | ) | |||
| Cash generated by financing activities | $0.9 | $480.8 | |||||||
| Effect of exchange rate changes on cash | ($6.3 | ) | ($4.9 | ) | ( | ) | |||
| Cash | |||||||||
| (Decrease) increase in cash | (41.4 | ) | (87.0 | ) | 354.1 | (33.8 | ) | ||
| Opening balance | 493.4 | 300.6 | 97.9 | 247.4 | |||||
| Ending balance | $452.0 | $452.0 | |||||||
| Algoma Steel Group Inc. Reconciliation of Net (Loss) Income to Adjusted EBITDA | |||||||||
| Three months ended September 30, | Six months ended September 30, | ||||||||
| millions of dollars | 2024 | 2023 | 2024 | 2023 | |||||
| Net (loss) income | ($106.6 | ) | ($100.5 | ) | |||||
| Depreciation of property, plant and equipment and amortization of intangible assets | 36.3 | 25.3 | 69.5 | 48.6 | |||||
| Finance costs | 19.2 | 5.4 | 35.6 | 10.5 | |||||
| Interest on pension and other post-employment benefit obligations | 5.3 | 4.8 | 10.7 | 9.6 | |||||
| Income taxes | (17.2 | ) | 11.9 | (21.5 | ) | 51.2 | |||
| Foreign exchange loss (gain) | 9.6 | (11.6 | ) | 2.8 | (0.6 | ) | |||
| Finance income | (7.0 | ) | (3.1 | ) | (12.4 | ) | (6.4 | ) | |
| Inventory write-downs(depreciation on property, plant and equipment in inventory) | (1.7 | ) | 4.3 | 4.7 | 4.7 | ||||
| Carbon tax | 12.5 | 12.2 | 22.0 | 14.7 | |||||
| Increase (decrease) in fair value of warrant liability | 27.3 | 0.3 | 11.7 | (17.2 | ) | ||||
| Increase (decrease) in fair value of earnout liability | 5.4 | (0.7 | ) | 2.9 | (2.7 | ) | |||
| Increase (decrease) in fair value of share-based payment compensation liability | 12.5 | (1.3 | ) | 6.7 | (5.3 | ) | |||
| Share-based compensation | 7.9 | 2.4 | 9.0 | 3.0 | |||||
| Adjusted EBITDA (i) | $3.5 | $41.2 | |||||||
| Net (loss) income Margin | (17.8 | %) | 4.2 | % | (8.0 | %) | 10.4 | % | |
| Net (loss) income / ton | ($204.8 | ) | ($98.2 | ) | |||||
| Adjusted EBITDA Margin (ii) | 0.6 | % | 11.1 | % | 3.3 | % | 17.4 | % | |
| Adjusted EBITDA / ton | $6.7 | $40.3 | |||||||
| (i) See "Non-IFRS Financial Measures" in this Press Release for information regarding the limitations of using Adjusted EBITDA. | |||||||||
| (ii) Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of revenue. | |||||||||
For more information, please contact:
Michael Moraca
Vice President – Corporate Development and Treasurer
Algoma Steel Group Inc.
Phone: 705.945.3300
E-mail: IR@algoma.com
FAQ
What was Algoma Steel's (ASTL) revenue in Q2 2025?
When will Algoma Steel's (ASTL) EAF project begin commissioning?
What was Algoma Steel's (ASTL) net income/loss for Q2 2025?
What is Algoma Steel's (ASTL) new fiscal year end date?
