{"url":"https://newsforagent.com/news/2026-10-28/algoma-steel-q3-loss-eaf-unit-two","markdown_url":"https://newsforagent.com/news/2026-10-28/algoma-steel-q3-loss-eaf-unit-two.md","title":"Algoma Steel Posts $129.6 Million Loss","headline":"Algoma Steel Reports $129.6 Million Net Loss for Q3 2026 as Second Electric Furnace Produces First Steel","description":"Algoma Steel posted a $129.6 million net loss on $249.4 million revenue in Q3 2026, while its second electric arc furnace produced first steel on October 9.","section":"Earnings & Results","published_at":"2026-10-28T21:50:11+00:00","modified_at":"2026-10-28T21:50:11+00:00","author":"News Desk","key_takeaways":["Algoma Steel reported a Q3 2026 net loss of $129.6 million on revenue of $249.4 million, compared with a net loss of $485.1 million a year earlier.","Adjusted EBITDA loss was $13.9 million, in line with previously announced expectations, and shipments fell 65.5% to 144,527 tons.","EAF Unit Two produced its first heat of liquid steel on October 9, 2026, and is expected to contribute to production and shipments in the fourth quarter."],"companies":[{"name":"Algoma Steel","is_primary":true,"profile_url":"https://akta.pro/company-profiles/00000gd/algoma-steel","website":"https://www.algoma.com"},{"name":"Roshel","is_primary":false,"profile_url":"https://akta.pro/company-profiles/0006q52/roshel","website":"https://roshel.ca"},{"name":"General Electric","is_primary":false,"profile_url":"https://akta.pro/company-profiles/00007uw/general-electric","website":"http://www.ge.com"}],"source":{"publisher":"GlobeNewswire","title":"Algoma Steel Group Inc. Reports Financial Results for the Three Months Ended September 30, 2026","url":"https://www.globenewswire.com/news-release/2026/10/28/3390834/0/en/algoma-steel-group-inc-reports-financial-results-for-the-three-months-ended-september-30-2026.html"},"other_sources":[],"tags":["Earnings & Results","Algoma Steel","Roshel","General Electric"],"body_markdown":"[Algoma Steel](https://akta.pro/company-profiles/00000gd/algoma-steel) Group reported a net loss of $129.6 million on revenue of $249.4 million for the three months ended September 30, 2026, compared with a net loss of $485.1 million on revenue of $523.9 million a year earlier. The company announced the results in a [GlobeNewswire](https://www.globenewswire.com/news-release/2026/10/28/3390834/0/en/algoma-steel-group-inc-reports-financial-results-for-the-three-months-ended-september-30-2026.html) release on October 28, 2026.\n\n## Algoma's Second Furnace and the Quarter's Loss\n\nAlgoma Steel is a Canadian producer of steel plate and hot-rolled sheet based in Sault Ste. Marie, Ontario, and is publicly traded on Nasdaq and the Toronto Stock Exchange. The company halted its legacy blast furnace operations permanently on January 18, 2026, and in the third quarter all liquid steel came from its first electric arc furnace, which is still ramping up.\n\nAdjusted EBITDA loss was $13.9 million, or a margin of negative 5.6%, in line with previously announced expectations. Shipments fell 65.5% to 144,527 tons from 419,173 tons, which the company attributed to the transition to electric arc furnace steelmaking, U.S. Section 232 tariffs and an outage at its Lake Superior Power facility. Direct tariff costs were $18.1 million, and shipments to the United States made up 24% of total steel shipments, down from 50% a year earlier.\n\nEAF Unit Two produced its first heat of liquid steel on October 9, 2026, which was processed into finished hot-rolled coil. \"Earlier this month, we produced first steel at EAF Unit Two, a major milestone for Algoma and the result of years of disciplined execution by our employees and contractors,\" Chief Executive Officer Rajat Marwah said. Unit Two is expected to contribute to production and shipments in the fourth quarter of 2026.\n\n## Algoma's Defence Venture With Roshel\n\nAccording to akta.pro [company records](https://akta.pro/company-data), Algoma and [Roshel](https://akta.pro/company-profiles/0006q52/roshel) formed the Roshel Algoma Defence joint venture in April 2026 to establish a Canadian Centre of Excellence for Ballistic Steel Production. The same records show Algoma's electric arc furnace transition drew $500 million in government-backed financing, $400 million from the Government of Canada and $100 million from the Province of Ontario, against a total investment of nearly $1 billion.\n\nRoshel, a Canadian armored vehicle maker, signed a memorandum with Stellantis to buy an idle Brampton, Ontario plant and is pursuing a Canadian military contract worth up to C$4.9 billion, Investing.com reported.\n\n## Algoma's Path to the Second Furnace\n\nOn October 6, 2026, Shanghai Metals Market reported that Algoma said its August power outage issues were resolved as it prepared to start a second electric arc furnace in the fourth quarter, with third-quarter shipments projected at about 131,500 tonnes. On October 15, 2026, GlobeNewswire reported that Algoma would release its third-quarter results after market close on October 28, with a webcast and conference call on October 29.\n\n## Algoma's Turbine and Call Schedule\n\nAlgoma commissioned a newly acquired replacement turbine at Lake Superior Power on September 30, 2026, restoring full generating capability, and expects installation of a leased turbine under its GE contract service agreement to be completed in the fourth quarter of 2026. The company scheduled a conference call on its results for October 29, 2026 at 11:00 a.m. EDT.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}