ALGOMA STEEL GROUP INC TO RECEIVE UP TO USD $250 MILLION FROM HANWHA OCEAN

Financial Performance: Algoma Steel reported a consolidated revenue of $523.9 million for Q3 2025, down from $600.3 million in the same quarter last year, with a significant net loss of $485.1 million, largely due to a non-cash impairment loss of $503.4 million.

EAF Transition and Government Support: The company is advancing its electric arc furnace (EAF) transformation, supported by $500 million in liquidity from the Canadian government, aimed at enhancing financial flexibility and reducing carbon emissions by approximately 70% once fully operational.

Impact of Tariffs: Algoma faced challenges from U.S. trade tariffs, resulting in a $32 million revenue loss and $89.7 million in direct tariff costs, which have restricted access to the U.S. market and led to lower domestic pricing.

Strategic Adjustments: In response to market conditions, Algoma is decommissioning its blast furnace operations and focusing on low-carbon steel production, while also suspending its quarterly dividend to preserve liquidity amid evolving market challenges.

Upcoming Financial Results: Algoma Steel Group Inc. will release its third quarter financial results for 2025 on October 29, followed by a conference call on October 30 to discuss the results and recent events.

Company Overview and Transformation: Algoma, based in Ontario, is a leading producer of steel products and is modernizing its operations by adopting electric arc technology to reduce carbon emissions and enhance sustainability in steel production.

Algoma Steel's Financial Status: Algoma Steel Group Inc. (NASDAQ: ASTL) is considered an oversold value stock with a low price-to-earnings ratio and a relative strength index below 40.

Moody's Downgrade: Moody’s downgraded Algoma's corporate family rating to Caa1 due to weak operating results, cash burn, and risks from U.S. steel tariffs, maintaining a negative outlook.

Liquidity Concerns: The company faces expected negative EBITDA through fiscal 2026, indicating potential liquidity issues despite a $360.57 million loan application for support.

Investment Comparison: While Algoma Steel shows investment potential, analysts suggest that certain AI stocks may offer better upside with less risk compared to Algoma.

Financial Performance: Algoma Steel Group Inc. reported a consolidated revenue of $589.7 million for Q2 2025, down from $650.5 million in the previous year, with a net loss of $110.6 million compared to a net income of $6.1 million in Q2 2024, largely due to lower steel prices and tariffs impacting operations.

Operational Milestone: The company achieved its first steel production from its new Electric Arc Furnace project, marking a significant step in its transition to becoming a low-cost green steel producer, despite ongoing challenges from market volatility and tariff-related costs.

Algoma Steel's Trade Concerns: Algoma Steel Group Inc. is facing challenges due to the 50% Section 232 tariff on Canadian steel, which impacts its operations and outlook. The company is exploring various alternatives for liquidity support while engaging with the Canadian government for potential funding programs.

Investment in Sustainability: Algoma is nearing completion of a C$900 million investment in electric arc furnace technology aimed at reducing carbon emissions and enhancing competitiveness. The company emphasizes the importance of a strong Canadian steel industry for economic strength and national security.