In This Article:
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Adjusted EBITDA: Loss of $46.7 million, reflecting an adjusted EBITDA margin of 9%.
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Cash Generated by Operating Activities: $92.1 million.
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Cash and Liquidity: $226 million in cash and total liquidity of $587 million.
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Shipments: 470,000 tons, up 4.2% versus the prior year quarter.
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Net Sales Realization: $986 per ton, down from $1260 per ton in the prior year period.
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Steel Revenue: $463 million, down 18.5% versus the prior year period.
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Cost per Ton of Steel Products Sold: $1,137, up 4% versus the prior year period.
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Tariff Costs: $10.5 million included in the cost of sales due to a 25% tariff on outbound steel shipments to the US.
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Net Loss: $24.5 million compared to net income of $28 million in the prior year quarter.
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Insurance Proceeds: $150 million receivable recorded as other income.
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Inventory Levels: Declined by $138 million compared to the prior quarter and by $185 million since December 31, 2024.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Algoma Steel Group Inc (NASDAQ:ASTL) maintained a strong balance sheet with over $226 million in cash and total liquidity of $587 million at the end of the quarter.
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The company is advancing its Electric Arc Furnace (EAF) project, with first steel production expected in the second quarter of 2025, and no material change to project costs or production expectations.
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Plate shipments increased to approximately 91,000 tons, up from previous quarters, with expectations for further increases in the next quarter.
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Algoma Steel Group Inc (NASDAQ:ASTL) is participating in the Canadian defense supply chain, which is expected to support future demand for its plate products.
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The company successfully reduced inventory levels by $138 million compared to the prior quarter, enhancing working capital efficiency.
Negative Points
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The company faced challenging market conditions with lower realized pricing and higher production costs due to tariff uncertainty and Canadian trade policy.
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Adjusted EBITDA was a loss of $46.7 million, reflecting a challenging market environment and higher input costs.
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Algoma Steel Group Inc (NASDAQ:ASTL) is subject to a 25% tariff on all outbound steel shipments to the United States, impacting cost of sales.
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Net sales realization decreased to $986 per ton compared to $1260 per ton in the prior year period, reflecting weakening market conditions.
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The harsh winter conditions led to higher utility costs, impacting the company's cost structure.