Algoma Steel Group (ASTL) investor relations material

Executive summary

• Completed transition to 100% Electric Arc Furnace (EAF) steel production, permanently decommissioning blast furnace and coke-making operations ahead of schedule.

• Fourth quarter and full-year 2025 results were significantly impacted by U.S. Section 232 tariffs, lower shipments, and accelerated EAF transition costs.

• EAF facility now operating 24/7, with the second unit on schedule and product quality meeting specifications for both plate and coil.

• Announced a binding MOU with Hanwha Ocean Co Ltd for a potential $250 million partnership, including a $200 million beam mill investment and submarine project supply.

• Workforce reduction of approximately 1,000 employees due to accelerated transition away from blast furnace operations.

Financial highlights

• Q4 2025 Adjusted EBITDA loss of $95.2 million (margin -20.9%), net loss of $364.7 million (margin -80.2%), and cash used in operations of $3 million.

• Q4 steel revenue of $408 million, down 24% year-over-year, with shipments down 31% to 378,000–379,000 net tons.

• Full year 2025 Adjusted EBITDA loss of $261.4 million (margin -12.5%), net loss of $984.9 million, steel revenue of $1,878 million, and shipments of 1.74 million net tons.

• Inventories reduced to $569 million at year-end, down $310 million year-over-year.

• Year-end cash balance was $77.5 million, with $195 million available under revolving credit and $417 million under the LETL/tariff loan facility.

Outlook and guidance

• EAF ramp-up expected to reduce annual carbon emissions by 70% and align production with downstream finishing capacity of 3.7 million tons.

• Q1 2026 shipments expected to be sequentially lower, but pricing and cost performance anticipated to improve, leading to better Adjusted EBITDA.

• Full year 2026 shipments projected between 1 and 1.2 million tons, with a 50/50 split between plate and sheet.

• Plate production expected to increase as EAF ramps up through 2026.

• Further inventory release and cash tax recovery expected in 2026 as work-in-process inventories normalize.