Algoma Steel Group Inc. Q4 FY2025 earnings call

• The 50% U.S. Section 232 tariff permanently altered the landscape, leading Algoma to exit blast furnace and coke oven operations and pivot to Canadian market. - EF ramp-up progressing as expected, with cumulative investment at $920 million and expected final cost ~$987 million. - Binding MOU with Hanwha Ocean for potential $250 million U.S. value, including $200 million for structural steel beam mill and $50 million in product purchases. - Employee safety remains a top priority throughout transition. - Plate mill benefits from healthy demand in infrastructure, construction, defense

In the fourth quarter of 2025, Algoma Steel's steel revenue was $408 million, down 23.9% versus the prior year period. Shipments were 378,000 net tons, down 31% versus the prior year quarter. Plate mill stands out as a competitive advantage with healthy demand. For the full year, steel revenue was $1.9 billion compared to $2.2 billion in the prior year. Shipments were 1.7 million net tons compared to 2 million in 2024. Adjusted EBITDA for the full year was a loss of $261.4 million

• Expect shipments in first quarter 2026 to be sequentially lower than fourth quarter 2025. - Anticipate better pricing and cost performance in first quarter 2026 leading to directionally better adjusted EBITDA compared to fourth quarter 2025. - Full-year shipments expected between 1 and 1.2 million tons with ramp-up as year progresses

• Pending litigation with U.S. Steel in Ontario and arbitration in the USA regarding an iron ore supply agreement. - Uncertainty in steel market demand affecting shipments and pricing. - Commodity price exposure to natural gas and Ontario spot rate pricing for energy costs

Q: Starting on the shipment side, how are full-year shipments and split between plate and sheet?

A: Mike said over the course of the year, expect total shipments between 1 and 1.2 million tons, slightly lower in Q1 then ramping up, mix roughly 50-50 plate and sheet.

Q: Talk about energy costs exposure to spot market?

A: Generate power from natural gas fired plant with commodity price exposure, consume grid power subject to Ontario spot rate, have Northern Electricity Advantage Program, generally have fixed price for winter months and spot for other months.

Q: Update on plate pricing in Canada?

A: Plate pricing holding up better than sheet, sheet at 40% lower, plate ranging 15%-20% lower, government measures helping.

Q: Milestones for beam mill?

A: Working on engineering, cost estimates, timelines, beam market has less supply than demand, Hanwha application in, government deciding partner.

Q: CAPEX for full year and EAF?

A: Capital costs to be incurred in first half of 2026, sustaining CapEx step change lower to close to $80 million a year.

Q: Scrap side update?

A: Scrap availability and supply for EAF going well, JV working fine, ramping up fast