Algoma Steel Group Inc

Algoma Steel reported Q1 2026 EPS of $-1.46, missing the consensus of $-0.95, while revenue of $296.9 million topped expectations of $286.25 million. The transition to electric arc furnaces led to a 52.4% decline in shipment volumes, while average net selling prices rose 21%. Management cited operational changes, high U.S. tariffs (Section 232) and reduced shipments as the main headwinds; the stock fell about 7% premarket. Algoma expects continued negative results through 2027 but anticipates a gradual recovery once EAF operations are stabilized. » More on de.investing.com

Algoma Steel announced a joint venture with Roshel to form Roshel Algoma Defence Solutions Inc., which will manufacture armored steel in Canada and cover the entire production cycle. The partnership targets supplies for Canadian defence projects such as light utility vehicles, arctic mobility, ships and general defence needs, as well as export opportunities to allied countries. The JV is expected to secure and create over 500 jobs, strengthen domestic supply chains and aligns with Canada’s "Buy Canadian" strategy; the stock subsequently rose by about 4.9%. » More on de.investing.com

The Canadian government announced a support program for the domestic steel industry, including reduced freight rates for in-country steel transport to boost demand and competitiveness out of Ontario. Shares of Algoma Steel, Russel Metals and Stelco rose. RBC Capital Markets sees short-term upside for Algoma in particular from a “buy Canada” stance on government projects, but warns that an oversupply in the market could limit price and margin gains. » More on de.investing.com