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3w ago

Algoma Steel Suspends Dividend After $110.6M Q2 Loss Under U.S. Tariffs

After reporting a $110.6 million loss the company is negotiating a $500 million federal loan to fund a pivot toward domestic defence demand with low-carbon steel production.

Algoma Steel has suspended its dividend after the company reported a net loss of $110.6-million second-quarter loss on Tuesday.
Algoma Steel says it is seeking $500 million in federal support as the company faces continued uncertainty from U.S. tariffs on Canadian steel. A worker is shown at Algoma Steel in Sault Ste. Marie, Ontario on Friday, April 25, 2025. THE CANADIAN PRESS/Sean Kilpatrick

Overview

  • Algoma Steel recorded a net loss of $110.6 million in the second quarter after revenue fell to $589.7 million and it paid $64.1 million in U.S. tariffs.
  • The company suspended its quarterly dividend to preserve financial flexibility during macroeconomic uncertainty and tariff pressure.
  • Shipments to the United States accounted for 54% of total volume despite a 50% steel tariff imposed on June 4.
  • Algoma is negotiating with the federal government for approximately $500 million in relief through the Large Enterprise Tariff Loan program.
  • As part of its strategic realignment the Sault Ste. Marie plant produced its first steel from an electric arc furnace and signed an MOU with Seaspan to boost domestic defence and construction sales.