Canada-based Algoma Steel expects to report negative adjusted EBITDA for the third quarter of 2026 after an unplanned power outage temporarily constrained electric arc furnace (EAF) production.
For the quarter ended September 30, Algoma expects total steel shipments of approximately 145,000 net tons, while adjusted EBITDA is forecast at negative C$10 million to negative C$20 million. The guidance includes an expected capacity utilization adjustment benefit of around C$50-55 million.
The outage at the company’s Lake Superior Power facility affected EAF production, resulting in lower shipment volumes and a less favorable sales mix. During the disruption, Algoma accelerated planned maintenance and advanced commissioning work on EAF Unit Two to reduce future scheduled downtime.
Power has now been fully restored following the installation of a replacement turbine at Lake Superior Power. All electrical equipment at EAF Unit Two has also been tested, with first heat expected shortly as Algoma moves toward production and shipments from the second furnace in the fourth quarter.
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