Algoma Steel Group Reports Financial Results for the Three and Nine Months Ended December 31, 2024

Core Insights - Algoma Steel Group Inc. reported its financial results for the three and nine month periods ended December 31, 2024, with a focus on its transformative Electric Arc Furnace (EAF) project, expecting first steel production in April 2025 [1][5][15]. Financial Performance - Consolidated revenue for Q4 2024 was $590.3 million, down from$615.4 million in Q4 2023 [6][7]. - The company experienced a consolidated loss from operations of $124.8 million in Q4 2024, compared to a loss of$36.9 million in the prior-year quarter [6][8]. - Net loss for Q4 2024 was $66.5 million, an improvement from a net loss of$84.8 million in Q4 2023, attributed to foreign exchange gains and changes in fair value of liabilities [6][9]. - Adjusted EBITDA for Q4 2024 was a loss of $60.3 million, compared to a loss of$1.0 million in the prior-year quarter, resulting in an Adjusted EBITDA margin of (10.2%) [6][10]. - Shipments increased by 6.3% to 548,802 tons in Q4 2024, compared to 516,068 tons in Q4 2023 [6][10]. Yearly Comparisons - For the full year 2024, revenue totaled $2,461.7 million, down from$2,852.6 million in 2023 [11]. - The company reported a consolidated loss from operations of $217.8 million for 2024, compared to income of$185.9 million in the prior year [12]. - Net loss for the full year 2024 was $139.0 million, compared to net income of$56.8 million in 2023 [13]. - Adjusted EBITDA for the full year 2024 was $22.3 million, significantly lower than$319.0 million in 2023, with an Adjusted EBITDA margin of 0.9% [14]. EAF Project Update - The EAF project is nearing its first arc milestone, with expectations for first steel production in April 2025 [5][15]. - As of December 31, 2024, the cumulative investment in the EAF project was $740.2 million, with contracted commitments totaling approximately$880 million [16]. - The transition to EAF steelmaking is anticipated to reduce annual carbon emissions by approximately 70% and match the facility's raw steel production capacity of about 3.7 million tons [17]. Market and Tariff Environment - The company is navigating ongoing macroeconomic uncertainties and tariff-related challenges impacting the North American steel market [5][18]. - Recent tariff actions by the U.S. government could have a material adverse impact on the company's financial position, although specific financial impacts are currently being assessed [18]. Liquidity Position - At the end of the quarter, the company had cash of $266.9 million and unused availability under its Revolving Credit Facility of$361.8 million [19]. Dividend Declaration - The Board declared a quarterly dividend of US$0.05 per share, payable on April 10, 2025 [20]. Conference Call Information - A conference call to discuss the results and recent events is scheduled for March 13, 2025 [21].