Algoma Steel Inc. (ASTL) shares plummeted 7.69% in after-hours trading on Tuesday following the release of its disappointing second-quarter 2025 financial results. The company reported a substantial net loss and missed analyst estimates, sparking investor concern.

The steelmaker announced a net loss of $110.6 million for Q2 2025, a stark contrast to the $6.1 million net income reported in the same period last year. Quarterly revenue fell to $589.7 million, down from $650.5 million in the prior-year quarter. The company's performance fell short of analyst expectations, with reported losses of $(0.74) per share missing the consensus estimate of $(0.65) by 13.38%. Sales of $426.021 million also missed the analyst forecast of $608 million by a significant 29.93%.

Several factors contributed to Algoma Steel's weak performance. The company cited reduced steel shipment volumes, lower realized pricing, and tariff-related costs as primary reasons for the downturn. Steel shipments decreased to 472,056 tons from 503,152 tons year-over-year, while the average realized price of steel dropped to $1,132 per ton from $1,187. Additionally, the impact of Section 232 Tariffs, which amounted to $64.1 million for the quarter, contributed to an oversupply in the Canadian market and put downward pressure on prices. Despite these challenges, Algoma Steel highlighted a positive operational milestone with the first arc and steel production from its new Electric Arc Furnace (EAF) project, signaling potential for future improvements.