By Robb M. Stewart

Algoma Steel's shares retreated Friday after the Canadian steelmaker forecast sharply lower steel shipments and a widened loss in the final quarter of last year as the Trump administration's tariffs continued to bite.

In late morning trading, the shares were 2% lower at C$5.79 in Toronto. On Nasdaq, the stock declined 0.9% to $4.22.

The producer of hot and cold rolled steel sheet and plate products said it expects overall steel shipments to range between 375,000 and 380,000 tons in the final three months of 2025, and its adjusted loss before interest, taxes, depreciation and amortization is projected to be 95 million Canadian dollars (US$68.5 million) to C$105 million.

That would compare with year-earlier shipments of 548,802 tons and a loss on a similar basis of C$60.3 million.

Chief Executive Rajat Marwah said the results are in line with expectations given the ongoing impact of steel tariffs and efforts under way to wind down blast furnace operations. Marwah, who became chief financial officer last November, stepped into the CEO role at the start of this year following the retirement of Michael Garcia.

The Sault Ste. Marie, Ontario, company has moved to cut about 1,000 jobs, roughly one third of its workforce as its shutters operations that became financially unsustainable under the tariffs the U.S. has imposed on imports of steel. Algoma is transitioning to electric arc furnace steelmaking and a modernized plate mill.

In September, the Canadian and Ontario governments agreed to lend Algoma about C$500 million to help withstand the financial hit from tariffs and provide stability while the company reorients its strategy.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

January 09, 2026 11:33 ET (16:33 GMT)

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