By Elias Schisgall
Algoma Steel widened its loss in the fourth quarter and posted lower revenue as the company contends with U.S. steel tariffs that continue to weigh on results.
The Canadian steelmaker on Wednesday said it paid C$60.6 million (about $44.6 million) in direct tariff costs during the period ended Dec. 31. It said Canadian transactional pricing was up to 40% lower than comparable U.S. levels during the quarter, hitting revenue by about C$27 million during the quarter.
Algoma reported a loss of C$364.7 million, or C$3.36 a share, compared with a loss of C$66.5 million, or C$0.61 a share, a year earlier. The loss was driven by the tariff costs and lower shipments of steel, as well as the company's accelerated transition toward making its steel using electric arc furnaces, Algoma said.
Revenue fell to C$455 million from C$590.3 million a year prior, and behind the C$472.9 million expected by analysts surveyed by FactSet.
The company shipped 378,533 tons of steel during the quarter, down from 548,802 tons a year earlier. Algoma said in January that it expected a sharp drop in steel shipments as it grapples with the impacts of the Trump administration's steel and aluminum tariffs.
The tariff policies have weighed on Algoma's earnings for the past several quarters. The company said in December that it would eliminate a third of its workforce, or about 1,000 jobs, as it shuttered production from its blast furnace and coke ovens and transitioned to electric-arc steelmaking.
Chief Executive Rajat Marwah said the company is encouraged by the early performance of its first electric arc furnace, which he said is operating continuously and meeting product quality specifications.
"While the 50% U.S. Section 232 tariffs (S232 Tariffs) created real headwinds, closing the American market to Canadian producers and driving domestic pricing well below historical norms, we responded with decisive action and emerged with a clearer, stronger strategic path forward," Marwah said.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
March 11, 2026 18:01 ET (22:01 GMT)
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