Overview

* Algoma Steel ( ASTL ) Q2 revenue falls to C$589.7 mln from C$650.5 mln year ago

* Net loss of C$110.6 mln, compared to net income of C$6.1 mln year ago

* Adjusted EBITDA loss of C$32.4 mln, down from C$37.7 mln profit

* Algoma suspends quarterly dividend amid market uncertainty

Outlook

* Company expects EAF project to reduce annual carbon emissions by 70%

* Company anticipates EAF project to provide structural cost advantage

Result Drivers

* TARIFF IMPACT - Algoma's financial performance affected by Section 232 tariffs, leading to lower steel prices and higher costs

* MARKET CONDITIONS - Weak steel market demand and pricing pressures contributed to lower revenue and net loss

* EAF TRANSITION - First steel production from Electric Arc Furnace marks strategic shift to lower-cost green steel production

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$589.70

Revenue mln

Q2 Net -C$110.6

Income 0 mln

Q2 -C$32.40

Adjusted mln

EBITDA

Q2 -C$85.10

Operatin mln

g Income

Q2 -C$147.5

Pretax 0 mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* Wall Street's median 12-month price target for Algoma Steel Group Inc ( ASTL ) is C$11.50, about 30.1% above its July 29 closing price of C$8.04

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)