Canadian company Algoma Steel Group Inc. (Algoma) has released its third-quarter guidance, which immediately outlines how the effects of a power outage at the Lake Superior Power (LSP) plant temporarily limited production of electric arc furnaces (EDP) and how the third-quarter results reflect lower shipment volumes and a less favorable sales structure due tofor this.
Algoma stated that total steel shipments for the quarter are expected to be about 145,000 net tons in the third quarter ended September 30, 2026. Adjusted EBITDA is expected to be between 10 and 20 million Canadian dollars. The adjusted EBITDA forecast includes an adjustment of the expected capacity utilization by approximately 50-55 million Canadian dollars.
CFO Michael Moraca said about the downtime: "Consistent with our previous updates, we have used the downtime period factor to accelerate scheduled maintenance and pre-commissioning work at the second EDP unit, which will help reduce planned downtime in the future," although he fully acknowledged the impact of the unexpected outage on quarterly results.
Chief Executive Officer Rajat Marwa also addressed this issue, saying, "The power supply has been fully restored, planned shutdowns are over, our second furnace is close to commercial operation, and steel prices are rising. Improving, we believe we are in a good position as we enter the final phase of our transformation."
Although Algoma did not disclose the date of its third-quarter earnings call or results, both are expected to occur around October 30, 2026.
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