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- **Strategic Pivot**: U.S. 50% tariffs forced shift to domestic plate production, supported by $500M government loans.
- **Financial Resilience**: Q3 EBITDA loss of $87.1M, with $90M tariffs and 40% price decline. Liquidity at $337M post-support.
- **EAF Transition**: $910M invested in EAF (total $987M), targeting 2026 breakeven with 1.0-1.2M ton production.
- **Cash Flow Management**: $100-150M working capital release and tax refunds in 2026. Scrap+ cost targets ($220-250/ton) depend on Canadian demand growth.

**【Management Opening Remarks】**
- Michael Moraca provided standard disclaimers and noted the use of Canadian dollars in financial discussions. The company's earnings presentation was available online.

**【CEO Summary Section】**
- **Strategic Shifts**: U.S. 50% tariffs closed the market, forcing a pivot to domestic production. Government support ($500M) and EAF acceleration aim to reduce cash burn.
- **Safety & EAF Progress**: Maintained strong safety performance; EAF Unit 1 ramp-up on track, with $910M invested (total $987M expected).
- **Market Reorientation**: Focus on high-value Canadian plate products for infrastructure, defense, and renewable energy sectors.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: Adjusted EBITDA loss of $87.1M, driven by $90M tariffs and 40% price decline. Liquidity at $337M post-$500M government support.
- **Cost Dynamics**: Cost per ton up 24.2% YoY, with tariffs adding $214/ton. Plate production (97,000 tons) offset weaker coil markets.
- **Liquidity Management**: Expanded ABL to $375M and $500M government loans, with working capital release ($100-150M) and tax refunds.

**【Q&A Key Highlights】**
- **Tariff Impact & Breakeven**: Accelerated EAF transition to 2026; EBITDA breakeven expected post-2026 with 1.0-1.2M ton production. Scrap+ costs target $220-250/ton.
- **Plate Market Growth**: Canadian plate demand could expand to 1.0-1.2M tons with nation-building projects. Working capital release and tax refunds (~$150M+ in 2026).
- **Government Support Utilization**: Priority on non-dilutive ABL draws; warrants attached to $400M federal loan. Scrap+ cost targets and market support for 2.5M ton capacity require Canadian demand growth or U.S. tariff resolution.


Algoma Steel Group Inc. (ASTL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ASTL

ASTL fundamentals

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