Algoma Steel Group Announces Fiscal 2022 Second Quarter Results

Algoma Steel Group Inc., a leading Canadian producer of hot and cold rolled steel sheet and plate products, today announced results for its fiscal second quarter ended September 30, 2021. Unless otherwise specified, all amounts are in Canadian dollars.

Michael McQuade, the Company’s Chief Executive Officer, said, “Our financial results for the fiscal second quarter demonstrate continued solid execution by our team, generating record revenue, Adjusted EBITDA, and cash flows due in part to the combination of higher realized steel prices and ongoing cost containment initiatives. These results contributed to our strong liquidity, which has positioned us to make two additional strategic announcements that we believe will increase value to our shareholders and provide competitive strategic growth.”

Mr. McQuade continued, “Calendar 2021 has been an incredible journey, and we expect that the final three months will be a truly transformative period for Algoma. Following our successful return to the public markets in October, we are excited to have announced today, under a separate release, that our board has authorized our investment in electric arc steelmaking. Additionally, the board has approved a plan to retire all of Algoma’s outstanding senior secured long-term debt. This US$358 million debt reduction will leave us with a stronger balance sheet that we believe enhances our position, both operationally and financially, to make critical investments in our business that we expect will drive sales and create additional long-term value for our stakeholders.”

Second Quarter Fiscal 2022 Financial Results

Second quarter revenue totaled $1.01 billion, up 168% from $377.0 million in the prior year quarter. As compared with the prior year quarter, steel revenue was $936.5 million, up 179% from $335.3 million.

Income from operations was $402.1 million, compared to a loss from operations of $24.7 million in the prior year quarter. The year over year increase was primarily due to an increase in the selling price of steel, partially offset by an increase in the purchase price of inputs, including iron ore, scrap and alloys.

Net income in the second quarter was $288.2 million, compared to a net loss of $60.0 in the prior year quarter. The improvement was driven primarily by the factors described above under income from operations.

Adjusted EBITDA in the second quarter was $430.6 million, compared with nil for the prior year quarter. This resulted in an Adjusted EBITDA margin of 42.6%. Average realized price of steel net of freight and non-steel revenue was $1,594 per ton, up 146% from $649 per ton in the prior year quarter. Cost per ton of steel products sold was $857, up 37% from $626 in the prior year quarter. Shipments for the second quarter increased by 14% to 587,340 tons, compared to 516,294 tons in the prior year quarter. See “Non-IFRS Measures” below for an explanation of Adjusted EBITDA and a reconciliation to Adjusted EBITDA”.


The outlook that follows constitutes forward-looking statements (as defined below) and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond our control. Please see “Cautionary Statement Regarding Forward-Looking Statements” below.

In addition to the other assumptions and factors described in this news release, our outlook assumes continued high prices of steel, ongoing inflationary pressures on raw material inputs, labor, and logistics costs, and the absence of material changes in our industry or the global economy. The following statements supersede all prior statements made by us and are based on current expectations.

Based on our current information regarding our operations and end markets, we currently expect the following for the third quarter of fiscal 2022:

  • Shipments: 590 – 610k tons
  • Adjusted EBITDA: At least $450 million

Conference Call and Webcast Details

A webcast and conference call will be held on Friday, November 12, 2021 at 10:00 a.m. Eastern time to review the Company’s second quarter results, discuss recent events, and conduct a question-and-answer session.

The live webcast and archived replay of the conference call can be accessed on the Investors section of the Company’s website at For those unable to access the webcast, the conference call will be accessible domestically or internationally by dialing 877-425-9470 or 201-389-0878, respectively. Upon dialing in, please request to join the Algoma Steel Second Quarter Conference Call. To access the replay of the call, dial 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13724855.

This Media Release