Revenue contracted by 42.6% in 2026Q4, while gross margins deteriorated to a deeply negative 42.6%, reflecting an inability to scale fixed costs against current market pricing.
| Sales/Revenue | 2.09B | 2.45B | 2.8B | 2.78B | 3.81B | 1.79B | 1.96B | 1.79B | 1.87B |
| Revenue Growth % | 22.27% | -12.2% | 0.62% | -27% | 112.05% | -8.28% | 9.18% | -3.92% | - |
| Cost of Goods Sold | 2.75B | 2.57B | 2.49B | 2.39B | 2.29B | 1.64B | 2.04B | 1.95B | 1.88B |
| COGS % of Revenue | 131.87% | 104.69% | 89.02% | 85.97% | 60.22% | 91.24% | 104.09% | 108.96% | 101% |
| Gross Profit | -664.8M | -115.07M | 306.9M | 389.8M | 1.51B | 157.2M | -80.1M | -160.6M | -18.6M |
| Gross Margin % | -31.87% | -4.69% | 10.98% | 14.03% | 39.78% | 8.76% | -4.09% | -8.96% | -1% |
| Gross Profit Growth % | -489.09% | -137.49% | -21.27% | -74.25% | 863.1% | 296.25% | 50.12% | -763.44% | - |
| Operating Expenses | 112.2M | 179.47M | 139.6M | 99.3M | 103M | 72.4M | 56.9M | 53.3M | 95.6M |
| OpEx % of Revenue | 5.38% | 7.31% | 4.99% | 3.57% | 2.71% | 4.03% | 2.91% | 2.97% | 5.12% |
| Selling, General & Admin | 111M | 166.67M | 114.7M | 99.3M | 102.6M | 72M | 56.4M | 111.8M | 101.4M |
| SG&A % of Revenue | 5.32% | 6.79% | 4.1% | 3.57% | 2.7% | 4.01% | 2.88% | 6.24% | 5.44% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.2M | 12.8M | 24.9M | 0 | 400K | 400K | 500K | 0 | 0 |
| Operating Income | -777M | -294.53M | 167.3M | 290.5M | 1.41B | 84.8M | -137M | -272.4M | -120M |
| Operating Margin % | -37.25% | -12% | 5.98% | 10.46% | 37.07% | 4.72% | -7% | -15.2% | -6.43% |
| Operating Income Growth % | -272.72% | -276.05% | -42.41% | -79.41% | 1563.92% | 161.9% | 49.71% | -127% | - |
| EBITDA | -421.1M | -157.47M | 282.3M | 389.4M | 1.5B | 172M | -8.9M | -163.8M | 17.2M |
| EBITDA Margin % | -20.19% | -6.41% | 10.1% | 14.01% | 39.36% | 9.58% | -0.45% | -9.14% | 0.92% |
| EBITDA Growth % | -286.8% | -155.78% | -27.5% | -74.01% | 770.99% | 2032.58% | 94.57% | -1052.33% | - |
| D&A (Non-Cash Add-back) | 355.9M | 137.07M | 115M | 98.9M | 87.1M | 87.2M | 128.1M | 108.6M | 137.2M |
| EBIT | -1.22B | -323.07M | 186.9M | 408.7M | 1.22B | 8.2M | -101.3M | -272.4M | -120M |
| Net Interest Income | -78.6M | -47.47M | -34.9M | -739.4K | -38.44M | -53.63M | -43M | 0 | 0 |
| Interest Income | 6.6M | 0 | 7.1M | 9.83M | 399.6K | 875.2K | 1.83M | 138.3M | 106.9M |
| Interest Expense | 85.2M | 47.47M | 42M | 10.57M | 38.84M | 54.5M | 44.82M | 0 | 0 |
| Other Income/Expense | -523.7M | 10.27M | -22.4M | 85.6M | -254.4M | -160.9M | -43.2M | -79.8M | -101.1M |
| Pretax Income | -1.3B | -284.27M | 144.9M | 376.1M | 1.16B | -76.1M | -180.2M | -352.2M | -221.1M |
| Pretax Margin % | -62.36% | -11.58% | 5.18% | 13.54% | 30.39% | -4.24% | -9.21% | -19.65% | -11.85% |
| Income Tax | -315.8M | -61.6M | 39.7M | 77.6M | 298.9M | 0 | -4.3M | -38.4M | -17.8M |
| Effective Tax Rate % | 24.28% | 21.67% | 27.4% | 20.63% | 25.84% | 0% | 2.39% | 10.9% | 8.05% |
| Net Income | -984.9M | -222.67M | 105.2M | 298.5M | 857.7M | -160.4M | -175.9M | -313.8M | -203.3M |
| Net Margin % | -47.22% | -9.07% | 3.76% | 10.74% | 22.54% | -8.94% | -8.99% | -17.51% | -10.9% |
| Net Income Growth % | -536.53% | -311.66% | -64.76% | -65.2% | 634.73% | 8.81% | 43.95% | -54.35% | - |
| Net Income (Continuing) | -984.9M | -222.67M | 105.2M | 298.5M | 857.7M | -76.1M | -175.9M | -313.8M | -203.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -9.06 | -2.05 | 0.70 | 1.71 | 5.80 | -1.08 | -1.19 | -0.63 | -0.41 |
| EPS Growth % | -341.95% | -392.86% | -59.06% | -70.52% | 637.04% | 9.24% | -88.89% | -53.66% | - |
| EPS (Basic) | -9.06 | -2.05 | 0.97 | 2.43 | 5.80 | -1.08 | -1.19 | -0.63 | -0.41 |
| Diluted Shares Outstanding | 108.71M | 108.5M | 133M | 147M | 147.96M | 147.96M | 147.96M | 500.01M | 500.01M |
| Basic Shares Outstanding | 108.71M | 108.44M | 108.4M | 122.7M | 147.96M | 147.96M | 147.96M | 500.01M | 500.01M |
| Dividend Payout Ratio | - | - | 26.52% | 10.28% | 1.08% | - | - | - | - |
EAF transition execution failure
As reported in recent financial filings, Algoma Steel experienced a sharp revenue decline to $296.9 million in 2026Q4, representing a 42.6% contraction, which underscores the significant volatility in demand and pricing realization currently impacting the company's top-line performance across its core North American industrial markets.
The consistent downward trend in quarterly revenue suggests that the company is struggling to maintain volume in a cooling macroeconomic environment. Investors should monitor whether this deceleration is a result of intentional production curtailments to manage inventory or a broader loss of market share to more efficient EAF-based competitors.
Based on the company's reported figures, gross margins have plummeted to a deeply negative 42.6% in 2026Q4, a stark deterioration from the positive 5.1% margin observed in 2024Q4, indicating that the current cost of production significantly exceeds the market value of finished steel products.
This margin profile appears to reflect a severe mismatch between legacy blast furnace input costs and falling spot prices for steel. The persistence of negative margins warrants further investigation into whether these figures are being distorted by non-cash inventory write-downs or if the underlying operational efficiency has fundamentally collapsed.
According to the income statement data, operating losses have widened significantly to $153.5 million in 2026Q4, demonstrating that the company's high fixed-cost structure is failing to scale, as operating margins have deteriorated to -51.7% during the most recent quarter of reported operations.
The inability to contain SG&A expenses relative to the collapsing gross profit suggests that the company is currently unable to achieve the necessary operating leverage to reach break-even. This trend implies that the business remains highly sensitive to volume fluctuations, leaving it vulnerable to further downside in the steel cycle.
As evidenced by the income statement, COGS of $423.5 million in 2026Q4 significantly outpaced revenue, highlighting a rigid cost structure that appears unable to adjust to the current pricing environment, thereby placing immense pressure on the company's remaining liquidity and overall financial stability.
The lack of expense discipline in the face of declining revenue suggests that the company's integrated steelmaking process is currently a liability rather than an asset. Analysts should scrutinize whether the transition to EAF technology will provide the necessary variable cost flexibility to mitigate these recurring losses in future periods.
Based on the provided financial data, the company's net loss of $159.4 million in 2026Q4 raises significant concerns regarding the sustainability of its current business model, as the persistent cash burn may necessitate further capital raises or debt accumulation to fund the ongoing EAF transition project.
Short-sellers would likely focus on the widening gap between revenue and costs, arguing that the company's competitive moat is insufficient to offset the structural disadvantages of its legacy assets. The market may be underestimating the risk that the EAF project could become a stranded investment if operational losses continue to erode the balance sheet.
Quick answers to the most common questions about buying ASTL stock.
For fiscal year 2026, Algoma Steel Group Inc. (ASTL) reported total revenue of $2.09B. This represents a 11.8% increase compared to $1.87B in 2013.
Algoma Steel Group Inc. (ASTL) reported a net loss of $984.9M for the fiscal year ending 2026.
Algoma Steel Group Inc. (ASTL) reported an operating income of $-777.0M, resulting in an operating profit margin of -37.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Algoma Steel Group Inc. (ASTL) generated $-664.8M in gross profit for the year, representing a gross profit margin of -31.9%. This demonstrates the company's core pricing power and production efficiency.