Here are 1-3 brief analogies for Algoma Steel:

• The Canadian equivalent of US Steel (X), providing foundational steel products for heavy industries.
• Think of it as North America's Nucor (NUE), supplying steel for everything from automotive to construction.

• Flat/Sheet Steel Products: These include temper rolling, cold rolled, hot-rolled, floor plate, and cut-to-length products primarily serving the automotive industry.
• Plate Steel Products: Consisting of rolled, hot-rolled, and heat-treated steel, these products are used in heavy construction and manufacturing applications such as railcars, buildings, bridges, and military equipment.

Algoma Steel (ASTL) primarily sells its steel products to other businesses (B2B) rather than directly to individuals. While Algoma Steel, like most steel producers, does not publicly disclose the specific names of its individual major direct customers due to proprietary reasons, based on the industries it serves and the types of products it manufactures as described in its company profile, its customer base primarily consists of companies in the following sectors. Major customers would typically fall into these categories, with examples of prominent public companies within those categories that would be potential buyers of Algoma Steel's products:

• Steel Service Centers: These are distributors that purchase large volumes of steel from mills, process it (e.g., cutting, slitting), and then resell it to a wide range of smaller manufacturers. They often serve as major direct customers for steel producers. Examples of public steel service centers include:
  • Reliance Steel & Aluminum Co. (RS)
  • Ryerson Holding Corporation (RYI)
  • Russel Metals Inc. (RUS.TO) (primarily Canadian operations)
• Automotive Manufacturers and Tier 1 Suppliers: Companies that produce vehicles and major components for the automotive industry in North America. These companies purchase flat/sheet steel for various applications, including vehicle bodies and frames. Examples of major North American automotive players include:
  • General Motors Company (GM)
  • Ford Motor Company (F)
  • Stellantis N.V. (STLA) (with significant North American manufacturing)
• Heavy Equipment and Machinery Manufacturers: Companies that produce off-highway equipment for construction, mining, and agriculture. They utilize plate steel for structural components. Examples include:
  • Caterpillar Inc. (CAT)
  • Deere & Company (DE)
• Railcar Manufacturers: Companies specializing in the construction or manufacture of railcars. Examples include:
  • The Greenbrier Companies (GBX)
  • Trinity Industries, Inc. (TRN)
• Construction and Fabrication Companies: Firms involved in large-scale construction projects (e.g., buildings, bridges, infrastructure) and steel fabrication, which require plate steel and structural steel products. Many companies in this sector are privately held or regional, but they represent a significant end-market for Algoma Steel.

Rajat Marwah, Chief Executive Officer

Rajat Marwah was appointed Chief Executive Officer of Algoma Steel effective January 1, 2026. He joined Algoma Steel in 2008, initially serving as General Manager of Finance and Cost before progressing to Vice President of Finance in 2012 and Chief Financial Officer in 2014. As CFO, he was responsible for finance, procurement, business planning, and information technology, and also acted as Chief Risk Officer. Mr. Marwah is a Chartered Accountant who began his career with KPMG and later held international roles at ArcelorMittal, including Head of Internal Audit in Romania and Financial Controller in the Czech Republic. He has been pivotal in strengthening Algoma's financial performance and advancing its strategic transition to Electric Arc Furnace (EAF) steelmaking.

Michael Moraca, Chief Financial Officer

Michael Moraca was appointed Chief Financial Officer of Algoma Steel effective January 1, 2026. He brings over two decades of experience in corporate finance, strategic planning, capital markets, and restructuring. Prior to his current role, he served as Vice President, Corporate Development and Treasurer at Algoma Steel, where he led the company’s Integrated Business Planning framework. Mr. Moraca played a key role in taking Algoma public in 2021 and establishing its public-company capital structure and governance framework. He is a Chartered Professional Accountant (CPA).

John Naccarato, Vice President Strategy and Chief Legal Officer

John Naccarato serves as Algoma's Vice President Strategy and Chief Legal Officer, responsible for developing and executing the company's strategic direction. With over 30 years of experience in the steel and engineering sectors, his background includes market/product development, facilities development, and mergers and acquisitions. Mr. Naccarato has held commercial and legal positions at Dofasco Inc. and was an EVP & General Counsel for Bracknell Corporation. He also served as President CEO of Neal Electric Corp., where he led organizational and commercial strategic changes, and was President & General Counsel of Evolutiondeck Inc., a construction industry startup.

Danielle Baker, Chief Human Resources Officer

Danielle Baker joined Algoma Steel in March 2023 as Chief Human Resources Officer. She possesses over 25 years of extensive experience in labour and employee relations, people and culture strategy, organizational change, and health and safety. Before joining Algoma Steel, Ms. Baker served as the Chief Human Resources Officer at Ontario Northland Transportation Commission. Her previous experience also includes leadership roles in human resources, risk management, and occupational health, safety, security, and emergency response at North Bay Regional Health Centre. She is a Certified Human Resources Leader (CHRL) and holds a Master's degree in Industrial Relations from Queen's University.

Chris Ford, Chief Commercial Officer

Chris Ford brings over 25 years of experience in the steel industry to his role as Chief Commercial Officer at Algoma Steel. He began his career in sales at Maksteel in 1995 and joined Algoma Steel in 1997. He has held various sales leadership positions within Algoma, including Director USA Sales and Customer Service, before being promoted to Vice President – Commercial (or Chief Commercial Officer) effective December 1, 2023. Mr. Ford also served as a Regional Manager for Concord Steel Ltd. from 2004 to 2009.

Key Risks to Algoma Steel (ASTL)

1. U.S. Tariffs and Canadian Market Oversupply: Algoma Steel faces significant challenges due to the 50% U.S. Section 232 tariff on Canadian steel imports, which has largely closed off its primary export market in the United States. This has led to an oversupply of steel coil within Canada, subsequently driving down domestic prices. The tariff environment is described as a "defining challenge" that has necessitated a fundamental shift in the company's business model.
2. Financial Challenges and Liquidity Risk: The company has reported substantial losses, including a net loss of $364.7 million in its fourth quarter, and negative operating and net margins. Algoma Steel's financial health is further highlighted by a low Piotroski F-Score and an Altman Z-Score indicating a high risk of bankruptcy. The ongoing need to issue new debt also contributes to its financial risk profile.
3. Environmental and Regulatory Non-Compliance: Algoma Steel has a history of exceeding Canada's standard air pollution limits for cancer-causing compounds and has struggled with chemical spills into the St. Marys River. The company has even operated under "site specific standards" that permit emissions beyond typical legal limits for certain pollutants, raising concerns about environmental impact and potential regulatory penalties.

The increasing demand for 'green steel' and the emergence of steel producers utilizing significantly lower-carbon production methods (e.g., direct reduced iron with green hydrogen, electric arc furnaces powered by renewable energy) could pose a clear emerging threat. As customers, particularly in the automotive and construction sectors, increasingly prioritize and demand steel products with a lower carbon footprint due to environmental regulations and corporate sustainability goals, traditional integrated steel mills like Algoma Steel that rely on more carbon-intensive blast furnace technology may face competitive disadvantages in market share, pricing, and overall relevance if they do not rapidly transition their production processes.

Addressable Markets for Algoma Steel (ASTL) Products

Flat/Sheet Steel Products

• Hot-rolled Coil: The U.S. hot rolled coil steel market generated a revenue of $27,677.6 million in 2024, with expectations to reach $32,749.5 million by 2030. The North American hot-rolled coil steel market is strongly dominated by the construction and infrastructure segment. North America also contributes over 80 million tons of hot-rolled coil annually, with 60% designated for domestic consumption.
• Cold-rolled Coil: The global cold rolled steel coil market size was valued at $83.51 billion in 2025 and is projected to grow to $134.71 billion by 2034, with a CAGR of 6.2%. North America held a 23% revenue share in the global cold rolled steel coil market in 2023. This implies a North American market size of approximately $19.2 billion based on the 2025 global market. North America is expected to experience the fastest growth in this market during the forecast period.

Plate Steel Products

1. Completion and Ramp-up of Electric Arc Furnace (EAF) Transformation: Algoma Steel's strategic shift to 100% electric arc furnace (EAF) steelmaking is a foundational driver. The company has permanently decommissioned its blast furnace and coke-making operations, with its first EAF unit already running on a 24-hour schedule and the second unit on schedule for completion in 2026. This transformation is expected to enhance efficiency, reduce costs, and position Algoma for long-term competitiveness in sustainable steel production. The full realization of EAF capacity is projected to lead to improved performance as the year progresses.
2. Strategic Pivot to High-Value Plate Products and Canadian Domestic Market: Due to the impact of U.S. tariffs effectively closing the American market, Algoma Steel is strategically focusing on the Canadian market and higher-value discrete plate and selected coil products. As Canada's only producer of discrete plate, the company anticipates healthy demand from infrastructure, construction, and defense sectors, with plate volumes expected to increase through 2026. This repositioning aims to optimize for margin quality rather than volume, deepening customer partnerships in its domestic market.
3. Growth in Defense and Shipbuilding Demand via Strategic Partnerships: Algoma Steel signed a binding Memorandum of Understanding (MOU) with Hanwha Ocean in January 2026, with a potential aggregate value of up to US$250 million. This partnership includes a contribution towards a potential structural steel beam mill and anticipated product purchases related to the Canadian Patrol Submarine Program. This signals an emerging and growing demand from the defense and shipbuilding industries, reinforcing Algoma Steel’s role as a critical supplier in Canada’s industrial supply chain.
4. Improved Pricing and Cost Performance through Operational Efficiencies: Management expects better pricing and cost performance to lead to improved adjusted EBITDA. The EAF transition is anticipated to enhance operational efficiency and reduce costs, contributing to better profitability. Furthermore, the focus on a high-value product mix, particularly discrete plate, is expected to improve net sales realizations per ton, partially offsetting weaker market conditions observed in coil pricing.
5. Increased Shipment Volumes Post-EAF Capacity Realization: While recent shipments have been impacted by market conditions and tariffs, Algoma is targeting 2026 shipments of 1.0 to 1.2 million tonnes. This is expected to ramp up through the year as EAF capacity builds. Following the completion of the EAF transformation, Algoma’s facility is projected to have an annual raw steel production capacity of approximately 3.7 million tons, matching its downstream finishing capacity, indicating a significant potential for increased volumes once fully operational.

Share Repurchases

• Algoma Steel Group Inc. announced the renewal of its normal course issuer bid (NCIB) on August 29, 2024.
• Under this NCIB, the company is authorized to acquire up to 5,206,153 common shares (5% of its outstanding shares) and up to 1,208,950 warrants (5% of its outstanding warrants) from September 5, 2024, to September 4, 2025.
• The company did not purchase any common shares under its previous normal course issuer bid, which ran from March 6, 2023, to March 5, 2024.

Share Issuance

• Algoma Steel Group Inc. had its initial public offering (IPO) in 2021.

Inbound Investments

• The federal and Ontario governments provided Algoma Steel with $500 million in financing to help the company address U.S. steel tariffs.

Capital Expenditures

• As of September 30, 2024, the cumulative investment in the Electric Arc Furnace (EAF) project was approximately $672.3 million, with approximately $61.2 million invested during the fiscal second quarter ended September 30, 2024.
• The EAF project is on schedule, with commissioning activities expected to begin by calendar year-end 2024 and steel production anticipated by the end of the first calendar quarter of 2025.
• Construction in progress on the balance sheet was $638.3 million in 2024, up from $338.5 million in 2023, $118.8 million in 2022, and $32.6 million in 2021, reflecting significant ongoing capital investment.