Algoma Steel Shares Slide After Tariffs Drag 3Q Results, CEO Plans to Retire

By Adriano Marchese

Algoma Steel Group shares fell after tariffs dented third-quarter results, signaling persistent financial headwinds, and it said its chief executive will step down.

Shares fell 5.7% to 5.63 Canadian dollars, and are down 60% year to date.

The embattled Canadian steelmaker late Wednesday said the impact of tariffs on Canadian sales were C$32 million, and that direct tariff expense came to C$89.7 million, whereas last year there was no such sales impact or expense.

Algoma, based in Sault Ste. Marie, Ontario, has been navigating rougher economic waters since the Trump administration reimposed tariffs on Canadian steel and aluminum in March 2025, citing the pretext of national-security concerns. These tariffs were later doubled to 50% in June 2025, significantly hammering Canadian producers by restricting access to the U.S. market and creating a costly barrier to trade.

"The U.S. steel market remains largely closed to us, and broader market conditions continue to present headwinds," said Chief Executive Michael Garcia.

Algoma said Wednesday that Garcia will retire from the company at the end of the year, to be succeeded by Finance Chief Rajat Marwah on Jan. 1.

The punishing cost of tariffs hit third-quarter sales and deepened the company's loss.

Revenue fell nearly 13% to C$523.9 million in the quarter, but avoided the much steeper decline forecasted by Wall Street. Analysts had estimated C$481.6 million, according to FactSet.

Net loss widened to C$485.1 million from a loss of C$106.6 million a year earlier, which on a per-share basis was a loss of C$4.46 compared with C$0.98 last year. Analysts called for a C$0.98 loss.

"Our focus remains on advancing our electric-arc-furnace transition, improving our cost structure, and positioning Algoma for sustainable profitability in the years ahead," Garcia said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 30, 2025 11:40 ET (15:40 GMT)