Algoma Steel Group Inc (ASTL) 2026 Q1 法說會逐字稿

Greetings, and welcome to the Algoma Steel Group First Quarter 2026 Earnings Call.

各位好，歡迎參加 Algoma Steel Group 2026 財年第一季財報電話會議。

(operator instructions)

（接線員指示）

It is now my pleasure to introduce Laura Devoni, Vice President of Human Resources and Corporate Affairs.

現在我很榮幸介紹人力資源與企業事務副總裁 Laura Devoni。

Please go ahead.

請開始。

Good morning, everyone, and welcome to Algoma Steel Group, Inc.'s first quarter 2026 earnings conference call.

各位早安，歡迎參加 Algoma Steel Group, Inc. 2026 財年第一季財報電話會議。

My name is Laura Devoni, Vice President of Human Resources and Corporate Affairs, and I will be moderating today's call. Leading the prepared remarks are Rajat Marwah, our Chief Executive Officer, and Michael Moraca, our Chief Financial Officer. As a reminder, this call is being recorded and will be made available for replay later today in the Investors section of Algoma Steel's corporate website at www.algoma.com.

我叫 Laura Devoni，擔任人力資源與企業事務副總裁，今天將由我主持本次會議。預先準備的發言將由我們的執行長 Rajat Marwah 與財務長 Michael Moraca 進行。提醒各位，本次電話會議將被錄音，並將於今日稍晚在 Algoma Steel 公司網站 www.algoma.com 的「投資人」專區提供重播。

I would like to remind you that comments made on today's call may contain forward-looking statements within the meaning of applicable security laws which involve assumptions and inherent risks and uncertainties.

我想提醒各位，今天電話會議中的評論可能包含依適用證券法所定義的前瞻性陳述，該等陳述涉及假設以及固有風險與不確定性。

Actual results may differ materially from statements made today.

實際結果可能與今日所作陳述存在重大差異。

In addition, our financial statements are prepared in accordance with IFRS, which differs from US GAAP. And our discussion today includes references to certain non-IFRS financial measures.

此外，我們的財務報表係依據 IFRS 編製，與美國 GAAP 不同；而我們今天的討論亦包含對若干非 IFRS 財務衡量指標的引用。

Last evening, we posted an earnings presentation to accompany today's prepared remarks.

昨晚，我們已上傳一份財報簡報，以配合今天的預先準備發言。

The slides for today's call can be found in the Investors section of our corporate website.

今天電話會議的投影片可在我們公司網站的「投資人」專區找到。

With that in mind, I would ask everyone on today's call to read the legal disclaimers on Slide 2 of the accompanying earnings presentation and to also refer to the risks and assumptions outlined in Algoma Steel's First Quarter 2026 Management Discussion and Analysis.

基於此，我請今天與會的各位閱讀隨附財報簡報第 2 頁的法律免責聲明，並同時參閱 Algoma Steel 2026 財年第一季管理階層討論與分析（MD&A）中所列示的風險與假設。

Please note that our financial statements are prepared using the US dollar as our functional currency and the Canadian dollar as our presentation currency. Please also note that amounts referred to on today's call are in Canadian dollars unless otherwise noted.

請注意，我們的財務報表以美元作為功能性貨幣、以加幣作為表達貨幣。也請注意，除非另有說明，今天電話會議中提及的金額均以加幣計。

Following our prepared remarks, we will conduct a question-and-answer session.

在預先準備發言之後，我們將進行問答環節。

I will now turn the call over to our Chief Executive Officer, Rajat.

現在我將把電話交給我們的執行長 Rajat。

Thank you, Laura, and good morning, everyone.

謝謝你，Laura，各位早安。

Thank you for joining us to discuss our first quarter 2026 results.

感謝各位加入我們，一同討論 2026 財年第一季的業績。

Before reviewing the quarter's results, I want to take a moment to recognize what our team achieved in early 2026.

在回顧本季業績之前，我想先花一點時間肯定我們團隊在 2026 年初所達成的成果。

On January 18th, we permanently halted blast furnace operations, marking the end of 125 years of coal-based integrated steelmaking at Algoma.

1 月 18 日，我們永久停止高爐作業，象徵 Algoma 以煤為基礎的一體化煉鋼歷史在 125 年後畫下句點。

That moment also closed out over 50 years of production at our No. 7 blast furnace, which over its lifetime produced more than 100 million tons of liquid iron.

那一刻也結束了我們第 7 號高爐超過 50 年的生產；其在整個使用年限中累計生產超過 1 億噸的液態鐵。

This is a refining moment for this company, not a conclusion, but a transformation.

這對公司而言是一個精煉與淬鍊的時刻，不是終點，而是轉型。

Algoma is now a fully electric arc furnace operation, and everything we are building from here rests on that foundation.

Algoma 現已全面轉為電弧爐（EAF）作業，而我們從此刻起所打造的一切，都建立在這個基礎之上。

Let me frame today's results around three themes.

我想以三個主題來框定今天的業績。

First, our EF ramp-up is progressing as expected, and the operational foundation for Algoma's next chapter is in place.

第一，我們的電弧爐（EAF）爬坡進度符合預期，Algoma 下一篇章所需的營運基礎已就位。

Second, this was a transitional quarter by design.

第二，本季是刻意安排的過渡季度。

While shipment remained low and transition-related costs were elevated, adjusted EBITDA was broadly consistent with the prior quarter when excluding the impacts of capacity utilization adjustments and insurance proceeds.

雖然出貨量仍偏低、且與轉型相關的成本偏高，但若排除產能利用率調整與保險理賠款的影響，調整後 EBITDA 與前一季大致一致。

Performance was supported by a deliberate mix shift towards higher-value plate products and improved net steel revenues.

業績表現受惠於我們刻意將產品組合轉向更高價值的厚板產品，以及淨鋼材收入的改善。

We achieved record plate sales of $116000 net ton with further upside expected as our plate-first strategy scales.

我們達成創紀錄的厚板銷售量，淨噸達 116,000，隨著「厚板優先」策略擴大推進，預期仍有進一步上行空間。

Importantly, we view this quarter as the EBITDA trough, with performance expected to improve as we continue ramping the EF platform, increase operational stability, and eliminate remaining transition-related costs.

重要的是，我們將本季視為 EBITDA 的谷底；隨著我們持續推進 EAF 平台爬坡、提升營運穩定性並消除剩餘的轉型相關成本，預期表現將改善。

Third, we have the financial runway to execute. The LETL facilities continue to provide meaningful liquidity support, and we remain focused on reducing cash burn as EF production scales.

第三，我們具備執行所需的財務跑道。LET L 融資安排持續提供具意義的流動性支持，而我們也仍專注於在 EAF 產量擴大之際降低現金消耗。

Let me expand on each of these.

接下來我將逐一說明。

Starting with our EF, the Unit 1 furnace and associated melt shop are performing as designed, with quality metrics achieved across a range of plate and hot roll coil grades.

先從我們的 EAF 來看，1 號爐及其相關熔煉車間的表現符合設計預期，且在多種厚板與熱軋捲等鋼種上均達成品質指標。

The Q1 power system and other key process components have demonstrated stable performance, supporting consistent metallurgical quality on a full 24-hour per day schedule.

第一季的電力系統與其他關鍵製程組件已展現穩定表現，支援在每日 24 小時的完整排程下維持一致的冶金品質。

This is not a pilot. This is Algoma's steelmaking platform, running around the clock, producing Volta, low-carbon steel at scale.

這不是試點。這是 Algoma 的煉鋼平台，全天候運轉，以規模化方式生產 Volta 低碳鋼。

Our average net sales realization improved meaningfully, driven by a deliberate mix shift towards discrete plate sales, where Algoma holds a unique competitive position as Canada's only producer.

我們的平均淨銷售實現價格明顯改善，主要由於我們刻意將產品組合轉向單筆厚板銷售；Algoma 在此領域具備獨特競爭地位，因為我們是加拿大唯一的厚板生產商。

Plate demand for infrastructure, construction, and defense end market remain healthy.

基礎建設、營建與國防終端市場的厚板需求仍然健康。

That pricing resilience combined with an improved cost structure as EF volumes build is the foundation of our path to profitability.

這種價格韌性，加上隨著 EAF 產量提升而改善的成本結構，構成我們邁向獲利的基礎。

On the broader market environment, the 50% US Section 232 tariff on steel imports from Canada continues to define the operating landscape.

就整體市場環境而言，美國對自加拿大進口鋼材課徵的 50%《232 條款》關稅，仍持續界定我們的營運格局。

We incurred Canadian $27.4 million in direct tariff cost in the quarter, down from the prior quarter as we continue to reduce volumes shipped to the US.

本季我們承擔了加幣 2,740 萬元的直接關稅成本，較前一季下降，因為我們持續降低對美國的出貨量。

The Canadian market, meanwhile, remains supply pressured, with coil pricing held down by domestic oversupply, import offers, and the continued presence of US Steel in the Canadian market.

同時，加拿大市場仍面臨供給壓力；由於國內供給過剩、進口報價，以及美國鋼鐵公司（U.S. Steel）持續在加拿大市場的存在，捲材價格受到壓抑。

These are structural conditions, not cyclical ones.

這些是結構性條件，而非景氣循環因素。

A strategic response, focusing on plate, de-emphasizing coil, and advancing diversification initiatives that orient our business towards the Canadian market, is the right response.

因此，採取策略性回應——聚焦厚板、弱化捲材，並推進多元化措施以使業務更面向加拿大市場——是正確的做法。

On the strategic front, I want to highlight two developments that reinforce the long-term thesis of this company.

在策略面，我想強調兩項進展，這些進展強化了本公司的長期投資論點。

First, in April, we announced the foundation of Rochelle Algoma Defense, a joint venture with Rochelle, Inc., a Canadian-owned defense manufacturer, to establish a Canadian center of excellence for ballistic steel production.

第一，4 月我們宣布成立 Rochelle Algoma Defense，這是一家與 Rochelle, Inc.（加拿大持有的國防製造商）合資的企業，旨在建立加拿大彈道鋼生產的卓越中心。

This partnership is purpose-built to deliver sovereign ballistic steel defense solutions. Including full-cycle capabilities, metal fabrication, forming, welding, and machining right here in Canada.

此合作夥伴關係是為提供主權彈道鋼國防解決方案而量身打造，涵蓋全週期能力，包括金屬製造、成形、焊接與機械加工，全部在加拿大本土完成。

This is a meaningful step in the diversification of our product portfolio and our growing role in Canada's defense industrial base.

這是我們產品組合多元化的重要一步，也彰顯我們在加拿大國防產業基礎中日益提升的角色。

Second, our binding MOU with Hanwha Ocean announced in January and valued at up to US $250 million, including a US $200 million contribution towards the potential development of a structural beam mill. And up to US $50 million in anticipated product purchases tied to the Canadian Patrol Submarine Program, remains subject to Hanwha Ocean being awarded the CPSP contract and the execution of definitive agreements.

第二，我們在 1 月宣布與 Hanwha Ocean 簽署具約束力的 MOU，總價值最高可達 2.5 億美元，其中包括最高 2 億美元用於潛在開發結構型鋼梁廠的出資，以及最高 5,000 萬美元、與加拿大巡邏潛艦計畫（CPSP）相關的預期產品採購；該等內容仍取決於 Hanwha Ocean 是否獲得 CPSP 合約，以及最終協議的簽署。

We continue to advance this work and remain encouraged by what it represents for Algoma's long-term role in Canada's defense industrial base.

我們持續推進相關工作，並對其所代表的 Algoma 在加拿大國防產業基礎中的長期角色感到鼓舞。

Taken together, these initiatives reflect the deliberate positioning of Algoma as a strategic pillar of Canada's industrial and defense supply chain, not simply a commodity steel producer.

綜合而言，這些舉措反映出 Algoma 正刻意定位為加拿大工業與國防供應鏈的策略支柱，而不僅僅是一家大宗鋼材生產商。

I want to be direct about something.

我想就一件事直言不諱。

Algoma is more exposed to tariffs than virtually any steel company in North America.

Algoma 受到關稅影響的程度，幾乎高於北美任何一家鋼鐵公司。

We are Canada's only independent steelmaker, and that reality has made Sousse Marie a focal point of the trade disruption that has reshaped the steel industry over the past year.

我們是加拿大唯一的獨立鋼鐵製造商，而這個現實使 Sousse Marie 成為過去一年重塑鋼鐵產業之貿易擾動的焦點。

We are not going to understate that impact, nor are we going to minimize the challenge it has created.

我們不會淡化其影響，也不會低估它所帶來的挑戰。

But this is what we would ask investors to focus on. The investments Algoma has made in a state-of-the-art electric arc furnace platform. And the modernization of Canada's only discrete plate mill have positioned the company at the center of Canada's emerging industrial and defense strategy.

但這正是我們希望投資人聚焦的重點：Algoma 對最先進電弧爐（EAF）平台的投資，以及對加拿大唯一的單獨厚板廠所進行的現代化改造，已使公司站上加拿大新興工業與國防策略的核心位置。

Industrial sovereignty requires domestic steel-making capability.

工業主權需要具備國內煉鋼能力。

Armored vehicles require ballistic steel.

裝甲車輛需要防彈鋼。

National infrastructure programs are strengthened by structural steel produced domestically by Canadian workers for Canadian supply chain.

由加拿大工人於國內生產、供應加拿大供應鏈的結構鋼，能強化國家基礎建設計畫。

Algoma is uniquely positioned to support these priorities alongside our customers, partners, and peers across the broader Canadian industrial base.

Algoma 具備獨特優勢，能與我們的客戶、合作夥伴及更廣泛加拿大工業基礎中的同業攜手，支持這些優先事項。

The Rochelle Algoma Defence JV and the Hanwha Ocean Beam MOU are not peripheral initiatives or aspirational concepts.

Rochelle Algoma Defence 合資企業（JV）以及 Hanwha Ocean Beam 的合作備忘錄（MOU）並非邊緣性倡議或僅是願景概念。

They are tangible evidence of where industrial policies and strategic demands are moving.

它們是工業政策與策略需求走向的具體證據。

Canada is actively seeking to reduce reliance on foreign supply chain for critical material and defense-grade products, and Algoma is participating directly in that effort, working alongside government customers and industrial partners to help build resilient domestic capacity.

加拿大正積極尋求降低對外國供應鏈在關鍵材料與國防等級產品上的依賴，而 Algoma 正直接參與這項努力，與政府客戶及產業夥伴並肩合作，協助建立具韌性的國內產能。

Importantly, the current tariff environment, while undeniably challenging, has accelerated the urgency around domestic sourcing and industrial self-sufficiency.

重要的是，當前的關稅環境雖然無可否認地充滿挑戰，但已加速提升對國內採購與工業自給自足的迫切性。

In many respects, it has reinforced the strategic value of Canadian steelmaking capacity in ways that were far less visible even two years ago.

在許多方面，它以兩年前仍不那麼明顯的方式，強化了加拿大煉鋼產能的策略價值。

We are managing through the tariff headwinds.

我們正在因應關稅帶來的逆風。

At the same time, we are building the company Canada increasingly needs.

同時，我們也在打造加拿大日益需要的公司。

Those are not competing narratives. They are fundamentally the same story.

這兩者並非相互競爭的敘事；它們本質上是同一個故事。

I'll now turn the call over to Mich for a closer look at the financials. Mich.

接下來我把電話會議交給 Mich，請他更深入說明財務狀況。Mich。

Thanks, Rajat. Good morning, everyone. As a reminder, all numbers are expressed in Canadian dollars unless otherwise noted.

謝謝你，Rajat。各位早安。提醒一下，除非另有說明，所有數字均以加幣表示。

I will start off with a brief note on currency. The Canadian dollar weakened modestly over the course of Q1 2026, moving from approximately $1.37 CAD per U.S. Dollar at December 31 2025 to $1.39 at March 31, 2026, an approximate 1% decline. Our foreign exchange gain in the quarter of $14.3 million reflects the favorable impact of a weaker Canadian dollar.

我先簡要說明匯率。2026 年第一季期間，加幣小幅走弱，從 2025 年 12 月 31 日約每 1 美元兌 1.37 加幣，至 2026 年 3 月 31 日約 1.39，加幣約貶值 1%。本季 1,430 萬加幣的外匯收益，反映加幣走弱帶來的有利影響。

Comparisons between the first quarter of 2026 and the first quarter of 2025 were significantly impacted by several important factors.

2026 年第一季與 2025 年第一季之間的比較，受到數項重要因素的顯著影響。

In the prior year period, the company was producing steel exclusively through its legacy blast furnace operations, which were permanently halted on January 18 2026. In contrast, steel production during the first quarter of 2026 reflected a transitory operating environment, with production coming from both the legacy blast furnace platform and the company's new electric arc furnace platform. Which remains in the ramp-up phase.

在去年同期，公司僅透過既有高爐作業生產鋼材，而該高爐已於 2026 年 1 月 18 日永久停爐。相較之下，2026 年第一季的鋼鐵產量反映的是過渡性的營運環境，產量同時來自既有高爐平台與公司新的電弧爐（EAF）平台；而 EAF 仍處於爬坡階段。

In addition, the tariff environment during the 2026 quarter was materially more adverse than in the comparable prior-year period, creating a significantly different operating and commercial backdrop.

此外，2026 年第一季的關稅環境較去年同期明顯更為不利，造成營運與商業背景大不相同。

Now on to the results.

接下來說明業績。

We shipped approximately 224000 net tons in the quarter, down 52.4% versus the prior year period. Importantly, the prior year quarter reflected production from a fully operating blast furnace platform that no longer exists. We are continuing the ramp-up of our new EAF steelmaking platform, with operating performance expected to improve as EAF production stabilizes and transition-related inefficiencies are reduced.

本季出貨約 224,000 淨噸，較去年同期下降 52.4%。重要的是，去年同期反映的是一個已全面運轉、但如今已不復存在的高爐平台所帶來的產量。我們正持續推進新的 EAF 煉鋼平台爬坡，隨著 EAF 產量趨於穩定並降低轉換相關的低效率，營運表現預期將改善。

Our average net sales realization was $1193 per ton, an increase of 21% versus $986 per ton in the prior year period.

我們的平均淨銷售實現價格為每噸 1,193 加幣，較去年同期每噸 986 加幣增加 21%。

This improvement reflects the deliberate shift of our product mix towards discrete plate, where our pricing premium over hot rolled coil remained significant, and we achieved record plate sales volumes during the quarter.

此改善反映我們刻意將產品組合轉向單張厚板（discrete plate）；我們相對熱軋捲（HRC）的溢價仍然顯著，且本季厚板銷售量創下紀錄。

Steel revenue was $266.9 million for the quarter, down 42.4% from the prior year period, as the significant decline in shipment volumes more than offset the meaningful improvement in realized pricing.

本季鋼鐵營收為 2.669 億加幣，較去年同期下降 42.4%，因出貨量大幅下滑的影響，超過了實現價格顯著改善所帶來的正面效益。

Cost per ton of steel products sold was $1180 in the quarter, compared to $1137 in the prior year period.

本季鋼鐵產品銷售每噸成本為 1,180 加幣，去年同期為 1,137 加幣。

The increase reflects tariff costs of $27.4 million and the impact of reduced fixed cost absorption at lower production volumes. I want to highlight that this metric excludes $90 million related to capacity utilization.

成本上升反映 2,740 萬加幣的關稅成本，以及在較低產量下固定成本吸收降低的影響。我想強調，該指標不包含與產能利用率相關的 9,000 萬加幣。

Adjusted EBITDA for the quarter was a loss of $28.7 million, representing an adjusted EBITDA margin of negative 9.7%. This compares to an adjusted EBITDA loss of $46.7 million in the prior year period, which represented a margin of negative 9%. The variance in absolute terms was driven primarily by improved product mix.

本季調整後 EBITDA 為虧損 2,870 萬加幣，調整後 EBITDA 利潤率為負 9.7%。相較之下，去年同期調整後 EBITDA 虧損 4,670 萬加幣，利潤率為負 9%。以金額絕對值而言，差異主要由產品組合改善所帶動。

A few items I want to call out specifically: first, on capacity utilization, the $90.2 million capacity utilization charge in the quarter reflects excess fixed costs carried by the company beyond what was required to operate the EAF and the downstream operations supplied by the EAF at the production volumes achieved during the quarter.

我想特別指出幾點：第一，關於產能利用率，本季 9,020 萬加幣的產能利用率費用，反映公司承擔了超出在本季達成之產量水準下，運轉 EAF 及由 EAF 供料之下游作業所需的多餘固定成本。

These costs primarily relate to labor, fixed utilities, equipment, and maintenance costs.

這些成本主要與人力、固定公用事業成本、設備及維修成本相關。

These costs are expected to decline over the course of the next two quarters as the transition progresses and are anticipated to be fully eliminated by the fourth quarter.

隨著轉型推進，這些成本預期在接下來兩個季度內逐步下降，並預計於第四季完全消除。

This cost is excluded from adjusted EBITDA as it does not reflect the ongoing economics of the business under the company's intended operating configuration.

此成本自調整後 EBITDA 中排除，因其不反映公司在預期營運配置下之業務持續經濟性。

Second, on the prior year comparison.

第二，關於與去年同期的比較。

Q1 2025 included $50 million in insurance proceeds related to the structural corridor collapse of January 2024. There are no comparable insurance proceeds in Q1 2026. On an apples to apples basis, the underlying adjusted EBITDA improvement of $18 million is a meaningful step in the right direction as the AAF ramp continues.

2025 年第一季包含 5,000 萬加幣的保險理賠款，與 2024 年 1 月結構走廊坍塌事件相關。2026 年第一季沒有可比的保險理賠款。以可比基礎（apples to apples）來看，隨著 AAF 爬坡持續，基礎調整後 EBITDA 改善 1,800 萬加幣，是朝正確方向邁出的重要一步。

Third, on working capital, as the company expected, during the quarter, the company released over $100 million of working capital, which was primarily related to the significant release of work-in-process slab inventory as we rolled slabs from inventory at our plate mill.

第三，關於營運資金，如公司所預期，本季公司釋放超過 1 億加幣的營運資金，主要來自在厚板廠將庫存鋼胚轧製時，大量釋放在製品鋼胚庫存。

This slab inventory had been built prior to the closure of the blast furnace.

該鋼胚庫存是在高爐關閉前建立的。

Turning to liquidity, we ended the quarter with $65.3 million of cash, $195 million of unused availability on our revolving credit facility, and $292 million of remaining availability under the LETL facilities.

談到流動性，我們在季末持有 6,530 萬加幣現金、循環信貸額度尚有 1.95 億加幣未動用額度，以及 LETL 融資工具尚有 2.92 億加幣可用額度。

Total available liquidity at quarter end was approximately $553 million.

季末可用流動性合計約 5.53 億加幣。

During Q1, we drew $126 million under the LETL facilities net of peak interest, which was largely deployed to offset operating cash consumption and support the transition.

第一季期間，我們在 LETL 融資工具下提取 1.26 億加幣（扣除峰值利息後的淨額），主要用於抵銷營運現金消耗並支持轉型。

Capital expenditures in the quarter were $20.4 million, substantially below the $127 million invested in Q1 2025, when EAF construction activity was far greater. We expect our maintenance CapEx profile to run meaningfully below our historical sustaining capital level of approximately $120 million annually as we operate a newer, lower-maintenance EAF facility.

本季資本支出為 2,040 萬加幣，顯著低於 2025 年第一季投入的 1.27 億加幣，當時 EAF 建設活動規模大得多。隨著我們營運較新且維護需求較低的 EAF 設施，我們預期維護性資本支出（maintenance CapEx）將明顯低於歷史上約每年 1.2 億加幣的維持性資本水準。

Perspectively on cash flow, as we have discussed previously, there are a number of positive cash flow items expected to benefit the company over the course of 2026. Including the recovery of approximately $200 million related to income tax refunds and the receipt of the remaining insurance proceeds associated with the final closeout of the previously disclosed insurance claim.

就現金流而言，如先前所述，2026 年期間預期有多項正向現金流項目將使公司受益，包括約 2 億加幣的所得稅退稅回收，以及先前已揭露之保險理賠案最終結案所對應的剩餘保險理賠款入帳。

On legal matters, as previously disclosed, we have initiated and are responding to legal proceedings in connection with certain supply agreements, taking the position that these agreements have been frustrated by the extraordinary and unforeseen tariff environment.

關於法律事項，如先前揭露，我們已就若干供應協議啟動並回應相關法律程序，主張這些協議因異常且不可預見的關稅環境而受挫（frustrated）。

We believe we have valid legal remedies and defenses and will continue to defend our position. We are. Not in a position to comment further on this at this time.

我們相信我們具備有效的法律救濟與抗辯，並將持續捍衛我們的立場。我們目前不便就此進一步評論。

I'd like to now turn the call back over to Rajat for closing comments.

我現在想把電話交回給 Rajat，請他做結語。

Thanks, Mike.

謝謝你，Mike。

Q1 2026 was largely the quarter we anticipated, a transitional period with lower volumes, elevated costs, and the logistical complexity of winding down one steelmaking route while ramping another.

2026 會計年度第一季大致符合我們的預期：這是一個過渡期，出貨量較低、成本偏高，且在逐步關停一條煉鋼路線、同時提升另一條路線產能的過程中，物流作業也更為複雜。

But the operational progress during the quarter was real.

但本季的營運進展確實存在。

And the strategic trajectory is clear.

而且策略走向也很清楚。

Our ES is ramping. Our plate mill is positioned competitively. We are Canada's only producer of discrete plate.

我們的 ES 正在爬坡增產。我們的厚板廠具備競爭定位。我們是加拿大唯一的獨立厚板（discrete plate）生產商。

And demand for infrastructure, construction, and defense end market is healthy and growing.

而且基礎建設、營建與國防終端市場的需求健康且持續成長。

The Shell Algoma Defense JV and the Hanwha Ocean MOU are tangible evidence that this company is building something with long-term industrial relevance to Canada.

Shell Algoma 國防合資企業（Defense JV）以及與 Hanwha Ocean 的合作備忘錄（MOU），是具體證據，顯示本公司正在打造一項對加拿大具有長期產業相關性的事業。

Not just managing through a difficult steel cycle.

而不只是勉力度過艱難的鋼鐵景氣循環。

The path back to profitability runs through scale, more EF production, more plate tons, and a cost structure that improves with every additional heat we cast.

重返獲利的路徑在於規模化、更高的電弧爐（EF）產量、更多厚板噸數，以及隨著每多澆鑄一爐（heat）就持續改善的成本結構。

We are not there yet, but the trajectory is the right one, and we have the liquidity to execute.

我們尚未達成，但方向正確，而且我們具備執行所需的流動性。

I want to close with a word to our employees.

最後我想對我們的員工說幾句話。

The first quarter of 2026 was not easy.

2026 會計年度第一季並不容易。

The transition required an extraordinary level of execution from each part of this organization, and the workforce reduction taken in late March added a layer of human difficulty that no restructuring plan makes easier.

這次轉型需要組織各部門展現非凡的執行力，而 3 月下旬進行的人力縮減，也增添了任何重整計畫都無法讓人更容易承受的人性層面困難。

I'm proud of how every member of our team navigated all of it, and I'm committed to building an Algoma worthy of their continued efforts.

我為團隊每一位成員在這一切中的應對感到自豪，也承諾要打造一個配得上大家持續付出的 Algoma。

Thank you for your continued interest in Algoma Steel. At this point, we are happy to take your questions.

感謝各位持續關注 Algoma Steel。接下來，我們很樂意回答各位的問題。

Operator, please provide the instructions for the Q&A session.

接線員，請提供問答環節的說明。

Thank you. Well, now we conduct a question-and-answer session. (event instructions)

謝謝。現在我們進行問答環節。（活動說明）

One moment, please, while we pull for questions.

請稍候，我們正在收集提問。

Thank you. Our first question is from James McGarrigle with RBC Capital Markets.

謝謝。我們的第一個問題來自 RBC Capital Markets 的 James McGarrigle。

Hey, thanks for having me on, guys.

嘿，謝謝讓我加入，大家。

Yeah, I just wanted to ask a question on the capacity utilization adjustment. Can you just give us some cadence on how you expect that to trend down in Q2 and Q3? And then on that, when we think about Q4 EBITDA, obviously, a lot can change in terms of the price of inputs, the price of steel. But all else equal, should we be thinking about adjusted EBITDA of minus $30 million in Q4, or is there a kind of a path to break-even EBITDA towards the end of the year?

是的，我想問一下產能利用率調整（capacity utilization adjustment）。你們能否說明一下，預期它在第二季與第三季會如何逐步下降？另外，談到第四季 EBITDA，當然投入品價格、鋼價都可能有很大變化；但在其他條件不變下，我們是否應該把第四季調整後 EBITDA 想成負 3,000 萬美元？還是年底前有機會走向 EBITDA 損益兩平？

Yeah, thanks, James. I think that we still are on the pathway to breaking EBITDA. That's our expectation by the fourth quarter. And the capacity utilization adjustment really will trend down linearly from where we're at here at 90% in this quarter to 0% in Q4. So I think you can think of it stepping down in a pretty linear fashion over the next two quarters.

是的，謝謝你，James。我認為我們仍在朝 EBITDA 損益兩平的路徑上前進。這是我們對第四季的預期。至於產能利用率調整，將會從本季約 90% 的水準，線性下降到第四季的 0%。所以你可以把它想成在接下來兩季以相當線性的方式逐步下滑。

I appreciate the color there. And then just as a follow-up to that, obviously, the capacity utilization going away is going to be predicated on higher volumes. So can you just give us some cadence on how you expect volumes to trend in Q2? And then can you talk about more broadly the appetite in the Canadian market to support higher levels of production, specifically on the plate as that ramps up? And then on the coil side, is the increase in production going to be from higher. Sheet and what you think profitability might look like on the sheet side if you're ramping up production there as well?

謝謝你提供這些細節。接著追問一下，顯然產能利用率調整的消失將取決於更高的出貨量。你們能否說明一下第二季出貨量預期的變化節奏？另外更廣泛地談，加拿大市場支撐更高產量的意願如何，特別是厚板爬坡增產時？再來在捲材方面，產量提升是否會來自更高的薄板（sheet）？如果你們也在薄板端提升產量，薄板端的獲利能力可能會是什麼樣子？

Yeah, I think I'll start, and Rajat can add some color here. But I think that directionally, the shipments, we would expect to be directionally lower in the next quarter.

好的，我先回答，Rajat 也可以補充一些看法。我認為就方向性而言，我們預期下一季出貨量會呈現方向性下降。

But on the plate side, we're still going to ship as much as we possibly can, so pushing that as quickly as we can up.

但在厚板方面，我們仍會盡可能多出貨，因此會盡快把厚板出貨推升上去。

The sheep side is really where the constraint is on the market with the oversupply situation we have in Canada.

薄板（sheet）端才是市場的主要限制，因為加拿大目前存在供給過剩的情況。

So, James, that's a good question and a lot of questions. So on the capacity utilization, there is some carrying cost that will drop off, which I think will bring us to the capacity of a million two and our costs aligned with that. So that's what we expect to see in the fourth quarter.

所以，James，這是個好問題，而且你問了很多點。關於產能利用率，有一些攤提成本（carrying cost）會逐步消失，我認為這會讓我們回到 120 萬噸的產能水準，並使成本結構與之對齊。這就是我們預期在第四季會看到的狀況。

From the market perspective, the plate market is healthy, as I said in my prepared remarks, and it's doing okay.

從市場角度來看，厚板市場如我在事先準備的發言中所說，狀況健康，表現也還不錯。

We are quite disciplined in our approach. We've started gaining market share. And I would thank the Canadian government on the Buy Canada policy and also our customers who are sticking with us, and we are ensuring that they -- we are ensuring that we do whatever we can to be with them.

我們的做法相當自律。我們已開始提升市占率。我也要感謝加拿大政府的「Buy Canada」政策，以及持續支持我們的客戶；我們也確保他們——我們確保會盡一切所能與他們站在一起。

And not disappoint them. But on the plate side, we are fine and we are increasing our volume. On the coil side, the market is oversupplied and we are seeing that putting pressure on the pricing.

並且不讓他們失望。厚板方面我們沒有問題，且正在提高出貨量。捲材方面，市場供給過剩，我們看到這對價格造成壓力。

From our side, we have been quite disciplined in our approach on the coil by taking orders that make sense. And as we start ramping up, we will be mindful of that market.

就我們而言，我們在捲材端一直保持相當自律，只接下合理的訂單。隨著我們開始爬坡增產，我們也會留意該市場狀況。

I appreciate the caller, and I'll turn the line over.

謝謝提問，我把線路交回去。

Thank you.

謝謝。

Our next question is from Katja Jancic with BMO Capital Markets.

下一個問題來自 BMO Capital Markets 的 Katja Jancic。

Hi.

嗨。

Thank you for taking my questions. Mich, just to confirm, did you say that sheet volumes in 2Q are going to be lower sequentially?

謝謝回答我的問題。Mich，我想確認一下，你是說第二季薄板（sheet）出貨量會較前一季下降嗎？

Correct, yes.

是的，沒錯。

And then will that be fully offset by higher plate? Or how should we think about plate volumes relative to first quarter? How much higher can it get in the near term?

那麼這會被更高的厚板出貨完全抵消嗎？或者我們應該如何看待厚板出貨量相對於第一季的變化？短期內大概能提高多少？

Yeah, I think directionally a little bit higher. We're working on trying to maximize the availability of those orders in the Canadian market and capturing more and more market share. But we do expect it to be slightly higher in Q2.

是的，我認為方向上會略高一些。我們正努力在加拿大市場上最大化可取得的訂單，並持續擴大市占。不過我們確實預期第二季會略高一些。

And really, we're flexing the coil volumes in light of that.

而我們會在此背景下彈性調整捲材出貨量。

So overall, volumes are going to be slightly higher or flattish.

所以整體而言，出貨量會略高或大致持平。

Slightly lower is the expectation.

我們的預期是略低一些。

Slightly lower.

略低一些。

Yeah.

對。

So I'm just thinking from a utilization perspective or utilization adjustment, what will drive, I guess, lower adjustment?

所以我在想，從產能利用率或產能利用率調整的角度來看，什麼因素會驅動調整金額下降？

The driver of the lower adjustments is really shedding those costs that are associated with the legacy assets. So if you think we're staffed with some of the headcount still hadn't come out in Q1 as we had layoffs near the end of this quarter, and then we have other fixed costs as well that were associated with those legacy operations, those will start to shed and it will be the main driver of the reduction in the capacity utilization adjustment.

調整金額下降的驅動因素，主要是剝離與既有資產（legacy assets）相關的成本。也就是說，如果你想像一下，我們在第一季仍有部分人力尚未退出，因為裁員是在本季接近尾聲時才進行；此外還有其他與既有營運相關的固定成本。這些成本將開始逐步消退，並成為產能利用率調整下降的主要原因。

And then maybe shifting to on the cost side, can you talk a bit about your sourcing of scrap right now, where you're sourcing it, how the pricing is currently?

接著把焦點轉到成本端，你能否談談你們目前廢鋼（scrap）的採購情況：來源在哪裡、目前價格如何？

Hey, Katja, that's a very good question. Scrap is coming from Canada and some from US, but mostly from Canada.

嗨，Katja，這是個非常好的問題。廢鋼來源來自加拿大，也有一部分來自美國，但主要來自加拿大。

There is enough scrap available from sourcing perspective as we are ramping up.

就採購來源而言，隨著我們爬坡增產，市場上有足夠的廢鋼可供取得。

Pricing is a different dynamic right now. Price of scrap is still following the North American selling price, and it's not being adjusted by any other dynamics between Canada and the US, as we have seen that the pricing of sheet has been affected between Canada and US Due to the oversupply of sheet in Canada and the 232 tariffs. So scrap is still moving at the price, which is the index price linked to the in North American CRU index.

至於價格，目前是另一種動態。廢鋼價格仍跟隨北美的售價，並未因加拿大與美國之間的其他動態而調整；相較之下，我們看到薄板（sheet）價格在加拿大與美國之間受到影響，原因是加拿大薄板供給過剩以及 232 關稅。因此，廢鋼仍以其價格交易，也就是與北美 CRU 指數連動的指數價格。

Okay, and one more, if I may. You talked about the defense JV. Can you talk a bit more about how big the defense market actually is in Canada? Because usually when we look in the US Steel market, defense is a percentage of consumption of steel. It's pretty small.

好的，如果可以的話，我還有一個問題。您提到國防合資企業（JV）。能否再多談一點加拿大的國防市場實際規模有多大？因為通常我們看美國鋼鐵市場時，國防只是鋼材消耗的一個百分比，規模相當小。

So we just want to maybe if you could talk about the Canadian market.

所以我們只是想，也許如果您能談談加拿大市場。

Yeah, the analysis is very similar in Canada as well, that when you look at the overall market and divide into equipment, construction, manufacturing, and then defense, it's smaller.

是的，在加拿大的分析也非常類似；當你看整體市場並將其分為設備、建築、製造，然後是國防時，國防的占比更小。

But there is a lot of spending that is happening and supposed to happen in Canada.

但加拿大目前正在發生、且預期將發生大量支出。

And what we don't look at is the whole supply chain and the whole, the entire product that finally get produced.

而我們沒有去看的，是整個供應鏈，以及最終被生產出來的整個、完整的產品。

And not just the steel. So we look at steel supply will be limited, but there will be a lot of value-add when you start looking at fabrications, assembling, welding and so on and so forth. So we are looking at the entire supply chain to provide a full solution to Canadian needs as well as offshore where everything from.

而不只是鋼材本身。所以我們看到鋼材供應會有限，但當你開始看加工製造、組裝、焊接等等時，會有很多加值。我們正在檢視整個供應鏈，以提供一個完整解決方案，滿足加拿大的需求以及離岸需求，涵蓋所有內容。

From nuts to bolts. Everything is done in Canada with Canadian labor, Canadian IP, Canadian steel. And that's where the value comes from this JV.

從螺帽到螺栓。所有事情都在加拿大完成，使用加拿大勞動力、加拿大智慧財產（IP）、加拿大鋼材。這就是這個合資企業帶來價值的地方。

Perfect.

完美。

Thank you.

謝謝。

Our next question is from Ian Gillies with Stifel.

下一個問題來自 Stifel 的 Ian Gillies。

Morning, everyone.

各位早安。

Morning, Ian.

早安，Ian。

Has there been much in the way of developments on. And overseas sales strategy since the last time you guys provided an update, just because that seems like a pretty important piece to get to economies of scale and reduce some of these capacity charges as well.

自從你們上次提供更新以來，海外銷售策略方面有沒有什麼進展？因為那看起來是達到規模經濟、並降低部分產能費用的一個相當重要的環節。

Continuously working on that aspect. There are trials being planned on steel that we can supply. There are discussions happening on both sides on how the supply chain will work and how this will be done over a longer period of time. So things are progressing.

我們持續在這方面努力。目前正在規劃我們可供應鋼材的試驗；雙方也在討論供應鏈將如何運作，以及長期將如何執行。所以事情正在推進。

We do not expect much supply to happen in this quarter or the next, but we expect that all of that will get finalized.

我們不預期本季或下一季會有太多供應發生，但我們預期這些都會完成定案。

Towards the end of the year and start supplying those products.

在年底左右，並開始供應那些產品。

Okay.

好的。

On the scrap side, noting that you're talking about price following the North American price, is there any workarounds or potential workarounds in Canada through additional procurements of DRI or PIG that might provide a cost advantage, or is that just completely unlikely?

在廢鋼方面，注意到你們提到價格會跟隨北美價格，在加拿大是否有任何變通方式或潛在變通方式，例如透過額外採購 DRI 或生鐵（PIG）來取得成本優勢？還是說那完全不太可能？

The time the market is open on both sides of the border, I think it will be the way it used to be for selling price, where you have opportunities on the other end to supply that product. Normally, DRI or HVI, they do carry a premium.

只要市場在邊境兩側都是開放的，我認為就會回到過去那種定價方式，也就是在另一端會有供應該產品的機會。通常 DRI 或 HVI 會有溢價。

And depending upon demand supply, the price will be established. But there's no quick solution from that perspective. The solution that we do have, if let's say this becomes.

而價格會依供需而定。但從那個角度來看，沒有快速的解決方案。我們確實有的解方是，假設這變成。

This becomes a long-term structure in the market. We have No. 6 blast furnace that does produce -- can produce pig, depending upon how the market price fares out.

這變成市場中的長期結構。我們有 6 號高爐，確實可以生產——可以生產生鐵，取決於市場價格的走勢。

That's a mitigation that we have.

這是我們的一項緩解措施。

But otherwise, from a market perspective, we do see the market to be porous between US And Canada, and the pricing will remain the way it is.

但除此之外，從市場角度來看，我們確實認為美國與加拿大之間的市場是可滲透的，定價也會維持現狀。

Understood.

了解。

And with respect to the energy sector in Canada, it seems to be thawing a little bit here. I'm just curious with what you're seeing. Are you seeing any potential for incremental orders to send out west, especially in the context of what appears to be some amount of relief on rail rates through CNNCP?

另外，關於加拿大能源產業，最近似乎有些回溫。我想請教你們看到的情況：是否看到任何可能增加、往西部出貨的增量訂單？尤其是在看起來透過 CNNCP 的鐵路費率可能獲得某種程度紓困的背景下？

So we are selling into the West right now. And as I said, that our sales on the plate side with our existing customers and the new that we are getting is increasing, and we are seeing that support coming.

所以我們目前正在向西部銷售。正如我所說，我們在中厚板（plate）端對既有客戶以及新取得的客戶之銷售正在增加，我們也看到那樣的支撐正在到來。

The challenge still remains on the transportation side. The government is working on it. That program should come into being soon, and we are having those discussions.

挑戰仍然在運輸端。政府正在處理；那個方案應該很快就會上路，我們也正在進行相關討論。

So it's the logistic cost to get the product there. But the actions that are taken up till now on restricting some of the imports coming in and then going into some subsidy on the rates definitely will help. But to say the least, there is supply happening, and we are seeing some amount of volume uptick towards the west.

所以關鍵在於把產品運到那裡的物流成本。不過，到目前為止所採取的行動——限制部分進口進來，以及在運價上提供一些補貼——肯定會有幫助。但至少可以說，供應正在發生，我們也看到往西部的出貨量有一定程度的回升。

Thanks very much. I'll turn the call back over.

非常感謝。我把電話交回去。

Our next question is from Albert Realini with Jefferies.

下一個問題來自 Jefferies 的 Albert Realini。

Hey, good morning, guys.

嗨，各位早安。

Thank you for taking my question.

謝謝讓我提問。

I'll ask on the structural B mill, assuming obviously that's still strategic interest, but just.

我想問一下結構型 B 型鋼廠（structural B mill），顯然那仍是策略性重點，但只是。

Any updates to maybe the thinking there? Any conversations with the government on that? And is that something that's kind of dependent on tariffs staying on longer-term and I guess being more of a longer-term diversification strategy? Or is it kind of independent on tariffs and more of when maybe the cash profile is a bit better, we could see some advancements there?

在那方面是否有任何最新想法？有沒有和政府進行相關對話？而這件事是否在某種程度上取決於關稅是否會長期維持、也就是更偏向長期多元化策略？還是它其實與關稅無關，而更像是當現金流狀況好一些時，我們就可能看到一些進展？

So there's a lot of work happening on the BEAM side from work perspective, and we are in continuous discussion.

所以在梁材（BEAM）方面，從工作推進的角度來看有很多工作正在進行，我們也在持續討論。

With the government as well on various aspects.

也與政府就各個面向持續溝通。

We've looked at the market and we have studied the market, a lot of work has gone into the market analysis as well. And as we've said in the past, the BEAM market is supplied by imports and that market is there and the investments that's going to happen in Canada over the next many years will only increase that demand. So we are looking at the best way to get this project off the ground and done.

我們已經看過市場並研究市場，在市場分析上也投入了大量工作。正如我們過去所說，梁材市場目前主要由進口供應，而那個市場需求確實存在；未來多年加拿大將進行的投資只會進一步推升需求。因此我們正在尋找讓這個專案順利啟動並完成的最佳方式。

Tariffs do play a role right now as we do not have enough products in Canada that can meet the demands in Canada.

目前關稅確實扮演一定角色，因為加拿大本土沒有足夠的產品能滿足加拿大的需求。

And this product seems to be a strategy that. That fits really well with our electric arc furnace. Being an electric arc, this is a natural fit for us to be in the beam market.

而這項產品看起來是一個策略。它與我們的電弧爐非常契合。作為電弧爐業者，進入梁材市場對我們而言是很自然的契合。

So I would say that, and we are working pretty hard and diligent on getting things nailed down in this project.

所以我會說，我們正在非常努力且審慎地把這個專案的各項細節敲定。

Thank you.

謝謝。

Thank you. There are no further questions at this time. I would like to hand the floor back over to Mich Moraca for any closing remarks.

謝謝。目前沒有其他問題。我想把時間交回給 Mich Moraca，請他做結語。

Thank you again for your participation in our first-quarter 2026 earnings conference call and for your continued interest in Algoma Steel. We look forward to updating you on our results and progress when we report our second-quarter results this summer.

再次感謝各位參與我們 2026 年第一季財報電話會議，並持續關注 Algoma Steel。我們期待在今年夏天公布第二季業績時，向各位更新我們的結果與進展。

Have a great day.

祝各位有美好的一天。

This concludes today's conference. You may disconnect your lines at this time.

今天的會議到此結束。您現在可以掛斷電話線。

Thank you for your participation.

感謝您的參與。