SAULT STE. MARIE – Algoma Steel Group Inc. has suspended its dividend as it reported a net loss in the last quarter and struggles with the ongoing impacts of U.S. metal tariffs.
The Sault Ste. Marie-based steel producer says it suspended the dividend as a prudent way to preserve financial flexibility during ongoing macroeconomic uncertainty.
The move came as the company reported a net loss of $110.6 million during the second quarter compared with net income of $6.1 million a year earlier.
Algoma Steel says it paid $64.1 million in tariffs during the quarter, compared with none during the same period in 2024.
Shipments to the U.S. represented 54 per cent of total volume during the second quarter. On June 4, the U.S. increased tariffs on steel imports to 50 per cent.
Algoma Steel CEO Michael Garcia says the firm’s operational results met its expectations for the quarter, but were affected by tariff uncertainty and weak steel demand.
“The uncertain market environment has created headwinds for shipments and pricing across the industry,” said Garcia in a statement.
Revenue during the second quarter came in at $589.7 million, lower than $650.5 million the year before.
Last week, the company said it is seeking $500 million in federal support as it faces continued uncertainty from U.S. tariffs on Canadian steel.
This report by The Canadian Press was first published July 30, 2025.
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