Algoma Steel Group (NASDAQ:ASTL) Releases Earnings Results, Misses Estimates By $2.43 EPS

Algoma Steel Group (NASDAQ:ASTL) released its quarterly earnings results on Wednesday. The company reported ($2.11) EPS for the quarter, missing analysts’ consensus estimates of $0.32 by ($2.43), Zacks reports. The firm had revenue of $331.33 million during the quarter, compared to the consensus estimate of $474.30 million. Algoma Steel Group had a negative net margin of 31.27% and a negative return on equity of 15.13%.

Algoma Steel Group Stock Performance

Shares of NASDAQ:ASTL traded down $0.44 during trading on Thursday, hitting $3.90. 1,803,947 shares of the stock were exchanged, compared to its average volume of 1,444,530. The company has a market capitalization of $408.98 million, a price-to-earnings ratio of -0.82 and a beta of 1.54. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.76 and a current ratio of 2.29. Algoma Steel Group has a 1-year low of $3.02 and a 1-year high of $7.24. The company’s fifty day simple moving average is $4.49 and its 200-day simple moving average is $4.28.

Institutional Investors Weigh In On Algoma Steel Group

A number of institutional investors have recently bought and sold shares of ASTL. Raymond James Financial Inc. bought a new stake in Algoma Steel Group in the 2nd quarter valued at $32,000. Element Pointe Advisors LLC acquired a new stake in shares of Algoma Steel Group during the 4th quarter valued at about $41,000. Federation des caisses Desjardins du Quebec boosted its position in shares of Algoma Steel Group by 101.6% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 17,860 shares of the company’s stock valued at $73,000 after acquiring an additional 9,000 shares in the last quarter. Lighthouse Investment Partners LLC bought a new stake in Algoma Steel Group in the third quarter valued at about $79,000. Finally, FIL Ltd bought a new stake in Algoma Steel Group in the fourth quarter valued at about $85,000. Institutional investors and hedge funds own 72.00% of the company’s stock.

Analyst Ratings Changes

Several analysts recently weighed in on the company. Zacks Research downgraded Algoma Steel Group from a “strong-buy” rating to a “hold” rating in a research note on Monday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Algoma Steel Group in a report on Monday, December 29th. Finally, Jefferies Financial Group initiated coverage on shares of Algoma Steel Group in a research note on Friday, January 2nd. They issued a “hold” rating on the stock. Five investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Reduce”.

Key Algoma Steel Group News

Here are the key news stories impacting Algoma Steel Group this week:

• Positive Sentiment: Completed transition to EAF (electric arc furnace), a strategic shift that should lower long‑term operating intensity and carbon footprint; management said the blast‑furnace shutdown is complete. Algoma Steel Group Inc. Reports Financial Results (GlobeNewswire)
• Positive Sentiment: Analyst coverage includes price targets above current levels (median target reported ~$6), signaling some analysts see upside after the selloff. Algoma Steel Group Inc. (ASTL) Stock Falls on Q3 2026 Earnings (QuiverQuant)
• Neutral Sentiment: Company filed formal results and said fourth‑quarter outcomes were in line with previously announced expectations tied to the transition; investors must weigh one‑time transition costs vs longer‑term benefits. Algoma Steel Group Inc. Reports Financial Results (Financial Post/GlobeNewswire)
• Neutral Sentiment: Institutional and hedge‑fund activity shows mixed positioning (large buys and sells reported), which can increase volatility but doesn’t signal a consensus directional view. Institutional Activity Summary (QuiverQuant)
• Negative Sentiment: Huge EPS miss: Algoma reported a loss of ($2.11) vs. a consensus of $0.32 and revenue of ~$331M vs. ~$474M expected — a clear catalyst for the share decline. Algoma Steel Group Inc. Reports Q4 Loss, Lags Revenue Estimates (Zacks)
• Negative Sentiment: Widened quarterly loss and cost pressures: reports cite a C$364.7M fourth‑quarter loss, sharply higher cost of sales and tariff charges; cash fell materially (reported cash ~C$56–57M), increasing near‑term liquidity risk. Algoma Steel’s fourth quarter loss widens (MSN)
• Negative Sentiment: Zacks downgraded the stock from “strong‑buy” to “hold,” reflecting reduced near‑term conviction after the results. Zacks Downgrade Notice

About Algoma Steel Group

Algoma Steel Group Inc is a North American steel producer headquartered in Sault Ste. Marie, Ontario. The company operates a modern electric arc furnace (EAF) complex and an integrated rolling mill, enabling it to transform scrap and direct reduced iron into a wide range of steel products. Algoma Steel Group returned to public markets in 2021 with listings on both the Toronto Stock Exchange and the Nasdaq under the symbol ASTL.

Founded in 1901 as Algoma Steel Corporation, the company grew to become one of Canada’s leading steelmakers before undergoing restructuring in the early 2000s.