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Earnings Call Presentation For the Quarter Ended September 30, 2025
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2 Disclaimer CAUTIONARY STATEMENT REGARDING FORWARD -LOOKING STATEMENTS This presentation contains “forward-looking informationˮ under applicable Canadian securities legislation and “forward-looking statementsˮ within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward looking statementsˮ). Forward-looking statements and information generally can be identified by the use offorward-looking terminology such as “outlookˮ, “objectiveˮ, “mayˮ, “willˮ, “expectˮ, “intendˮ, “estimateˮ, “anticipateˮ, “believeˮ, “shouldˮ, “plansˮ, “budgetˮ, “continueˮ or similar expressions suggesting future outcomes or events. Forward-looking statements and information include, but are not limited to, statements regarding the operations, business, financial condition, expected financial results, performance, opportunities, strategies, outlook and guidance of Algoma Steel Group Inc. (the “Companyˮ or “Algomaˮ), Algoma's strategic objectives, its plate mill modernization project, potential purchases under its normal course issuer bid, and Algomaʼs transformation to electric arc furnace steelmaking (the “EAF Transformationˮ), including the expected timing for completion of the EAF Transformation, and full EAF transition and the resulting effects on the Company, expectations regarding future economic conditions, including the price of steel, tariffs and/or trade wars, inflation and interest rates, Algomaʼs capitalization and ability to create value for its shareholders. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should notplace undue reliance on forward- looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information. Readers should consider the other risks and uncertainties set forth in the section entitled “Risk Factorsˮ and “Cautionary Note Regarding Forward-Looking Informationˮ in Algomaʼs Annual Information Form for the 9 months ended December 31, 2024, filed by Algoma with applicable Canadian securities regulatory authorities (available under the companyʼs SEDAR profile at www.sedarplus.ca) and with the U.S.Securities and Exchange Commission (the “SECˮ), as part of Algomaʼs Annual Report on Form 40F (available at www.sec.gov), as well as in Algomaʼs current reports with the Canadian securitiesregulatory authorities and the SEC. Given these risks, uncertainties and other factors, readers should not place undue reliance on forward‐looking statements or information as a prediction of actual results. The forward‐looking statements and information reflects managementʼs current expectations and beliefs regarding future events and operating performance and is based on information currently available to management. Although we have attempted to identify important factors that could cause actual results to differ materially from the forward‐looking statements and information contained herein, there are other factors that could cause results not to be as anticipated, estimated or intended. The forward‐looking statements and information contained herein is current as of the date hereof and, except as required under applicable law, we do not undertake to update or revise it to reflect new events orcircumstances. Certain information in this presentation may be considered as “financial outlookˮ within the meaning of applicable securities legislation. The purpose of this financial outlook is to provide readers with disclosure regarding the Companyʼs reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes. PRESENTATION OF FINANCIAL INFORMATION The Companyʼs fiscal year runs from January 1st to December 31st. The Company and its subsidiariesʼ functional currency is the UnitedStates dollar (“US dollarˮ or “US$ˮ). The US dollar is the currency of the primary economic environment in which the Company and subsidiaries operate. The items included in the unaudited condensed interim financial statements are measured using theUS dollar. For reporting purposes, the unaudited condensed interim consolidated financial statements are presented in millions of Canadian dollars (“C$ˮ or “$ˮ). The assets and liabilities are translated into the reporting currency using exchange rates prevailing at the end of each reporting period. Income and expense items are translated ataverage exchange rates for the reporting period. Exchange differences arising are recognized in other comprehensive (loss) income and accumulated in equity under the heading ‘Foreign exchange on translation to presentation currency.ʼ The Companyʼs financial statements have been prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IASBˮ) (“IFRS Accounting Standardsˮ). The financial information presented herein may differ in certain material respects from U.S. generally accepted accounting principles (“U.S. GAAPˮ). As such, the Companyʼs financial statements are not comparable to the financial statements of U.S. companies prepared in accordance with U.S.GAAP. This presentation should be read in conjunction with, the Companyʼs September 30 th, 2025 unaudited condensed interim consolidated financial statements and the accompanying notes, and the related managementʼs discussion & analysis. NON- GAAP MEASURES To supplement our financial statements, we use certain non-GAAP measures to evaluate the performance of Algoma. These terms donot have any standardized meaning prescribed within IFRS Accounting Standards and, therefore, may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS Accounting Standards by providing a further understanding of our financial performance from managementʼs perspective and providing management and investors with additional information for comparison of our operating results across different time periods and to the operating results of other companies. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS Accounting Standards. Please refer to the Companyʼs most recent MD&A for further discussion of these non-GAAP financial measures, including Adjusted EBITDA, and for a reconciliation to comparable IFRS Accounting Standards, including net (loss) income. See also Annex: Adjusted EBITDA Reconciliation on slide15. EARNINGS CALL PRESENTATION
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T oday’ s Presentors 3 Agenda Chief Executive Officer Michael D. Garcia, Chief Financial Officer Incoming Chief Executive Officer – January 2026 Rajat Marwah, 01 Safety Performance 02 Financial Performance 03 Strategic Update 04 Market Update 05 Questions & Answers EARNINGS CALL PRESENTATION
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4 Safety Without Compromise 1-Continued Focus and Improvement in Lost Time Injury Frequency Rate (LTIFR) Continued Focus and Improvement in Lost Time Injury Frequency Rate (LTIFR)1 Health & Safety Performance Ongoing commitment to superior Health & Safety performance has led to sustained improvement of safety metrics over time. Health & safety remains our highest priority and to further the Companyʼs efforts to improve, weare implementing an ISO 45001 Safety Management System. Algoma employs a Joint Health and Safety System to provide a healthy and safe workplace. Proud participants in the WSIB Health & Safety Excellence Program, joining businesses from across Ontario in the exchange of best practices, training and development. 1.00 0.20 0.17 0.14 0.17 0.24 0.10 0.20 0.28 0.00 0.20 0.00 0.25 0.09 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD
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5 Key Performance Highlights 419K NT Shipments ($87)M Adjusted EBIDTA $473M Steel Revenue (16.6)% Adjusted EBIDTA Margin Q3 2025 Highlights Q3 2025 – Ended September 30th, 2025 Shipping Volume was 419K NT in Q3 2025, down 11% from 472K NT in Q2 2025 and down 19% from 520K NT in Q3 2024. Steel Revenue was $473 million in Q3 2025, down 11% from $534 million in Q2 2025 and down 12% from $539 million in Q3 2024. Adjusted EBITDA was $87) million in Q3 2025, down $55 million from $32) million in Q2 2025 and down $91 million from $4 million in Q3 2024. Net Loss was $485) million in Q3 2025, down $374 million from $111) million in Q2 2025 and down $378 million from $107) million in Q3 2024. Liquidity was $338 million at the end of Q3 2025 including $5M of cash and availability of $333 million under the Revolving Credit Facility. Adjusted EBITDA margin Q3 2025 was 16.6%. Source: Company Management's Discussion and Analysis prepared for the 3 and 9 months ended September 30 th , 2025 Adjusted EBITDA and Adjusted EBITDA margin are non -GAAP financial measures. See Annex: Adjusted EBITDA Reconciliation on slide 15.
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6 Third Quarter Financial Highlights Q3 2025 Quarterly Adjusted EBITDA Margin was -16.6%. Source: Company Management's Discussion and Analysis prepared for the 3 and 9 months ended September 30 th , 2025. Adjusted EBITDA and Adjusted EBITDA margin are non -GAAP financial measures. See Annex: Adjusted EBITDA Reconciliation on slide 15. Q3 2025 Q3 2024 Change Q2 2025 Change Shipping volume (‘000s tons) 419 520 ↓ -19% 472 ↓ -11% Net Sales Realization per ton ($/ton) 1,129 1,036 ↑ 9% 1,132 ↓ 0% Steel Revenue ($ million) 473 539 ↓ -12% 534 ↓ -11% Cost of Steel Products Sold ($/ton) 1,282 1,032 ↑ 24% 1144 ↑ 12% Adjusted EBITDA ($ million) (87) 4 ↓ - (32) ↓ - Net Loss ($ million) (485) (107) ↓ - (111) ↓ -
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7 Overview of Net Working Capital Seasonality1 Source Company Notes to the Financial Statements: Please note that the chart shown includes Inventory, Trade Receivables, Payables Net of Prepaids, and Taxes Payable Net of T axe s Receivable Net Working Capital ($M) $568 $641 $687 $762 $623 $633 $825 $926 $875 $815 $849 $897 $830 $820 $785 $868 $730 $717 $777 -$79M -$122M -$166M -$165M -$182M -$156M -$162M -$134M -$110M -$172M -$219M -$256M -$206M -$205M -$241M -$276M -$284M -$318M -$290M $259M $313M $409M $435M $389M $311M $237M $221M $277M $272M $292M $268M $239M $252M $247M $223M $263M $237M $238M $415M $470M $486M $616M $480M $638M $866M $912M $723M $759M $823M $887M $808M $800M $793M $879M $694M $736M $790M -$27M -$20M -$42M -$123M -$64M -$159M -$117M -$73M -$14M -$45M -$48M -$1M -$10M -$27M -$14M $43M $57M $62M $39M Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Accounts Payable (net of prepaids) Accounts Receivable Inventory Taxes (Payable)/Receivable (net)
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8 Accelerating EAF Transformation Water Treatment Plant commissioned Fume Treatment Plant commissioned EAF Electrical Substation tested and energized The Furnace takes its place inside the engineered furnace enclosure We are accelerating retirement of our blast furnace and coke oven operations as we ramp up EAF production through 2025 and 2026.
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9 Market Update Source: Market data as of October 29, 2025. Historical Hot Rolled Coil (HRC) and As Rolled Plate Prices (ARP) (US$/ton) Key Market Drivers Macroeconomic Drivers Steel tariffs of 50% persist on imported steel into the US. Current oversupply of the Canadian coil market due to US market being cut off from Canadian steel mills. Trade Policy and Tariffs Global Supply Chain Disruptions Economic Indicators – Canada Automotive Industry Dynamics Inflation Central Bank Policy $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 1/4/2023 5/31/2023 10/25/2023 3/20/2024 8/14/2024 1/8/2025 6/4/2025 10/29/2025 $/NT ARP HRC
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10 Committed to our Path Forward We are positioning Algoma for a new era in steel, well-capitalized to make critical investments that enhance long-term performance and create value for our shareholders. STRATEGIC DIRECTION OPERATIONAL & CAPITAL IMPROVEMENTS Algoma has developed and executed numerous operational and capital projects that add long term value to the business. EAF APPROVAL Received Board approval to begin construction of Electric Arc Furnace. Nov 2021 PMM PHASE 1 Enhancing quality and expanding grade range on Canada’s only discrete plate mill. 2022 LSP POWER PLANT Installation of new turbines to support power generation for EAF project. Jun 2023 PMM PHASE 2 Final installation of key elements substantially complete. 2024 EAF 2 First heat achieved July 2025. 2025 EAF 1 Construction progressing, commissioning activities expected in early 2026. 2026E OPERATIONAL PIVOT Accelerate EAF transformation with a plate – first strategy focusing primarily on the Canadian market. 2025E FINANCIAL DISCIPLINE Algoma has focused on streamlining its balance sheet, finding effective sources of capital to fund its strategic initiatives and providing long-term value to stakeholders. RETURN TO PUBLIC MARKETS Including Equity injection of $306M USD. Oct 2021 SUBSTANTIAL ISSUER BID Algoma buys back approximately 1/3 of outstanding shares. Aug 2022 NORMAL COURSE ISSUER BID Algoma renewed its NCIB for share repurchases. 2023/24 ABL RENEWAL Amend and extend Algoma’s now upsized US$300M asset- based loan. May 2023 DEBT OFFERING Opportunistically raised $350M USD to strengthen balance sheet and mitigate risk. Apr 2024 ABL UPSIZE Algoma amended and upsized it’s asset-based loan from US$300M to US$375. 2025 LIQUITIDY FUNDING SUPPORT Algoma secured a binding term sheet for $500 million of financing from the Governments of Canada and Ontario. 2025 STRATEGIC PARTNERSHIPS Algoma continues to develop partnerships focused on de-risking the organization and creating long-term value for stakeholders. ATM METALS JV with Triple M Metals for committed supply of scrap and metallic units. Ongoing DANIELI Technology partner for OEM Equipment for Algoma’s Transformation to Electric Arc Steelmaking. 2021–2025E IESO Provides Conditional Approval of Phase 1 & 2 System Impact Assessment. 2023 ONTARIO GOVERNMENT Issued Order in Council to expedite transition lines construction 2029E PROJECT VIGILANCE Partnering with Ontario Shipyards to support the next chapter of Canada’s Shipbuilding Strategy Ongoing TRANSPOD Partnering with TransPod and Supreme Steel to build Canada’s first ultra-high-speed TransPod line between Calgary and Edmonton. Ongoing SEASPAN Signed MoU with Seaspan and Stigterstaal to explore strategic partnership on expanding shipbuilding in Canada. Ongoing ESG FOCUS Algoma is committed to initiatives geared at driving performance, reducing risk and developing a culture of organizational excellence that improve our ESG performance. FOCUS ON SAFETY TRIR improved from 2.35 in FY2022 to 1.45 in 2024, reflecting stronger training, engagement, and safety focus. Ongoing STRONG BOARD GOVERNANCE An active, well-informed board with diverse perspectives and experience. Ongoing ENTERPRISE RISK MANAGEMENT Develop a culture of risk management. Nov 2019 ESG POSITION STATEMENT Published Algoma’s approach to ESG. Apr 2023 INTEGRATED BUSINESS PLANNING Planning process to enhance operational efficiency and improve ship-on-time performance. Ongoing SUSTAINABILITY REPORT Published its third annual Sustainability Report. 2025 EMISSION REDUCTION EAF project expects to reduce emissions 70% and improve GHG performance.
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11 Appendices
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1212 Algoma’s 2024 Sustainability Report EARNINGS CALL PRESENTATION Algoma Steel is proud to share its 2024 Sustainability Report covering the nine months ended December 31, 2024. The report outlines our sustainability strategy, highlights progress made over the past year, and details how we are addressing sustainability risks while advancing opportunities that support a more sustainable future. Now available on our website at www.algoma.com.
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13 For more updates follow our social channels: Social Updates
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14 Annex: Steel Revenue and Cost of Sales Source: Company Management's Discussion and Analysis prepared for the 3 and 9 months ended September 30, 2025.
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15 Annex: Adjusted EBITDA Reconciliation Source: Company Management's Discussion and Analysis prepared for the 3 and 9 months ended September 30, 2025.
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16 Annex: Selected Quarterly Information Source: Company Management's Discussion and Analysis prepared for the 3 and 9 months ended September 30, 2025. (millions of dollars, except where otherwise noted) As at and for the three months ended1 Q3 Q2 Q1 Q3 Q2 Q1 Q4 Q3 Financial results Total revenue C$ 523.9 C$ 589.7 C$ 517.1 C$ 590.3 C$ 600.3 C$ 650.5 C$ 620.6 C$ 615.4 Steel products 473.3 534.4 463.2 535.7 539.0 597.4 568.1 556.9 Non-steel products 11.8 10.6 2.8 4.4 14.7 7.2 4.9 10.4 Freight 38.8 44.7 51.1 50.2 46.6 45.9 47.6 48.1 Cost of sales 640.8 643.8 626.1 677.4 647.2 633.8 585.4 623.8 Administrative and selling expenses 31.2 31.0 30.9 37.7 36.7 29.2 32.1 28.5 Income (loss) from operations (651.5) (85.1) (139.9) (124.8) (83.6) (12.5) 3.1 (36.9) Net income (loss) (485.1) (110.6) (24.5) (66.5) (106.6) 6.1 28.0 (84.8) Adjusted EBITDA C$ (87.1) C$ (32.4) C$ (46.7) C$ (60.3) C$ 3.5 C$ 37.7 C$ 41.6 C$ (1.0) Per common share (diluted)3 Net income (loss) C$ (4.46) C$ (1.02) C$ (0.48) C$ (0.61) C$ (0.98) C$ (0.07) C$ 0.10 C$ (0.78) Financial position Total assets C$ 2,435.6 C$ 2,945.6 C$ 3,090.1 C$ 3,186.2 C$ 3,095.9 C$ 3,123.2 C$ 2,676.0 C$ 2,651.6 Total non-current liabilities 1,045.6 1,154.6 1,181.1 1,187.4 1,201.3 1,187.2 745.1 744.3 Operating results Average NSR C$ 1,129 C$ 1,132 C$ 986 C$ 976 C$ 1,036 C$ 1,187 C$ 1,260 C$ 1,079 Adjusted EBITDA per nt2 (207.8) (68.6) (99.4) (109.9) 6.7 74.9 92.0 (1.9) Shipping volume (in thousands of nt) Sheet 322 369 377 466 446 442 381 453 Plate 97 103 91 82 73 61 69 59 Slab - - 2 1 1 - - 4 1 - For fiscal year ended December 31, 2025 and onwards, period end date refers to the following: "Q1" - March 31, "Q2" - June 30, "Q3" - September 30, and "Q4" - December 31. Effective for fiscal year ended December 31, 2024, the Company changed its year end from March 31 to December 31. Therefore, for fiscal years prior to December 31, 2025, period end date refers to the following: "Q1" - June 30, "Q2" - September 30", "Q3" - December 31, and "Q4" - March 31. 2 - The definition and reconciliation of these non-IFRS measures are included in the "Non-IFRS Financial Measures" section of this MD&A. 3 - Pursuantto the Merger with Legato,on October 19, 2021, the Company effected a reversestock split retroactively, such that each outstandingcommonshare became such number of common shares, each valuedat $10.00 per share, as determinedby the conversion factor of 71.76775%(as defined in the Merger Agreement),with such common shares subsequently distributed to the equity holders of the Company’s former ultimate parent company. Further, on February 9, 2022, the Companyissued 35,883,692commonshares in connection with the earnout rights granted to non-managementshareholdersthat existedprior to the Merger. Nine months ended December 31, 2024 Fiscal year ended March 31, 2024 ("2024") Fiscal year ended December 31, 2025 ("2025") As at September 30, 2025, 104,933,802 common shares were outstanding. 4 - On March 3, 2022, the Company commenced a normal course issuer bid for which the Company purchased and cancelled 3,364,262 common shares as at March 31, 2023. 5 - On June 21, 2022, the Company commenced a substantialissuer bid in Canada and a Tender Offer (the "Offer") in the United States. On July 27, 2022, the Offer was completed and 41,025,641 common shares were purchased for cancellation. 6 - During the year ended March 31, 2024, the Company converted 70,920 deferred share units to common shares and issued 464,268 common shares upon exercise of earnout rights, Replacement LTIP units and Omnibus Plan LTIP units. 7 - During the nine month period ended December 31, 2024, the Company issued 755,730 common shares upon exercise of earnout rights, ReplacementLTIP units and Omnibus Plan LTIP units. 8 - During the three month period ended March 31, 2025, the Company issued 75,000 common shares upon exercise of earnout rights.
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17 Glossary Term Definition Basic Oxygen Furnace (BOF) Vessel used to convert liquid hot metal from a blast furnace into steel. Blast Furnace (BF) Metallurgical furnace combining fuel, ores and flux to smelt iron ore to produce pig iron, which is fed downstream into a BOF. Cogeneration Also known as combined heat and power CHP, a cogeneration plant uses gas generated from the steelmaking process to create electricity. Coke Fuel for a Blast Furnace that is made by heating coal in the absence of air. Cold Rolled Sheet Hot rolled steel that has been further processed to increase its strength and strength-to-weight ratio, providing better overall surface finish. Continuous Casting Process whereby molten metal is solidified into a "semi- finished" billet, bloom, or slab for subsequent rolling in the finishing mills. CRU Index Price index which is widely used throughout the steel industry. Prepared by CRU, a leading steel data provider (cruindices.com ). Electric Arc Furnace (EAF) Method for producing steel with primary inputs of scrap steel and electricity. EAFs form new steel by heat charging material with an electric arc. Hard Coking Coal (HCC) A category of metallurgical coal that is converted to coke and used as fuel for the blast furnace in an integrated steel mill. Hot Briquetted Iron (HBI) Compacted form of direct reduced iron DRI) that serves as a supplement for pig iron and scrap in electric arc furnace steel mills. Hot Metal Blast furnace iron ore that is charged to the BOF in hot liquid form.
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18 Term Definition Hot Rolled Sheet Carbon steel product commonly used for applications in which dimensional tolerances and surface finish quality is not critical (e.g. automotive accessories, stampings). Iron Ore Pellets Pellets are small balls of iron ore used in the production of steel that are agglomerated from fines. Limestone Also referred to as flux, limestone is an essential input in a blast furnace. Ladle Metallurgy Furnace (LMF) Holding furnace for hot metal coming out of the BOF or EAF, increases capacity of melt shop and allows for improvements to steel grade. Metallics Iron ore or similar products that are used to produce raw steel. NOx Nitrous oxide NOx is a greenhouse gas that traps heat in the atmosphere. Net Sales Realization (NSR) The average selling price of steel excluding costs of freight. Pig Iron Intermediate solid input made by smelting iron ore with a high- carbon fuel and reductant, such as coke, with flux for use as a feedstock in the BOF. Plate Includes steel sheet metal that is 5mm or thicker used for construction or structural purposes due to its low maintenance versatility (e.g. shipping containers, roofing, heavy equipment). Prime Scrap High quality, clean scrap metal that tends to trade at a premium to lower quality shredded scrap. Slab Thick semi-finished (intermediate) steel that is further converted into hot rolled sheet or plate. Service Center Wholesalers that may further process steel purchased from manufacturer (e.g. cutting or forming). SOx Sulfur oxide SOx is an air pollutant that has negative health consequences.
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