Algoma Central Corporation Reports Financial Results for the 2026 First Quarter
Focused fleet growth, strategic opportunities, and built-in adaptability across domestic and international operations drove a resilient first quarter
"
Financial Highlights: First Quarter 2026 Compared to First Quarter 2025
-
Net earnings increased to
$2,224 compared to a loss of$23,280 in 2025. Basic and diluted earnings per share were$0.05 in 2026 compared to a loss of$0.57 in 2025. Earnings in 2026 include one-time net gains totaling$18,881 recorded in the period. Excluding these items, net loss decreased 28.3% to$16,689 compared to$23,280 in 2025. -
Domestic Dry-Bulk segment revenue increased 21% to
$37,134 compared to$30,551 in 2025, reflecting 23% higher volumes driving a 13% rise in revenue days. Operating losses for the segment decreased 4.1% to$35,622 compared to$37,160 in 2025. -
Revenue for the Product Tankers segment increased 40% to
$46,739 compared to$33,291 in 2025, driven primarily by the larger fleet size. Operating earnings increased to$4,796 compared to a loss of$378 in 2025. -
Revenue in the Ocean Self-Unloaders segment increased to
$43,286 compared to$42,725 in 2025. Operating earnings increased 34% to$8,667 compared to$6,445 in 2025, mainly as a result of reduced off-hire days. -
Joint venture equity earnings increased in the quarter to
$7,209 compared to$4,689 for the prior year period. International product tankers drove earnings growth, supported by higher daily rates due to current favourable market conditions and fleet expansion from five vessels at the start of the prior year to eight in the current period.
“Algoma experienced a strong first quarter with higher volumes and additional capacity,” said
|
Consolidated Statement of Earnings |
||||||
|
For the three months ended |
2026 |
2025 |
||||
|
(unaudited, in thousands of dollars, except per share data) |
|
|
||||
|
Revenue |
$ |
127,781 |
|
$ |
107,201 |
|
|
Operating expenses |
|
(122,938 |
) |
|
(113,258 |
) |
|
Selling, general and administrative expenses |
|
(13,735 |
) |
|
(10,989 |
) |
|
Depreciation and amortization |
|
(21,115 |
) |
|
(18,630 |
) |
|
Operating loss |
|
(30,007 |
) |
|
(35,676 |
) |
|
|
|
|
||||
|
Interest expense |
|
(6,830 |
) |
|
(4,628 |
) |
|
Interest income |
|
153 |
|
|
135 |
|
|
Gain on business acquisition |
|
3,665 |
|
|
— |
|
|
Gain on sale of assets |
|
20,702 |
|
|
— |
|
|
Foreign exchange loss |
|
(1,145 |
) |
|
(177 |
) |
|
|
|
(13,462 |
) |
|
(40,346 |
) |
|
|
|
|
||||
|
Income tax recovery |
|
8,477 |
|
|
12,377 |
|
|
Net earnings from investments in joint ventures |
|
7,209 |
|
|
4,689 |
|
|
|
|
|
||||
|
Net earnings (loss) |
$ |
2,224 |
|
$ |
(23,280 |
) |
|
|
|
|
||||
|
Basic and diluted earnings (loss) per share |
$ |
0.05 |
|
$ |
(0.57 |
) |
|
EBITDA |
||||||
|
The Company uses EBITDA as a measure of the cash generating capacity of its businesses. The following table provides a reconciliation of net earning (loss) in accordance with GAAP to the non-GAAP EBITDA measure for the three months ended |
||||||
|
For the three months ended |
2026 |
2025 |
||||
|
Net earnings (loss) |
$ |
2,224 |
|
$ |
(23,280 |
) |
|
Depreciation and amortization |
|
25,657 |
|
|
25,622 |
|
|
Net interest and tax recoveries |
|
931 |
|
|
(4,947 |
) |
|
Foreign exchange loss |
|
387 |
|
|
234 |
|
|
Gain on business acquisition |
|
(3,665 |
) |
|
— |
|
|
Net loss (gain) on sale of assets |
|
(20,702 |
) |
|
1 |
|
|
EBITDA (1) |
$ |
4,832 |
|
$ |
(2,370 |
) |
|
Select Financial Performance by Business Segment |
||||||
|
For the three months ended |
2026 |
2025 |
||||
|
Domestic Dry-Bulk |
|
|
||||
|
Revenue |
$ |
37,134 |
|
$ |
30,551 |
|
|
Operating loss |
|
(35,622 |
) |
|
(37,160 |
) |
|
Product Tankers |
|
|
||||
|
Revenue |
|
46,739 |
|
|
33,291 |
|
|
Operating earnings (loss) |
|
4,796 |
|
|
(378 |
) |
|
Ocean Self-Unloaders |
|
|
||||
|
Revenue |
|
43,286 |
|
|
42,725 |
|
|
Operating earnings |
|
8,667 |
|
|
6,445 |
|
|
Corporate |
|
|
||||
|
Revenue |
|
622 |
|
|
634 |
|
|
Operating loss |
|
(7,848 |
) |
|
(4,583 |
) |
The MD&A for the three months ended
Business Outlook(2)
In the Domestic Dry-Bulk segment, grain and salt volumes are expected to increase, partially offset by reductions in the iron and steel sectors. Higher grain volumes are anticipated to add revenue days and support continued strength in the agriculture segment. Salt volumes are also expected to increase, with a rise in shipment volumes anticipated as depleted inventories are replenished following the harsher winter weather around the
In the Product Tanker segment, customer demand is anticipated to remain steady and fuel distribution patterns should support strong utilization for the vessels trading under Canadian flag. We expect all ten Canadian vessels to remain in full employment for the balance of the year.
In the Ocean Self-Unloader segment, vessel supply is expected to increase with fewer assets scheduled for dry-docking. Volumes are expected to improve modestly for the remainder of the year. Algoma took delivery of the second of three newbuild self-unloader that will join the Pool in the second quarter of 2026.
In our global joint ventures, we anticipate steady rates across the fleets, with most assets committed to long-term time charter contracts. The remaining two FureBear newbuild tankers are expected to be delivered in 2026; the Company is anticipating a continued steady rate environment for these tankers.
Global tariffs could increase operating costs and reduce trade volumes, potentially leading to shifts in global supply chain routes. Earnings could be impacted by on-going conflicts in
Normal Course Issuer Bid
Effective
Cash Dividends
The Company's Board of Directors authorized payment of a quarterly dividend to shareholders of
Notes
(1) Use of Non-GAAP Measures
The Company uses several financial measures to assess its performance including earnings before interest, income taxes, depreciation, and amortization (EBITDA), free cash flow, return on equity, and adjusted performance measures. Some of these measures are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS) as issued by the
(2) Forward Looking Statements
Algoma Central Corporation’s public communications often include written or oral forward-looking statements. Statements of this type are included in this document and may be included in other filings with Canadian securities regulators or in other communications. All such statements are made pursuant to the safe harbour provisions of any applicable Canadian securities legislation. Forward-looking statements may involve, but are not limited to, comments with respect to our objectives and priorities for 2026 and beyond, our strategies or future actions, our targets, expectations for our financial condition or share price and the results of or outlook for our operations or for the Canadian,
By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct and that actual results may differ materially from such predictions, forecasts, conclusions or projections. We caution readers of this document not to place undue reliance on our forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260506899732/en/
President & CEO
905-687-7890
Chief Financial Officer
905-687-7940
Source:
