Algoma Central Corporation Reports Financial Results for the 2026 Second Quarter
Strategic acquisitions, expanded credit facilities, and strong segment performance position Algoma for continued growth.
Algoma Central Corporation (TSX: ALC) ("Algoma", the "Company") today reported its results for the three and six months ended June 30, 2026. Algoma reported second quarter revenues of $258,273, compared to revenues of $211,715 in 2025. Net earnings for the second quarter were $35,585 compared to $32,883 in 2025. All amounts reported below are in thousands of Canadian dollars, except for per share data and where the context dictates otherwise.
"Algoma has always pursued growth thoughtfully, focusing on opportunities that align with both our business strategy and our values, " said Gregg Ruhl, President & CEO of Algoma Central Corporation. "Growth also brings periods of transition as we position the business to capitalize on attractive opportunities when they arise, including the strategic sale of vessels and the acquisition of assets across our fleets. As we enter new markets and pursue these opportunities, we do so with confidence in the expertise, knowledge, and commitment of our employees to drive our continued success. Although economic and geopolitical uncertainty persists, we remain focused on our long-term strategy, supported by top tier customers, steady demand, and stable freight rates," concluded Mr. Ruhl.
Financial Highlights: Second Quarter 2026 Compared to Second Quarter 2025
Domestic Dry-Bulk segment revenue increased 17% to $144,888 compared to $123,607 in 2025, reflecting higher demand in construction, agriculture, and salt sectors driven by additional vessels and higher freight rates, offsetting declines in the iron and steel sector. Operating earnings for the segment increased 23% to $32,726 compared to $26,642 in 2025.
Revenue for the Product Tanker segment increased 32% to $55,606 compared to $42,173 in 2025, driven by the full quarter deployment of the
Algoma Acadian
and A
lgoma East Coast
and fewer regulatory dry-dockings. Operating earnings increased 42% to $6,402 compared to $4,519 in 2025.
Revenue in the Ocean Self-Unloaders segment increased 26% to $57,165 compared to $45,320 in 2025 reflecting strong Pool performance and higher revenue days as a result of fewer regulatory dry-dockings. Operating earnings increased 26% to $13,481 compared to $10,475 in 2025. Late in the quarter, the Pool agreement was amended increasing the Company's share in the Pool to 50%. While this change had a modest impact on the current period, it will increase the Company's share of earnings from the segment going forward.
Joint venture equity earnings decreased in the quarter to $5,181 compared to $7,521 in 2025. Decreased earnings in the cement fleet reflects our reduced ownership interest, while an off-hire incident and weaker market conditions led to a decline in revenue days and earnings in the mini-bulker fleet. The international product tankers earnings growth partially offset these decreases, supported by higher daily rates for intermediate product tankers and an increase in the number of FureBear vessels, nine vessels this year compared to six in the prior year.
The Company completed an amendment and expansion of its senior secured credit facilities late in the quarter, extending maturity of the facility to May 2031. In addition, the Company raised CAD $72 million and US $78 million through the issuance of new senior secured notes.
“During the quarter, we completed two significant refinancing transactions by amending our senior credit facilities and issuing new senior secured notes, while also advancing strategic acquisitions across our fleets,” said Christopher Lazarz, Chief Financial Officer of Algoma Central Corporation. “These financing activities support our recent domestic and international investments and strengthen the Company’s balance sheet. The acquisitions included increasing the Company’s ownership interest in the Ocean Self-Unloader Pool and integrating three vessels acquired in the first quarter of 2026 into our Domestic Dry-Bulk fleet. Overall, the quarter delivered higher consolidated revenue, net earnings and EBITDA compared to the prior year, driven by stronger results in our domestic dry-bulk, product tanker, and ocean self-unloader segments. Taken together, these results demonstrate strong execution across the business, disciplined capital allocation, and continued confidence in Algoma’s long-term growth strategy,” concluded Mr. Lazarz.
Consolidated Statement of Earnings
EBITDA
The Company uses EBITDA as a measure of the cash generating capacity of its businesses. The following table provides a reconciliation of net earnings in accordance with GAAP to the non-GAAP EBITDA measure for the three and six months ended June 30, 2026 and 2025 and presented herein:
Select Financial Performance by Business Segment
The MD&A for the three and six months ended June 30, 2026 and 2025 includes further details. Full results for the three and six months ended June 30, 2026 and 2025 can be found on the Company’s website at
www.algonet.com/investor-relations
and on SEDAR at
www.sedarplus.ca
.
Business Outlook
(2)
In the Domestic Dry-Bulk segment, grain and construction volumes are expected to remain strong with the new customer contracts and additional capacity acquired in the first quarter. Demand for spot grain and salt shipments is anticipated to remain strong throughout the balance of the year, supporting full fleet utilization.
In the Product Tanker segment, we expect demand to remain strong for our domestic Canadian tanker fleet and for those assets to be fully employed for the remainder of 2026.
In the Ocean Self-Unloader segment the Company's increased share in the Pool's operating earnings and anticipated higher coal volumes is expected to be partially offset by reduced aggregate volumes for the remainder of the year. The third newbuild ocean self-unloader is expected to be delivered in the second quarter of 2027.
In our global joint ventures, we anticipate steady rates across the fleets, consistent with levels experienced towards the end of the second quarter. Most assets are committed to long-term time charters. International product tanker results are expected to remain stable for the balance of year, consistent with daily levels the joint venture experienced towards the end of the second quarter. The final newbuild tanker out of a ten vessel order is scheduled to be delivered in August 2026.
Algoma continues to closely monitor geopolitical developments, including ongoing conflicts in the Middle East and Ukraine, as well as evolving international trade measures. The Company does not currently anticipate a material impact on cargo volumes or operations arising from these conflicts, as its fleets do not operate in the affected regions. The recently announced potential U.S. tariffs on certain Canadian goods, regardless of whether those goods qualify for duty-free treatment under USMCA/CUSMA, could apply to certain commodities transported by Algoma and its joint venture partners. However, the Company does not currently anticipate a material impact on its 2026 financial results.
Normal Course Issuer Bid
Effective March 23, 2026, the Company renewed its normal course issuer bid (the "2026 NCIB") to purchase up to 2,028,391 of its common shares ("Shares"), representing approximately 5% of the 40,567,816 Shares issued and outstanding as of the close of business on March 9, 2026. Under the 2026 NCIB and previous expiring NCIB, no Shares were purchased and cancelled for the period ended June 30, 2026.
Cash Dividends
The Company's Board of Directors authorized payment of a quarterly dividend to shareholders of $0.21 per common share. The dividend will be paid on September 1, 2026 to shareholders of record on August 18, 2026.
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 International Accounting Standards Board (IASB), are not defined by GAAP, and do not have standardized meanings that would ensure consistency and comparability among companies using these measures. From Management’s perspective, these non-GAAP measures are useful measures of performance as they provide readers with a better understanding of how management assesses performance. Further information on Non-GAAP measures please refer to page 2 in the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2026 and 2025.
(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, U.S. and global economies. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements.
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.
Algoma Central Corporation is a global provider of marine transportation, owning and operating dry and liquid bulk carriers that serve critical industries throughout the Great Lakes - St. Lawrence Region and internationally. Focused on delivering exceptional customer service, utilizing fuel efficient vessels, and advancing innovative technologies, Algoma drives productivity while contributing to economic growth, strengthening communities, and supporting its people. Algoma truly is
Your Marine Carrier of Choice
™. Learn more at
algonet.com
.
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Gregg A. Ruhl
President & CEO
905-687-7890
Christopher A.L. Lazarz CPA CA
Chief Financial Officer
905-687-7940
Business Wire
August 7, 2026 - 4:00 AM PDT
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