Strong momentum continues in 2025 through resilient performance and strategic fleet growth across global and domestic markets

ST. CATHARINES, Ontario--(BUSINESS WIRE)--Mar. 5, 2026-- Algoma Central Corporation (TSX: ALC) ("Algoma", the "Company") today reported its results for the year ended December 31, 2025. Algoma reported revenues of $761,056, compared to revenues of $703,444 in 2024. Net earnings for 2025 were $143,025 compared to $91,638 in 2024. The Company reported 2025 EBITDA of $230,987 compared to $200,494 in 2024. All amounts reported below are in thousands of Canadian dollars, except for per share data and where the context dictates otherwise.

“This year we took delivery of eight vessels and reached a significant milestone in the third quarter with the addition of our 100^th vessel to our global fleet,” said Gregg Ruhl, President and CEO of Algoma Central Corporation. “We currently have twelve vessels under construction, six of which are scheduled for delivery in 2026. Internationally, we continue to expand our presence in the global short sea shipping sector through strategic partnerships in new markets. These partnerships are helping establish Algoma as the Marine Carrier of Choice on the global stage and extend the reach of our Bear, born in Sault Ste. Marie, Ontario, around the world. Domestically, we remain focused on strengthening our fleets operating across the bi-national Great Lakes and Canadian and U.S. east coasts. As we approach the opening of the 2026 navigation season, we do so from a forward looking position of resilience and growth, with a continued focus on working together as an industry to enhance the competitiveness and long-term resiliency of the customers and communities we serve,” concluded Mr. Ruhl.

Financial Highlights: Fiscal 2025 Compared to 2024

• Net earnings increased 56% to $143,025 compared to $91,638 in 2024. Basic and diluted earnings per share were $3.53 compared to $2.29 in 2024. Earnings in 2025 include a one-time $71,517 gain representing the Company's share on the sale of an interest in the cement carrier joint venture within the Global Short Sea Shipping segment, while 2024 earnings include a $13,015 impairment reversal, net of related amortization. Excluding these items, earnings decreased 5% to $74,815 compared to $78,623 in 2024.
• Domestic Dry-Bulk segment revenue increased 8% to $405,072 compared to $375,159 in 2024, reflecting 10% higher volumes driving an 11% rise in revenue days, and improved freight rates. Operating earnings for the segment increased 30% to $55,433 compared to $42,678 in 2024.
• Revenue for the Product Tankers segment increased 20% to $177,832 compared to $148,347 in 2024, driven primarily by a larger fleet size. Operating earnings increased to $22,046 compared to $9,406 in 2024.
• Revenue in the Ocean Self-Unloaders segment decreased slightly to $175,520 compared to $177,185 in 2024. This decrease was mainly attributable to reduced revenue days driven by an increase in planned dry-dockings when compared to the prior year. Operating earnings decreased 40% to $23,588 compared to $39,491 in 2024.
• Joint venture equity earnings increased in the year to $98,198 compared to $37,760 for the prior year. Global Short Sea Shipping earnings were buoyed by a one-time gain in the cement carrier joint venture, a reduction in available revenue days due to increased dry-dockings, and the mini-bulker fleet experiencing softer market conditions, compared to the previous period. The increase in earnings from the product tanker fleet reflects the growth in the fleet size from one vessel at the commencement of the prior year to eight in the current year.

“Algoma continued to demonstrate market resilience amid global uncertainty in 2025,” said Christopher Lazarz, Chief Financial Officer. “In Domestic Dry-Bulk, higher iron ore and salt volumes, along with spot grain activity, drove increased revenue days. We are expecting iron ore volumes to decline in 2026 as the impact of U.S. steel tariffs materializes. Demand for salt and grain is anticipated to remain strong, supported by replenishment needs for de-icing salt across the Great Lakes region and higher volumes with an existing grain customer. In Product Tankers, performance remains strong, supported by a larger fleet following the addition of two vessels in the second quarter of 2025. Off-hire days increased due to five planned dry-dockings in the Ocean Self-Unloaders segment, compared to two in the previous year,” 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 years ended December 31, 2025 and 2024 and presented herein:

Select Financial Performance by Business Segment

The MD&A for the years ended December 31, 2025 and 2024 includes further details. Full results for the years ended December 31, 2025 and 2024 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 salt volumes are expected to increase, partially offset by reductions in the iron and steel sectors, reflecting the impact of tariffs on Canadian steel producers' exports to the United States. Higher grain volumes are anticipated to add revenue days and support continued strength in the agriculture segment. Salt volumes are also expected to improve, driven by increased demand for de-icing salt around the Great Lakes - St. Lawrence region. Construction activity is expected to remain relatively flat as it continues to be influenced by broader economic conditions.

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 no Algoma assets scheduled for dry-docking. We expect increases to the gypsum and aggregates trades as customer demand increases, offset by slight reductions in coal volumes. The second Algoma newbuild self-unloader is expected to be delivered 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, and increased earnings with the addition of two vessels to our cement carrier fleet. We expect improved earnings in both our handy-size and mini-bulker fleets with the expansion of the mini-bulker fleet, and relatively consistent market conditions. 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 Europe and the Middle East, however nearly all of our operations are outside these high risk areas. While Algoma is closely monitoring these situations, we do not anticipate major changes in cargo volumes at this time; however, we are expecting continued higher costs across our supply chains, and are exploring ways to mitigate potential impacts.

Normal Course Issuer Bid

Effective March 21, 2025, the Company renewed its normal course issuer bid (the "2025 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 7, 2025. Under the 2025 NCIB, no Shares were purchased and cancelled for the period ended December 31, 2025. The Company intends to renew its normal course issuer bid upon receipt of the required approvals from regulatory authorities.

Cash Dividends

The Company's Board of Directors authorized payment of a quarterly dividend to shareholders of $0.21 per common share. The dividend was paid on March 2, 2026 to shareholders of record on February 13, 2026. This $0.21 common share dividend represents a 5% increase from the $0.20 per share dividend paid on December 1, 2025. Since 2018, Algoma’s quarterly dividend has more than doubled.

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 years ended December 31, 2025 and 2024.

(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
Chief Financial Officer
905-687-7940

Source: Algoma Central Corporation