Algoma reports solid performance for the 2026 Third Quarter

Algoma Central Corporation (Algoma) has reported its results for the three and nine months ended September 30, 2026.

 

Algoma delivered strong third quarter results, with reported revenue of $287,751, an increase of 26% from $228,035 in the third quarter of 2025. Net earnings increased 37% to $54,182, or $1.34 per share, compared with $39,437, or $0.97 per share, in the prior-year period. EBITDA increased to $95,189 from $89,739, and free cash flow increased to $64,233 from $46,840. Unless otherwise noted, all amounts are in thousands of Canadian dollars, except per share amounts.

 

The quarter reflected strong performance across Algoma’s business segments. Domestic Dry-Bulk benefited from higher agriculture, construction and salt volumes, higher freight rates and the expanded fleet. Product Tanker results reflected higher contracted freight rates, an expanded fleet, and stronger international joint venture earnings. Ocean Self-Unloaders benefited from strong Pool performance and Algoma’s increased participation in the Pool, while Global Short Sea Shipping generated higher equity earnings despite softer conditions in the mini-bulker market and the Company’s reduced ownership interest in the cement carrier fleet.

 

“Algoma once again delivered positive results, reflecting continued strong customer demand. We are already seeing the benefits of the strategic investments we have made across our fleets,” said Gregg Ruhl, President & CEO of Algoma Central Corporation. “These investments have expanded our scale, strengthened our operations, and diversified our market capabilities. Our fleets have continued to demonstrate their resilience, supporting profitable growth through changing market conditions. Our recent special dividend and increase in our regular dividend demonstrate our ability to provide meaningful returns to shareholders while continuing to execute on our long-term strategy. We remain confident in Algoma’s outlook and the opportunities ahead,” concluded Mr. Ruhl.

 

 

“The third quarter delivered higher consolidated revenue, net earnings, and EBITDA compared to the prior year, reflecting solid performance across our businesses,” said Christopher Lazarz, Chief Financial Officer of Algoma Central Corporation. “Results were driven by higher freight rates, increased grain and construction volumes, and continued growth in our international joint ventures, including our increased participation in the Ocean Self-Unloader Pool. Net earnings also included a one-time gain on the sale of two older vessels as we continue to renew our fleet. Strong cash generation and a healthy balance sheet continue to provide us with the financial flexibility to continue funding our growth initiatives and fleet renewal program.”

 

 

The Domestic Dry-Bulk segment is expected to benefit from continued strength in grain and construction-related shipments, supported by new contractual commitments and increased carrying capacity added earlier in the year. Combined with sustained demand for salt movements, these factors are expected to support strong fleet utilization for the balance of 2026.

 

Domestic tanker demand is expected to remain strong, with the fleet anticipated to be fully employed through the end of 2026. International product tanker earnings are expected to remain strong for the balance of the year, consistent with daily rate levels experienced toward the end of the third quarter.

 

In the Ocean Self-Unloader segment, the Company’s increased share in the Pool is expected to contribute to higher operating earnings compared to the prior year, with gypsum and coal volumes expected to remain steady, partially offset by lower aggregate volumes for the remainder of the year. The final newbuild ocean self-unloader is expected to be delivered in mid-2027.

 

In our global joint ventures, we anticipate steady rates across the cement and mini-bulker fleets for the remainder of 2026. Most assets are committed to long-term time charters or contracts of affreightment. Three mini-bulkers and three pneumatic cement carriers are under construction and are scheduled for delivery between late 2027 and 2028.

 

Algoma continues to monitor geopolitical developments closely, including the ongoing conflicts in the Middle East and Ukraine and changes in international trade policy. Because the Company’s fleets do not operate in the affected regions, these conflicts are not currently expected to have a material impact on cargo volumes or operations. The U.S. recently announced potential tariffs on certain Canadian goods, including goods that would otherwise qualify for dutyfree treatment under USMCA/CUSMA. These tariffs do not directly affect commodities carried by Algoma and its joint venture partners; and as such, the Company does not currently expect a material impact on its 2026 financial results.