Algoma Central Corporation Announces Q1 2025 Financial Results
Algoma Central Corporation (“Algoma” or the “Company”), a leading marine transportation company headquartered in Canada, today announced its financial results for the first quarter ended March 31, 2025. Despite the inherent seasonal limitations of marine shipping on the Great Lakes and St. Lawrence Seaway during the winter months, the Company maintained a steady strategic course with continued investments in fleet modernization and long-term growth.
Financial Overview: First Quarter Results Reflect Seasonal Factors and Dry-Docking Impact
For the first quarter of 2025, Algoma reported consolidated revenue of $107.2 million, slightly down from $109.2 million in the same period of 2024. The Company incurred a net loss of $23.3 million, compared to a net loss of $17.3 million in Q1 2024. The increase in net loss was largely attributed to a higher number of planned vessel dry-dockings and the continued impact of the winter shutdown, which affects the operational capacity of the Company’s Domestic Dry-Bulk fleet during the first quarter.
As is typical for the winter season, many of Algoma’s vessels are idled during the months when the canal system is closed due to ice conditions. This predictable operational pause, while expected, affects revenue and earnings in the first quarter each year. All figures are reported in thousands of Canadian dollars, unless stated otherwise.
CEO Commentary: Resilience, Expansion, and Vision
“Despite ongoing global economic uncertainties, Algoma remains unwavering in our mission to provide reliable, safe, and efficient marine transportation services,” said Gregg Ruhl, President and Chief Executive Officer of Algoma Central Corporation. “This quarter marked a historic milestone in Algoma’s journey: for the first time ever, we took delivery of four new vessels in a single quarter – the Fure Vesborg, Algoma Endeavour, Algoma East Coast, and Algoma Acadian.”
“These vessels are now integral to our operations in key markets spanning Northern Europe, the Great Lakes, and the Canadian and U.S. east coasts. With 11 newbuilds currently under construction – five of which are expected to be delivered this year – we continue to invest in modernizing our fleet and enhancing our environmental performance,” added Ruhl.
Segment Highlights and Performance Analysis
Algoma’s operations are diversified across four principal segments: Domestic Dry-Bulk, Product Tankers, Ocean Self-Unloaders, and Global Short Sea Shipping. Each faced distinct challenges and opportunities during the quarter.
- Domestic Dry-Bulk revenue declined slightly to $30.6 million, compared to $31.1 million in Q1 2024. The segment reported an operating loss of $37.2 million, up from $35.6 million in the prior-year period. The increased loss was attributed to higher lay-up costs, driven by four vessels undergoing planned dry-dock maintenance versus only one in Q1 2024. While shipment volumes were down, the revenue impact was partially cushioned by favorable trading patterns that led to higher revenue days, particularly for agriculture commodities.
- Product Tankers revenue decreased to $33.3 million from $34.0 million year-over-year. This decline was largely due to fewer revenue days as a result of increased dry-dockings. The segment posted an operating loss of $0.4 million, compared to an operating profit of $4.0 million in Q1 2024. The fleet size has grown year-over-year, but the impact of dry-dockings and off-hire days overshadowed gains from additional vessels.
- Ocean Self-Unloaders revenue dipped to $42.7 million, down from $43.2 million in the same quarter last year. The segment’s operating earnings dropped 23% to $6.4 million from $8.4 million, with the reduction driven by a 4% decline in operating days caused by increased off-hire time due to scheduled maintenance.
- Global Short Sea Shipping, a joint venture segment, delivered stable equity earnings of $1.8 million, nearly identical to the $1.8 million reported in Q1 2024. Improved performance in the cement fleet, driven by higher revenue days and fewer dry-dockings, helped offset weaker performance in the mini-bulker and handy-size fleets due to market conditions and weather-related delays.
CFO Insights: Adjusted Performance Remains Solid
“While reported revenue was slightly lower across most segments this quarter, much of this can be attributed to increased planned dry-dockings,” said Christopher Lazarz, Chief Financial Officer at Algoma. “When adjusting for these factors, our core operating performance remains resilient.”
He continued, “Domestic Dry-Bulk benefited from a trade mix with higher agriculture volumes. The Product Tanker and Ocean Self-Unloader segments experienced higher off-hire periods due to dry-docking but remain well-positioned for the rest of the year. Our Global Short Sea Shipping joint ventures, including the FureBear partnership, continue to contribute positively and demonstrate the strength of our diversified fleet and geographic footprint.”
Business Outlook: A Stronger Year Ahead with New Vessels and Market Opportunities
Looking forward, Algoma expects improved performance across all segments in the coming quarters.
- Domestic Dry-Bulk demand is projected to be strong throughout 2025, supported by robust shipments in the agriculture sector and new contracts in the domestic steel industry. The Algoma Endeavour, scheduled to enter service in early May, is expected to boost efficiency and reduce emissions through its advanced design.
- Product Tankers are expected to see steady utilization through the year, supported by stable domestic fuel demand and optimized deployment of Canadian-flagged vessels. The Algoma East Coast and Algoma Acadian are entering domestic service in Q2 2025. The FureBear joint venture continues to expand with five new tankers delivered so far and five more expected by early 2026.
- Ocean Self-Unloaders will face reduced availability due to the dry-docking of five vessels in 2025. However, rising demand for construction materials such as aggregate and gypsum, as well as salt, is expected to support revenue. The delivery of the first of three new ocean self-unloaders is scheduled for Q3 2025, with hull steel cutting already underway for the second vessel.
- Global Short Sea Shipping is poised for another steady year, with most cement carriers operating under long-term charters. The mini-bulk segment will welcome two new 9,500 dwt vessels in late 2025 and early 2026, increasing the total number of newbuilds added since 2020 to six.
Geopolitical Risk and Supply Chain Considerations
Algoma continues to monitor the evolving global trade landscape, including the potential impact of increased tariffs and inflationary pressures. While no material change in cargo volumes is currently expected, the Company anticipates higher input costs, particularly for supplies and provisions. Proactive measures are being explored to mitigate these cost pressures and maintain operational efficiency.
Normal Course Issuer Bid Update
On March 21, 2025, Algoma renewed its normal course issuer bid (NCIB) to repurchase up to 2,028,391 common shares, representing approximately 5% of its issued and outstanding share capital as of March 7, 2025. No shares were purchased under the NCIB during the first quarter of 2025 or the comparable period in 2024.
Quarterly Dividend Declared
The Company’s Board of Directors has declared a quarterly cash dividend of $0.20 per common share. The dividend will be paid on June 2, 2025, to shareholders of record as of May 16, 2025. This regular dividend reflects Algoma’s stable financial position and continued commitment to delivering value to shareholders.