Liquidity is under extreme pressure as evidenced by a negative free cash flow of $26.1 million in 2026Q4 and a dwindling cash reserve of $77.5 million.
| Cash from Operations | -66.1M | -43.5M | 294.9M | 177.3M | 1.26B | 8.1M | -4.7M | 70.3M | 8.1M |
| Operating CF Margin % | -3.17% | -1.77% | 10.55% | 6.38% | 33.2% | 0.45% | -0.24% | 3.92% | 0.43% |
| Operating CF Growth % | -51.95% | -114.75% | 66.33% | -85.97% | 15497.53% | 272.34% | -106.69% | 767.9% | - |
| Net Income | -984.9M | -154.73M | 105.2M | 298.5M | 857.7M | -76.1M | -175.9M | -313.8M | -203.3M |
| Depreciation & Amortization | 355.9M | 99.6M | 115M | 95.3M | 87M | 87.2M | 128.1M | 108.6M | 137.2M |
| Stock-Based Compensation | -19.8M | 24.53M | 1.2M | -12.7M | 5.7M | 14.1M | 0 | 0 | 0 |
| Deferred Taxes | -106.8M | 4.52M | 1.2M | -12M | 101.7M | 100K | -4.3M | 0 | 0 |
| Other Non-Cash Items | 614.4M | 11.21M | 39.2M | -21.2M | 232.4M | 95M | 83M | 58.8M | 63.8M |
| Working Capital Changes | 75.1M | -4.1M | 33.1M | -178.7M | -21.1M | -137.7M | 34.3M | 216.7M | 10.4M |
| Change in Receivables | -98.5M | -15.43M | 45.5M | 119.5M | -127M | -47.2M | 88.4M | 124.2M | 25.5M |
| Change in Inventory | 294.9M | -13.55M | -80.4M | -187.8M | -63.6M | -33.6M | -36.8M | 89.8M | -16.7M |
| Change in Payables | -124.5M | -10.49M | 57.6M | -76.6M | 166.6M | -21.2M | -42.4M | 0 | 0 |
| Cash from Investing | -312.3M | -189.15M | -490.1M | -333.5M | -165.7M | -72.9M | -115.1M | -31.6M | -58.8M |
| Capital Expenditures | -328.5M | -208.54M | -490.1M | -333.5M | -167.9M | -71.8M | -113.9M | -29.7M | -51.2M |
| CapEx % of Revenue | 15.75% | 8.5% | 17.53% | 12% | 4.41% | 4% | 5.82% | 1.66% | 2.74% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 16.2M | 19.39M | 0 | 0 | 2.2M | -1.1M | -1.2M | -1.9M | -7.6M |
| Cash from Financing | 200.8M | 336.12M | 44.4M | -569.6M | -198.7M | -167.4M | 246.7M | -70M | 53.6M |
| Debt Issued (Net) | 257.1M | 349.88M | 63.1M | 53.3M | -457.5M | -151.3M | 281.4M | 22.9M | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | -553.2M | 393.5M | 0 | 0 | 0 | 0 |
| Dividends Paid | -14.8M | -14.94M | -27.9M | -30.7M | -9.3M | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -553.2M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -41.5M | 1.18M | 9.2M | -1.4M | -125.4M | -16.1M | -34.7M | -92.9M | 53.6M |
| Net Change in Cash | -189.4M | -272.92K | -149.5M | -667.9M | 894.1M | -243.8M | 129.5M | -28.9M | 6.8M |
| Free Cash Flow | -394.6M | -252.04M | -195.2M | -156.2M | 1.1B | -63.7M | -118.6M | 40.6M | -43.1M |
| FCF Margin % | -18.92% | -10.27% | -6.98% | -5.62% | 28.78% | -3.55% | -6.06% | 2.27% | -2.31% |
| FCF Growth % | -56.56% | -29.12% | -24.97% | -114.26% | 1819.78% | 46.29% | -392.12% | 194.2% | - |
| FCF per Share | -3.63 | -2.32 | -1.47 | -1.06 | 7.40 | -0.43 | -0.80 | 0.08 | -0.09 |
| FCF Conversion (FCF/Net Income) | 0.07x | 0.20x | 2.80x | 0.59x | 1.47x | -0.05x | 0.03x | -0.22x | -0.04x |
| Interest Paid | 0 | 31.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
EAF transition liquidity risk
According to the company's reported financial statements, the OCF/NI ratio has remained consistently disconnected from net income, with the 2026Q4 figure of 0.07 highlighting a structural inability to convert accounting losses into meaningful cash generation, further exacerbated by the ongoing volatility in core operational performance metrics.
The persistent gap between net income and operating cash flow suggests that the company's earnings are heavily impacted by non-cash charges and working capital fluctuations that do not translate into liquidity. Investors should monitor this divergence closely, as it indicates that the reported bottom-line losses are not merely accounting artifacts but reflect a genuine cash-burning operational reality.
As reported in recent quarterly filings, Algoma Steel's free cash flow has remained consistently negative, reaching -$26.1 million in 2026Q4, which underscores the significant pressure on liquidity as the company continues to fund its capital-intensive transition while grappling with a deeply unfavorable margin environment across its core segments.
The consistent negative FCF trajectory suggests that the company is currently unable to self-fund its operations or its strategic capital projects. This trend warrants further investigation into how long the current cash reserves can sustain such outflows before external financing or further liquidity measures become necessary.
Based on the provided financial data, capital expenditures have remained a significant drain on resources, with the 2026Q4 CapEx/Revenue ratio of 4.9% following a period of much higher intensity, reflecting the heavy burden of the ongoing Electric Arc Furnace transition project on the company's limited cash position.
The high level of capital intensity appears to be a deliberate, albeit risky, strategy to modernize the asset base. However, the inability to offset these expenditures with positive operating cash flow suggests that the company is effectively financing its future growth through the depletion of its existing balance sheet strength.
As evidenced by the quarterly cash flow statements, working capital changes have been highly erratic, swinging from a $76.9 million inflow in 2026Q4 to a $70.1 million outflow in 2026Q1, which indicates significant instability in the company's ability to manage its inventory and accounts payable cycles effectively.
These fluctuations suggest that the company's cash position is highly sensitive to timing differences in raw material procurement and finished goods sales. Such volatility may indicate that management is struggling to align its production throughput with market demand, leading to lumpy cash flow outcomes that complicate short-term liquidity planning.
Quick answers to the most common questions about buying ASTL stock.
Algoma Steel Group Inc. (ASTL) generated $-66.1M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Algoma Steel Group Inc. (ASTL) reported negative free cash flow of $394.6M in 2026, indicating capital requirements exceeded cash from operations.
Algoma Steel Group Inc. (ASTL) spent $328.5M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Algoma Steel Group Inc. (ASTL) returned $14.8M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.