Canada’s Algoma Steel (ASTL) has announced that CEO Michael Garcia is stepping down as the company’s losses rise and its share price sinks under the weight of U.S. tariffs.
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Garcia will depart the Canadian steel producer at year’s end. Algoma Steel framed the departure as a planned retirement. Chief Financial Officer (CFO) Rajat Marwah will take over as Algoma Steel’s new CEO in January 2026.
Algoma has been hit hard by U.S. tariffs placed on Canadian steel products. The company reported a net loss of $485.1 million for this year’s third quarter compared to a $106.6 million loss in the same quarter a year earlier. Like other steel producers, Algoma faces a 50% U.S. import tariff on its products, a level the industry has called “unsustainable.”
Stock Performance
“The U.S. steel market remains largely closed to us, and broader market conditions continue to present headwinds,” Garcia said in the news release announcing his departure. The leadership transition also comes after Algoma Steel reported a 19% drop in steel shipments to 419,173 tons in this year’s third quarter, compared with 520,443 tons a year earlier.
In September, Algoma Steel received $500 million in loan relief from Canada’s government, which management said would help it to “diversify end markets and optimize the business during this transitional period.” However, ASTL stock has been badly battered, falling 58% this year.
Is ASTL Stock a Buy?
The stock of Algoma Steel has a consensus Moderate Buy rating among three Wall Street analysts. That rating is based on one Buy and two Hold recommendations issued in the last three months. The average ASTL price target of $6.34 implies 58.70% upside from current levels.
