Algoma Central Corporation Reports Financial Results for the 2025 Second Quarter

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The MD&A for the three and six months ended June 30, 2025 and 2024 includes further details. Full results for the three and six months ended June 30, 2025 and 2024 can be found on the Company’s website at www.algonet.com/investor-relations and on SEDAR at www.sedarplus.ca.

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Business Outlook⁽²⁾

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In the Domestic Dry-Bulk segment, projected demand for the balance of the year is strong and will require the full fleet to operate through the remainder of the season. Domestic iron and steel volumes face demand constraints related to U.S. tariffs on Canadian steel and will depend on a favourable resolution of the trade dispute. Strong grain demand in the fourth quarter may help to offset any reductions in other sectors if the new crop develops as expected. Construction and salt volumes are expected to improve from second quarter levels and remain steady through the balance of the year.

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In the Product Tanker segment, we expect customer demand to remain steady in 2025 and for fuel distribution patterns within Canada to support strong vessel utilization for the vessels trading under Canadian flag, including the two new tankers operating on long-term contracts with Irving Oil. The fleet is expected to remain in full deployment with all ten Canadian vessels in operation.

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In the Ocean Self-Unloader segment, vessel supply at the Pool level is fairly well balanced for the remainder of the year. Volumes in the aggregate and gypsum industries declined as anticipated during the second quarter and we expect these industries will continue to be impacted for the balance of the year; volumes in the other sectors are expected to remain steady moving forward. Two additional vessels in the Algoma fleet will be dry-docked over the remainder of 2025 (for a total of four dry-docks in 2025), which is expected to have a significant impact on available days. The first of three new ocean self-unloaders is expected to be delivered in the third quarter of 2025.

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Within our global joint ventures, we anticipate steady earnings from the cement fleet, with most assets committed to long-term time charter contracts. The handy-size fleet, together with the mini-bulker fleet, is expected to perform at reduced levels compared to 2024. Two newbuild mini-bulkers and two pneumatic cement carriers are currently under construction and are expected to be delivered between 2025 and 2027, with the first mini-bulker set to arrive in the third quarter of 2025. These vessels will bring the newbuilds added to the mini-bulker fleet to six since 2020. With the delivery of the first seven FureBear newbuilds in 2024 and the first half of 2025, three new tankers remain on order for the joint venture, with delivery expected between the third quarter of 2025 and early 2026. The Company is anticipating a continued steady rate environment for these tankers.

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Global tariffs could increase operating costs and reduce trade volumes, potentially leading to shifts in global supply chain routes. While Algoma is closely monitoring the situation, 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 impact.

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Normal Course Issuer Bid

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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 June 30, 2025.

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Cash Dividends

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The Company’s Board of Directors authorized payment of a quarterly dividend to shareholders of $0.20 per common share. The dividend will be paid on September 2, 2025 to shareholders of record on August 19, 2025.

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Notes

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(1) Use of Non-GAAP Measures

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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. For further information on Non-GAAP measures please refer to page 2 in the Company’s Management’s Discussion and Analysis for the three and six months ended June 30, 2025 and 2024.

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(2) Forward Looking Statements

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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 2025 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.

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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.

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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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Contacts

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Gregg A. Ruhl

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President & CEO

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905-687-7890

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Christopher A.L. Lazarz
Chief Financial Officer
905-687-7940

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