Algoma Central Corporation Reports Financial Results for the 2026 Third Quarter

Algoma Central Corporation (TSX: ALC) (“Algoma”, the “Company”) today 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.

Financial Highlights: Third Quarter 2026 Compared to Third Quarter 2025

• Reported revenue increased 26% to $287,751 from $228,035.

• Freight revenue increased 22% to $343,135 from $282,406, reflecting growth across Domestic Dry-Bulk, Product Tankers and Ocean Self-Unloaders segments.

• Operating earnings increased 7% to $54,410 from $50,760.

• Net earnings increased 37% to $54,182 from $39,437. Earnings included a $8,882 gain on the sale of two vessels that retired from the Ocean Self-Unloaders Pool.

• Basic and diluted earnings per share increased to $1.34 from $0.97.

• EBITDA increased 6% to $95,189 from $89,739.

• Free Cash Flow increased 37% to $64,233 from $46,840, reflecting higher cash generated from operations and lower capital maintenance expenditures.

“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 MD&A for the three and nine months ended September 30, 2026 and 2025 includes further details. Full results for the three and nine months ended September 30, 2026 and 2025 can be found on the Company’s website at www.algonet.com/investor-relations and on SEDAR at www.sedarplus.ca.

Capital and Liquidity

Algoma generated $75,918 of cash from operating activities during the third quarter, compared with $59,746 in 2025, and generated free cash flow of $64,233 compared with $46,840 in 2025. At September 30, 2026, the Company had cash of $38,331.

The Company’s revolving credit facility consists of $200,000 and $200,000 U.S. senior secured revolving commitments, maturing May 28, 2031. At September 30, 2026, $117,966 was drawn under the facility.

Subsequent to quarter end, on November 4, 2026, the Company closed a $70,000 public offering and $20,000 private placement of 6.20% convertible unsecured subordinated debentures, maturing December 31, 2031, for aggregate gross proceeds of $90,000. The underwriters also hold an over-allotment option to purchase up to an additional $10,500 of debentures through December 4, 2026.

Cash Dividends

On October 2, 2026, Algoma’s Board of Directors authorized a special dividend of $1.00 per common share, which was paid on October 21, 2026 to shareholders of record on October 15, 2026.

The Company’s Board of Directors also authorized the increase of the quarterly dividend to shareholders to $0.31 per common share from $0.21 per common share. The dividend will be paid on December 1, 2026 to shareholders of record on November 17, 2026.

Business Outlook⁽²⁾

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 duty-free 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.

Normal Course Issuer Bid

Effective March 23, 2026, the Company renewed its normal course issuer bid (the “2026 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 9, 2026. Under the 2026 NCIB and previous expiring NCIB, no Shares were purchased and cancelled for the period ended September 30, 2026.

Notes

(1) Use of Non-GAAP Measures

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, freight revenues, 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. Further information on Non-GAAP measures please refer to page 2 and page 3 in the Company’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2026 and 2025.

(2) Forward Looking Statements

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 2026 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.

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.

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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