Mr. Gregg Ruhl reports

ALGOMA CENTRAL CORPORATION REPORTS FINANCIAL RESULTS FOR THE 2026 SECOND QUARTER

Algoma Central Corp. has released its results for the three and six months ended June 30, 2026. Algoma reported second quarter revenues of $258,273, compared with revenues of $211,715 in 2025. Net earnings for the second quarter were $35,585, compared with $32,883 in 2025. All amounts reported below are in thousands of Canadian dollars, except for per-share data and where the context dictates otherwise.

"Algoma has always pursued growth thoughtfully, focusing on opportunities that align with both our business strategy and our values," said Gregg Ruhl, president and chief executive officer of Algoma Central. "Growth also brings periods of transition as we position the business to capitalize on attractive opportunities when they arise, including the strategic sale of vessels and the acquisition of assets across our fleets. As we enter new markets and pursue these opportunities, we do so with confidence in the expertise, knowledge and commitment of our employees to drive our continued success. Although economic and geopolitical uncertainty persists, we remain focused on our long-term strategy, supported by top-tier customers, steady demand and stable freight rates," concluded Mr. Ruhl.

Financial highlights -- second quarter 2026 compared with second quarter 2025:

• Domestic dry-bulk segment revenue increased 17 per cent to $144,888, compared with $123,607 in 2025, reflecting higher demand in construction, agriculture and salt sectors driven by additional vessels and higher freight rates, offsetting declines in the iron and steel sector. Operating earnings for the segment increased 23 per cent to $32,726, compared with $26,642 in 2025.
• Revenue for the product tanker segment increased 32 per cent to $55,606, compared with $42,173 in 2025, driven by the full-quarter deployment of the Algoma Acadian and Algoma East Coast and fewer regulatory dry dockings. Operating earnings increased 42 per cent to $6,402, compared with $4,519 in 2025.
• Revenue in the ocean self-unloaders segment increased 26 per cent to $57,165, compared with $45,320 in 2025, reflecting strong pool performance and higher revenue days as a result of fewer regulatory dry dockings. Operating earnings increased 26 per cent to $13,481, compared with $10,475 in 2025. Late in the quarter, the pool agreement was amended increasing the company's share in the pool to 50 per cent. While this change had a modest impact on the current period, it will increase the company's share of earnings from the segment going forward.
• Joint venture equity earnings decreased in the quarter to $5,181, compared with $7,521 in 2025. Decreased earnings in the cement fleet reflect Algoma's reduced ownership interest, while an off-hire incident and weaker market conditions led to a decline in revenue days and earnings in the mini-bulker fleet. The international product tankers earnings growth partially offset these decreases, supported by higher daily rates for intermediate product tankers and an increase in the number of FureBear vessels (nine vessels this year compared with six in the prior year).
• The company completed an amendment and expansion of its senior secured credit facilities late in the quarter, extending maturity of the facility to May, 2031. In addition, the company raised $72-million (Canadian) and $78-million (U.S.) through the issuance of new senior secured notes.

"During the quarter, we completed two significant refinancing transactions by amending our senior credit facilities and issuing new senior secured notes while also advancing strategic acquisitions across our fleets," said Christopher Lazarz, chief financial officer of Algoma Central. "These financing activities support our recent domestic and international investments and strengthen the company's balance sheet. The acquisitions included increasing the company's ownership interest in the ocean self-unloader pool and integrating three vessels acquired in the first quarter of 2026 into our domestic dry-bulk fleet. Over all, the quarter delivered higher consolidated revenue, net earnings and EBITDA [earnings before interest, taxes, depreciation and amortization] compared to the prior year, driven by stronger results in our domestic dry-bulk, product tanker and ocean self-unloader segments. Taken together, these results demonstrate strong execution across the business, disciplined capital allocation and continued confidence in Algoma's long-term growth strategy," concluded Mr. Lazarz.

The management discussion and analysis for the three and six months ended June 30, 2026, and June 30, 2025, include further details. Full results for the three and six months ended June 30, 2026, and June 30, 2025, can be found on the company's website and on SEDAR+.

Business outlook

In the domestic dry-bulk segment, grain and construction volumes are expected to remain strong with the new customer contracts and additional capacity acquired in the first quarter. Demand for spot grain and salt shipments is anticipated to remain strong throughout the balance of the year, supporting full fleet utilization.

In the product tanker segment, Algoma expects demand to remain strong for its domestic Canadian tanker fleet and for those assets to be fully employed for the remainder of 2026.

In the ocean self-unloader segment, the company's increased share in the pool's operating earnings and anticipated higher coal volumes is expected to be partially offset by reduced aggregate volumes for the remainder of the year. The third new-build ocean self-unloader is expected to be delivered in the second quarter of 2027.

In Algoma's global joint ventures, the company anticipates steady rates across the fleets, consistent with levels experienced toward the end of the second quarter. Most assets are committed to long-term time charters. International product tanker results are expected to remain stable for the balance of year, consistent with daily levels the joint venture experienced toward the end of the second quarter. The final new-build tanker out of a 10-vessel order is scheduled to be delivered in August, 2026.

Algoma continues to closely monitor geopolitical developments, including continuing conflicts in the Middle East and Ukraine, as well as evolving international trade measures. The company does not currently anticipate a material impact on cargo volumes or operations arising from these conflicts as its fleets do not operate in the affected regions. The recently announced potential U.S. tariffs on certain Canadian goods, regardless of whether those goods qualify for duty-free treatment under USMCA/CUSMA (United States-Mexico-Canada Agreement/Canada-United States-Mexico Agreement), could apply to certain commodities transported by Algoma and its joint venture partners. However, the company does not currently anticipate a material impact on its 2026 financial results.

Normal course issuer bid

Effective March 23, 2026, the company renewed its normal course issuer bid (NCIB) to purchase up to 2,028,391 of its common shares, representing approximately 5 per cent 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 June 30, 2026.

Cash dividend

The company's board of directors authorized payment of a quarterly dividend to shareholders of 21 cents per common share. The dividend will be paid on Sept. 1, 2026, to shareholders of record on Aug. 18, 2026.

We seek Safe Harbor.