Chief financial officer Rajat Marwah will take over as CEO on Jan. 1. Michael Moraca promoted to CFO
Rajat Marwah, chief financial officer at Algoma Steel Group Inc., will take over from Michael Garcia as the company’s chief executive officer effective Jan. 1, 2026.
The company said the change is part of a planned succession and leadership transition.
Michael Moraca, who is currently Algoma’s treasurer and vice president, corporate development, will replace Marwah as chief financial officer.
After the markets closed this evening, the company also announced a staggering consolidated loss from operations of $652 million during its third quarter ended Sept. 30, including a non-cash impairment loss of $503.4 million.
That’s compared to a loss from operations of $83.6 million during the same quarter last year.
Net loss during the quarter was $485.1 million, compared to $106.6 million in the prior-year quarter.
Adjusted EBITDA loss was $87.1 million.
The company reported tariffs cost it $89.7 million during the quarter.
“Michael Garcia, the company’s chief executive officer, will retire from Algoma Steel at the end of this calendar year after successfully leading the company through a period of major transformation,” said an Algoma Steel Group news release.
“In late 2024, Mr. Garcia informed the board of directors that he was considering retirement, at which time the board initiated a comprehensive succession planning process to ensure a smooth transition of leadership.”
“Mr. Marwah has been with Algoma since 2008 and has played a central role in shaping the company’s long-term strategy, capital markets initiatives and business transformation.
“He brings deep experience in corporate development, strategic planning, and stakeholder engagement, and has been instrumental in advancing Algoma’s transition to electric arc steelmaking,” the news release said.
“On behalf of the board, I want to thank Mike for his strong leadership during a pivotal period for Algoma,” said Andy Harshaw, chair of Algoma’s board of directors.
“Under his tenure, the company has strengthened its foundation, advanced its electric arc furnace project, and built an exceptional team.
“Through close collaboration with Mike, the board has ensured a thoughtful and seamless succession and leadership transition at the right time for the company.
“We are pleased to welcome Rajat as CEO and have every confidence that he will lead Algoma forward with clarity and purpose. We also congratulate Michael Moraca on his appointment as chief financial officer, which reflects the depth of talent and leadership capability across the company,” Harshaw said.
“I first spoke to the board about my potential retirement close to a year ago,” said soon-to-retire CEO Garcia.
“Working closely with the board, we focused on identifying the right candidate and timing to ensure stability and continuity for Algoma. With liquidity support now secured from both the federal and provincial governments, and steel being produced at the electric arc furnace, this is the right moment for an orderly leadership transition.
“I am incredibly proud of what our team has accomplished strategically, operationally, and culturally — and I have full confidence that Rajat and the leadership team will continue to advance Algoma’s transformation into a leading low-carbon steel producer.”
“Algoma is more than a steel company. It’s a symbol of determination and innovation in the heart of northern Ontario. I’ll always carry that spirit with me, and I’m deeply grateful to the thousands of men and women who made this transformation possible. The pride and resilience of this team, from the mill floor to the leadership table, have been truly inspiring,” Garcia said.
“I’ve been part of Algoma Steel’s leadership team for almost two decades and have had the privilege of working alongside exceptional people through both challenges and milestones,” added Marwah, the incoming CEO.
“It’s an honour to be entrusted by the board to lead this next phase of our journey. Together, we will build on the strong foundation Mike and our team have created, advancing our transformation, deepening our customer relationships, and positioning Algoma as a global leader in sustainable, low-carbon steel production.
“I’m confident in the strength of our strategy, the resilience of our people, and the exciting future that lies ahead for Algoma,” Marwah said.
Marwah’s wife Neeta has been a pillar of the Sault’s culinary scene since the couple was brought here by the multinational conglomerate Essar Global, which owned Algoma Steel from 2007 to 2017.
The Marwahs remained in Sault Ste. Marie after Algoma became a publicly traded company.
Neeta started catering Indian food from her home in the P-Patch, playing a pivotal role as Sault Ste. Marie moved into a new era of gastronomical diversity.
She started a downtown restaurant named Rasoi and currently operates Noodlebox franchises in Barrie and at 625 Trunk Road in the Sault.
Tariff impact on Algoma’s Canadian sales during the third quarter was $32 million.
Shipments were down: 419,173 tons compared to 520,443 tons in the prior-year quarter.
“Our third quarter results were largely in line with our previously announced guidance as we continue to navigate a challenging steel market environment,” Garcia said.
“The U.S. steel market remains largely closed to us, and broader market conditions continue to present headwinds. However, we have taken decisive action to strengthen our position during this period of uncertainty. Our focus remains on advancing our electric arc furnace transition, improving our cost structure, and positioning Algoma for sustainable profitability in the years ahead.”
“The $500 million in liquidity support announced with the Government of Canada and the Province of Ontario will provide us with long-term financial flexibility and reinforce confidence in Algoma’s future,” added Marwah.
“These facilities will strengthen our balance sheet, extend our liquidity runway, and support the continued execution of our strategic transformation as we diversify end markets and optimize the business during this transitional period.”
Garcia said Algoma is fast-tracking its transition to electric arc furnace steelmaking.
“While we cannot control macro challenges or market access issues, we remain focused on what we can control, the successful execution of our transformation strategy. We are confident that the flexibility and structural cost advantages we are building through our investment in green steelmaking technology will serve us well across market cycles and create lasting value for all stakeholders,” he said.
The Sault steelmaker is now focused on discrete plate production, a product that only it makes in Canada.
“This shift is expected to substantially reduce tariff exposure, lower operating costs, and enhance overall cash efficiency, extending Algoma’s liquidity runway and positioning the company to improve financial performance as market conditions stabilize,” said a company statement.
link