2025 Annual Report

LEGACY

PROPELLING OUR

FORWARD.

2025

ANNUAL REPORT

Certain statements in this document about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. Forward-looking statements are based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements. The purpose of the forward-looking statements is to provide the reader with a description of management's expectations regarding the Company's financial performance and may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements made herein, recognizing that all such forward information is based on assumptions about the future that may not ultimately be borne out and are subject to many risks and uncertainties, including those listed above. Furthermore, unless otherwise stated, the forward-looking statements contained in this document are made as of the date hereof (unless stated to be as of an earlier date), and we have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. Management approved the forward-looking financial information as of March 5, 2026. Certain figures included herein are non-GAAP measures. Please see our MD&A for further discussion of non-GAAP disclosures.

ALL AMOUNTS IN C$ THOUSANDS EXCEPT PER SHARE AMOUNTS AND UNLESS OTHERWISE NOTED.

WHAT'S

INSIDE

I II III V VIII XI XV XIX

XXIII XXV XXXI XXXIII

1

20

21

25

ABOUT US & OUR VISION

OUR VALUES & OUR SUSTAINABILITY STRATEGY MESSAGE FROM OUR PRESIDENT & CEO

KEY MOMENTS IN 2025

DIVERSIFICATION & STRATEGIC ADVANCEMENT EMPLOYEE GROWTH & DEVELOPMENT ENSURING A SAFE & HEALTHY WORKFORCE MINIMIZING OUR ENVIRONMENTAL FOOTPRINT

PROTECTING OUR MARINE ECOSYSTEMS & BIODIVERSITY 2025 FINANCIAL & OPERATIONAL PERFORMANCE BOARD OF DIRECTORS & EXECUTIVE OFFICERS

SELECT FINANCIAL & OPERATIONAL HIGHLIGHTS

FINANCIAL SECTION

MANAGEMENT DISCUSSION & ANALYSIS RESPONSIBILITY FOR FINANCIAL STATEMENTS INDEPENDENT AUDITOR'S REPORT CONSOLIDATED FINANCIAL STATEMENTS & NOTES

ABOUT US

YOUR MARINE CARRIER OF CHOICE TM

Algoma Central Corporation is a leading Canadian marine transportation company, headquartered in St. Catharines, Ontario. We own and operate the largest fleet of dry and liquid bulk carriers serving the Great Lakes-St. Lawrence Seaway, delivering efficient and sustainable marine transportation solutions that support critical industries across North America and global markets.

Algoma's domestic dry-bulk fleet serves diverse industrial sectors, including steel production, agriculture, mining, and construction. The domestic product tanker fleets, comprised of 10 vessels in Canadian service, transports petroleum products throughout the Great Lakes-St. Lawrence Seaway and Atlantic Canada regions.

Algoma also owns and operates a fleet of ocean self-unloading dry-bulk vessels that operate as part of the world's largest pool of self-unloaders. Algoma also has ownership interests in joint ventures comprised of three ocean self-unloaders. Supporting long-term fleet renewal and operational efficiency, four ocean self-unloaders are currently under construction.

In addition, Algoma holds 50% interests in joint ventures that own and operate diversified portfolios of dry and liquid bulk vessels. Through its global short sea shipping segment, Algoma focuses on niche marine transportation markets, operating cement carriers, mini-bulkers, and handy-size vessels that support agriculture, cement, construction, and steel industries worldwide. Algoma's FureBear fleet, an international joint venture, comprises 10 tankers, two of which are under construction, as well as an interest in a foreign-flagged tanker operation consisting of two product tankers. Customers across these fleets include major oil refiners, leading wholesale distributors, and large consumers of petroleum products.

Fleet renewal continues across Algoma's international operations, with four newbuild mini-bulkers and two pneumatic cement carriers currently under construction. The two cement carriers will be the largest in the world at 38,000 DWT.

OUR VISION

At Algoma, our vision is to continue to be the Marine Carrier of Choice for our stakeholders.

For employees, both existing and potential, we work to foster a safe, supportive, and rewarding environment in which they choose to grow and develop their careers until retirement.

For customers, we strive to be the go-to provider for marine freight services. We do this by providing unsurpassed service and flexibility. When our customers succeed, we succeed.

For investors and other capital providers, investing in Algoma offers a rewarding opportunity for sustained growth in the marine sector. With a strategic focus on fleet renewal, innovative designs, partnerships, and environmental sustainability, Algoma emerges as the top choice for investors seeking a forward-thinking and resilient investment in the maritime industry.

For vendors and our business partners, we want them to value their relationship with Algoma because working together builds strength and mutual success.

For society, we provide safe, sustainable, secure, and cost-effective transportation of essential goods that North Americans and the world depend on in everyday life.

I | ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT

OUR VALUES

INTEGRITY

We are honest, we are courageous, and we always strive to make the right choice.

SUSTAINABILITY

We believe in our people, we care for our planet, and we work

to ensure the prosperity of our stakeholders.

TEAMWORK

We are stronger together.

OWNERSHIP

We take accountability for our actions, and we are empowered to initiate change.

PASSION

We are committed in heart and mind,

we are driven, and we are proud.

OUR SUSTAINABILITY STRATEGY

S

O

C

I

A

L

Sustainability is one of Algoma's core values. The three sustainability pillars of Environment, Social, and Governance help to guide our decision-making and drive measurable progress.

O

R

I

V

N

E

T

N

E

M

N

ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT | II

MESSAGE FROM OUR

PRESIDENT & CEO GREGG RUHL

What defines a legacy? Is it what's written in history or built over time? At Algoma, a legacy is not something we look back on; it is something we carry forward.

This year, we celebrated a significant milestone: we reached ownership interest in our 100th vessel globally with the delivery of the Algoma Legacy. A fitting name and a marker of our collective achievement in strategic growth and expanding global presence. What we continue to carry forward as Algoma is a culture that supports what comes next. Across Algoma, our shared commitment, integrity, and passion propel and prepare us for the journey ahead.

DIVERSIFICATION & STRATEGIC INVESTMENT

A decade ago, Algoma operated just under 40 vessels, serving primarily the Great Lakes-St. Lawrence Seaway. Today, Algoma's dry and liquid bulk fleets have grown by more than 60 vessels, in Canada and globally, marking its transformation into a global operator through strategic partnerships and diversification across niche short sea shipping markets and trades. In 2025, we took delivery of eight vessels and have 12 more on order or under construction. At the time of writing, we have reached ownership interest in 102 vessels globally, 32 of which operate on the Great Lakes-St. Lawrence Seaway and the Canadian and U.S. east coasts.

STRONG FOUNDATIONS, SAFER OUTCOMES

This year, we strengthened our foundation with a renewed commitment to safety at every level of our organization. Stronger systems, clearer accountability, and the collective efforts of our teams have led to safer outcomes across our operations, and I am proud to report a 25% reduction in lost-time injuries this year and a 64% increase in vessels that received Gold Flag status. Safety is not the responsibility of a few; it belongs to all of us. Share what works, what doesn't, and speak up and contribute. That simple principle, embraced consistently, is one of our greatest safeguards. By continuing to learn, improve,

and look out for one another, we are building a culture where safety is not just a priority but a shared value that guides everything we do.

NAVIGATING MARKET UNCERTAINTY

This year, we experienced heightened market uncertainty, influenced by evolving U.S. policy decisions, shifting trade dynamics, and broader global economic pressures. Changes in regulatory direction and cross-border considerations have required businesses across the marine sector to remain vigilant and adaptable. In response, Algoma has remained focused on what we can control: delivering strong customer service, continuing to invest in fleet renewal and strategic growth, improving operational efficiencies, and strengthening relationships while building awareness across all levels of government.

Our diversified fleet, global presence, and long-term strategy have positioned us to weather the storm, as we have done for over a century. While external conditions and pressures may continue to fluctuate, our commitment to resilience and disciplined strategic investment ensures that we are well-equipped to navigate uncertainty and continue delivering sustainable value for our stakeholders.

III | ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT

POSITIONED FOR THE ENERGY TRANSITION

Canada's energy transition remains unsettled amid regulatory uncertainty, competitive disadvantages, shifting timelines, and the postponement of the IMO's "Net-Zero Framework." While the direction toward decarbonization is clear, the pathway, particularly regarding domestic policy alignment, fuel availability, and infrastructure development, remains less defined.

At Algoma, we have undertaken comprehensive studies on the efficacy and operational readiness of biofuels and methanol, and we are constructing vessels that are methanol-ready and methanol-capable so we can be ready to adapt as the market matures. However, meaningful progress across the marine industry will require clear, practical, and harmonized regulation that supports investment certainty and fuel supply development.

Given the continued uncertainty, we are re-evaluating our carbon reduction goals and timelines to ensure they remain achievable and aligned with evolving regulatory and market realities. With the right policy framework in place that captures our unique vessels and waterways, we can be better positioned to move forward and contribute to a lower-carbon future not only sustainably, but also in a commercially viable way.

THE FUTURE IS BRIGHT - LOOKING AHEAD TO 2026

During the year, we expect six vessels to be delivered: the final two product tankers under our joint venture FureBear, three mini-bulkers under the NovaAlgoma Short Sea Carriers (NASC) joint venture, and the second of three methanol-ready ocean self-unloaders. This would not be possible without the strong efforts of our people and the strength in our partnerships.

At the same time, we are entering a year defined by opportunity. Canada faces significant challenges, but with them comes a clear imperative: to accelerate growth and advance nation-building projects that will shape our country for generations. As a leader in the marine industry, Algoma stands ready to collaborate in this effort, strengthening Canada's marine corridor and reinforcing the Great Lakes-St. Lawrence system as a vital national asset.

"Canada faces significant challenges, but with them comes a clear imperative: to accelerate growth and advance nation-building projects that will shape our country for generations.

As a leader in the marine industry, Algoma stands ready to collaborate in this effort, strengthening Canada's marine corridor and reinforcing the Great

Lakes-St. Lawrence system

as a vital national asset."

OUR PEOPLE

Growth and prosperity are made possible by our dedicated seafarers. Every day, they deliver the raw materials that sustain the industries forming the foundation of our economy. Their commitment, together with the resilience of our partners and employees, positions us to move confidently into the year ahead.

Gregg Ruhl

President & CEO

ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT | IV

KEY MOMENTS

IN 2025

FEBRUARY

JANUARY

For the first time in company history, Algoma takes delivery of three vessels in one week: the Fure Vesborg, the Algoma Endeavour, and the Algoma East Coast.

Algoma is named one of Hamilton-Niagara's Top Employers for the third consecutive year.

MARCH

The Algonova is honoured as the opening vessel of the Welland Canal's 2025 navigation season in Port Colborne, ON.

MAY

Algoma takes delivery of the Fure Victoria.

APRIL

JUNE

Algoma takes delivery of the Fure Valö.

JULY

Algoma employees participate in a shoreline clean-up between Locks 2 and 4 of the Welland Canal.

AUGUST

Algoma welcomes the Algoma East Coast and Algoma Acadian to the shores of New Brunswick, completing its $127-million investment with Irving Oil.

NovaAlgoma Cement Carriers (NACC) establishes a new joint venture with DP World.

SEPTEMBER

Algoma takes delivery of the Fure Ven.

Algoma marks a major milestone with the delivery of the Algoma Legacy, bringing the Company's ownership interest to 100 vessels.

Algoma employees pack 1,700 backpacks with school supplies for students across the Niagara region.

DECEMBER

Employees purchase gifts for

over 115 children and infants, in support of Ronald McDonald House Canada.

V | ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT

Captain Robert Loveless aboard the Algoma Sault, the first Laker to arrive at the Port of Hamilton in 2025. Photo taken by Kelly Noseworthy, HOPA.

Gregg Ruhl, President & CEO, and Charlie Bungard, SVP, Operations & Technical, tour the

Algoma Legacy during its official welcoming ceremony in Halifax, Nova Scotia, November 2025.

Captain Julien Lafrenière raises the Canadian flag aboard the Algoma Endeavour at the Port of Montreal upon her arrival on Canadian shores, April 2025.

Algoma employees celebrate with Captain Charlene Munden following her recognition as the 2025 IMPACT! Award recipient, presented by The Great Lakes/ Seaway Review in partnership with Women in Logistics, January 2025.

Crewmembers aboard the Algoma Buffalo, May 2025.

Iryna Upir, Coordinator, Fleet Personnel, and Zachary Zhang, Manager, Project Engineering, speak with students at the District School Board of Niagara's Trades & Tech Fest, November 2025.

The Algoma Endeavour transiting the Port of Hamilton. Photo taken by Kelly Noseworthy, HOPA Ports.

DIVERSIFICATION &

STRATEGIC INVESTMENT

Our diversification and strategic investments strengthen Algoma's long-term resilience and support sustainable growth across the markets we serve. By balancing disciplined fleet renewal with targeted investments and partnerships, we continue to create long-term value for our customers, employees, investors, and communities while remaining well-positioned to navigate evolving market conditions.

NUMBER OF VESSELS ON

ORDER/UNDER CONSTRUCTION

(AS OF DECEMBER 31, 2025, INCLUDING JOINT VENTURES)

NUMBER OF NEWBUILD VESSELS DELIVERED

(SINCE 2013, INCLUDING JOINT VENTURES)

1

2

4

4

4

8

12

2

2

4

Ocean Self-Unloaders

Short Sea Mini-Bulkers

Domestic Dry-Bulk* Pneumatic Cement Carriers

International Product Tankers

Pneumatic Cement Carriers

Short Sea Mini-Bulkers

International Product Tankers

Domestic Product Tankers

Ocean Self-Unloaders

*Domestic Dry Bulk includes one vessel under management.

ALGOMA'S OWNERSHIP INTERESTS*

(AS OF DECEMBER 31, 2025, INCLUDING JOINT VENTURES)

100

102

TOTAL VESSELS*

+12 CONSTRUCTION

10

UNDER

2

In 2025, with the delivery of the Algoma Legacy, Algoma surpassed 100 operating vessels globally, marking

a historic milestone that reflects decades of strategic growth, strong partnerships, and continued investment in diversified short-sea shipping markets.

12

18

+4

19

31

+2

10

10

+4

+2

+ Figures indicate vessels under construction.

*Does not include one vessel under management.

Domestic Dry-Bulk

Ocean Self-Unloaders

Domestic Product Tankers

International Product Tankers

Pneumatic Cement Carriers

Short Sea Mini-Bulkers

Handy-Sized Bulkers

ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT | VIII

The Algoma East Coast in St. John's Harbour, Newfoundland and Labrador. Photo by Sabrina Lamkin, Naval Architect.

8

VESSELS DELIVERED IN 2025

As of December 31, 2025, eight of the 20 vessels on order or under construction had been delivered. Algoma took delivery of the Algoma Endeavour in the first half of the year, as well as two product tankers, the Algoma East Coast and the Algoma Acadian, in service of Irving Oil. In the third quarter of 2025, Algoma marked a historic milestone by welcoming the delivery of its 100th vessel in operation, the Algoma Legacy.

Throughout the year, Algoma also took delivery of four newbuild FureBear vessels, the Fure Vesborg, Fure Victoria, Fure Valö, and the Fure Ven.

OCEAN SELF-UNLOADERS

In the third quarter of 2025, Algoma took delivery of the Algoma Legacy, the first of three methanol-ready Kamsarmax-based ocean self-unloaders ordered in 2023. The remaining two vessels are scheduled for delivery in 2026 and 2027, and will operate as part of the world's largest pool of ocean self-unloaders, replacing older tonnage and setting the standard for the next generation.

Through its ownership interests in a joint venture, Algoma added two ocean self-unloaders to its fleet in the fourth quarter of 2025. Two additional vessels are currently under construction through the joint venture, with expected deliveries in 2028.

EQUINOX CLASS

Our domestic dry-bulk fleet renewal program was completed in the first quarter of 2025 with the delivery of the Algoma Endeavour, a 740-ft Seawaymax forward-mounted self-unloader. With 12 vessels now in service, including one owned by G3 Canada Limited, the Equinox Class program marks the completion of a renewal initiative that began with the first vessel delivered in 2013.

PRODUCT TANKERS

Two 37,000 DWT ice-class product tankers, the Algoma Acadian and the Algoma East Coast, were delivered in the first half of 2025. These vessels were entered into longterm charters and will support Irving Oil's refinery in Saint John, New Brunswick, providing product deliveries to ports across Atlantic Canada and the U.S. East Coast.

FUREBEAR PRODUCT TANKERS

Eight of the 10 dual-fuel, ice-class 17,999 DWT climate-friendly product tankers for the FureBear joint venture have now been delivered and are operating in Northern European markets. Four vessels were delivered in 2025, building on the initial four deliveries in 2024. The remaining two vessels are scheduled for delivery in 2026.

NOVAALGOMA NEWBUILDS

NovaAlgoma continued to advance its newbuild program in 2025, with four new mini-bulkers on order for delivery between 2026 and 2027. In addition, two methanol-ready pneumatic cement carriers remain under construction and will be the largest cement carriers in the world. Both vessels are expected to arrive in 2027.

IX | ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT

12

4 2

4 2

OCEAN

SELF-UNLOADERS

SHORT SEA MINI-BULKERS

FUREBEAR PRODUCT TANKERS

PNEUMATIC

CEMENT CARRIERS

The Fure Victoria under construction, April 2025.

EMPLOYEE GROWTH &

DEVELOPMENT

Employee growth and development are fundamental to employee engagement. At Algoma, we focus on equipping our people with the skills, training, and support they need to work safely, perform at a high level, and continue developing throughout their careers.

By investing in learning and well-being, we strengthen our workforce and reinforce a culture of continuous improvement that builds capability and resilience across our organization.

9,000

Online Training Courses Completed in 2025

90 +

Cadets Hosted, Completing a Collective 7,881 Days of Onboard Training in 2025

Tito Reyes, Ordinary Seaman, aboard the Algoma Bear. Photo taken by Kelly Noseworthy, HOPA Ports.

EMPLOYEE ENGAGEMENT

Employee engagement remains a cornerstone of Algoma's approach to fostering strong connections across our teams. In 2025, Algoma continued to emphasize teamwork, communication, and shared responsibility as it relates to safe and efficient operations.

LISTENING AND ACTING ON EMPLOYEE FEEDBACK

Listening to employees and responding to their feedback remains an essential part of our continuous efforts to improve our organization and create a better workplace. In May 2025, Algoma conducted its biennial employee engagement survey, gathering input from across the organization. Insights gathered were used to help inform initiatives that support employee well-being, including learning initiatives and internal communication.

ADVANCING OPERATIONAL EXCELLENCE

Algoma's annual Captains and Chiefs Conference brought fleet leaders together for three days of discussion focused on safety performance, incident learning, regulatory and environmental updates. Reflecting on Algoma's 125-year legacy and recent fleet milestones, leaders were challenged to translate operational insights into measurable action onboard, reinforcing accountability and collaboration across the organization.

As Charlie Bungard, Senior Vice-President, Operations & Technical, noted, "Our people, whether onboard or in the office, are very important. Without people, we wouldn't have a company. Algoma is a band of people working together toward a shared result." His message underscored a central theme of the year: meaningful engagement drives performance, and performance is sustained through collective effort.

TOP EMPLOYER AWARD

Algoma was proud to be recognized as one of Hamilton-Niagara's Top Employers for 2025, marking the third consecutive year we have received this distinction. This recognition reflects our continued commitment to building a workplace where employees are supported, engaged, and empowered to grow both professionally and personally.

Organized by the editors of Canada's Top 100 Employers, the Hamilton-Niagara Top Employers program evaluates organizations across key areas including employee training and development, engagement and communications, compensation and benefits, health and wellness, workplace culture, and community involvement. Being named a Top Employer underscores Algoma's ongoing investment in its people and our focus on fostering a strong, inclusive, and high-performing workplace.

ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT | XII

TRAINING AND MENTORSHIP

In 2025, Algoma advanced its training and mentorship framework, with continued emphasis on safety, consistency, and accessibility. Enhancements to Algoma's Learning Management System (LMS), our online training platform, remained a central focus, including the ongoing transition of legacy paper-based programs to a centralized digital platform. Training Captain and Training Chief programs continued to be modernized, strengthening oversight and standardization across fleets.

Employees completed approximately 9,000 LMS courses in 2025. Since the platform's launch in 2022, more than 28,700 course enrollments have been recorded. Algoma continued working with its LMS provider to improve system functionality, including enhanced reporting capabilities to support monitoring of course completion, participation trends, and overall training progress.

Supporting employee advancement remained a priority for Algoma in 2025. During the year, Algoma sponsored nine employees in pursuing certificate upgrades, supporting both unlicensed personnel and officers as they continue to develop their skills and advance their careers within the organization.

EARLY CAREER PATHWAYS

Algoma employees with Nova Scotia Community College cadets during the annual Nautical Skills Competition and recruitment event.

Algoma continued its long-standing commitment to developing the next generation of marine professionals by providing meaningful, hands-on training opportunities across a wide range of shipboard roles. In 2025, Algoma hosted more than 90 students across Nautical Science, Marine Engineering, Bridge Watch Rating, Marine Diesel Mechanics, and Ship's Cook programs, reflecting our investment in development across a wide range of positions that support safe and efficient vessel operations.

Collectively, these students completed 7,881 days of practical, on-board training aboard our vessels. Algoma partners with five marine training institutions across Canada to provide cadets with structured sea-term placements and mentorship opportunities. In addition to practical training, Algoma awarded 12 cadet scholarships in 2025, supporting students in Nautical Science and Marine Engineering programs as they advance their studies. In addition to the partnership, Algoma also provides structured and formal training to Bridgewatch students and Ship's Cook trainees from other licensed training centres to complete their required sea time with us.

Through these partnerships and a strong culture of mentorship at sea, Algoma plays an active role in building a skilled, sustainable workforce for the Canadian marine industry.

CADET ONBOARDING AND EARLY-CAREER READINESS

Algoma introduced a structured cadet orientation program in 2025 to better prepare first-year cadets for their initial sea terms. The program provides practical guidance on what to expect before joining a vessel, including travel logistics, living arrangements, personal preparation, and an overview of learning objectives while on board. By setting clear expectations and reducing uncertainty, the program supports a safer, more confident transition from classroom to vessel operations and enhances the overall training experience we provide.

XIII | ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT

Cedrik Lettner, Cadet, participates in the

Green Hard Hat program aboard the NACC Quebec.

GREEN HARD HAT PROGRAM

Algoma implemented its Green Hard Hat Program, which is designed to support new and less-experienced personnel during their early time on board by making experience levels visible to the crew. Sailors with less than six months of sea service wear a green hard hat, signalling to others on board that additional guidance, supervision, or mentoring may be required.

The program promotes a shared responsibility for safety, encourages proactive mentorship, and helps reinforce safe work practices during critical learning periods. Initially introduced for cadets, the program establishes a foundation for broader application as part of Algoma's safety culture.

PARTNERSHIP-BASED WORKFORCE DEVELOPMENT INITIATIVES

Algoma continued to invest in industry-wide workforce development through collaboration with marine employers, unions, training institutions, and government partners. In 2025, Algoma partnered with the Canadian Marine Careers Foundation (CMCF), alongside industry partners, to support the development of a new Entry-Level Seafarers Program. Delivered at Georgian College, the program is designed to introduce individuals to careers in seafaring by providing foundational knowledge, safety awareness, and practical preparation for shipboard employment.

Each 17-day session combines online and in-person instruction and concludes with opportunities for participants to connect directly with marine employers. This initiative supports industry renewal by creating accessible pathways into marine careers and strengthening the long-term sustainability of Canada's domestic fleet.

ALGOMA'S KIN SCHOLARSHIP PROGRAM

Algoma's commitment to education also extends to dependents of employees pursuing post-secondary education. Since 1993, the Company has awarded $718,000 in post-secondary scholarships to 385 students, including 15 in 2025.

Dan Fournier, Senior Manager, QHSE, and Salu Ramdas, Recruitment & Employment Coordinator, attend the Institut maritime du Québec (IMQ) recruitment event.

In addition to financial support, Algoma also provided opportunities for high school-aged relatives of employees to explore marine careers through its annual Take Your Kid to Work Day program. This year, participants toured the Algoma Discovery in the Port of Hamilton, gaining a firsthand look at shipboard operations and the coordination required to safely move essential cargoes across the Great Lakes.

Jessaden Badoria, Cadet, and Junard Dumaguing, Wheelsman, aboard the Algoma Endeavour.

Graciano Dela Paz, Senior Manager, Purchasing, and his daughter, Maegan, tour the Algoma Discovery with Marin Roach-Leclair, Cadet, on Take Your Kid to Work Day.

ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT | XIV

ENSURING A SAFE &

HEALTHY WORKFORCE

At Algoma, safety is a fundamental principle that guides everything we do. We remain focused on protecting the well-being of our employees and the communities in which we operate, while ensuring safe and reliable operations for our customers and partners through strong standards, active engagement, and continuous improvement.

25%

Reduction in Lost Time

Injuries Year-over-Year

64%

Increase in Gold Flag Vessels Year-over-Year

Kaysha MacNeil, 3rd Engineer, aboard the Algoma Strongfield.

INJURY PREVENTION

The safety and well-being of our employees remains our top priority. In 2025, we continued to build on our foundational approach to injury prevention, with a strong focus on hazard identification, proactive risk management, and shared responsibility for safety across all operations.

Lost Time Injury performance continued to demonstrate the positive impact of these efforts. Algoma recorded 12 Lost Time Injuries in 2025, a 25% reduction compared to 2024. This outcome reflects the continued emphasis on consistent safety practices and ongoing engagement across the fleet.

*The graph above shows lost time injuries recorded for vessels under Algoma's technical management. Safety indicators are unaudited and based on data available at such time and are subject to change as more complete information becomes available.

Ongoing initiatives include: encouraging the reporting of hazard identifications and near misses, regularly circulating safety alerts, reviewing Safety Management Manual requirements, and ensuring employees have access to practical tools that support a safe working environment.

SAFETY MANAGEMENT SYSTEM

Algoma's safety culture is anchored in its certified Safety Management System (SMS), aligned with the International Safety Management Code and OHSAS 45001. The SMS provides a consistent framework for identifying hazards, assessing risk, and implementing controls that support safe and reliable operations.

Algoma continued to strengthen its SMS through targeted reviews and updates to safety procedures, reinforced by consistent communication and active engagement across shipboard and shoreside teams, including regular safety updates shared through Strive Together, Algoma's internal safety newsletter.

SAFETY TRAINING

Training remains a critical component of Algoma's safety performance, building on the breadth of safety and policy training delivered through our LMS.

In 2025, several key safety resources were refreshed and modernized. Algoma redesigned its P.O.I.N.T. Hazard Identification Program Training Manual to improve readability and accessibility, with updated materials delivered through the LMS. In December 2025, Algoma also introduced a new Layup Procedure Manual, consolidating short-and long-term layup and dry dock requirements to help ensure vessels are left in a safe condition during non-operational periods.

To reinforce situational awareness and safe decision-making, Algoma refreshed internal communications supporting its Stop. Think. Act. safety slogan. Materials created, including new posters, luggage tags, hard hat stickers, and mirror clings in crew accommodations, serve as visible reminders of the importance of minimizing distractions and maintaining focus while working. These materials will be rolled out to crewmembers during 2026 fit-out meetings.

ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT | XVI

GOLD FLAG RECOGNITION

Algoma's Gold Flag Program recognizes vessels that consistently demonstrate operational excellence and the highest safety standards over a minimum of 12 consecutive months. The program reinforces accountability and incentivizes strong safety performance, incident prevention, and reliable service delivery across Algoma-managed vessels.

As of December 2025, 18 vessels achieved Gold Flag status, with an additional 16 vessels in Good Standing. Vessels in Good Standing have met required performance benchmarks and are actively progressing toward Operational Excellence Gold Flag recognition. Compared to 2024, the number of vessels that achieved Gold Flag status increased by approximately 64%. This improvement reflects greater consistency in safety performance and continued alignment across the organization around shared safety expectations.

STRIVE TOGETHER NEWSLETTER

Strive Together, now in its third year, continues to support safety awareness and engagement across Algoma's domestic and ocean fleets by sharing safety information, insights from marine safety authorities and lessons learned from real-world incidents. The newsletter also recognizes employees who demonstrate strong safety leadership through the Most Valuable Bear (MVB) program, which highlights actions that exemplify Algoma's core values and commitment to safety.

HEALTH AND WELLNESS

Algoma remains committed to supporting the health and wellness of its people by providing access to resources that promote physical, mental, and emotional well-being. During the year, particular focus was placed on mental wellness and sustainable work practices. Insights from Algoma's biennial employee engagement survey, including feedback related to mental health and burnout, informed additional support measures. In response, Algoma enhanced awareness of its Employee and Family Assistance Program (EAP) and delivered a virtual session for employees focused on recognizing and managing burnout.

Algoma's EAP provides employees and their families with confidential access to support resources, including mental health services, financial guidance, and assistance with personal or workplace challenges. Access to these services is provided at no cost, ensuring that employees and their families have the necessary support for their overall well-being.

COMMUNITY IMPACT

Community engagement remains an important part of Algoma's culture. In 2025, employees supported local communities through environmental and charitable initiatives, alongside industry partnerships that advanced marine education and workforce awareness.

ENVIRONMENTAL STEWARDSHIP

Algoma employees participate in a potted flower giveaway.

Algoma employees came together for Earth Day, participating in the Company's annual clean-up along the Welland Canal under the global theme Our Power, Our Planet. Employees collected more than 25 bags of garbage along Locks 2, 3, and 4, while employees at our Fort Lauderdale, Florida, office participated in an electronics recycling drive and potted flower giveaway.

XVII | ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT

COMMUNITY-BASED SUPPORT

Through pledges and fundraising initiatives, Algoma employees raised $50,745 in support of the United Way in 2025. With the Company match, this resulted in a total contribution of $101,491 to programs and services that support individuals and families in the communities where we live and work.

Algoma volunteers pack 1,700 backpacks for United Way Niagara's Backpack for Kids program.

In partnership with United Way Niagara, Algoma volunteers once again supported the Backpacks for Kids program, filling 1,700 backpacks with essential school supplies to help local elementary and secondary students from low-income households start the school year prepared.

NATIONAL MARINE EDUCATION OUTREACH

Algoma supported marine education and awareness through its participation in Marine Month in Canada. In partnership with Imagine Marine and Canadian Geographic Education, Algoma connected with 62 classrooms across the country, reaching more than 3,000 students in Grades 5-12 through live and on-demand virtual sessions delivered in both English and French.

Students gained a behind-the-scenes look at a day in the life of a Captain, with Captain Julien Lafrenière sharing insights into vessel operations, leadership responsibilities, and the teamwork required to operate safely and effectively, helping introduce the next generation to careers in marine transportation. Scan to watch a video replay!

EVOLVING OUR NATIONAL CHARITABLE PARTNERSHIP PROGRAM

In preparation for its 2026 charitable giving program, Algoma's Community Involvement Committee surveyed employees to better understand their charitable giving priorities. The results confirmed that giving back is an important part of Algoma's culture, with 73% of respondents agreeing that it positively impacts our workplace. There was strong support for children's health causes and for directing contributions to charities within local communities.

Employee holiday toy drive donations.

Based on this feedback, Algoma selected Ronald McDonald House (RMH) Canada as its 2026 national corporate giving partner. Beginning in 2026, Algoma will support RMH through a company-matched giving program, enabling contributions to local chapters across Canada.

To mark the transition, employees organized a holiday toy drive and fundraising efforts, providing gifts to more than 115 children and infants supported by RMH during the holiday season. The impact was also reflected in feedback shared with the RMH team, including from one parent who said:

"When we checked in, I told my kids that Christmas was going to be paused this year. When we woke up to these amazing gifts, I was overwhelmed with gratitude. Thanks to you, our kids still believe in Santa. I am so grateful."

ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT | XVIII

MINIMIZING OUR

ENVIRONMENTAL FOOTPRINT

Algoma is committed to operating, growing and diversifying in a responsible manner while minimizing the environmental impacts from our operations. A key focus in this effort is to reduce carbon emissions through actions in three main areas: fleet renewal and growth, energy efficiency, and ongoing evaluation of future fuels.

The Algoma Endeavour transiting the St. Clair River.

REDUCING EMISSIONS THROUGH FLEET RENEWAL

In 2025, we took delivery of the last new Equinox Class vessel, the Algoma Endeavour, for a total of 12 new vessels for our Domestic Dry Bulk (DDB) fleet. These vessels arrive with advanced energy efficiency improvements, and each achieves an average 40% reduction in carbon intensity compared to the ships they replaced. Our international newbuilds are using, or are ready to use, alternative lower-carbon fuels when available.

Driven by the extensive newbuild program in our DDB business, Algoma has shown significant improvement in reducing the total emissions from our combined domestic fleet (DDB and product tankers) since 2008 (a 43% reduction) and a 17% carbon intensity reduction for DDB (on a tonne-km basis, EEOI). We believe that short-term improvement will be driven by continuing adoption of energy efficiency measures and technologies, use of biodiesel, and additional fleet renewal, most notably in the domestic tanker fleet, given its age profile. Further reductions will need to be realized through the use of alternative fuels when available.

Additional recent highlights include:

One 'methanol-ready' vessel delivered into our Ocean Self-Unloader fleet in 2025, with two more under construction

and expected to be delivered in 2026 and 2027.

Eight dual-fuel climate-friendly product tankers constructed for FureBear, in partnership with Furetank, with the final two under construction and expected to be

delivered in 2026.

Further details are provided below.

Two 'methanol-ready' domestic product tankers delivered in 2025.

Two 'methanol-ready' domestic

product tankers delivered in 2025.

Two 'methanol-ready' and one 'mTewthoan'moel-tchaapnaobll-er'ecaedmy'eanntdcaornreiers for

'methoaunroNl-coavpaaAblgleo'mceamjoeintt cvaernrtieurse.for our NovaAlgoma joint venture.

Through our FureBear joint venture, the Vinga Class product tankers feature dual-fuel engines (LNG/LBG or gasoil), battery hybrid technology, energy-efficient design innovations, and shore power capability, resulting in significantly lower emissions of CO2, sulphur oxides, nitrogen oxides, and particulate matter.

WIND AND SHORE POWER STUDIES

Green Shipping Corridor projects, conducted in 2025 and supported in part by Transport Canada's Green Shipping Corridor Program, evaluated the feasibility of using wind-assisted propulsion and shore power for our domestic fleet. While these measures may have good potential elsewhere, the studies concluded, unfortunately, that their decarbonization potential is very limited for Algoma's vessels operating in the Great Lakes-St. Lawrence region. Wind-assisted propulsion is feasible under specific conditions, but the opportunity in our trade is minimal due to relatively short periods full away, and restrictions on transiting under bridges and interfacing with cargo. Similarly, for our typical trades, there are significant challenges to overcome with shore power, including providing green power to the large number of ports and docks we serve and retrofitting the necessary connections to support shifting during loading/unloading operations. While the results of these studies largely eliminate wind propulsion and shore power as feasible for our typical vessels in our trading region, undertaking this analysis has been valuable.

ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT | XX

ALTERNATIVE FUELS

In 2025, Algoma and partners completed studies, partially funded under Transport Canada's Green Shipping Corridor Program, aimed at evaluating the use of biofuel and methanol fuel to reduce carbon emissions from our domestic fleet operations.

The biofuels study concluded that this fuel is technically feasible and promising for achieving significant reductions, confirming our experience with biofuels trials on several vessels in our domestic fleets. The fuel, sourced from crop wastes, results in a significant reduction in life-cycle greenhouse gas (GHG) emissions compared to marine diesel fuel, but will require government support and policies to ensure availability and affordability. As regulations begin to recognize its carbon-reduction benefits, Algoma is considering how best to incorporate further biofuel use in our domestic fleets.

The second study involved the development of a preliminary design for a Great Lakes self-unloader fueled by methanol. This project confirmed that a dual-fuel system (methanol and diesel) is feasible with minimal cargo impact, but significant carbon reductions will only be realized with bio- or green methanol, not the currently available grey methanol. The current cost of green methanol remains high, but it is expected to improve as production scales and technology advances, and may be a promising option in the long term.

Algoma is a member of a Great Lakes region Methanol Consortium, formed to conduct a feasibility assessment on the use of hydrogen and derivative fuels to decarbonize shipping.

CARBON REDUCTION GOALS

In 2021, we set a goal to decrease the carbon intensity of our domestic fleet by 40% by 2030 (compared to 2008), aligning with the International Maritime Organization (IMO) and Canadian targets, and to reach net-zero emissions by 2050. The IMO noted in 2023 that the key to meeting the 40% intensity target would be the adoption of mid-term GHG reduction measures by 2025 that would effectively promote the energy transition of shipping and provide the world's fleet with a needed incentive.

However, in October 2025, the IMO voted to postpone their proposed industry-wide carbon regulatory regime known as the 'Net-Zero Framework'. This framework was to have required binding GHG standards and a global carbon pricing mechanism for shipping, but the delay has created significant uncertainty for the marine sector and the developing future fuels industry. Clear incentives for developing and adopting cleaner fuels are needed to give producers confidence to invest in green fuel infrastructure.

There is also resistance in the U.S. to a maritime carbon pricing system, as well as potential for penalties for foreign-built ships trading into that country. Given that a significant portion of our trade is cross-border with the U.S., this is of concern and provides an additional challenge regarding fleet renewal, not only with respect to choice of fuel, but also choice of shipyard location.

These significant trade barriers, competitive disadvantages, and unsettled regulatory frameworks introduce uncertainty in our ability to meet our 2030 carbon reduction goals, and, as a result, we are currently re-evaluating these goals.

XXI | ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT

The Algoma Intrepid approaching the Mackinac Bridge in the Straits of Mackinac, Michigan.

Photo taken by Training Chief Engineer Arnav Chatterjee.

PROTECTING OUR

MARINE ECOSYSTEMS & BIODIVERSITY

Algoma works to reduce the impacts of our shipping activities on marine ecosystems. Through responsible vessel operations, environmental monitoring, and participation in research initiatives, our crews aim to support the long-term health and resilience of marine habitats.

The Algosolis transiting the north shore of the Gulf of St. Lawrence.

$33 Million Invested in ballast water treatment systems

(to date)

AQUATIC INVASIVE SPECIES

Algoma complies with ballast water and biofouling management requirements and best practices to mitigate the risk related to aquatic invasive species. As of the end of 2025, 22 Algoma vessels (14 in our domestic fleet and all eight of our ocean self-unloaders) were equipped with ballast water treatment systems.

In 2025, Algoma evaluated the operability of these systems on our domestic vessels operating in the Great Lakes-St. Lawrence region and confirmed that treatment in these waters is often difficult. Many ports in the region have turbid, muddy, or otherwise untreatable water, and, as a result, the systems may be less effective for our ships, raising questions about the net environmental benefit provided by these significant investments. Both Canada and the U.S. have acknowledged the unique challenges in the Great Lakes, but are not aligned in how they regulate Lakers, creating competitive issues. Algoma will continue to work with regulators and researchers on these issues as harmonized regulations are sought.

UNDERWATER NOISE

We continue to collaborate with the Marine Acoustic Research Station (MARS) project to better understand the underwater noise profiles of our vessels in the St. Lawrence River estuary. Since 2022, the acoustic signature of over 20 Algoma vessels on approximately 170 voyages has been measured as they travel through the MARS listening station in the St. Lawrence River, including over 70 transits in 2025. We have also hosted the MARS research team on board four vessels to conduct a more detailed noise and vibration analysis. The newer Equinox Class vessels have been confirmed to be quieter than older vessels, consistent with the noise mitigation measures incorporated into their design and construction. The information gained through this work is being used in part to support the development of an Algoma Underwater Noise Management Plan.

MARINE MAMMAL PROTECTION

To minimize interactions that may occur between shipping vessels and marine mammals, Algoma vessels are supplied with Marine Mammal Management Plans. These plans support crews in mitigating risks by providing information on endangered species and the sensitive areas that the mammals frequent. Algoma vessels operating in these regions comply with recommended guidelines and regulatory requirements aimed at reducing ship strikes, including participation in voluntary seasonal speed reduction zones. Our crews are also trained to collect and report whale sightings during their regular operations and have provided approximately 500 observations to the Marine Mammal Observation Network (ROMM) over our years as a member. This data supports whale conservation efforts in the St. Lawrence region.

GREEN MARINE SCORE

Algoma is a co-founding member of Green Marine, a voluntary environmental improvement and certification program, and reports our performance annually against its criteria. We anticipate a score of 4.3 out of a possible 5 for our 2025 performance. Algoma regularly scores in the top 5% of participating shipowners.

ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT | XXIV

REPORTED REVENUES

(MILLIONS)

$800

$600

(1) Freight revenue includes our proportionate share of freight revenue from our respective joint ventures and excludes revenue from non-marine activities of the Company.

FREIGHT REVENUES(1)

$400

$200

$-

EBITDA

2023 2024 2025

(MILLIONS) (MILLIONS)

$1,000 $250

$750

$500

$250

$200

$150

$100

$50

$-

2023 2024 2025

$-

2023 2024 2025

NET EARNINGS

(MILLIONS)

$160

TOTAL ASSETS

(MILLIONS)

$2,000

$120 $1,500

$80 $1,000

$40 $500

$-

2023 2024 2025

$-

2023 2024 2025

For full commentary, refer to the 2025 Management's Discussion and Analysis beginning on page 1.

44,925 million metric tonnes of dry and liquid cargo transported and 44.8 billion tonne-kilometres travelled throughout the Great Lakes-St. Lawrence Seaway and internationally in 2025.

Figures above include the Domestic Dry-Bulk, Product Tanker, and Ocean Self-Unloader segments only.

XXV | ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT

2026

OUTLOOK

Algoma enters 2026 following strong performance in 2025, with revenues and earnings increasing year over year and continued momentum across both domestic and international operations. Eight vessels were added to the fleet during the year, marking the addition of our 100th vessel in operation. With six vessels scheduled for delivery in 2026, the Company remains focused on strengthening and modernizing its fleet to support long-term performance.

In the Domestic Dry-Bulk segment, grain and salt volumes are expected to increase, while iron ore volumes are anticipated to decline due to changing market conditions. Product Tanker demand is expected to remain steady, supported by strong utilization across the Canadian fleet. In the Ocean Self-Unloader segment, vessel supply is expected to increase in 2026, with an addition of one new Kamsarmax self-unloader and fewer dry-docking days.

Across our global joint ventures, earnings are anticipated to increase, supported by long-term charter coverage and continued fleet growth.

While global tariffs and broader geopolitical uncertainty may influence operating costs and trade flows, material changes in cargo volumes are not currently anticipated. Algoma will continue to monitor market conditions closely as we move through the 2026 navigation season.

For more details on the 2026 outlook, please refer to pages 8-12 of the Management's Discussion and Analysis.

The Algoma Bear approaching Thunder Bay, Ontario, beneath the northern lights.

Photo taken by Chad Ruffett, 2nd Mate.

ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT | XXVI

DOMESTIC DRY-BULK

OPERATIONAL PERFORMANCE

20

Number of vessels at the end of 2025 and includes one managed vessel.

REVENUE DAYS

6000

5000

4000

3000

2000

1000

0

2023

2024

2025

The Domestic Dry-Bulk segment serves a wide variety of major industrial sectors throughout the Great Lakes-St. Lawrence Seaway. This includes iron and steel manufacturers, construction aggregate producers, cement and building material suppliers, salt mining, and agricultural product distributors.

$450

$400

$350

Construction Agriculture Salt

$300

$250

$200

$150

$100

$50

$-

2023 2024 2025

VOLUMES

(MILLIONS METRIC-TONNES)

25

20

Iron/Steel Construction Agriculture Salt

15

10

5

0

2023 2024 2025

XXVII | ALGOMA CENTRAL CORPORATION 2025 ANNUAL REPORT