2nd Quarter – 2026 (2026 Q2 Financial Results Algoma Central Corporation)

2026 INTERIM REPORT TO SHAREHOLDERS

For the Three and Six Months Ended June 30, 2026 and 2025

General 1

Business Profile 1

Important Information About This MD&A 1

Select Financial and Operational Highlights 3

Business Segment Discussion

Domestic Dry-Bulk 5

Product Tankers 6

Ocean Self-Unloaders 7

Global Short Sea Shipping 8

Corporate 10

Consolidated 10

Contingencies 11

Capital Resources 11

Financial Condition, Liquidity and Capital Resources 11

Normal Course Issuer Bid 12

Commitments 12

Disclosure Controls and Procedures and Internal Controls over Financial Reporting 12

Adoption of New and Amended Accounting Pronouncements 13

Accounting Pronouncements Issued But Not Yet Effective 13

Notice of Disclosure of No Audit Review 14

Interim Condensed Consolidated Statement of Earnings (Loss) 15

Interim Condensed Consolidated Statement of Comprehensive Earnings (Loss) 15

Interim Condensed Consolidated Balance Sheet 16

Interim Condensed Consolidated Statement of Changes in Equity 17

Interim Condensed Consolidated Statement of Cash Flows 18

Notes to the Interim Condensed Consolidated Financial Statements 19

This Management's Discussion and Analysis ("MD&A") of the Company should be read in conjunction with its Interim Condensed Consolidated Financial Statements for the three and six months ended June 30, 2026 and 2025 and related notes thereto and has been prepared as at August 6, 2026.

This MD&A has been prepared by reference to the disclosure requirements established under National Instrument 51-102 "Continuous Disclosure Obligations" of the Canadian Securities Administrators. Additional information on the Company, including its 2025 Annual Information Form, is available on SEDAR's website at https://www.sedarplus.ca and on the Company's website at https://www.algonet.com.

Algoma Central Corporation owns and operates the largest fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Seaway, including self-unloading dry-bulk carriers, gearless dry-bulk carriers and product tankers. Algoma also owns and operates ocean-going self-unloading dry-bulk vessels trading in international markets and holds interests in global joint ventures that own diversified portfolios of dry and liquid bulk fleets operating internationally. Across the global fleet, Algoma holds an ownership interest in over 100 vessels. In addition to its ownership interests, the Company provides operational management for other vessels.

The Company reports the results of its operations for five business units or segments. The largest is the Domestic Dry-Bulk segment, which includes the Company's 24 Canadian dry-bulk carriers. This segment serves a wide variety of major industrial sectors, including iron and steel producers, aggregate producers, cement and building material producers, salt producers, and agricultural product distributors.

The Product Tankers fleet consists of ten product tankers employed in Canadian flag service. The segment also includes the Company's 50% interest in an international joint venture comprising ten tankers, one of which is under construction, and an interest in a foreign-flagged tanker operation comprising two product tankers. Customers include major oil refiners, leading wholesale distributors, and large consumers of petroleum products.

The Company's international Ocean Self-Unloaders segment consists of 11 ocean-going self-unloading vessels. Nine of the ocean vessels are part of a Pool comprising the world's largest fleet of ocean-going self-unloaders, which at the end of the period totalled 19 vessels. An additional ocean self-unloader is currently under construction, with delivery expected in 2027, and set to replace an older Algoma-owned vessel in the Pool. The segment also includes joint venture interests in three self-unloaders and two additional vessels currently under construction, with expected deliveries in 2028.

The Global Short Sea Shipping segment, which consists of the Company's NovaAlgoma joint ventures, focuses on niche marine transportation markets featuring specialized equipment or services. The cement carrier operation holds a 49% interest in pneumatic cement carriers servicing large global cement manufacturers that support construction and infrastructure projects. The short sea mini-bulker fleet comprises owned ships, chartered vessels, and vessels operated under third-party management contracts. The fleet supports the agricultural, cement, construction, energy, and steel industries worldwide. The handy-size fleet is an opportunistic vessel sales and purchase venture. Three mini-bulkers and three pneumatic cement carriers are currently under construction for these joint ventures, with expected deliveries between 2026 and 2028.

The Corporate segment consists of the Company's head office expenditures, third-party management services, other administrative functions of the Company, and earnings from a joint venture in a mechanical, machining, and fabrication shop.

Impact of Seasonality on the Company

The nature of the Company's business is such that the earnings in the first quarter of each year are not indicative of the results for the other three quarters in the year. Due to the closing of the canal system and the winter weather conditions on the Great Lakes - St. Lawrence Seaway, the majority of the Domestic Dry-Bulk fleet does not operate for most of the first quarter. In addition, significant repair and maintenance costs are incurred in the first quarter to prepare the Domestic Dry-Bulk fleet for the upcoming navigation season. As a result, first quarter revenues and earnings are significantly lower than those of the remaining quarters in the year.

The reporting currency used is the Canadian dollar and all amounts are reported in thousands of Canadian dollars, except for per share data, and unless otherwise noted.

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.

The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to:

• global and North American trade conditions, including the imposition of tariffs and other trade barriers that may increase costs and disrupt the free movement of goods;

• labour disputes that could affect the operations infrastructure upon which the Company relies;

• the impact of climate change on markets served by our customers, including the impact of drought conditions on agricultural outputs and the impact of winter conditions on production and/or sale of certain commodities;

• general economic and market conditions in the countries in which we operate;

• our success in maintaining and securing our information technology systems, including communications and data processing from accidental and malicious threats;

• our success in securing contract renewals and maintaining existing freight rates with existing customers;

• our success in securing contracts with new customers at acceptable freight rates;

• evolving regulations focused on carbon emissions and ballast water treatment that could require capital investments and increase costs that may not be recoverable from revenues;

• our ability to attract and retain qualified employees;

• interest rate and currency value fluctuations;

• our ability to execute our strategic plans and to complete and integrate acquisitions;

• critical accounting estimates;

• operational and infrastructure risks, including on-going maintenance and operational reliability of the St. Lawrence Seaway;

• on-time and on-budget delivery of new ships from shipbuilders;

• general political conditions;

• labour relations with our unionized workforce;

• the possible effects on our business of war or terrorist activities;

• disruptions to public infrastructure, such as transportation, communications, power or water supply, including water levels;

• technological changes;

• significant competition in the shipping industry and from other transportation providers;

• reliance on partnering relationships;

• appropriate maintenance and repair of our existing fleet by third-party contractors;

• health and safety regulations that affect our operations can change and be onerous and the risk of safety incidents can affect results;

• a change in applicable laws and regulations, including environmental regulations, could materially affect our results;

• economic conditions may prevent us from realizing sufficient investment returns to fund our defined benefit plans at the required levels;

• our ability to raise new equity and debt financing, if required;

• general weather conditions or natural disasters;

• the seasonal nature of our business; and,

• risks associated with the lease and ownership of real estate.

This should not be considered a complete list of all risks to which the Company may be subject from time to time. When relying on forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider these factors, as well as other uncertainties and potential events and the inherent uncertainty of forward-looking statements.

The Company does not undertake to update any forward-looking statements, whether written or oral, that may be made, from time to time, by the organization or on its behalf, except as required by law. The forward-looking information contained in this document is presented for the purpose of assisting our shareholders in understanding our financial position as at the dates presented, our strategic priorities, and our objectives, and may not be appropriate for other purposes.

For more information, please see the discussion of risks and uncertainties in the Company's Annual Information Form for the year ended December 31, 2025, which outlines in detail, certain key factors that may affect the Company's future results. The Annual Information Form can be found on the Company's website at https://www.algonet.com and on SEDAR's website at https://www.sedarplus.ca.

Ocean Self-Unloaders

Algoma participates in the world's largest Pool of ocean-going self-unloaders (the "Pool"). The segment's results reflect a pro-rata share of Pool revenue and vessel operating costs for the Company's nine 100% owned ships currently operating in the Pool. Earnings from vessels owned through joint ventures operating in this segment are included in the Company's share of earnings from joint ventures. Algoma does not incur selling expenses on ocean self-unloader business, but instead pays a commercial fee to the Pool manager, which is reflected as an operating expense.

Joint Ventures

Joint venture revenues from the Product Tankers, Ocean Self-Unloaders, Global Short Sea Shipping, and Corporate segments are not included in the consolidated revenue figure. The Company's share of net earnings, adjusted for amortization arising from vessel purchase price allocation and intangibles, is included in net earnings from investments in joint ventures in the Company's consolidated earnings.

Non-GAAP Measures

This MD&A uses several financial measures to assess its performance including earnings before interest, income taxes, depreciation, and amortization (EBITDA), free cash flow, return on equity, adjusted profit margin, and adjusted performance measures. Some of these measures are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on IFRS Accounting Standards 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. The non-GAAP measures that are used throughout this report are defined below and can also be referred to in the sections entitled EBITDA, Free Cash Flow, and Select Financial and Operational Performance.

EBITDA

EBITDA is not intended to represent cash flow from operations, and it should not be considered as an alternative to net earnings, cash flow from operations, or any other measure of performance prescribed by IFRS Accounting Standards. EBITDA is calculated as net earnings before depreciation and amortization, net interest expense, income tax expense, foreign exchange loss (gain), gain (loss) on sale of assets, and certain one-time items. Management considers EBITDA to be a meaningful measure to assess its operating performance in addition to other IFRS measures. It is included because Management believes it can be useful in measuring its ability to service debt, fund capital expenditures, expand its business, and is a similar metric used by credit providers in the financial covenants of the Company's senior secured long-term debt.

Company Share of EBITDA

Company share of EBITDA is not intended to represent cash flow from operations, and it should not be considered as an alternative to net earnings, cash flow from operations, or any other measure of performance prescribed by IFRS Accounting Standards. Company share of EBITDA is calculated as the Company's proportionate share of EBITDA of its consolidated and equity-accounted investments, determined based on the Company's ownership interests. Management considers Company share of EBITDA to be a meaningful measure to assess the operating performance attributable to the Company in addition to other IFRS measures. It is included because Management believes it can be useful in measuring its ability to service debt, fund capital expenditures, expand its business, and is a similar metric used by credit providers in the financial covenants of the Company's senior secured longterm debt.

Free Cash Flow

Management believes that free cash flow is a useful measure of liquidity as it demonstrates the Company's ability to generate cash for debt obligations and for discretionary uses such as payments of dividends, investing activities, and additions of property, plant, and equipment. The Company defines its free cash flow as cash from operating activities less debt service and capital required for maintenance of existing assets.

Select Financial and Operational Performance

Statistical operating data are based on data available at such time and are subject to change as more complete information becomes available. Definitions of each measure are included within the Company's Management's Discussion & Analysis.

Financial Highlights

Three Months Ended Six Months Ended Favourable/(Unfavourable)

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.

2. See the section entitled Important Information About This MD&A - EBITDA for an explanation of this non-GAAP measure.

3. See the section entitled Important Information About This MD&A - Free Cash Flow for an explanation of this non-GAAP measure.

Operational Highlights

The following table lists key measures of the Company's operating performance and relate only to our Domestic Dry-Bulk, Product Tankers, and Ocean Self-Unloaders segments, and do not include the fleets in which we participate through joint ventures.

Three Months Ended Six Months Ended

1. Total quantity of cargo in metric tonnes transported during the reporting period.

2. Total cargo tonne-kilometres travelled is calculated as cargo quantity multiplied by the distance in kilometres that the cargo quantity was transported.

3. Operating days are calculated as the number of available days in the reporting period minus the aggregate number of days that the vessels are off-hire due to unforeseen circumstances.

EBITDA

The Company uses EBITDA as a measure of the cash-generating capacity of its businesses. The following table provides a reconciliation of net earnings in accordance with GAAP to the non-GAAP EBITDA measure for the three and six months ended June 30, 2026 and 2025, and presented herein:

Three Months Ended Six Months Ended Favourable/(Unfavourable)

1. Please refer to the section entitled Important Information About This MD&A for an explanation of this non-GAAP measure.

Revenues

Three Months Ended Six Months Ended Favourable/(Unfavourable)

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

2. Global Short Sea Shipping results for the current period reflect the Company's reduced ownership interest following the sale of a 51% interest in the cement carrier fleet in late 2025.

Financial Performance

Three Months Ended Six Months Ended Favourable/(Unfavourable)

Operational Performance

Three Months Ended Six Months Ended % Change

EBITDA

The following table provides a reconciliation of net earnings in accordance with GAAP to the non-GAAP EBITDA measure, as reported for the three and six months ended June 30, 2026, and 2025, and presented herein:

Three Months Ended Six Months Ended Favourable/(Unfavourable)

1. Please refer to the section entitled Important Information About This MD&A for an explanation of this non-GAAP measure.

2026 Second Quarter Compared to the Corresponding Period in 2025

Revenue increased during the quarter, driven by higher customer demand and freight rates, and two additional vessels operating in the fleet. Volumes increased in the construction, salt, and agricultural sector, to offset reduced volumes in the iron and steel sector. A record grain crop in 2025 and new contracts drove growth in agricultural and construction shipments, while a return to typical winter weather around the Great Lakes-St. Lawrence region strengthened demand for de-icing salt. Additionally, new contracts drove higher volumes in the construction sector. Iron and steel volumes declined mainly due to a major customer accelerating changes to its manufacturing operations in 2025. Revenues also reflect contractual recoveries from the prior year period.

Operating costs were higher as a result of an increase in operating days due to the larger fleet size and layup expenditures. Higher fuel prices also affected operating costs; however, most fuel costs are passed on to customers through the fuel component of freight rates.

Outlook

For the remainder of 2026, grain and construction volumes are expected to remain strong with the new customer contracts and additional capacity, partially offset by continued volume reductions in the iron and steel sector. Demand for spot grain and salt shipments is anticipated to remain strong throughout the balance of the year, supporting full fleet utilization. Algoma is closely monitoring developments regarding global tariffs; however, we do not anticipate any major effects on cargo volumes at this time.

Financial Performance

Three Months Ended Six Months Ended Favourable/(Unfavourable)

Operational Performance(1)

Three Months Ended Six Months Ended % Change

1. The vessels which operate under international joint ventures arrangements are excluded from operational performance.

EBITDA

The following table provides a reconciliation of net earnings in accordance with GAAP to the non-GAAP EBITDA measure, as reported for the three and six months ended June 30, 2026, and 2025, and presented herein:

Three Months Ended Six Months Ended Favourable/(Unfavourable)

1. Please refer to the section entitled Important Information About This MD&A for an explanation of this non-GAAP measure.

2026 Second Quarter Compared to the Corresponding Period in 2025

The increase in revenue during the quarter was driven by increased revenue days following the full deployment of the Algoma Acadian and Algoma East Coast, which entered service on the Canadian East Coast during the second quarter of 2025. Additionally, there were fewer days attributable to regulatory dry-dockings in the second quarter of 2026 compared to the same period last year.

Operating costs rose largely in line with the increase in operating days as a result of additional vessels in service and the reduction in off-hire days due to fewer dry-dockings during the quarter. Higher fuel prices also affected operating costs; however, fuel costs are passed on to customers through the fuel component of freight rates.

Joint venture earnings were higher in the period driven by an increase in the number of FureBear vessels, nine vessels this quarter compared to six in the prior year period, and significantly higher rates for intermediate product tankers in the FureBear fleets that operate in Northern Europe. Higher rates from these Northern European assets reflected global trade disruptions; however, market conditions returned to pre-disruption levels by the end of the quarter.

Outlook

Demand is anticipated to remain strong for our domestic Canadian tanker fleets and for those assets to be fully employed for the remainder of 2026. International product tanker results are expected to remain stable for the balance of year, consistent with daily levels experienced towards the end of the second quarter. The final newbuild tanker out of a ten vessel order is scheduled to be delivered in August 2026.

Algoma continues to closely monitor developments regarding global tariffs and geopolitical events. At this time, the Company does not anticipate a material impact on cargo volumes or operations, as none of the tanker fleets currently operate in conflict zones or carry commodities likely to be subject to tariffs.

Financial Performance

Three Months Ended Six Months Ended Favourable/(Unfavourable)

1. Pool volumes exclude volumes carried on vessels that were under time charter arrangements and under joint ventures.

EBITDA

The following table provides a reconciliation of net earnings in accordance with GAAP to the non-GAAP EBITDA measure, as reported for the three and six months ended June 30, 2026, and 2025, and presented herein:

Three Months Ended Six Months Ended Favourable/(Unfavourable)

1. Please refer to the section entitled Important Information About This MD&A for an explanation of this non-GAAP measure.

2026 Second Quarter Compared to the Corresponding Period in 2025

Results for the Ocean Self-Unloader segment for the second quarter of 2026 reflect the Company's pro-rata share of the Pool's revenue and vessel operating costs following a restructuring of the Pool agreement. Prior year results reflect the Company's pro-rata share of revenues earned and operating expenses incurred by the Company's 100% owned vessels.

Revenues increased in the quarter driven by strong Pool performance, reflecting increased coal and salt volumes, combined with higher revenue days as a result of fewer regulatory dry-dockings compared to the prior year period.

Operating costs increased mainly due to higher operating days and fuel prices; however, fuel costs are passed on to customers through the fuel component of freight rates.

Late in the quarter, the Pool agreement was amended increasing the Company's share in the Pool to 50%. While this change had a modest impact on the current period, it is expected to increase the Company's share of earnings from the segment going forward. Additionally, the Company added two vessels, the Algoma Celebration, the second of three newbuild ocean self-unloaders to be delivered, and the Honourable Henry N.R. Jackman, a newbuild ocean self-unloader acquired in connection with the Company's increase in Pool participation.

Two vessels that retired from the Pool were sold on July 20, 2026 with the proceeds available for future operating needs and investing opportunities.

Outlook

The Company's increased share in the Pool is expected to contribute to higher operating earnings. The positive impact of higher coal volumes is expected to be partially offset by lower aggregate volumes for the remainder of the year. The third newbuild ocean self-unloader is expected to be delivered in early 2027. Together these new vessels, all of which are methanol-ready, will offer improved fuel efficiency compared to the vessels they replace.

Financial Performance

Three Months Ended Six Months Ended Favourable/(Unfavourable)

EBITDA

The following table provides a reconciliation of net earnings in accordance with GAAP to the non-GAAP EBITDA measure, as reported for the three and six months ended June 30, 2026, and 2025, and presented herein:

Three Months Ended Six Months Ended Favourable/(Unfavourable)

For the periods ended June 30 2026 2025 2026 2025 Three Months Six Months Company share of net earnings (loss) from

investments in joint ventures $ (3,501) $ 3,975 $ (3,680) $ 5,806 $ (7,476) $ (9,486)

Adjustments to net earnings (loss) (company's share):

Depreciation and amortization 1,931 5,958 3,909 11,543 (4,027) (7,634)

Interest expense 343 569 646 1,216 (226) (570)

Income tax expense (recovery) (36) (72) (39) 292 36 (331)

Foreign exchange loss (gain) 51 (482) 164 (815) 533 979

Loss on sale of assets 2,216 - 2,216 - 2,216 2,216

Company share of EBITDA from investments in

joint ventures(1) $ 1,004 $ 9,948 $ 3,216 $ 18,042 $ (8,944) $ (14,826)

1. Please refer to the section entitled Important Information About This MD&A for an explanation of this non-GAAP measure.

   2026 Second Quarter Compared to the Corresponding Period in 2025

   Earnings in the segment, which includes our NASC (mini-bulker), NACC (cement), and NABH (handy-size) joint ventures, decreased in the quarter reflecting reduced ownership interest in the cement carrier fleet, higher costs in the mini-bulker fleet, and vessel sales resulting in a loss for the handy-size fleet.

   Cement carrier results reflect the sale of a 51% interest in the fleet in late 2025, with earnings now reported under joint ventures and associate. Prior year's results reflect the Company's share of revenue and operating earnings. Freight rates in the cement fleet remained steady during the period, and the segment also recognized a one-time gain from the sale of its interest in two vessels during the quarter.

   The mini-bulker fleet experienced lower revenues compared to the previous year period due to an off-hire incident to one vessel. Earnings were further impacted by higher costs and downtime associated with asset upgrades, including enhancements to the 8K vessels and weaker market conditions for the larger 13K vessels within the fleet.

   The handy-size segment, established as a vessel acquisition and sales platform, sold both vessels in its fleet during the quarter, generating cash to support future reinvestment in the Company. While the transactions resulted in a loss that accounted for most of the Global Short Sea segment's negative result for the quarter, the handy-size fleet delivered strong returns over the four-year holding period. The Company will continue to explore investment opportunities in this segment.

   Outlook

   For the remainder of 2026, the Company anticipates steady rates across the cement and mini-bulker fleets with the majority of assets committed to longterm time charters or contracts of affreightment during the period. These contractual commitments provide protection against weakening spot market conditions, particularly in the mini-bulker segment as experienced in the second quarter.

   Three newbuild 9.5K deadweight mini-bulkers and three 38K deadweight pneumatic cement carriers, which will be the largest specialized cement carriers in the world, are currently under construction and are scheduled for delivery between late 2026 and 2028.

   ‌Corporate Segment‌

   Financial Performance

   Three Months Ended Six Months Ended Favourable/(Unfavourable)

   For the periods ended June 30	2026	2025	2026	2025	Three Months	Six Months
   Revenue	$ 614 $	615 $	1,237 $	1,248 $	(1) $	(11)
   Operating expenses	(247)	(279)	(454)	(516)	32	62
   Selling, general and administrative	(7,212)	(6,392)	(15,064)	(10,944)	(820)	(4,120)
   Depreciation and amortization	(364)	(414)	(777)	(841)	50	64
   Operating loss	(7,209)	(6,470)	(15,058)	(11,053)	(739)	(4,005)
   Interest expense, net	(6,073)	(5,635)	(11,531)	(10,073)	(438)	(1,458)
   Gain (loss) on business acquisition	(352)	-	3,314	-	(352)	3,314
   Gain on sale of property	-	-	119	-	-	119
   Foreign exchange gain (loss)	(3,616)	3,493	(4,760)	3,316	(7,109)	(8,076)
   Income tax recovery	3,611	1,292	8,890	3,728	2,319	5,162
   Net earnings from investment in joint venture	40	571	971	1,971	(531)	(1,000)
   Net loss	$ (13,599) $	(6,749) $	(18,055) $	(12,111) $	(6,850) $	(5,944)

   The Corporate segment consists of revenue from management services provided to third parties, head office expenditures, other administrative expenses of the Company, and earnings from a joint venture in a mechanical, machining, and fabrication shop called Allied Marine & Industrial ("AMI"). The Company holds a 49% interest in AMI and fully owns the land and building occupied by AMI. The land and building generate rental income for the Corporate segment.

   Revenues in the segment are also generated from rental income provided by third-party tenants in the Company's head office building. Operating expenses include the operating costs of that office building.

   In the 2026 first quarter, the Company acquired 100 percent of the issued share capital and obtained control of a Canadian-flag dry-bulk marine carrier that currently operates in the Company's domestic dry-bulk segment. The excess of the net identifiable assets acquired over the total consideration paid less other post-acquisition costs recognized resulted in a net gain of $3,314.

   ‌Consolidated‌

   Interest Expense

   Three Months Ended Six Months Ended Favourable/(Unfavourable)

   For the periods ended June 30	2026	2025	2026	2025	Three Months Six	Months
   Interest expense on borrowings	$ 7,092	$ 7,439	$ 13,580 $	12,998	$ 347 $	(582)
   Amortization of financing costs	400	298	741	497	(102)	(244)
   Interest on employee future benefits, net	-	-	(46)	-	-	46
   Capitalized interest	-	(1,077)	-	(2,207)	(1,077)	(2,207)
   	$ 7,492	$ 6,660	$ 14,275 $	11,288	$ (832) $	(2,987)
   Income Taxes
   Three Months Ended Six Months Ended Favourable/(Unfavourable) For the periods ended June 30 2026 2025 2026 2025 Three Months Six Months
   Combined federal and provincial statutory income tax rate	26.5 %	26.5 %	26.5 %	26.5 %	- %	- %
   Net earnings (loss) before income tax and net earnings from investments in joint ventures	$ 34,139	$ 32,109	$ 20,678	$ (8,237)	$ 2,030	$ 28,915
   Expected income tax recovery (expense)	$ (9,047)	$ (8,509)	$ (5,480)	$ 2,183	$ (538)	$ (7,663)
   Tax effects resulting from:
   Foreign tax rates different from Canadian
   statutory rate	3,459	2,842	5,866	4,520	617	1,346
   Effect of items that are non-taxable	1,759	(178)	4,320	(178)	1,937	4,498
   Adjustments to prior period provision	-	(913)	-	(913)	913	913
   Other	94	11	36	18	83	18
   Actual tax recovery (expense)	$ (3,735)	$ (6,747)	$ 4,742	$ 5,630	$ 3,012	$ (888)

   Earnings from the Company's foreign subsidiaries are taxed in jurisdictions which have nil income tax rates. Any variation in the effective income tax rate from the statutory income tax rate is due mainly to the lower income tax rates applicable to foreign subsidiaries, the effect of taxable and non-taxable items that may or may not be included in earnings and changes to income tax provisions related to prior periods. The Company is not subject to OECD Pillar Two taxes as its consolidated revenues fall below levels at which such taxes apply.

   ‌Contingencies‌

   The Company, in the normal course of business, may be involved in legal proceedings and tax audits. In Management's opinion, the liabilities, if any, that may ultimately result from such legal actions and tax audits are not expected to have a material effect on the Company's consolidated financial position, results of operations or liquidity.

   ‌Capital Resources‌

   The Company has cash on hand of $30,046 at June 30, 2026. Available credit facilities along with projected cash from operations for 2026 are expected to be sufficient to meet the Company's planned operating and capital requirements and other contractual obligations for the year.

   The Company maintains credit facilities that are reviewed periodically to determine if sufficient capital is available to meet current and anticipated needs. The Company's bank credit facility (the "Facility") comprises a $200 million Canadian dollar and a $200 million U.S. dollar senior secured revolving bank credit maturing May 28, 2031. The Facility bears interest at rates that are based on the Company's ratio of net senior debt, as defined, to earnings before interest, taxes, depreciation and amortization and ranges from 170 to 300 basis points above adjusted SOFR, CORRA, or EURIBOR rates. The Company has granted a general security agreement in favour of the senior secured lenders and has granted specific collateral mortgages covering the majority of its wholly owned vessels. As of June 30, 2026, $165,206 had been withdrawn from the Facility. In addition, the Company maintains an accordion feature that provides for increased borrowings by up to an additional CAD $150 million. The accordion remains fully available as at June 30, 2026.

   On June 29, 2026, the Company issued Senior Secured Notes consisting of:

   1. CAD $72.0 million bearing interest at 4.45% per annum and maturing on December 10, 2031;

   2. U.S. $61.0 million bearing interest at 5.30% and maturing on December 10, 2029; and

   3. U.S. $17.0 million bearing interest at 5.49% per annum and maturing on December 10, 2031.

The Company is subject to certain covenants under the terms of the Facility and the senior secured notes, including ones with respect to maintaining defined financial ratios and other conditions. As at June 30, 2026, the Company was in compliance with all of its covenants.

Cash Flows

Three Months Ended Six Months Ended Favourable/(Unfavourable)

For the periods ended June 30 2026 2025 2026 2025 Three Months Six Months

Operating Activities

Lower net cash from operating activities in 2026 reflects the timing of working capital cash flows and higher income tax payments.

Investing Activities

Higher net cash used in investing activities in 2026 was primarily due to the business acquisition, delivery of a newbuild ocean self-unloader and acquisition of the additional interest in the Pool. The cash used in 2025 reflects capital expenditures for new product tankers and dry bulk vessel.

Financing Activities

Net cash generated from financing activities reflects proceeds from the new 2026 senior notes to facilitate increased investment activities. Net cash generated in 2025, reflects proceeds from long-term debt for investment in the Product Tankers segment.

Free Cash Flow

The following table provides a reconciliation of net cash generated from operating activities in accordance with GAAP to the non-GAAP free cash flow, as reported for the three and six months ended June 30, 2026 and 2025, and presented herein:

Three Months Ended Six Months Ended Favourable/(Unfavourable)

For the periods ended June 30 2026 2025 2026 2025 Three Months Six Months

(1) Please refer to the section entitled Important Information About This MD&A - Free Cash Flow for an explanation of this non-GAAP measure.

Free cash flow reflects decreased cash from operating activities, partially offset by lower capital maintenance due to reduced dry-dockings in 2026 compared with the prior-year period.

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, the Company may purchase up to 2,057 Shares per day, representing 25% of the average daily trading volume for the previous six months. The Company may buy back Shares anytime during the twelve-month period beginning on March 23, 2026 and ending on March 22, 2027. The stated capital of $1.41 per share equals the approximate paid-up capital amount of the Shares for purposes of the Income Tax Act.

Under the 2026 NCIB and the previous year NCIB, no Shares were purchased for the three and six months ended June 30, 2026 or 2025.

The table below provides aggregate information about the Company's contractual obligations as at and subsequent to June 30, 2026 that affect the Company's liquidity and capital resource needs.

(1) The joint venture commitments above include the construction of one product tanker, three mini-bulker vessels, two self-unloaders, and three cement carriers. The joint ventures have financing arrangements under which and subject to certain conditions, they can access funding for up to 70% of the outstanding commitments upon delivery.

Disclosure Controls and Procedures

In accordance with the requirements of National Instrument 52-109 Certification of Disclosure in Issuer's Annual and Interim Filings, the Company's management, including the Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of the Company's disclosure controls and procedures as of June 30, 2026. Under the supervision of and with the participation of the Chief Executive Officer and the Chief Financial Officer, Management has concluded that the Company's disclosure controls and procedures were effective as of June 30, 2026.

Internal Controls over Financial Reporting

The Company's management is responsible for designing, establishing and maintaining an adequate system of internal controls over financial reporting. The internal control system was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes, in accordance with IFRS Accounting Standards. Because of inherent limitations, internal controls over financial reporting may not prevent or detect all misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate.

Management has used the criteria established in the 2013 Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission to assess, with the participation of the Chief Executive Officer and Chief Financial Officer, the effectiveness of the Company's internal controls over financial reporting. Based on this assessment, Management has concluded that the Company's internal controls over financial reporting are operating effectively as of June 30, 2026.

Changes in Internal Controls over Financial Reporting

During the period ended June 30, 2026, there have been no changes in the Company's policies and procedures and other processes that comprise its internal control over financial reporting, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures

In May 2024, the IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures to address matters identified during the post-implementation review of the classification and measurement requirements of IFRS 9 Financial Instruments. The Company adopted these amendments effective January 1, 2026. The amendments clarify when a financial asset or a financial liability is recognized and derecognized. They also introduce an exception that permits an entity to derecognize a financial liability before the settlement date when the financial liability is settled with cash, using an electronic payment system that meets specific criteria. The Company's financial statements are not materially affected by the application of the amendments.

IFRS 18 Presentation and Disclosures in Financial Statements

In April 2024, the IASB issued the new standard IFRS 18 Presentation and Disclosure in Financial Statements that will replace IAS 1 Presentation of Financial Statements. The new standard introduces newly defined subtotals on the income statement, requirements for aggregation and disaggregation of information, and disclosure of Management Performance Measures in the financial statements. The new standard is effective for annual reporting periods beginning on or after January 1, 2027 with early adoption permitted. The Company is assessing the impact of IFRS 18 on its consolidated financial statements.

‌ALGOMA CENTRAL CORPORATION‌

Notice of disclosure of no auditor review of interim condensed consolidated financial statements pursuant to National Instrument 51-02, Part 4, subsection 4.3(3)(a) issued by the Canadian Securities Administrators.

The accompanying interim condensed consolidated financial statements of Algoma Central Corporation for the three and six months ended June 30, 2026 and 2025 have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting as issued by the International Accounting Standards Board and are the responsibility of the Company's management. The Company's independent auditors have not performed an audit or a review of these interim condensed consolidated financial statements.

Three Months Ended Six Months Ended

Three Months Ended Six Months Ended

June 30 December 31

As at (unaudited, in thousands of dollars) Notes 2026 2025

Assets

Current

Liabilities

Current

Other

See accompanying notes to the interim condensed consolidated financial statements.

Three Months Ended Six Months Ended

1. Organization and Description of Business

   Algoma Central Corporation (the "Company") is incorporated in Canada and listed on the Toronto Stock Exchange. The address of the Company's registered office is 63 Church St, Suite 600, St. Catharines, Ontario, Canada. The Interim Condensed Consolidated Financial Statements of the Company for the three and six months ended June 30, 2026 and 2025 comprise the Company, its subsidiaries and the Company's interests in jointly controlled entities.

   The principal subsidiaries are Algoma Shipping Ltd. and Algoma Tankers Limited. The principal jointly controlled entities are NovaAlgoma Cement Carriers Limited (50%), NovaAlgoma Short-Sea Holding Limited (50%) and FureBear AB (50%). In addition, Algoma Shipping Ltd. is a member of an international pool arrangement (the "Pool"), under which revenues and related voyage expenses are distributed to each Pool member based on their respective Pool Participation percentages.

   Algoma Central Corporation owns and operates the largest fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Seaway, including self-unloading dry-bulk carriers, gearless dry-bulk carriers and product tankers. Algoma also owns and operates ocean-going self-unloading dry-bulk vessels trading in international markets and holds interests in global joint ventures that own diversified portfolios of dry and liquid bulk fleets operating internationally. Across the global fleet, Algoma holds an ownership interest in over 100 vessels. In addition to its ownership interests, the Company provides operational management for other vessels.

   The Company reports the results of its operations for five business units or segments. The largest is the Domestic Dry-Bulk segment, which includes the Company's 24 Canadian dry-bulk carriers. This segment serves a wide variety of major industrial sectors, including iron and steel producers, aggregate producers, cement and building material producers, salt producers, and agricultural product distributors.

   The Product Tankers fleet consists of ten product tankers employed in Canadian flag service. The segment also includes the Company's 50% interest in an international joint venture comprising ten tankers, one of which is under construction, and an interest in a foreign-flagged tanker operation comprising two product tankers. Customers include major oil refiners, leading wholesale distributors, and large consumers of petroleum products.

   The Company's international Ocean Self-Unloaders segment consists of 11 ocean-going self-unloading vessels. Nine of the ocean vessels are part of a Pool comprising the world's largest fleet of ocean-going self-unloaders, which at the end of the period totalled 19 vessels. An additional ocean self-unloader is currently under construction, with delivery expected in 2027, and set to replace an older Algoma-owned vessel in the Pool. The segment also includes joint venture interests in three self-unloaders and two additional vessels currently under construction, with expected deliveries in 2028.

   The Global Short Sea Shipping segment, which consists of the Company's NovaAlgoma joint ventures, focuses on niche marine transportation markets featuring specialized equipment or services. The cement carrier operation holds a 49% interest in pneumatic cement carriers servicing large global cement manufacturers that support construction and infrastructure projects. The short sea mini-bulker fleet comprises owned ships, chartered vessels, and vessels operated under third-party management contracts. The fleet supports the agricultural, cement, construction, energy, and steel industries worldwide. The handy-size fleet is an opportunistic vessel sales and purchase venture. Three mini-bulkers and three pneumatic cement carriers are currently under construction for these joint ventures, with expected deliveries between 2026 and 2028.

   The Corporate segment consists of the Company's head office expenditures, third-party management services, other administrative functions of the Company, and earnings from a joint venture in a mechanical, machining, and fabrication shop.

   The nature of the Company's business is such that the earnings in the first quarter of each year are not indicative of the results for the other three quarters in the year. Due to the closing of the canal system and the winter weather conditions on the Great Lakes - St. Lawrence Seaway, the majority of the Domestic Dry-Bulk fleet does not operate for most of the first quarter. In addition, significant repair and maintenance costs are incurred in the first quarter to prepare the Domestic Dry-Bulk fleet for the upcoming navigation season. As a result, first quarter revenues and earnings are significantly lower than those of the remaining quarters in the year.

2. ‌Statement of Compliance

   The financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB") and using the same accounting policies and methods as were used for the Company's Consolidated Financial Statements and the notes thereto for the year ended December 31, 2025. The financial statements should be read in conjunction with the Company's Consolidated Financial Statements for the year ended December 31, 2025.

   The presentation currency used is the Canadian dollar and all amounts are reported in thousands of Canadian dollars, except for share data, unless otherwise noted.

   The interim condensed consolidated financial statements were approved by the Board of Directors and authorized for issue on August 6, 2026.

3. ‌Adoption of New and Amended Accounting Pronouncements

   Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures

   In May 2024, the IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures to address matters identified during the post-implementation review of the classification and measurement requirements of IFRS 9 Financial Instruments. The Company adopted these amendments effective January 1, 2026. The amendments clarify when a financial asset or a financial liability is recognized and derecognized. They also introduce an exception that permits an entity to derecognize a financial liability before the settlement date when the financial liability is settled with cash, using an electronic payment system that meets specific criteria. The Company's financial statements are not materially affected by the application of the amendments.

4. ‌Accounting Pronouncements Issued But Not Yet Effective

   IFRS 18 Presentation and Disclosures in Financial Statements

   In April, 2024, the IASB issued the new standard IFRS 18 Presentation and Disclosure in Financial Statements that will replace IAS 1 Presentation of Financial Statements. The new standard introduces newly defined subtotals on the income statement, requirements for aggregation and disaggregation of information, and disclosure of Management Performance Measures in the financial statements. The new standard is effective for annual reporting periods beginning on or after January 1, 2027 with early adoption permitted. The Company is assessing the impact of IFRS 18 on its consolidated financial statements.

5. ‌Revenue

   Disaggregated revenue by segment is as follows:

   For the three months ended June 30 (unaudited, in thousands of dollars)	Domestic Dry-Bulk	Product Tankers	Ocean Self-Unloaders	Corporate	Total
   2026
   Contract of Affreightment	$ 144,338	$ 1,661	$ -	$ -	$ 145,999
   Time Charter	168	54,042	-	-	54,210
   Pool Revenue Share	-	(97)	57,165	-	57,068
   Other	382	-	-	614	996
   	$ 144,888	$ 55,606	$ 57,165	$ 614	$ 258,273
   2025
   Contract of Affreightment	$ 122,662	$ 2,094	$ 347	$ -	$ 125,103
   Time Charter	605	40,079	-	-	40,684
   Pool Revenue Share	-	-	44,973	-	44,973
   Other	340	-	-	615	955
   	$ 123,607	$ 42,173	$ 45,320	$ 615	$ 211,715

   For the six months ended June 30 (unaudited, in thousands of dollars)	Domestic Dry-Bulk	Product Tankers	Ocean Self-Unloaders	Corporate	Total
   2026
   Contract of Affreightment	$ 167,073	$ 3,147	$ -	$ -	$ 170,220
   Time Charter	14,446	98,096	-	-	112,542
   Pool Revenue Share	-	1,100	100,451	-	101,551
   Other	504	-	-	1,237	1,741
   	$ 182,023	$ 102,343	$ 100,451	$ 1,237	$ 386,054
   2025
   Contract of Affreightment	$ 144,351	$ 2,103	$ 3,384	$ -	$ 149,838
   Time Charter	9,359	73,361	-	-	82,720
   Pool Revenue Share	-	-	84,661	-	84,661
   Other	449	-	-	1,248	1,697
   	$ 154,159	$ 75,464	$ 88,045	$ 1,248	$ 318,916

   In the first quarter of 2026, a product tanker vessel operated for a short period as part of a tanker Pool within Northern Europe, earning a percentage of the Pool revenue.

   The Company's unbilled and deferred revenues are as follows:
   As at (unaudited, in thousands of dollars)	June 30 2026	December 31 2025
   Unbilled revenue (included in accounts receivable)	$ 33,045	$ 20,917
   Deferred revenue (included in accounts payable and accrued charges)	848	1,000

6. ‌Investments in Joint Ventures

   The Company has interests in domestic and global joint ventures. Details of the holdings are presented below.
   As at (unaudited)	June 30 2026	December 31 2025

   Name of Joint Venture Principal Activity Product Tankers Segment:

   FureBear AB ("FureBear")

   Owns and operates product tankers in European markets, and holds a 67% interest in a foreign tanker operation

   Place of Incorporation and Principal Place of

   Business Ownership Interest

   Sweden/Sweden 50% 50%

   Ocean Self-Unloaders Segment:

   Marbulk Canada Inc. ("Marbulk") Holds a 50% interest in a specialized self-unloader Canada/Europe	50%	50%
   CSL Norse Holdings AS ("Candeu") Holds a 67% interest in two Handymax self-unloaders Norway/	50%	50%
   Corporate Segment: Allied Marine & Industrial ("AMI") Provides mechanical, machining, and fabrication services to Canada/Canada	49%	49%
   Global Short-Sea Shipping Segment:
   NovaAlgoma Cement Carriers Holds a 49% interest in pneumatic cement carriers Bermuda/ 50%		50%
   NovaAlgoma Short-Sea Holding Owns and manages a fleet of short sea mini-bulkers Bermuda/ 50%		50%
   NovaAlgoma Bulk Holdings Ltd. Participates in the trade of purchasing and selling handy-size Bermuda/ 50%		50%

   Norway

   the marine and other industrial sectors

   Limited ("NACC")

   supporting worldwide infrastructure projects

   Switzerland

   Ltd. ("NASC")

   operating in global markets

   Switzerland

   ("NABH")

   vessels

   Switzerland

   In October 2025, NACC sold 51% of a segment of its cement carrier business to an unrelated third party, retaining a 49% non-controlling interest in the resulting associate.

   Operating results of the Company's joint ventures are as follows:

   For the three months ended June 30, 2026 (unaudited, in thousands of dollars)	Product Tankers	Ocean Self-Unloaders	Corporate	Global Short Sea Shipping
   Revenue	$ 42,168	$ 2,798 $	4,816	$ 22,863
   Operating expenses	(19,235)	(1,827)	(3,727)	(24,360)
   General and administrative	(1,468)	(133)	(937)	(1,536)
   Depreciation and amortization	(5,086)	(341)	(106)	(3,724)
   Operating earnings (loss)	16,379	497	46	(6,757)
   Interest income (expense)	(4,500)	9	6	(685)
   Foreign exchange gain (loss)	1,630	(2)	-	(101)
   Other expenses	-	-	(16)	-
   Gain (loss) on sale of assets	-	-	84	(4,432)
   Earnings (loss) before undernoted	13,509	504	120	(11,975)
   Net earnings of joint ventures and associate	2,626	884	-	4,529
   Net loss attributable to non-controlling interest	-	-	-	512
   Income tax recovery (expense)	-	-	(36)	71
   Net earnings (loss)	$ 16,135	$ 1,388 $	84	$ (6,863)
   Company share of net earnings (loss)	$ 8,068	$ 694 $	41	$ (3,432)
   Amortization of vessel purchase price allocation and intangibles	-	(120)	-	(69)
   Company share included in net earnings (loss) of joint ventures	$ 8,068	$ 574 $	41	$ (3,501)

   For the three months ended June 30, 2025 (unaudited, in thousands of dollars)	Product Tankers	Ocean Self-Unloaders	Corporate	Global Short Sea Shipping
   Revenue	$ 24,912	$ 2,199	$ 5,950	$ 77,871
   Operating expenses	(13,031)	(1,255)	(3,975)	(57,996)
   General and administrative	(1,088)	(131)	(896)	(1,808)
   Depreciation and amortization	(3,639)	(369)	(96)	(11,773)
   Operating earnings	7,154	444	983	6,294
   Interest income (expense)	(3,799)	6	9	(1,137)
   Foreign exchange gain	676	12	-	963
   Other income	-	-	500	-
   Gain on sale of asset	-	-	86	-
   Earnings before undernoted	4,031	462	1,578	6,120
   Net earnings of joint ventures	1,457	-	-	1,591
   Net loss attributable to non-controlling interest	-	-	-	236
   Income tax recovery (expense)	-	-	(413)	144
   Net earnings	$ 5,488	$ 462	$ 1,165	$ 8,091
   Company share of net earnings	$ 2,744	$ 231	$ 571	$ 4,046
   Amortization of vessel purchase price allocation and intangibles	-	-	-	(71)
   Company share included in net earnings of joint ventures	$ 2,744	$ 231	$ 571	$ 3,975

   For the six months ended June 30, 2026 (unaudited, in thousands of dollars)	Product Tankers	Ocean Self-Unloaders	Corporate	Global Short Sea Shipping
   Revenue	$ 80,053	$ 4,547 $	15,789	$ 53,544
   Operating expenses	(38,080)	(2,995)	(11,201)	(48,537)
   General and administrative	(2,844)	(276)	(1,771)	(3,015)
   Depreciation and amortization	(9,862)	(619)	(181)	(7,544)
   Operating earnings (loss)	29,267	657	2,636	(5,552)
   Interest income (expense)	(8,653)	13	10	(1,291)
   Foreign exchange gain (loss)	3,381	(3)	(8)	(327)
   Other expense	-	-	(16)	-
   Gain (loss) on sale of asset	-	-	84	(4,432)
   Earnings (loss) before undernoted	23,995	667	2,706	(11,602)
   Net earnings (loss) of joint ventures and associate	4,341	1,478	-	3,727
   Net loss attributable to non-controlling interest	-	-	-	712
   Income tax recovery (expense)	(43)	-	(721)	78
   Net earnings (loss)	$ 28,293	$ 2,145 $	1,985	$ (7,085)
   Company share of net earnings (loss)	$ 14,147	$ 1,073 $	971	$ (3,543)
   Amortization of vessel purchase price allocation and intangibles	-	(120)	-	(137)
   Company share included in net earnings (loss) of joint ventures	$ 14,147	$ 953 $	971	$ (3,680)

   For the six months ended June 30, 2025 (unaudited, in thousands of dollars)	Product Tankers	Ocean Self-Unloaders	Corporate	Global Short Sea Shipping
   Revenue	$ 43,611	$ 4,193	$ 17,816	$ 137,798
   Operating expenses	(23,018)	(2,395)	(11,210)	(100,686)
   General and administrative	(1,852)	(287)	(1,707)	(3,625)
   Depreciation and amortization	(6,010)	(725)	(182)	(22,802)
   Operating earnings	12,731	786	4,717	10,685
   Interest income (expense)	(6,738)	8	12	(2,432)
   Foreign exchange gain (loss)	(98)	6	(2)	1,630
   Other income	-	-	557	-
   Gain on sale of asset	-	-	84	-
   Earnings before undernoted	5,895	800	5,368	9,883
   Net earnings of joint ventures	2,170	-	-	2,976
   Net earnings attributable to non-controlling interest	-	-	-	(381)
   Income tax expense	-	-	(1,346)	(583)
   Net earnings	$ 8,065	$ 800	$ 4,022	$ 11,895
   Company share of net earnings	$ 4,033	$ 400	$ 1,971	$ 5,948
   Amortization of vessel purchase price allocation and intangibles	-	-	-	(142)
   Company share included in net earnings of joint ventures	$ 4,033	$ 400	$ 1,971	$ 5,806

   The Company's total share of net earnings (loss) by operating segment from its investments in joint ventures is as follows:

   Three Months Ended Six Months Ended

   For the six months ended June 30 (unaudited, in thousands of dollars)	2026	2025	2026	2025
   Product Tankers	$ 8,068 $	2,744	$ 14,147	$ 4,033
   Ocean Self-Unloaders	574	231	953	400
   Corporate	40	571	971	1,971
   Global Short Sea Shipping	(3,501)	3,975	(3,680)	5,806
   	$ 5,181 $	7,521	$ 12,391	$ 12,210
   The assets and liabilities by segment of the joint ventures are as follows:
   As at June 30, 2026	Product	Ocean Self-		Global Short
   (unaudited, in thousands of dollars)	Tankers	Unloaders	Corporate	Sea Shipping
   Cash	$ 41,694	$ 2,721	$ 1,080	$ 15,841
   Other current assets	16,854	2,706	7,465	16,435
   Income taxes recoverable	13	54	-	1,028
   Property, plant, and equipment	494,404	1,979	1,964	166,798
   Investment in joint ventures and associate	27,877	47,684	-	292,991
   Other assets	22,186	-	-	39,982
   Current liabilities	(11,264)	(2,337)	(2,948)	(33,097)
   Income taxes payable	-	-	(295)	-
   Current portion of long-term debt	(17,349)	-	(337)	(26,358)
   Long-term debt	(309,085)	-	(599)	(22,202)
   Other long-term liabilities	-	-	-	(383)
   Non-controlling interest	-	-	-	(14,710)
   Net assets of joint ventures	$ 265,330	$ 52,807	$ 6,330	$ 436,325
   Company share of net assets	$ 132,665	$ 26,404	$ 3,100	$ 218,163
   Goodwill and other purchase price adjustments	-	21,217	4,048	19,328
   Company share of joint ventures	$ 132,665	$ 47,621	$ 7,148	$ 237,491

   As at December 31, 2025 (unaudited, in thousands of dollars)	Product Tankers	Ocean Self-Unloaders	Corporate	Global Short Sea Shipping
   Cash	$ 22,169	$ 1,286	$ 2,840	$ 6,111
   Other current assets	12,837	2,172	4,431	21,877
   Income taxes recoverable	12	52	-	437
   Property, plant, and equipment	453,972	2,643	1,876	165,984
   Investment in joint ventures and associate	27,984	42,112	-	286,809
   Other assets	35,164	-	-	51,289
   Current liabilities	(12,025)	(1,876)	(2,198)	(26,551)
   Income taxes payable	-	-	(9)	-
   Current portion of long-term debt	(15,801)	-	(337)	(34,160)
   Long-term debt	(286,254)	-	(820)	(13,753)
   Other long-term liabilities	-	-	-	(370)
   Non-controlling interest	-	-	-	(15,170)
   Net assets of joint ventures	$ 238,058	$ 46,389	$ 5,783	$ 442,503
   Company share of net assets	$ 119,029	$ 23,195	$ 2,834	$ 221,252
   Goodwill and other purchase price adjustments	-	21,814	4,048	18,641
   Company share of joint ventures	$ 119,029	$ 45,009	$ 6,882	$ 239,893
   The Company's net investments in the joint ventures by segment are as follows:
   			June 30	December 31
   As at (unaudited, in thousands of dollars)			2026	2025
   Product Tankers			$ 132,665	$ 119,029
   Ocean Self-Unloaders			47,621	45,009
   Corporate			7,148	6,882
   Global Short Sea Shipping			237,491	239,893
   			$ 424,925	$ 410,813

   The Company has related party transactions with its joint ventures with respect to administrative management services, technical management services, property lease and vessel repair work. Additionally, the Company guarantees certain loans of the joint ventures. Amounts relating to transactions with joint ventures are as follows:

   Three Months Ended Six Months Ended

   For the periods ended June 30 (unaudited, in thousands of dollars)	2026	2025		2026		2025
   Revenue	$ 313 $		325 $		636 $		655
   Operating expenses	(2,762)	(2,612)		(7,300)		(8,052)
   As at (unaudited, in thousands of dollars)				June 30 2026		December 31 2025
   Accounts receivable				$ 8,009		$ 7,606
   Accounts payable				(1,086)		(648)
   Loans guaranteed by the Company				(121,995)		(74,561)
   The Company's cash flows from (to) joint ventures by segment are as follows:

   For the three months ended June 30 (unaudited, in thousands of dollars) 2026 2025

   Distributions

   received

   Investment in joint ventures

   Distributions

   received

   Investment in joint ventures

   Product Tankers $ - $ - $ - $ (1,548) Corporate 704 - 888 -

   Global Short Sea Shipping 23,608 (6,578) 4,132 (9,308)

   $ 24,312 $ (6,578) $ 5,020 $ (10,856)

   For the six months ended June 30 (unaudited, in thousands of dollars) 2026 2025

   Distributions

   received

   Investment in joint ventures

   Distributions

   received

   Investment in joint ventures

   Product Tankers $ - $ - $ 1,581 $ (5,089) Corporate 704 - 888 -

   Global Short Sea Shipping 23,608 (16,521) 11,270 (17,169)

   $ 24,312 $ (16,521) $ 13,739 $ (22,258)

7. ‌Interest Expense

   The components of interest expense are as follows:

   Three Months Ended Six Months Ended

   For the periods ended June 30 (unaudited, in thousands of dollars)	2026	2025	2026	2025
   Interest expense on borrowings	$ 7,092	$ 7,439	$ 13,580	$ 12,998
   Amortization of financing costs	400	298	741	497
   Interest expense on employee future benefits, net	-	-	(46)	-
   Capitalized interest	-	(1,077)	-	(2,207)

   $ 7,492 $ 6,660 $ 14,275 $ 11,288

8. ‌Income Taxes

   A reconciliation comparing income taxes calculated at the Canadian statutory rate to the amount provided in the interim condensed consolidated financial statements is as follows:

   Three Months Ended Six Months Ended

   For the periods ended June 30 (unaudited, in thousands of dollars)	2026	2025	2026	2025
   Combined federal and provincial statutory income tax rate	26.5%	26.5%	26.5%	26.5%
   Net earnings (loss) before income tax and net earnings from investments in joint ventures	$ 34,139	$ 32,109	$ 20,678	$ (8,237)
   Expected income tax recovery (expense)	$ (9,047)	$ (8,509)	$ (5,480)	$ 2,183
   Tax effects resulting from:
   Foreign tax rates different from Canadian statutory rate	3,459	2,842	5,866	4,520
   Effect of items that are non-taxable	1,759	(178)	4,320	(178)
   Adjustments to prior period provision	-	(913)	-	(913)
   Other	94	11	36	18
   Actual tax recovery (expense)	$ (3,735)	$ (6,747)	$ 4,742	$ 5,630

9. ‌Assets Held For Sale

   During June 2026, the Company entered into agreements to sell two vessels in its Ocean Self-Unloaders segment. The vessels were classified as held for sale as at June 30, 2026 and have been measured at the lower of their carrying amount and fair value less cost to sell. As the carrying amount of $10,782 was lower than the contracted selling price, no impairment loss was recognized on the reclassification of the assets to assets held for sale.

   On July 20, 2026, the Company completed the sale of two vessels within the Ocean Self-Unloaders segment that had been classified as held for sale.

10. ‌Other Current Assets

    The components of other current assets are as follows:
    As at (unaudited, in thousands of dollars)	June 30 2026	December 31 2025
    Materials, fuel and supplies	$ 24,081	$ 14,618
    Prepaid expenses	27,879	20,919
    Mortgage receivable	13,500	13,500
    Other	916	490
    	$ 66,376	$ 49,527

11. ‌Property, Plant, and Equipment

    Details of property, plant, and equipment are as follows:

    Cost (unaudited, in thousands of dollars)	Domestic Dry-Bulk	Product Tankers	Ocean Self-Unloaders	Corporate	Total
    Balance at January 1, 2025	$ 744,039	$ 236,100	$ 445,333	$ 27,441	$ 1,452,913
    Additions	58,617	103,061	72,493	581	234,752
    Transfer from assets under construction	18,557	56,089	27,346	-	101,992
    Fully depreciated assets no longer in use	(2,506)	(1,019)	(14,692)	-	(18,217)
    Effect of foreign currency exchange differences	(27)	(6,848)	(22,103)	(3)	(28,981)
    Balance at December 31, 2025	$ 818,680	$ 387,383	$ 508,377	$ 28,019	$ 1,742,459
    Additions	39,238	1,823	165,495	1,156	207,712
    Transfer from vessels under construction	-	-	36,882	399	37,281
    Disposals	(10,758)	-	-	-	(10,758)
    Transferred to held for sale	-	-	(56,402)	-	(56,402)
    Fully depreciated assets no longer in use	(1,040)	-	-	-	(1,040)
    Effect of foreign currency exchange differences	20	5,153	22,057	2	27,232
    Balance at June 30, 2026	$ 846,140	$ 394,359	$ 676,409	$ 29,576	$ 1,946,484

    Accumulated Depreciation (unaudited, in thousands of dollars)	Domestic Dry-Bulk	Product Tankers	Ocean Self-Unloaders	Corporate	Total
    Balance at January 1, 2025	$ 248,338 $	101,537	$ 219,180	$ 16,377	$ 585,432
    Depreciation expense	31,296	23,130	29,790	1,578	85,794
    Fully depreciated assets no longer in use	(2,506)	(1,019)	(14,692)	-	(18,217)
    Effect of foreign currency exchange differences	-	(40)	(10,773)	(2)	(10,815)
    Balance at December 31, 2025	$ 277,128 $	123,608	$ 223,505	$ 17,953	$ 642,194
    Depreciation expense	16,568	13,177	13,329	686	43,760
    Disposals	-	-	-	-	-
    Transferred to held for sale	-	-	(45,620)	-	(45,620)
    Fully depreciated assets no longer in use	(1,040)	-	-	-	(1,040)
    Effect of foreign currency exchange differences	-	247	7,530	2	7,779
    Balance at June 30, 2026	$ 292,656 $	137,032	$ 198,744	$ 18,641	$ 647,073

    Net Book Value (unaudited, in thousands of dollars)	Domestic Dry-Bulk	Product Tankers	Ocean Self-Unloaders	Corporate	Total
    June 30, 2026 Cost	$ 846,140	$ 394,359	$ 676,409	$ 29,576	$ 1,946,484
    Accumulated depreciation	292,656	137,032	198,744	18,641	647,073
    	$ 553,484	$ 257,327	$ 477,665	$ 10,935	$ 1,299,411
    December 31, 2025
    Cost	$ 818,680	$ 387,383	$ 508,377	$ 28,019	$ 1,742,459
    Accumulated depreciation	277,128	123,608	223,505	17,953	642,194
    	$ 541,552	$ 263,775	$ 284,872	$ 10,066	$ 1,100,265

    In the first quarter of 2026, the Company took delivery of the second of three newbuild ocean self-unloaders which commenced operations in the Pool in the second quarter of the same year. Also during the first quarter, a domestic dry-bulk self-unloader was sold, with related inventory, to a third party for cash proceeds of $31,926 resulting in a gain on sale of $20,583. Within the Corporate segment, a parcel of land was sold for net proceeds and gain of $119.

    Additions in the Domestic Dry-Bulk segment relate to the fair value of the five self-unloaders and one bulker vessel recognized on acquisition (Note 24). Additions in the Oceans Self-Unloaders segment relate to the fair value of the self-unloader acquired (Note 24).

12. ‌Intangible Assets

    Intangible assets consist of the following:

    (unaudited, in thousands of dollars) Total

    Balance at December 31, 2025 $ -

    Additions 46,572

    Effect of foreign currency exchange differences 587

    Balance at June 30, 2026 $ 47,159

    As part of the acquisition of an additional interest in the Pool within the Oceans Self-Unloaders segment in second quarter of 2026, the Company recognized a definite-life intangible asset of $46,572, representing the expected future economic benefits arising from its increased share of earnings from the Pool.

    The intangible asset is amortized on a straight line basis over its estimated useful life, which corresponds to the expected useful life of the fleet of vessels operating in the Pool. Refer to Note 24 for additional information.

13. ‌Goodwill

    As part of a business acquisition in 2011, the Company recognized goodwill of $7,910 within the Domestic Dry-Bulk segment on the allocation of the purchase price, determined as the excess over the fair values of the net tangible and identifiable intangible assets acquired.

14. ‌Other Assets

    Other assets consist of the following:
    As at (unaudited, in thousands of dollars)	June 30 2026	December 31 2025
    Vessels under construction (see below)	$ 18,976	$ 46,384
    Derivative asset	1,194	1,194
    Right-of-use assets	887	64
    Other	10	9
    	$ 21,067	$ 47,651
    The components of vessels under construction are as follows:
    As at (unaudited, in thousands of dollars)	June 30 2026	December 31 2025
    Vessel build progress payments	$ 18,388	$ 42,302
    Supervision and other	588	4,082
    	$ 18,976	$ 46,384

15. ‌Short-Term Borrowings

    Short-term borrowings comprise the following:
    As at (unaudited, in thousands of dollars)	June 30 2026	December 31 2025
    Draws under Facility, expiring May 28, 2031 CORRA loans, weighted average interest at 4.47%, payable within the month	$ 43,000	$ 90,000
    SOFR loans, U.S. $86,000 (2025 - $20,000), weighted average interest at 5.84%, payable within the month	122,206	27,412
    	$ 165,206	$ 117,412

    On May 28, 2026, the Company completed refinancing of its revolving bank credit facility (the "Facility") which was due to mature in 2027. The Facility comprises a Canadian $200 million (2025 - $125 million) and a U.S. $200 million (2025 - $111.5 million) senior secured revolving bank credit. The amendment also extends the maturity of the Facility from October 11, 2027 to May 28, 2031. The Facility bears interest at rates that are based on the Company's ratio of net senior debt, as defined, to earnings before interest, taxes, depreciation and amortization and ranges from 170 to 300 basis points above adjusted SOFR, CORRA, or EURIBOR rates. The Company has granted a general security agreement in favour of the senior secured lenders and has granted specific collateral mortgages covering the majority of its wholly owned vessels.

    Under the terms of the Facility the Company is subject to certain covenants, including ones with respect to maintaining defined financial ratios and other conditions. As at June 30, 2026 and December 31, 2025, the Company was in compliance with all of its covenants.

16. ‌Long-Term Debt

    As at (unaudited, in thousands of dollars)	June 30 2026	December 31 2025
    Senior Secured Notes
    U.S. $20,000, interest at 3.37%, due December 10, 2027	$ 28,420	$ 27,412
    U.S. $61,000, interest at 5.30%, due December 10, 2029	86,681	-
    U.S. $42,000, interest at 3.60%, due December 10, 2030	59,682	57,565
    U.S. $17,000, interest at 5.49%, due December 10, 2031	24,157	-
    U.S. $35,000, interest at 3.70%, due December 10, 2032	49,735	47,971
    U.S. $50,000, interest at 3.80%, due December 10, 2035	71,050	68,530
    Canadian $72,000, interest at 4.45%, due December 10, 2031	72,000	-
    Canadian $128,000, interest at 4.01%, due December 10, 2035	128,000	128,000
    Term loan, U.S. $64,473 (2025 - $67,472), interest at 4.97%, due March, 2037	91,616	92,477
    Non-revolving Term Credit, interest at 4.77%, due March 28, 2030	6,769	6,911
    Mortgage payable, interest at 7.75%, due June 27, 2034	118	139
    	618,228	429,005
    Less: unamortized financing expenses	12,645	10,062
    	605,583	418,943
    Less: current portion of long-term debt and unamortized financing expenses	8,397	8,112
    	$ 597,186	$ 410,831
    On June 29, 2026, the Company issued Senior Secured Notes consisting of:

    1. CAD $72.0 million bearing interest at 4.45% per annum and maturing on December 10, 2031;

    2. U.S. $61.0 million bearing interest at 5.30% and maturing on December 10, 2029; and

    3. U.S. $17.0 million bearing interest at 5.49% per annum and maturing on December 10, 2031.

       Interest on these Senior Secured Notes is payable semi-annually in arrears on June 10 and December 10, commencing on December 10, 2026.

       Under the terms of the senior secured notes, the Company is subject to certain covenants, including ones with respect to maintaining defined financial ratios and other conditions.

       In March 2025, the Company entered into a secured term loan agreement for U.S. $71,970, withdrawn in two equal Tranches. Each Tranche is repayable in 48 consecutive quarterly instalments of U.S. $749 with interest at SOFR plus 1.30%. The loan is secured against two newbuild product tankers and is subject to customary covenants and conditions.

       In June 2025, the Company entered into an interest rate swap contract to hedge the variability in cash flows associated with the floating-rate U.S. term loan. The interest rate swap is designated as a cash flow hedging instrument with a notional amount equal to the outstanding U.S. term loan balance. Under the terms of the swap, the Company quarterly pays a fixed rate of 3.52% and receives a floating rate based on SOFR. Hedge effectiveness is measured using the dollar offset test. At inception, the hedge was deemed to be highly effective. Effectiveness is measured quarterly, with effective gains or losses recognized in other comprehensive earnings and any ineffective portion recognized immediately in earnings.

       The non-revolving term credit was entered into in March 2025 to refinance existing property. Equal monthly principal instalments of $24 and interest calculated monthly at CORRA plus 2.20% are payable over a five-year term. The loan is secured by specific property assets and is subject to customary covenants and conditions.

       The unamortized financing expenses relate to costs incurred to establish the long-term debt.

       As at June 30, 2026 and December 31, 2025, the Company was in compliance with all of its covenants.

17. ‌Share Capital

    Share Capital

    Authorized share capital consists of an unlimited number of common and preferred shares with no par value. The Company had 40,567,816 common shares outstanding and no preferred shares issued or outstanding as at June 30, 2026 or December 31, 2025.

    The Company's Board of Directors authorized payment of a quarterly dividend to shareholders of $0.21 per common share. The dividend will be paid on September 1, 2026 to shareholders of record on August 18, 2026.

    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, the Company may purchase up to 2,057 Shares per day, representing 25% of the average daily trading volume for the previous six months. The Company may buy back Shares anytime during the twelve-month period beginning on March 23, 2026 and ending on March 22, 2027. The stated capital of $1.41 per share equals the approximate paid-up capital amount of the Shares for purposes of the Income Tax Act.

    Under the 2026 NCIB and the previous year NCIB, no Shares were purchased for the three and six months ended June 30, 2026 and 2025.

18. ‌Accumulated Other Comprehensive Earnings (Loss)

    Hedges

    Debt

    Foreign Exchange

    (unaudited, in thousands of dollars) Net Investment

    Commitment

    Translation Total

    Balance at January 1, 2025	$ (43,543) $	-	$ 49,509 $	5,966
    Earnings (loss)	10,040	490	(19,474)	(8,944)
    Income tax expense	(106)	-	-	(106)
    Net other comprehensive earnings (loss)	9,934	490	(19,474)	(9,050)
    Balance at December 31, 2025	$ (33,609) $	490	$ 30,035	$ (3,084)
    Earnings (loss)	(7,579)	426	28,781	21,628
    Income tax expense	102	-	-	102
    Net other comprehensive earnings (loss)	(7,477)	426	28,781	21,730
    Balance at June 30, 2026	$ (41,086) $	916	$ 58,816	$ 18,646

19. ‌Supplementary Disclosure of Cash Flow Information

    Additions to property, plant and equipment are as follows:

    Three Months Ended Six Months Ended

    For the periods ended June 30 (unaudited, in thousands of dollars)	2026	2025	2026	2025
    Additions to property, plant, and equipment (Note 11)	$ 116,662	$ 8,438	$ 207,712 $	163,956
    Amounts included in working capital	3,852	8,402	(2,989)	(2,515)
    Capitalized interest	-	(1,076)	-	(1,552)
    Property, plant and equipment acquired as part of business acquisition (Note 24)	(108,055)	-	(133,930)	-

    $ 12,459 $ 15,764 $ 70,793 $ 159,889

20. ‌Commitments

    The table below reflects the commitments of the Company at June 30, 2026. Annual expected payments are detailed in Note 21.
    (unaudited, in thousands of dollars)
    Construction of an ocean self-unloader	$ 73,551
    Purchase of two second-hand product tankers	18,473
    Construction of a product tanker through a joint venture (Algoma share)	21,180
    Construction of three mini-bulkers through a joint venture (Algoma share)	20,839
    Construction of three cement carriers through a joint venture (Algoma share)	39,275
    Construction of two self-unloading bulk carriers through a joint venture (Algoma share)	56,868
    Purchase of remaining AMI shares	5,757
    Non-cancellable service contract	9,025
    	$ 244,968

21. ‌Financial Instruments and Risk Management

    The Company's financial instruments included in the interim condensed consolidated balance sheet comprise cash, accounts receivable, mortgage receivable, derivative asset, accounts payable and accrued charges, dividends payable, short-term borrowings and long-term debt.

    Fair Value

    The Company's financial instruments, excluding derivative assets, are carried at amortized cost which, due to their short-term nature, approximates fair value. Derivative assets are remeasured for fair value at the end of each reporting period. The carrying values of the Company's financial liabilities approximate their fair values with the exception of long-term debt. The fair value hierarchy for the Company's financial liability not measured at fair value is as follows:

    As at (unaudited, in thousands of dollars)	June 30 2026	December 31 2025
    Long-term debt Carrying value	$ 618,228	$ 429,005
    Fair value, classified as Level 2	522,284	398,992

    The difference in the fair value of long-term debt compared to the carrying value is due to the difference in the rates on the debt compared to current market rates for similar instruments with similar terms.

    Liquidity Risk

    The contractual maturities of non-derivative financial liabilities for the remainder of the year and forward are as follows:

    (unaudited, in thousands of dollars)	2026	2027	2028	2029	2030	2031 and Beyond	Total
    Short-term borrowings	$ 165,206	$ -	$ -	$ -	$ -	$ -	$ 165,206
    Long-term debt	8,522	36,942	8,522	95,203	74,973	394,066	618,228
    Interest payments on long-term debt	21,340	21,340	20,666	19,050	17,433	59,459	159,288
    Vessel purchase commitments	18,388	73,636	-	-	-	-	92,024
    Vessel purchase commitments through joint ventures (Algoma share)	42,927	42,055	53,180	-	-	-	138,162
    AMI share purchase	-	-	-	-	5,757	-	5,757
    Non-cancellable service contract	1,003	1,003	1,003	1,003	1,003	4,010	9,025
    Leases	149	212	216	237	240	588	1,642
    	$ 257,535	$ 175,188	$ 83,587	$ 115,493	$ 99,406	$ 458,123	$ 1,189,332
    Foreign Exchange Risk

    At June 30, 2026 approximately 40% (December 31, 2025 - 44%) of the Company's total assets were denominated in U.S. dollars, including U.S. cash of

    $13,982 (December 31, 2025 - $16,114). Approximately 6% (December 31, 2025 - 7%) of the total assets were denominated in Swedish Krona.

    The Company has significant commitments due for payment in U.S. dollars. For these payments, the Company mitigates the risk principally through U.S. dollar cash inflows and foreign-denominated debt.

22. ‌Segment Disclosures

    The Company operates through five segments; Domestic Dry-Bulk, Product Tankers, Ocean Self-Unloaders, Corporate and Global Short Sea Shipping. The segment operating results include fully consolidated subsidiaries and interests in jointly controlled entities. Segment disclosures are based on how the Chief Executive Officer views operating results and how decisions are made about resources to be allocated to operating segments.

    The following presents the Company's results by reportable segment.

    For the three months ended June 30, 2026 (unaudited, in thousands of dollars)	Domestic Dry-Bulk	Product Tankers	Ocean Self-Unloaders	Glo Corporate Sea	bal Short Shipping	Total
    Revenue	$ 144,888	$ 55,606	$ 57,165	$ 614 $	- $	258,273
    Operating expenses	(99,820)	(41,094)	(35,570)	(247)	-	(176,731)
    Selling, general and administrative	(3,618)	(1,635)	(941)	(7,212)	-	(13,406)
    Depreciation and amortization	(8,724)	(6,475)	(7,173)	(364)	-	(22,736)
    Operating earnings (loss)	32,726	6,402	13,481	(7,209)	-	45,400
    Interest, net	-	(1,220)	-	(6,073)	-	(7,293)
    Loss on business acquisition	-	-	-	(352)	-	(352)
    Foreign exchange loss	-	-	-	(3,616)	-	(3,616)
    	32,726	5,182	13,481	(17,250)	-	34,139
    Income tax recovery (expense)	(6,122)	(1,224)	-	3,611	-	(3,735)
    Net earnings (loss) from investments in joint ventures	-	8,068	574	40	(3,501)	5,181
    Net earnings (loss)	$ 26,604	$ 12,026	$ 14,055	$ (13,599) $	(3,501) $	35,585
    For the three months ended June 30, 2025 Domestic Product Ocean Self- Global Short
    (unaudited, in thousands of dollars)	Dry-Bulk	Tankers	Unloaders	Corporate Sea	Shipping	Total
    Revenue	$ 123,607	$ 42,173	$ 45,320	$ 615 $	-	$ 211,715
    Operating expenses	(85,226)	(30,718)	(27,985)	(279)	-	(144,208)
    Selling, general and administrative	(3,841)	(1,598)	(353)	(6,392)	-	(12,184)
    Depreciation and amortization	(7,898)	(5,338)	(6,507)	(414)	-	(20,157)
    Operating earnings (loss)	26,642	4,519	10,475	(6,470)	-	35,166
    Interest, net	-	(915)	-	(5,635)	-	(6,550)
    Foreign exchange gain	-	-	-	3,493	-	3,493
    	26,642	3,604	10,475	(8,612)	-	32,109
    Income tax recovery (expense)	(7,105)	(934)	-	1,292	-	(6,747)
    Net earnings from investments in joint ventures	-	2,744	231	571	3,975	7,521
    Net earnings (loss)	$ 19,537	$ 5,414	$ 10,706	$ (6,749) $	3,975	$ 32,883
    For the six months ended June 30, 2026 Domestic Product Ocean Self- Global Short
    (unaudited, in thousands of dollars)	Dry-Bulk		Tankers	Unloaders	Corporate Sea	Shipping	Total
    Revenue	$ 182,023 $		102,343 $	100,451	$ 1,237 $	- $	386,054
    Operating expenses	(161,064)		(74,745)	(63,408)	(454)	-	(299,671)
    Selling, general and administrative	(7,285)		(3,226)	(1,566)	(15,064)	-	(27,141)
    Depreciation and amortization	(16,568)		(13,177)	(13,329)	(777)	-	(43,851)
    Operating earnings (loss)	(2,894)		11,195	22,148	(15,058)	-	15,391
    Interest, net	-		(2,438)	-	(11,531)	-	(13,969)
    Gain on business acquisition	-		-	-	3,314	-	3,314
    Gain on sale of asset	20,583		-	-	119	-	20,702
    Foreign exchange loss	-		-	-	(4,760)	-	(4,760)
    	17,689		8,757	22,148	(27,916)	-	20,678
    Income tax recovery (expense)	(1,982)		(2,166)	-	8,890	-	4,742
    Net earnings (loss) from investments in joint ventures	-		14,147	953	971	(3,680)	12,391
    Net earnings (loss)	$ 15,707 $		20,738 $	23,101	$ (18,055) $	(3,680) $	37,811

    For the six months ended June 30, 2025 (unaudited, in thousands of dollars)	Domestic Dry-Bulk	Product Tankers	Ocean Self-Unloaders	Glo Corporate Sea	bal Short Shipping	Total
    Revenue	$ 154,159 $	75,464	$ 88,045	$ 1,248 $	-	$ 318,916
    Operating expenses	(141,611)	(58,458)	(56,881)	(516)	-	(257,466)
    Selling, general and administrative	(8,027)	(3,354)	(848)	(10,944)	-	(23,173)
    Depreciation and amortization	(15,039)	(9,511)	(13,396)	(841)	-	(38,787)
    Operating earnings (loss)	(10,518)	4,141	16,920	(11,053)	-	(510)
    Interest, net	-	(970)	-	(10,073)	-	(11,043)
    Foreign exchange gain	-	-	-	3,316	-	3,316
    	(10,518)	3,171	16,920	(17,810)	-	(8,237)
    Income tax recovery (expense)	2,748	(846)	-	3,728	-	5,630
    Net earnings from investments in joint ventures	-	4,033	400	1,971	5,806	12,210
    Net earnings (loss)	$ (7,770) $	6,358	$ 17,320	$ (12,111) $	5,806	$ 9,603
    As at June 30, 2026 Domestic Product Ocean Self- Global Short
    (unaudited, in thousands of dollars)	Dry-Bulk	Tankers	Unloaders	Corporate	Sea Shipping	Total
    Assets
    Current assets	$ 94,728	$ 26,516	$ 54,450	$ 60,213	$ -	$ 235,907
    Property, plant, and equipment	553,484	257,327	477,665	10,935	-	1,299,411
    Investments in joint ventures	-	132,665	47,621	7,148	237,491	424,925
    Goodwill & intangible assets	7,910	-	47,159	-	-	55,069
    Other assets	-	-	18,987	32,098	-	51,085
    	$ 656,122	$ 416,508	$ 645,882	$ 110,394	$ 237,491	$ 2,066,397
    Liabilities
    Current liabilities	$ 85,216	$ 32,161	$ 20,085	$ 194,165	$ -	$ 331,627
    Current portion of long-term debt	50	8,062	-	285	-	8,397
    Long-term liabilities	834	19,147	-	55,918	-	75,899
    Long-term debt	68	78,581	-	518,537	-	597,186
    	86,168	137,951	20,085	768,905	-	1,013,109
    Shareholders' Equity	569,954	278,557	625,797	(658,511)	237,491	1,053,288
    	$ 656,122	$ 416,508	$ 645,882	$ 110,394	$ 237,491	$ 2,066,397
    As at December 31, 2025 Domestic Product Ocean Self- Global Short
    (unaudited, in thousands of dollars)	Dry-Bulk	Tankers	Unloaders	Corporate Sea	Shipping	Total
    Assets
    Current assets	$ 66,042	$ 15,782	$ 40,078	$ 53,682 $	-	$ 175,584
    Property, plant, and equipment	541,552	263,775	284,872	10,066	-	1,100,265
    Investments in joint ventures	-	119,029	45,009	6,882	239,893	410,813
    Goodwill	7,910	-	-	-	-	7,910
    Other assets	-	-	46,131	30,001	-	76,132
    	$ 615,504	$ 398,586	$ 416,090	$ 100,631 $	239,893	$ 1,770,704
    Liabilities
    Current liabilities	$ 56,731	$ 29,269	$ 18,106	$ 133,998 $	-	$ 238,104
    Current portion of long-term debt	50	7,777	-	285	-	8,112
    Long-term liabilities	1,311	18,171	-	85,835	-	105,317
    Long-term debt	88	79,681	-	331,062	-	410,831
    	58,180	134,898	18,106	551,180	-	762,364
    Shareholders' Equity	557,324	263,688	397,984	(450,549)	239,893	1,008,340
    	$ 615,504	$ 398,586	$ 416,090	$ 100,631 $	239,893	$ 1,770,704

23. Share-Based Compensation

    The Company maintains a stock option program for certain key employees. Options on common shares are periodically granted to eligible employees under the plan, have a term of five years, and cliff vest on the third anniversary of the grant date. These options provide holders with the right to purchase common shares of the Company at a fixed price equal to the closing market price of the shares on the day prior to the date the options were issued. Under this plan, 2,028,391 common shares have been reserved for future issuance. The outstanding options expire on various dates to March 4, 2031.

    The following table summarizes the Company's stock option activity and related information.

    Stock Option Activity

    (unaudited, amounts not stated in thousands)

    Number of shares

    Weighted average exercise price

    Number outstanding, at January 1, 2025	606,602 $	15.80
    Granted	279,858	14.84
    Exercised	(146,250)	(15.02)
    Number outstanding, at December 31, 2025	740,210 $	15.21
    Granted	502,500	23.84
    Exercised	(240,000)	(15.82)
    Number outstanding, at June 30, 2026	1,002,710 $	19.39
    The following table summarizes information relating to stock options outstanding as at June 30, 2026.
    	Options outstanding

    Exercise Price per Share

    (unaudited, amounts not stated in thousands)

    Number of

    shares

    Remaining contractual life

    (years)

    $15.01 220,352 2.65

    $14.84 279,858 3.66

    $23.84 502,500 4.68

    1,002,710

    For the six months ended June 30, 2026, the Company recognized compensation expense for stock option awards of $382 (2025 - $67). For the six months ended June 30, 2026, 502,500 options (2025 - 279,858) were granted by the Company at a weighted average fair value of $3.14 per option (2025 - $2.01).

24. ‌Business Acquisitions