Core Insights - Century Aluminum Company reported Q3 2025 revenue of $632.2 million, a 17.3% year-over-year increase, exceeding expectations by $2.35 million [1] - Adjusted earnings per share for the quarter were $0.56, which was $0.28 below expectations [1] Financial Performance - Q3 aluminum shipments totaled 162,442 tons, down from 175,741 tons in Q2 [1] - Net profit attributable to shareholders for Q3 was $14.9 million, an increase of $19.5 million quarter-over-quarter [1] - Adjusted net profit attributable to shareholders was $57.9 million, up $27.5 million from the previous quarter [1] - Adjusted EBITDA for the quarter was $101.1 million [1] Revenue Drivers - Revenue growth was primarily driven by increased premiums in the Midwest region, although this was partially offset by unfavorable sales volume and sales mix, as well as third-party alumina sales [1] - The increase in net profit was mainly due to the realization of Midwest premium business, countered by increased losses from derivatives, unfavorable sales volume and mix, adverse electricity prices, and other costs related to the restart of the Holly Hill project [1] Liquidity Position - As of September 30, 2025, the company's liquidity stood at $488.2 million, which includes $151.4 million in cash and cash equivalents and $336.8 million in available borrowings [1] Future Outlook - The company expects adjusted EBITDA for Q4 to be between $170 million and $180 million, primarily benefiting from increases in LME and Midwest premiums [2]

Century Aluminum Company (NasdaqGS:CENX) Q3 2025 Earnings Call November 06, 2025 05:00 PM ET Speaker1Good afternoon, everyone, and thank you for joining today's Century Aluminum Company third quarter 2025 earnings conference call. My name is Reagan, and I'll be your moderator today. All lines will be muted during the presentation portion for today's call, with an opportunity for questions and answers at the end. If you would like to ask a question, you can do so by pressing star one on your telephone keypad ...

Century Aluminum Company 3 rd Quarter Earnings Call November 6, 2025 Cautionary Statement Certain statements in this presentation, and those made by Century Aluminum Company management on the quarterly conference call, relate to future events and expectations and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "expect," "hope," "target," "anticipate," "intend," "plan," "seek," "estimate," "potential," "project," "scheduled ...

Financial Performance - Century Aluminum's net sales for the nine months ended September 30, 2025, reached $1.894 billion, an increase from $1.589 billion in the same period of 2024, reflecting a year-over-year growth of approximately 19.2%[159] - The company experienced a gross profit of $174.1 million for the nine months ended September 30, 2025, compared to $118.7 million for the same period in 2024, reflecting a year-over-year increase of about 46.8%[159] - Net sales increased by $4.1 million for the three months ended September 30, 2025, driven by a $52.0 million increase in realized regional price premiums, partially offset by a $42.6 million unfavorable volume and sales mix[161] - Gross profit increased by $41.1 million for the three months ended September 30, 2025, primarily due to favorable realized regional price premiums of $52.0 million and favorable raw material price realization of $16.0 million[163] - For the nine months ended September 30, 2025, net sales reached $1,531.2 million[192] - Gross profit for the same period was $198.1 million[192] - Income before income taxes was reported at $98.0 million for the nine months ended September 30, 2025[192] - Net income for the nine months ended September 30, 2025, was $40.0 million[192] Production and Operational Challenges - The Grundartangi smelter faced a temporary production reduction of approximately two-thirds due to an electrical equipment failure, with an expected 11 to 12 months for resumption of full production[141] - Jamalco experienced a production loss of approximately 84,000 tonnes in 2023 due to a power disruption, impacting gross margin by about $30.4 million[150] Capital and Funding - The company secured up to $500 million in funding from the U.S. Department of Energy to build a new aluminum smelter, marking the first new U.S. primary aluminum smelter in 45 years[144] - The company completed the issuance of $400 million of Senior Secured Notes due 2032 on July 22, 2025, and redeemed the 2028 Notes at a total redemption price of approximately $261.1 million[178] - The company entered into a Cooperative Agreement with the DOE's Office of Clean Energy Demonstrations for up to $500 million in IRA funding to build a new U.S. primary aluminum smelter[186] Tariffs and Pricing - The average price of primary aluminum per tonne for the three months ended September 30, 2025, was $2,617, compared to $2,383 for the same period in 2024, indicating an increase of about 9.8%[154] - The Midwest Premium (MWP) for aluminum sold in the U.S. averaged $1,567 per tonne for the three months ended September 30, 2025, up from $411 in the same period of 2024, representing a significant increase of approximately 282%[154] - The Section 232 aluminum tariffs were increased from 25% to 50% effective June 4, 2025, which positively impacted the company's financial position and results of operations[143] Expenses and Cash Flow - Selling, general and administrative expenses increased by $3.9 million for the three months ended September 30, 2025, primarily due to increased share-based compensation costs[165] - Net cash provided by operating activities was $82.2 million for the nine months ended September 30, 2025, compared to $16.8 million for the same period in 2024[181] Assets and Liabilities - As of September 30, 2025, the company had cash and cash equivalents of approximately $151.4 million and unused availability under credit facilities of $336.8 million, totaling a liquidity position of $488.2 million[175] - As of September 30, 2025, current assets totaled $674.5 million, an increase from $414.0 million as of December 31, 2024[192] - Non-current assets amounted to $717.3 million as of September 30, 2025, compared to $698.4 million as of December 31, 2024[192] - Current liabilities were reported at $271.1 million as of September 30, 2025, up from $247.1 million as of December 31, 2024[192] - Non-current liabilities increased to $641.2 million as of September 30, 2025, from $490.4 million as of December 31, 2024[192] - Intercompany receivables from Non-Guarantor Subsidiaries totaled $58.2 million as of September 30, 2025, compared to $40.4 million as of December 31, 2024[192] - An intercompany non-current loan due to the Company from Non-Guarantor Subsidiaries was $380.1 million as of September 30, 2025, up from $358.1 million as of December 31, 2024[192] Derivative Contracts - The net loss on forward and derivative contracts - nonaffiliates increased by $14.6 million for the three months ended September 30, 2025, compared to the previous quarter, primarily due to fluctuations in forward prices related to LME hedges[167]

Core Insights - Century Aluminum Company reported a net income of $14.9 million for Q3 2025, a significant increase of $19.5 million from the previous quarter, primarily driven by favorable realized Midwest Premiums [4][8] - Adjusted net income attributable to Century stockholders reached $57.9 million, up $27.5 million sequentially, reflecting improved operational performance despite challenges [4][8] - The company expects fourth quarter Adjusted EBITDA to range between $170 to $180 million, driven by higher realized LME and Midwest regional premiums [6] Financial Performance - Net sales for Q3 2025 were $632.2 million, a slight increase of $4.1 million from Q2 2025, mainly due to an increase in realized Midwest premium [3][8] - Aluminum shipments decreased to 162,442 tonnes in Q3 2025 from 175,741 tonnes in Q2 2025 [1][8] - Adjusted EBITDA attributable to Century stockholders was $101.1 million, an increase of $26.8 million from the prior quarter, primarily due to favorable realized Midwest Premium [5][27] Operational Highlights - The realized Midwest Premium increased to $1,425 per metric tonne in Q3 2025, up $575 per metric tonne from the prior quarter [8] - The company finalized a power agreement for the Mt. Holly facility through 2031, which is crucial for the restart of idled capacity [8] - Century Aluminum received a $75 million refund under the 2024 45X program in October 2025 [8] Liquidity and Financial Position - As of September 30, 2025, Century's liquidity position was $488.2 million, consisting of $151.4 million in cash and cash equivalents and $336.8 million in borrowing availability [5][8] - The company reported a gross profit of $77.3 million for Q3 2025, compared to $36.2 million in Q2 2025 [15][27] Future Outlook - The company anticipates an increase in U.S. billet premiums by $110 per metric tonne for FY26 volumes [8] - Century's management is focused on improving operational efficiency and managing costs to enhance profitability in the upcoming quarters [4][6]

Group 1 - Andritz is a notable stock within the Industrial Products group, currently ranked 9 in the Zacks Sector Rank, which evaluates the strength of 16 sector groups based on the average Zacks Rank of individual stocks [2] - The Zacks Rank system highlights stocks with favorable earnings estimates and revisions, with Andritz holding a Zacks Rank of 2 (Buy) and a 1.7% increase in the consensus estimate for full-year earnings over the past 90 days, indicating improved analyst sentiment [3] - Year-to-date, Andritz has returned 44.9%, significantly outperforming the Industrial Products sector average return of 7.7% [4] Group 2 - Andritz is part of the Industrial Services industry, which consists of 18 stocks and is currently ranked 173 in the Zacks Industry Rank, with an average loss of 1% this year, further highlighting Andritz's strong performance [5] - In comparison, Century Aluminum, another outperforming stock in the Industrial Products sector, has returned 57.6% year-to-date and belongs to the Metal Products - Procurement and Fabrication industry, which is ranked 18 and has increased by 19.4% this year [4][6]

Core Insights - Jamalco, a joint venture of Century Aluminum, has resumed production after Hurricane Melissa, with no injuries or material damage reported [1][2] - The company is working with the Government of Jamaica to support affected communities [2] - Century Aluminum does not anticipate a material impact on its financial results from the hurricane [2] Company Overview - Century Aluminum is an integrated producer of bauxite, alumina, and primary aluminum products, and is the largest primary aluminum producer in the United States [3] - The company operates production facilities in Iceland, the Netherlands, and Jamaica [3]

Industry Overview - The Zacks Metal Products - Procurement and Fabrication industry is experiencing strong demand across various end markets, with improvements in order levels and strategic pricing expected to help maintain margins despite tariff impacts [1][2][4] - The industry primarily includes metal processing and fabrication service providers that transform metal into parts and components used in sectors such as construction, aerospace, automotive, and more [3] Current Trends - The Institute for Supply Management's manufacturing index showed a slight increase to 49.1% in September from 48.7% in August, indicating a potential recovery in the industry [4] - The Production Index registered 50.3%, reflecting growth in fabricated metal products, while new orders showed renewed demand momentum despite overall contraction in the New Orders Index [4] Strategic Initiatives - Companies are implementing strategic pricing adjustments, cost-reduction initiatives, and productivity enhancements to tackle rising labor, freight, and fuel costs [5] - Diversification of supplier bases and modifications to supply chains are also being pursued to mitigate tariff impacts [5] Growth Catalysts - Emphasis on automation and cost-effective technical solutions is positioning the industry for future growth, with expected demand increases in manufacturing, aerospace, and automotive sectors [6] - Rapid industrialization in developing economies presents additional long-term growth opportunities [6] Industry Performance - The Zacks Metal Products - Procurement and Fabrication industry ranks 19, placing it in the top 8% of 243 Zacks industries, indicating positive near-term prospects [7] - Over the past year, the industry has grown 15.4%, lagging behind the sector's 20.5% rise but outperforming the Zacks S&P 500 composite's 3.5% increase [10] Valuation Metrics - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 17.38X, compared to the S&P 500's 17.93X and the Industrial Products sector's 19.57X [13] Company Highlights - **Century Aluminum (CENX)**: Investing $50 million to restart over 50,000MT of idled production, expected to boost U.S. aluminum production by nearly 10% [19] - **Ardagh Metal Packaging (AMBP)**: Anticipating 3% growth in shipments and has raised its adjusted EBITDA guidance for 2025 to $720-$735 million [24] - **TriMas Corporation (TRS)**: Forecasting consolidated sales growth at the higher end of the 8-10% range for full-year 2025, driven by strong demand in its packaging segment [28] - **GrafTech International (EAF)**: Sales volume rose 9% year-over-year, with a strong focus on the U.S. market and an expected 8-10% increase in sales volume for 2025 [32]

Core Insights - Investors favor businesses with consistent profitability, measured effectively by net profit margin, which indicates a company's efficiency in converting sales into profits [1][2] - Companies like Mission Produce, Inc. (AVO), Standard Motor Products, Inc. (SMP), Dycom Industries, Inc. (DY), and Century Aluminum Company (CENX) demonstrate strong net profit margins, making them attractive to investors [1][8] Financial Metrics - Net profit margin is calculated as Net Profit/Sales * 100, representing the profit retained after all expenses [2] - A higher net profit margin not only attracts investors but also skilled employees, enhancing overall business value [3] Investment Considerations - A strong net profit margin provides clarity on a company's pricing policy, cost structure, and manufacturing efficiency, making it a preferred metric among investors [4] - However, net profit margin varies significantly across industries, and its relevance can diminish for technology companies [4][5] Screening Criteria - The screening parameters for selecting stocks include a net margin of at least 0%, positive percentage change in EPS, and a broker rating of 1, indicating strong bullishness [7] - Stocks with a Zacks Rank of 1 or 2 are expected to outperform their peers in various market conditions [8] Company Profiles - **Mission Produce, Inc. (AVO)**: Engages in sourcing, producing, and marketing avocados, with a Zacks Rank of 1 and a VGM Score of A. The fiscal 2025 earnings estimate was revised upward by 13.6% to $0.67 per share [9][10] - **Standard Motor Products, Inc. (SMP)**: A leading manufacturer of automotive replacement parts, currently holds a Zacks Rank of 2 with a VGM Score of A. The earnings estimate for 2025 remains at $3.76 per share [11][12] - **Dycom Industries, Inc. (DY)**: Operates in the telecom industry, providing various services. It has a Zacks Rank of 2 and a VGM Score of A, with a revised earnings estimate of $10.01 per share for fiscal 2026 [13][14] - **Century Aluminum Company (CENX)**: Engaged in aluminum production, currently holds a Zacks Rank of 2 and a VGM Score of A. The earnings estimate for 2025 increased by 11.7% to $2.30 per share [14][15]

Core Points - Century Aluminum Company is scheduled to report its third quarter 2025 earnings on November 6, 2025, after market close [1] - A follow-up conference call will take place on the same day at 5:00 p.m. Eastern time [1] - The earnings call will be available for live webcast on the company's website, with a replay accessible approximately two hours after the live event [2] Company Information - The investor contact for Century Aluminum is Ryan Crawford, reachable at investorrelations@centuryaluminum.com or (312) 696-3132 [2] - Media inquiries can be directed to Tawn Earnest at Tawn.earnest@centuryaluminum.com or (614) 698-6351 [2]