Core Viewpoint - The industrial sector is experiencing positive momentum in 2026, driven by improved economic visibility and investor interest in cyclical stocks, with notable gains in the State Street Industrial Select Sector SPDR ETF (XLI) which has risen 12.8% year to date [2]. Group 1: Industry Overview - The U.S. manufacturing activity has shown resilience, with leading indicators like new orders and capital spending stabilizing, encouraging investment in companies poised for economic growth [3]. - Easing input cost pressures and enhanced supply chain efficiency have improved margins for diversified industrial firms, while steady infrastructure spending continues to support demand, particularly for engineering and construction companies [3]. - Defense and aerospace stocks are benefiting from sustained government spending and a robust commercial aviation cycle, while transportation companies are seeing improvements in freight volumes and global trade normalization [4]. Group 2: Investment Opportunities - Kaiser Aluminum Corp. (KALU) is highlighted as a strong buy with an expected earnings growth rate of 142.6% for the current year, and a Zacks Consensus Estimate increase of 3.8% over the past 60 days [7]. - The Gorman-Rupp Company (GRC) is noted for its expected earnings growth rate of 8.4% for the current year, with a Zacks Consensus Estimate increase of 3.1% over the past 60 days [8]. - Century Aluminum Company (CENX) is projected to have an impressive earnings growth rate of 312.3% for the next year, with a Zacks Consensus Estimate increase of 42.1% over the past 60 days [9][10].

Shares of Kaiser Aluminum Corporation (NASDAQ:KALU – Get Free Report) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $139.38, but opened at $123.01. Kaiser Aluminum shares last traded at $129.38, with a volume of 96,498 shares. Get Kaiser Aluminum alerts: The industrial products company reported $1.53 earnings per share for the quarter, missing the consensus estimate of $1.56 by ($0.03). Kaiser Aluminum had a retur ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-09447 KAISER ALUMINUM CORPORATION (Exact name of registrant as specified in its charter) Delaware 94-3030279 (State or other jurisdiction of incorpo ...

Automotive: Conversion revenue of $122 million, up 2% year over year, despite a 6% decline in shipments. West said high interest rates and tariff-related customer uncertainty weighed on industry shipments, while improved pricing and mix helped offset lower volume.General engineering: Conversion revenue of $331 million, up $14 million (about 4%), supported by a 6% increase in shipments. West cited tariff-driven reshoring activity and KaiserSelect quality attributes as supporting volumes and pricing.Packaging ...

Kimberly Orlando: Reconciliations to the most comparable GAAP financial measures are included in the earnings release and in the appendix of the presentation. Reconciliations of certain forward-looking non-GAAP financial measures to comparable GAAP financial measures are not provided because certain items required for such reconciliations are outside of our control and cannot be reasonably predicted or provided without unreasonable effort. Any reference to EBITDA in our discussions today means adjusted EBIT ...

Financial Data and Key Metrics Changes - For the full year 2025, total net sales were $3.4 billion, with conversion revenue of $1.5 billion, consistent with 2024 [6] - Adjusted EBITDA for 2025 was $310 million, up approximately $69 million from 2024, with adjusted EBITDA as a percentage of conversion revenue improving to 21.3% [11] - Reported net income for 2025 was $113 million, or $6.77 per diluted share, compared to $66 million, or $4.02 per diluted share in 2024 [10] Business Line Data and Key Metrics Changes - Aerospace and high-strength conversion revenue totaled $457 million, down 14% due to a 16% decrease in shipments attributed to commercial aerospace OEM destocking [7] - Packaging conversion revenue for the year totaled $544 million, up 11%, driven by a transition to coated products [8] - General engineering conversion revenue totaled $331 million, up 4% year over year, on a 6% increase in shipments [8] - Automotive conversion revenue totaled $122 million, up 2% year over year, despite a 6% decrease in shipments [8] Market Data and Key Metrics Changes - Shipments in the aerospace sector decreased significantly in the second half of 2025, primarily due to destocking [16] - Demand in the packaging sector is improving, supported by long-term contracts, with expected shipment growth of 5%-10% in 2026 [18] - General engineering is expected to grow approximately 3%-5% year-over-year, driven by improving GDP and semiconductor market demand [19] Company Strategy and Development Direction - The company aims to harvest returns from recent investments and strengthen margins while generating free cash flow [5] - In 2026, the company expects record years for both conversion revenue and EBITDA, with a focus on operational execution rather than relying on metal pricing [23] - The company plans to retool select facilities and add capacity to support automotive demand, particularly for internal combustion engine vehicles [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in the aerospace market and expects a recovery in commercial aircraft production [17] - The company does not foresee demand destruction in any product lines and anticipates continued strong bookings and shipments [40] - Management highlighted that operational gains will be the primary driver of performance in 2026, rather than metal price tailwinds [39] Other Important Information - The company returned approximately $51 million to shareholders through dividends, marking the 19th consecutive year of dividend payments [15] - Capital expenditures for 2025 were $137 million, with expectations for 2026 in the range of $120 million-$130 million [14] Q&A Session Summary Question: Insights on 2026 outlook regarding aerospace and packaging conversion revenue - Management noted that aerospace conversion revenue is expected to recover as plate capacity is restored, while packaging revenue is benefiting from improved throughput and pricing due to new investments [25][26][29] Question: Clarification on automotive opportunities and capacity expansion - Management indicated that the automotive opportunity involves high-margin specialty products, with plans for retooling facilities to support increased demand for trucks and SUVs [31][34] Question: CapEx guidance context and implications - The increase in CapEx guidance is primarily driven by the automotive opportunity, with customers currently utilizing steel products due to aluminum shortages [35][36] Question: Demand destruction concerns and tariff impacts - Management reported no evidence of demand destruction and remains neutral to positive regarding potential tariff changes, emphasizing operational gains as the focus for 2026 [39][41]

Financial Data and Key Metrics Changes - For the full year 2025, total net sales were $3.4 billion, with conversion revenue at $1.5 billion, consistent with 2024, and total shipments were 1.1 billion pounds, down 5% from 2024 [6][10] - Adjusted EBITDA for 2025 was $310 million, up approximately $69 million from 2024, with adjusted EBITDA as a percentage of conversion revenue improving to 21.3% [11][12] - Reported net income for 2025 was $113 million, or $6.77 per diluted share, compared to $66 million, or $4.02 per diluted share in the prior year [10] Business Line Data and Key Metrics Changes - Aerospace and high-strength conversion revenue totaled $457 million, down 14% due to a 16% decrease in shipments attributed to commercial aerospace OEM destocking [7] - Packaging conversion revenue for the year totaled $544 million, up 11%, driven by a transition to coated products [8] - General engineering conversion revenue totaled $331 million, up 4% year-over-year, supported by tariff-driven reshoring activity [9] Market Data and Key Metrics Changes - The aerospace market saw a decrease in shipments due to OEM destocking, but demand in other aerospace applications remained strong [7] - The packaging market is expected to see shipment growth of 5%-10% and conversion revenue growth of 15%-20% in 2026 [18] - The automotive market is anticipated to decline in shipments and conversion revenue by 5%-10% in 2026 due to planned outages [21] Company Strategy and Development Direction - The company aims to harvest returns from recent investments and strengthen margins while generating free cash flow [5] - In 2026, the company expects record years for both conversion revenue and EBITDA, with a focus on operational execution rather than relying on metal pricing [22][23] - The company plans to reduce manufacturing and operating costs to drive additional operating leverage and maximize returns on investments [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in the aerospace market and expects a recovery in commercial aircraft production [17] - The company does not foresee demand destruction in any product lines and anticipates continued strong bookings and shipments [40] - Management highlighted that operational gains will be the primary driver of performance in 2026, rather than metal pricing [39] Other Important Information - The company returned approximately $51 million to shareholders through dividends, marking the 19th consecutive year of dividend payments [15] - Capital expenditures for 2025 were $137 million, with expectations for 2026 to be in the range of $120 million-$130 million [14] Q&A Session Summary Question: Insights on 2026 outlook regarding aerospace and packaging conversion revenue - Management noted that aerospace conversion revenue is expected to recover as plate capacity is restored, while packaging conversion revenue is benefiting from improved throughput and pricing due to new investments [25][30] Question: Clarification on automotive opportunities and capacity expansion - Management indicated that the automotive opportunity involves high-margin specialty products and that planned outages will temporarily affect shipments but are necessary for future growth [31][34] Question: Concerns about demand destruction and tariff impacts - Management reported no evidence of demand destruction and expressed confidence in the strength of the market, while also addressing potential tariff changes as unlikely to impact their business negatively [39][41]

Kaiser Aluminum (NasdaqGS:KALU) Q4 2025 Earnings call February 19, 2026 10:00 AM ET Speaker4Greetings, everyone, and welcome to the Kaiser Aluminum Corporation Fourth Quarter and Full Year 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It ...

Fourth Quarter 2025 Earnings Conference Call February 19, 2026 Forward Looking Statements The information contained in this presentation includes statements based on management's current expectations, estimates and projections that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include statements regarding the company's anticipated financial and operating performance, relate to future events and expectations and involve kno ...

Key Takeaways XLI is up 12.8% YTD as industrial stocks gain on improving economic visibility.Kaiser Aluminum expects 142.6% earnings growth this year, with estimates up 3.8% in 60 days.CENX projects 312.3% earnings growth next year, estimates jumped 42.1% in 60 days.Industrial stocks have enjoyed a solid start to 2026, supported by improving economic visibility and renewed investor appetite for cyclical sectors. The State Street Industrial Select Sector SPDR ETF (XLI) has advanced 12.8% year to date, reflec ...