Financial Data and Key Metrics Changes - The company reported a 23% EBITDA margin in Q3 2025, with over 20% year-to-date, and raised its full-year EBITDA outlook by 10% [4][20] - Reported operating income for Q3 was $49 million, an increase of approximately $36 million from $13 million in the prior year quarter [9] - Adjusted net income for Q3 2025 was $31 million, or $1.86 per diluted share, compared to $5 million, or $0.31 per diluted share in the prior year [12] Business Line Data and Key Metrics Changes - Aerospace and high-strength conversion revenue totaled $100 million, down $28 million, or approximately 22%, primarily due to a 30% decline in shipments [7][8] - Packaging conversion revenue totaled $138 million, up $9 million, or approximately 7% year-over-year, despite a 5% decline in shipments [8] - General engineering conversion revenue for Q3 was $81 million, up $5 million, or 6% year-over-year, on a 7% increase in shipments [8] Market Data and Key Metrics Changes - Demand in aerospace is trending positively, with expectations for improved conditions as destocking eases [6] - Packaging supply remains tight, with strong demand expected to continue [6] - Automotive conversion revenue increased 10% year-over-year, despite a 5% decrease in shipments due to tariff-related uncertainties [9] Company Strategy and Development Direction - The company is focusing on managing costs and restoring operating efficiencies as it nears the end of its major investment cycle [6] - Investments in aerospace and packaging are central to the company's strategy, with a shift towards higher-margin coated products [5][16] - The company aims to achieve mid to high 20% EBITDA margins as investments come online and market demand improves [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of aerospace shipments and conversion revenue, expecting a return to first-half levels in Q4 [25] - The company anticipates strong demand in packaging, with a full ramp-up of the new coating line expected by late Q4 2025 [16] - General engineering is expected to see continued growth, with full-year shipments and conversion revenue projected to be up approximately 5%-10% year-over-year [19] Other Important Information - The company incurred approximately $20 million in startup costs related to key strategic investments during the quarter [4] - As of September 30, 2025, the company had $577 million in total liquidity, with a net debt leverage ratio improved to 3.6x from 4.3x at the end of 2024 [13][14] Q&A Session Summary Question: Impact of aerospace shipment decline - Management confirmed that the 30% decline in aerospace shipments was primarily due to planned maintenance and expects a recovery to first-half levels in Q4 [25][26] Question: Packaging contract negotiations - Management indicated progress in contract negotiations, expecting a 300-400 basis points increase in EBITDA margins and finalization of a major customer contract by year-end [27][28] Question: Impact of tariffs on business - Management stated that tariffs have had a neutral to slightly positive impact, with better demand for domestic products and opportunities for price enhancement in general engineering [36][37] Question: Capacity and demand in packaging - Management noted strong demand for aluminum substrate products, particularly in food-related packaging, and confirmed that they are not seeing reductions in contracted capacities [38] Question: Ramp-up of new facilities in 2026 - Management expects a gradual ramp-up of new facilities in 2026, with strong demand anticipated to support operational execution [42][43]

Financial Data and Key Metrics Changes - The company reported a third-quarter conversion revenue of $351 million, a decline of approximately $11 million, or 3%, compared to the prior year period [7] - Adjusted EBITDA for the third quarter was $81 million, up approximately $35 million from the prior year period, despite an 8% year-over-year reduction in shipments [12][13] - Reported net income for the third quarter was $40 million, or $2.38 net income per diluted share, compared to net income of $9 million, or $0.54 net income per diluted share in the prior year quarter [12] Business Line Data and Key Metrics Changes - Aerospace and high-strength conversion revenue totaled $100 million, down $28 million, or approximately 22%, primarily due to a 30% decline in shipments [8] - Packaging conversion revenue totaled $138 million, up $9 million, or approximately 7% year-over-year, with shipments declining 5% over the prior year period [8] - General engineering conversion revenue for the third quarter was $81 million, up $5 million, or 6% year-over-year, on a 7% increase in shipments [8] Market Data and Key Metrics Changes - Demand in aerospace is trending positively, with expectations for improved conditions as destocking eases [6] - Packaging supply remains tight, with strong demand expected to continue for the foreseeable future [6] - Automotive conversion revenue was $32 million, increased 10% year-over-year, despite a 5% decrease in shipments due to tariff-related customer uncertainty [9] Company Strategy and Development Direction - The company is focused on managing costs, restoring operating efficiencies, and regaining best-in-class operating metrics as it nears the end of its major investment cycle [6] - The strategic investments in aerospace and packaging are expected to strengthen the company's market position and support long-term growth [5][15] - The company anticipates a shift towards higher-margin coated packaging products, with a full ramp-up of the Warwick fourth coating line expected by late fourth quarter of 2025 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of aerospace shipments and conversion revenue, expecting a decline of approximately 10% year-over-year for full-year aerospace due to destocking [16] - The outlook for packaging remains strong, with expectations for conversion revenue to be up 12% to 15% year-over-year [17] - The automotive outlook remains stable, with full-year conversion revenue expected to increase approximately 3% to 5% year-over-year [19] Other Important Information - The company incurred approximately $20 million in startup costs tied to strategic investments, which are expected to taper off as operations stabilize [4][13] - As of September 30, 2025, the company had $577 million in total liquidity, with a net debt leverage ratio improved to 3.6 times from 4.3 times at the end of 2024 [14] Q&A Session Summary Question: On the aerospace and high-strength, shipments down 30% quarter on quarter - Management confirmed that the decline was primarily due to planned maintenance and expects a recovery back to first half levels in Q4, with more clarity on 2026 expected in February [24][25] Question: On packaging, where do the last renegotiations stand? - Management indicated progress in contract negotiations, expecting a 300 to 400 basis points increase on the EBITDA margin side, with finalization of a major customer contract anticipated before year-end [27][28] Question: How are customers responding to tariffs? - Management stated that the impact of tariffs has been neutral to slightly positive, with better demand for domestic products and opportunities for price enhancement in the general engineering segment [35][36] Question: How do you think about the cadence of the ramp-up of new facilities in 2026? - Management expects a gradual ramp-up in the first half of 2026, with stronger demand anticipated in the second half as major growth investments come online [42][43]

Financial Data and Key Metrics Changes - The company reported a third-quarter EBITDA margin of 23%, with over 20% year-to-date, and raised its full-year EBITDA outlook by 10% [2][4][19] - Reported operating income for Q3 was $49 million, an increase of approximately $36 million from $13 million in the prior year quarter [9][10] - Adjusted net income for Q3 was $31 million, or $1.86 per diluted share, compared to $5 million, or $0.31 per diluted share in the prior year [11][12] Business Line Data and Key Metrics Changes - Aerospace and high-strength conversion revenue totaled $100 million, down $28 million, or approximately 22%, primarily due to a 30% decline in shipments [7][8] - Packaging conversion revenue totaled $138 million, up $9 million, or approximately 7% year-over-year, despite a 5% decline in shipments [8][9] - General engineering conversion revenue for Q3 was $81 million, up $5 million, or 6% year-over-year, on a 7% increase in shipments [8][9] Market Data and Key Metrics Changes - Demand in aerospace is trending positively, with expectations for improved conditions as destocking eases [6][14] - Packaging supply remains tight, with strong demand expected to continue [6][14] - Automotive conversion revenue increased 10% year-over-year, despite a 5% decrease in shipments due to tariff-related uncertainties [9][10] Company Strategy and Development Direction - The company is focused on managing costs, restoring operating efficiencies, and regaining best-in-class operating metrics [6][14] - Major investments in aerospace and packaging are expected to strengthen the company's market position [5][14] - The strategy includes shifting the majority of output to higher-margin coated products at the Warwick mill [5][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of aerospace shipments and conversion revenue, expecting a return to first-half levels in Q4 [22][23] - The outlook for packaging remains strong, with expectations for conversion revenue to increase by 12% to 15% year-over-year [15][16] - General engineering is expected to see continued growth, with shipments and conversion revenue anticipated to be up approximately 5% to 10% year-over-year [17][18] Other Important Information - The company had $577 million in total liquidity as of September 30, 2025, with a net debt leverage ratio improved to 3.6 times [12][13] - Capital expenditures for the full year 2025 are expected to be approximately $130 million, with free cash flow anticipated to be in the range of $30 to $50 million [12][13] Q&A Session Summary Question: Impact of planned maintenance on aerospace shipments - Management confirmed that the 30% decline in aerospace shipments was primarily due to planned maintenance, with expectations for recovery in Q4 [22][23] Question: Status of packaging contract negotiations - Management indicated progress in contract negotiations, expecting a 300 to 400 basis points increase in EBITDA margins [25][26] Question: Impact of tariffs on customer pricing and market share - Management stated that the impact of tariffs has been neutral to slightly positive, with better demand for domestic products [32][33] Question: Demand for packaging products amid cost inflation - Management noted strong demand for aluminum substrate products, particularly in food-related markets, which has held up well [37][38] Question: Ramp-up of new facilities in 2026 - Management indicated a gradual ramp-up of new facilities, with expectations for strong demand and operational readiness [39][40]

Financial Data and Key Metrics Changes - The company reported a third quarter conversion revenue of $351 million, a decline of approximately $11 million or 3% compared to the prior year period [12] - Reported operating income for the third quarter was $49 million, an increase of approximately $36 million from $13 million in the prior year quarter [15] - Adjusted net income for the third quarter was $31 million or $1.86 per diluted share, compared to adjusted net income of $5 million or $0.31 per diluted share in the prior year period [17] - Adjusted EBITDA for the third quarter was $81 million, up approximately $35 million from the prior year period [18] - The net debt leverage ratio improved to 3.6x from 4.3x at the end of 2024 [19] Business Line Data and Key Metrics Changes - Aerospace and high strength conversion revenue totaled $100 million, down $28 million or approximately 22% due to a 30% decline in shipments [12][13] - Packaging conversion revenue totaled $138 million, up $9 million or approximately 7% year over year [13] - General engineering conversion revenue for the third quarter was $81 million, up $5 million or 6% year over year [14] - Automotive conversion revenue of $32 million increased 10% year over year despite a 5% decrease in shipments [14] Market Data and Key Metrics Changes - Demand in aerospace is trending positively, with expectations for improved conditions as destocking eases [10][21] - Packaging supply remains tight with strong demand expected to continue [10] - General engineering continues to outperform the traditional 2% CAGR, reflecting solid demand [11] - Automotive production forecasts have varied, but the company expects stability moving forward [25] Company Strategy and Development Direction - The company is focused on managing costs, restoring operating efficiencies, and regaining best-in-class operating metrics [11] - Major investments in aerospace and packaging are central to the company's strategy, with a shift towards higher-margin coated products [9][22] - The company anticipates a full ramp-up of the new coating line to support 2026 shipments [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of aerospace demand and the normalization of supply chains [20][21] - The company expects full year aerospace shipments and conversion revenue to be down approximately 10% year over year due to destocking [21] - For packaging, conversion revenue is expected to be up 12% to 15% year over year, with shipments declining about 3% [22] - General engineering is expected to see shipments and conversion revenue up approximately 5% to 10% year over year [24] Other Important Information - The company generated cash flow from operations of $59 million during the third quarter, with capital expenditures totaling $25 million [19] - The company remains committed to funding its quarterly dividend of $0.77 per share [19] Q&A Session Summary Question: Impact of planned maintenance on aerospace shipments - Management confirmed that the planned maintenance significantly impacted shipments, but they expect a recovery close to first half levels in Q4 [28][30] Question: Status of packaging contract negotiations - Management indicated progress in contract negotiations, expecting a 300 to 400 basis points increase in EBITDA margins [33][34] Question: Impact of tariffs on pricing and market share - Management stated that tariffs have had a neutral to slightly positive impact, with better demand for domestic products [44][45] Question: Demand for packaging products amid cost inflation - Management noted strong demand for aluminum substrate products, particularly in food-related markets, which have outpaced beverage demand [48][49] Question: Capacity to fill in for competitors' outages - Management indicated that they are currently at full capacity and not positioned to assist significantly in the market for bare products [52] Question: Ramp-up of new facilities in 2026 - Management expects a gradual ramp-up in the first half of 2026, with stronger demand anticipated in the second half [56]

Core Insights - U.S. stocks exhibited mixed performance, with the Dow Jones index declining approximately 0.1% on Thursday [1] - Las Vegas Sands Corp. reported third-quarter results that exceeded expectations, leading to an 11.8% surge in its share price to $56.64 [1][2] Company Performance - Las Vegas Sands achieved third-quarter revenue of $3.33 billion, surpassing analyst estimates of $3.03 billion [2] - The company reported adjusted earnings of 78 cents per share, exceeding the expected 60 cents per share [2] - Las Vegas Sands also raised its dividend and announced a $2 billion increase to its stock buyback program [1] Other Notable Stock Movements - Garrett Motion Inc. shares increased by 24.7% to $15.60 after reporting third-quarter results that beat estimates and raising FY2025 sales guidance [4] - Kaiser Aluminum Corp. saw a 22.7% rise to $95.59 following positive earnings [4] - D-Wave Quantum Inc. gained 18.4% to $32.29 amid reports of potential equity stakes from the Trump administration in quantum-computing firms [4] - Helix Energy Solutions Group Inc. shares rose 18% to $7.82 after strong quarterly sales [4] - Core Laboratories Inc. gained 17.1% to $14.98 after reporting better-than-expected third-quarter results and issuing optimistic fourth-quarter sales guidance [4] - Other companies such as Carpenter Technology Corp., LendingClub Corp., Alcoa Corp., and CACI International Inc. also reported significant gains following positive earnings [4]

Financial Performance - The company's 3Q 2025 EBITDA reached $81 million, resulting in an EBITDA margin of 23.2%[18] - The company anticipates a 20% to 25% year-over-year increase in 2025 EBITDA[18] - The net debt leverage ratio improved to 3.6x [18] - The company expects FY 2025 Free Cash Flow to be in the range of $30 to $50 million [50] End Market Analysis - Aero/HS shipments decreased by 30% in 3Q25 compared to 3Q24 [23] - Aero/HS conversion revenue decreased by 22% in 3Q25 compared to 3Q24 [26] - Packaging shipments increased by 7% in 3Q25 compared to 3Q24 [23] - Packaging conversion revenue increased by 7% in 3Q25 compared to 3Q24 [26] - General Engineering conversion revenue increased by 6% in 3Q25 compared to 3Q24 [26] - Automotive conversion revenue increased by 10% in 3Q25 compared to 3Q24 [26] Outlook and Strategy - The company expects Aero/HS shipments and conversion revenue to decline approximately 10% year-over-year [48] - The company anticipates Packaging conversion revenue to increase by 12% to 15% year-over-year [48] - The company expects General Engineering shipments and conversion revenue to increase by 5% to 10% year-over-year [49] - The company anticipates Automotive conversion revenue to increase by 3% to 5% year-over-year, with a 5% to 7% decrease in shipments [49]

Core Insights - Kaiser Aluminum (KALU) reported quarterly earnings of $1.86 per share, significantly exceeding the Zacks Consensus Estimate of $0.80 per share, and up from $0.51 per share a year ago, representing an earnings surprise of +132.50% [1] - The company posted revenues of $843.5 million for the quarter ended September 2025, which was 7.09% below the Zacks Consensus Estimate, but an increase from $747.7 million year-over-year [2] - Kaiser has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates two times in the same period [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.18 on revenues of $964.02 million, and for the current fiscal year, it is $4.64 on revenues of $3.47 billion [7] Industry Context - The Metal Products - Procurement and Fabrication industry, to which Kaiser belongs, is currently ranked in the top 8% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Kaiser Aluminum's Q3 2025 performance exceeded expectations, leading to an upward revision of the full-year Adjusted EBITDA outlook despite significant startup costs [Third Quarter 2025 Performance Overview](index=1&type=section&id=Third%20Quarter%202025%20Performance%20Overview) Kaiser Aluminum reported strong third quarter 2025 results, significantly exceeding expectations with substantial year-over-year increases in both net income and adjusted net income, alongside improved adjusted EBITDA and a better net debt leverage ratio | Metric | Q3 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | | Net Income ($ million) | $40 | $9 | | Net Income per Diluted Share ($) | $2.38 | $0.54 | | Adjusted Net Income ($ million) | $31 | $5 | | Adjusted Net Income per Diluted Share ($) | $1.86 | $0.31 | | Metric | Q3 2025 | | :-------------------------- | :------ | | Net Sales ($ million) | $844 | | Conversion Revenue ($ million) | $351 | | Adjusted EBITDA ($ million) | $81 | | Adjusted EBITDA Margin (%) | 23.2% | | Net Debt Leverage Ratio (x) | 3.6x | [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO highlighted the company's fourth consecutive quarter of exceeding expectations, leading to an upward revision of the full-year 2025 Adjusted EBITDA outlook. Despite non-recurring startup costs at key facilities, favorable metal tailwinds provided an offset, and the company is now prioritizing cost discipline and operational excellence - Delivered fourth consecutive quarter of results above expectations, prompting an upward revision to full-year 2025 Adjusted EBITDA outlook[4](index=4&type=chunk) - Third quarter results included approximately **$20 million** in non-recurring startup costs tied to major investments at the Trentwood and Warrick facilities[4](index=4&type=chunk) - Favorable metal tailwinds offset the non-recurring startup costs[4](index=4&type=chunk) - Reinvigorated focus on cost discipline, operational excellence, and restoring strong operating performance[4](index=4&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) The company's Q3 2025 consolidated financial results show improved profitability metrics, including net income and Adjusted EBITDA, despite a slight decrease in shipments and conversion revenue [Key Financial Metrics](index=2&type=section&id=Key%20Financial%20Metrics) The consolidated financial results for Q3 2025 demonstrate significant year-over-year improvements in profitability, with operating income, net income, and Adjusted EBITDA all showing substantial growth, despite a decrease in shipments and conversion revenue | Metric | Q3 2025 | Q3 2024 (As Adjusted) | 9M 2025 | 9M 2024 (As Adjusted) | | :-------------------------------- | :------ | :-------------------- | :------ | :-------------------- | | Shipments (million lbs.) | 270 | 292 | 834 | 880 | | Net sales ($ million) | $844 | $748 | $2,444 | $2,259 | | Conversion revenue ($ million) | $351 | $362 | $1,088 | $1,098 | | Operating income ($ million) | $49 | $13 | $128 | $74 | | Net income ($ million) | $40 | $9 | $84 | $46 | | Net income per share, diluted ($) | $2.38 | $0.54 | $5.10 | $2.81 | | Adjusted Operating income ($ million) | $49 | $17 | $131 | $88 | | Adjusted EBITDA ($ million) | $81 | $46 | $222 | $174 | | Adjusted EBITDA margin (%) | 23.2% | 12.7% | 20.4% | 15.9% | | Adjusted Net income ($ million) | $31 | $5 | $75 | $42 | | Adjusted EPS, diluted ($) | $1.86 | $0.31 | $4.51 | $2.56 | - Net sales for Q3 2025 increased to **$844 million** (vs. $748 million in Q3 2024), primarily driven by a **28% increase** in the Hedged Cost of Alloyed Metal, which is a direct pass-through[12](index=12&type=chunk) - Shipments for Q3 2025 decreased **8%** year-over-year, mainly due to a planned partial outage at the Trentwood facility for its Phase VII investment[12](index=12&type=chunk) - Conversion Revenue for Q3 2025 was **$351 million**, reflecting a **3% decrease** compared to the prior year period[13](index=13&type=chunk) [Detailed Revenue Analysis](index=4&type=section&id=Detailed%20Revenue%20Analysis) A detailed analysis reveals that net sales increased due to higher average realized prices, while conversion revenue varied across end markets, with Aero/HS Products showing growth despite overall shipment declines [Net Sales and Shipments](index=4&type=section&id=Net%20Sales%20and%20Shipments) Net sales for the third quarter of 2025 increased due to a higher average realized sales price, largely influenced by the increased hedged cost of alloyed metal, while overall shipments decreased due to a planned facility outage - Net sales for Q3 2025 increased to **$844 million** compared to $748 million in Q3 2024, primarily driven by an increase in average realized sales price[12](index=12&type=chunk) - The increase in average selling price reflects a **28% increase** in the Hedged Cost of Alloyed Metal, which is a direct pass-through[12](index=12&type=chunk) - Shipments for Q3 2025 decreased **8%** year-over-year, primarily due to a planned partial outage at the Trentwood facility in conjunction with its Phase VII investment[12](index=12&type=chunk) [Conversion Revenue by End Market](index=5&type=section&id=Conversion%20Revenue%20by%20End%20Market) Conversion revenue performance varied across end markets in Q3 2025. Aero/HS Products saw an increase in conversion revenue and per pound, while Packaging, GE Products, and Automotive Extrusions experienced declines in conversion revenue, contributing to the overall decrease | End Market | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------- | :-------------------------- | :------ | :------ | :------ | :------ | | **Aero/HS Products** | Shipments (million lbs.) | 41.8 | 59.5 | 158.0 | 184.6 | | | Conversion Revenue ($ million) | $127.9 | $99.5 | $347.2 | $397.8 | | | Conversion Revenue ($/lb) | $2.38 | $2.15 | $2.20 | $2.15 | | **Packaging** | Shipments (million lbs.) | 144.1 | 150.9 | 415.4 | 439.2 | | | Conversion Revenue ($ million) | $128.4 | $137.8 | $394.9 | $365.3 | | | Conversion Revenue ($/lb) | $0.96 | $0.85 | $0.95 | $0.83 | | **GE Products** | Shipments (million lbs.) | 60.4 | 55.6 | 188.9 | 173.2 | | | Conversion Revenue ($ million) | $76.1 | $81.9 | $251.1 | $238.9 | | | Conversion Revenue ($/lb) | $1.36 | $1.37 | $1.33 | $1.38 | | **Automotive Extrusions** | Shipments (million lbs.) | 23.9 | 25.2 | 71.9 | 79.8 | | | Conversion Revenue ($ million) | $28.7 | $31.5 | $94.9 | $92.8 | | | Conversion Revenue ($/lb) | $1.32 | $1.14 | $1.32 | $1.16 | | **Total** | Shipments (million lbs.) | 270.2 | 292.2 | 834.2 | 880.0 | | | Conversion Revenue ($ million) | $350.7 | $362.0 | $1,088.1 | $1,097.8 | | | Conversion Revenue ($/lb) | $1.30 | $1.24 | $1.30 | $1.25 | [Financial Position & Outlook](index=6&type=section&id=Financial%20Position%20%26%20Outlook) Kaiser Aluminum improved its financial position through strong Adjusted EBITDA generation and enhanced liquidity, leading to an upward revision of its full-year 2025 Adjusted EBITDA outlook [Cash Flow and Liquidity](index=6&type=section&id=Cash%20Flow%20and%20Liquidity) Kaiser Aluminum generated $222 million in Adjusted EBITDA in the first nine months of 2025, which funded working capital, capital investments, interest payments, and shareholder dividends. The company improved its net debt leverage ratio and enhanced liquidity by amending and extending its revolving credit facility - Adjusted EBITDA of **$222 million** reported in the first nine months of 2025[15](index=15&type=chunk) - Cash on hand funded **$71 million** of working capital, **$106 million** of capital investments, **$33 million** of interest payments, and **$39 million** of cash returned to stockholders through quarterly dividends[15](index=15&type=chunk) - Net debt leverage ratio improved to **3.6x** as of September 30, 2025, from **4.3x** at December 31, 2024[15](index=15&type=chunk) - Amended and extended its **$575 million** Revolving Credit Facility, maturing in October 2030[16](index=16&type=chunk) - Total liquidity as of October 14, 2025, was **$602 million**, consisting of **$42 million** cash and **$560 million** borrowing availability[16](index=16&type=chunk) - Declared a quarterly cash dividend of **$0.77 per share** on October 14, 2025[17](index=17&type=chunk) [2025 Outlook](index=6&type=section&id=2025%20Outlook) Kaiser Aluminum has raised its full-year 2025 Adjusted EBITDA outlook, projecting a significant year-over-year improvement, while Conversion Revenue is expected to remain relatively stable - Full-year 2025 Conversion Revenue expected to be **flat to up 5%** year-over-year[18](index=18&type=chunk) - Full-year 2025 Adjusted EBITDA outlook raised to improve **20% to 25%** year-over-year[18](index=18&type=chunk) - The increase in Adjusted EBITDA is attributed to strengthening underlying performance and rising metal prices, partially offset by start-up costs from key strategic investments[18](index=18&type=chunk) [Additional Information](index=7&type=section&id=Additional%20Information) This section provides essential background on Kaiser Aluminum, clarifies non-GAAP financial measures, and outlines the inherent risks associated with forward-looking statements [Company Description](index=7&type=section&id=Company%20Description) Kaiser Aluminum Corporation, headquartered in Franklin, Tenn., is a leading global producer of semi-fabricated specialty aluminum products, offering highly-engineered solutions for diverse industrial applications including aerospace, packaging, general engineering, and automotive extrusions - Kaiser Aluminum Corporation is headquartered in Franklin, Tenn[20](index=20&type=chunk) - The company is a leading producer of semi-fabricated specialty aluminum products[20](index=20&type=chunk) - Serves customers worldwide with highly-engineered solutions for aerospace and high-strength, packaging, general engineering, automotive extrusions, and other industrial applications[20](index=20&type=chunk) - North American facilities produce value-added plate, sheet, coil, extrusions, rod, bar, tube, and wire products[20](index=20&type=chunk) [Non-GAAP Financial Measures Explanation](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) This section clarifies the non-GAAP financial measures used in the earnings release, such as Conversion Revenue, Adjusted operating income, Adjusted EBITDA, Adjusted net income, and Adjusted EPS. These measures exclude 'non-run-rate' items, which are material, externally driven, and potentially non-recurring, providing management and investors with a clearer view of underlying financial performance - Non-GAAP financial measures include Conversion Revenue, Adjusted operating income, Adjusted EBITDA, Adjusted net income, and Adjusted earnings per diluted share[23](index=23&type=chunk) - These measures exclude 'non-run-rate' items, which are defined as material items impacting costs primarily due to external market factors and may not occur in future periods at the same level of underlying performance[23](index=23&type=chunk) - Management uses this information to monitor and evaluate financial results and trends, believing it is also useful for investors[23](index=23&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements based on management's current expectations, which are subject to various known and unknown risks and uncertainties. These factors could cause actual results, performance, or achievements to differ materially from those expressed or implied - Statements are based on management's current expectations, estimates, and projections[24](index=24&type=chunk) - Involve known and unknown risks and uncertainties that may cause actual results, performance, or achievements to be materially different[24](index=24&type=chunk) - Risk factors include the effectiveness of management's strategies, execution and timing of strategic investments, general economic and business conditions, changes in defense spending, pricing and market conditions, technological developments, and new regulatory requirements[24](index=24&type=chunk) [Unaudited Financial Statements](index=9&type=section&id=Unaudited%20Financial%20Statements) This section presents the unaudited consolidated income statements, cash flow summaries, balance sheets, and non-GAAP reconciliations for the reported periods [Statements of Consolidated Income](index=9&type=section&id=Statements%20of%20Consolidated%20Income) The unaudited consolidated income statement for Q3 and 9M 2025 shows significant growth in net sales and net income compared to the prior year, driven by increased revenue and improved operating income, despite higher costs and expenses | Metric | Q3 2025 | Q3 2024 (As Adjusted) | 9M 2025 | 9M 2024 (As Adjusted) | | :-------------------------------------------------- | :------ | :-------------------- | :------ | :-------------------- | | Net sales ($ million) | $843.5 | $747.7 | $2,444.0 | $2,258.6 | | Cost of products sold, excluding depreciation and amortization ($ million) | $728.8 | $676.0 | $2,125.0 | $1,997.1 | | Depreciation and amortization ($ million) | $32.0 | $29.0 | $91.6 | $86.8 | | Selling, general, administrative, research and development ($ million) | $33.9 | $28.8 | $97.3 | $93.0 | | Total costs and expenses ($ million) | $794.7 | $734.5 | $2,315.8 | $2,184.9 | | Operating income ($ million) | $48.8 | $13.2 | $128.2 | $73.7 | | Interest expense ($ million) | $(12.4) | $(10.7) | $(36.1) | $(33.3) | | Other income, net ($ million) | $11.4 | $8.7 | $14.4 | $19.1 | | Income before income taxes ($ million) | $47.8 | $11.2 | $106.5 | $59.5 | | Income tax provision ($ million) | $(8.3) | $(2.4) | $(22.2) | $(13.6) | | Net income ($ million) | $39.5 | $8.8 | $84.3 | $45.9 | | Diluted EPS ($) | $2.38 | $0.54 | $5.10 | $2.81 | [Summary of Cash Flows](index=9&type=section&id=Summary%20of%20Cash%20Flows) The unaudited summary of cash flows for the nine months ended September 30, 2025, indicates an increase in cash provided by operating activities and a decrease in cash used in investing activities compared to the same period in the prior year | Cash Flow Activity | 9M 2025 | 9M 2024 (As Adjusted) | | :------------------------- | :------ | :-------------------- | | Operating activities ($ million) | $132.0 | $123.7 | | Investing activities ($ million) | $(89.7) | $(118.6) | | Financing activities ($ million) | $(43.2) | $(41.8) | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) The unaudited consolidated balance sheet as of September 30, 2025, shows an increase in total assets, primarily driven by higher current assets such as trade receivables and inventories, and an increase in total liabilities compared to December 31, 2024 | Balance Sheet Item | As of Sep 30, 2025 | As of Dec 31, 2024 (As Adjusted) | | :------------------------------------ | :----------------- | :------------------------------- | | Total current assets ($ million) | $1,244.2 | $1,074.6 | | Property, plant and equipment, net ($ million) | $1,199.8 | $1,161.2 | | Total assets ($ million) | $2,592.1 | $2,409.9 | | Total current liabilities ($ million) | $500.7 | $400.5 | | Long-term debt, net ($ million) | $1,042.9 | $1,041.6 | | Total liabilities ($ million) | $1,786.0 | $1,666.8 | | Total stockholders' equity ($ million) | $806.1 | $743.1 | [Reconciliation of Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides a detailed reconciliation of GAAP net income to Adjusted EBITDA and Adjusted net income, outlining the specific adjustments for non-run-rate items, interest, taxes, and depreciation/amortization for both the third quarter and nine months ended September 30, 2025 and 2024 | Metric | Q3 2025 | Q3 2024 (As Adjusted) | 9M 2025 | 9M 2024 (As Adjusted) | | :------------------------------------ | :------ | :-------------------- | :------ | :-------------------- | | GAAP net income ($ million) | $39.5 | $8.8 | $84.3 | $45.9 | | GAAP operating income ($ million) | $48.8 | $13.2 | $128.2 | $73.7 | | Operating income, excluding operating NRR items ($ million) | $49.3 | $17.2 | $130.8 | $87.6 | | Depreciation and amortization ($ million) | $32.0 | $29.0 | $91.6 | $86.8 | | Adjusted EBITDA ($ million) | $81.3 | $46.2 | $222.4 | $174.4 | | Adjusted net income ($ million) | $31.0 | $5.1 | $74.6 | $41.9 | | Adjusted earnings per diluted share ($) | $1.86 | $0.31 | $4.51 | $2.56 | - Adjusted EBITDA for Q3 2025 includes a favorable metal price lag of approximately **$28.0 million**, compared to $7.0 million in Q3 2024[39](index=39&type=chunk) - Adjusted EBITDA for the nine months ended September 30, 2025, includes a favorable metal price lag of approximately **$64.0 million**, compared to $31.0 million in the prior year period[39](index=39&type=chunk)

Core Insights - Kaiser Aluminum Corporation reported a strong financial performance for the third quarter of 2025, with net income reaching $40 million, or $2.38 per diluted share, a significant increase from $9 million and $0.54 in the same period last year [2][5][10] - The company raised its full-year 2025 Adjusted EBITDA outlook, reflecting improved operational performance and rising metal prices, despite incurring approximately $20 million in non-recurring startup costs [3][17] Financial Performance - Third quarter 2025 net sales increased to $844 million from $748 million year-over-year, driven by a 28% rise in the Hedged Cost of Alloyed Metal [10][11] - Shipments decreased by 8% year-over-year to 270 million pounds, primarily due to a planned partial outage at the Trentwood facility [10][11] - Adjusted net income for the quarter was $31 million, or $1.86 per diluted share, up from $5 million and $0.31 in the prior year [2][5] Operational Highlights - The company achieved an Adjusted EBITDA of $81 million with an Adjusted EBITDA margin of 23.2% for the third quarter [5][6] - The net debt leverage ratio improved to 3.6x as of September 30, 2025, down from 4.3x at the end of 2024 [5][14] Market Dynamics - The favorable metal price lag contributed approximately $28 million to earnings in the third quarter, compared to $7 million in the same quarter of the previous year [9][10] - The company expects Conversion Revenue for the full year 2025 to be flat to up 5% year-over-year, with Adjusted EBITDA projected to improve by 20% to 25% [17] Cash Flow and Liquidity - As of October 14, 2025, the company had total liquidity of $602 million, including $42 million in cash and $560 million available under its Revolving Credit Facility [15] - The company declared a quarterly cash dividend of $0.77 per share, payable on November 14, 2025 [16]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Amcor PLC (NYSE:AMCR) - Amcor has a dividend yield of 6.23% [7] - Analyst Ghansham Panjabi from Baird maintained a Neutral rating and lowered the price target from $11 to $10 [7] - Analyst Gabe Hajde from Wells Fargo maintained an Overweight rating and raised the price target from $10 to $11 [7] - Recent news indicates that Amcor posted disappointing quarterly earnings on August 14 [7] Group 2: Dow Inc (NYSE:DOW) - Dow has a dividend yield of 5.88% [7] - Analyst John Roberts from Mizuho maintained a Neutral rating and cut the price target from $30 to $26 [7] - Analyst Laurence Alexander from Jefferies maintained a Hold rating and lowered the price target from $28 to $23 [7] - Dow reported worse-than-expected second-quarter financial results and cut its dividend by 50% on July 24 [7] Group 3: Kaiser Aluminum Corp (NASDAQ:KALU) - Kaiser Aluminum has a dividend yield of 3.93% [7] - Analyst Josh Sullivan from Benchmark maintained a Buy rating and cut the price target from $100 to $74 [7] - Analyst Timna Tanners from Wolfe Research upgraded the stock from Underperform to Peer Perform [7] - Kaiser Aluminum is set to release its third-quarter 2025 financial and operating results on October 22 [7]