Financial Data and Key Metrics Changes - Total net sales for 2024 were just over $3 billion, with conversion revenue at $1.46 billion, a decrease of $10 million or 1% compared to 2023 [8][10] - Adjusted EBITDA for 2024 was $217 million, up approximately $7 million from 2023, with adjusted EBITDA as a percentage of conversion revenue improving by approximately 60 basis points to 14.9% [11][12] - Reported net income for 2024 was $47 million, or $2.87 per diluted share, consistent with 2023 [11] Business Line Data and Key Metrics Changes - Aerospace and high strength conversion revenue totaled $530 million, down $4 million or approximately 1%, reflecting a 4% decline in shipments [9] - Packaging conversion revenue was $490 million, down $13 million or approximately 3%, with a 3% decline in shipments [9] - General engineering conversion revenue for 2024 was $313 million, up 3% year over year due to a 6% increase in shipments [9] - Automotive conversion revenue was $120 million, up 3% over 2023 despite a 3% decline in shipments [10] Market Data and Key Metrics Changes - The market backdrop in 2024 was complex and rapidly changing, with challenges in each end market, particularly in packaging [6][7] - The company expects market conditions to stabilize and become more favorable as it moves through 2025 [8] Company Strategy and Development Direction - The company is focused on niche areas in served markets with significant barriers to entry, building strong competitive positions through product differentiation [16] - Investments are being made to upgrade facilities and expand capacity, particularly in the packaging and aerospace sectors [17][21][23] - The company anticipates a transformational year in 2025, driven by strategic investments and strong market positions [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of customer contracts and the potential for increased demand in the second half of 2025 [41][42] - The company expects to see meaningful EBITDA and EBITDA margin uplift in the second half of 2025, with around 60% of full-year EBITDA expected to come in during that period [31][59] Other Important Information - The company returned approximately $51 million to shareholders through dividend payments in 2024, marking the eighteenth consecutive year of dividends [15] - The company is assessing alternative inventory accounting methods and expects to provide an update prior to the release of first-quarter 2025 results [15] Q&A Session Summary Question: What are the assumptions regarding scrap spreads and their impact on EBITDA? - The company modeled EBITDA improvement based on last year's performance, expecting 150 to 200 basis points of improvement from scrap spreads [35][36] Question: What is the outlook for the aerospace market and inventory levels? - Management expects build rates to increase with large OEM airframers, leading to a potential uptick in demand in the second half of the year [42] Question: What is the impact of pricing in the packaging segment? - The fourth quarter pricing decline was attributed to a mix impact, with strong demand anticipated for higher value-added products in the second half of the year [44][46] Question: What is the expected CapEx for 2025? - The company expects CapEx to be around $125 million for 2025, including finalizing investments in the RollCoat line and Trentwood expansion [61] Question: What is the status of NOLs and cash tax payments? - The company has utilized its NOLs and expects cash tax payments in 2025 to be in the range of $5 million to $7 million [62]

分组1 - Kaiser Aluminum reported quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.46 per share, and down from $0.60 per share a year ago, representing an earnings surprise of -28.26% [1] - The company posted revenues of $765.4 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.75%, and up from $722 million year-over-year [2] - Over the last four quarters, Kaiser has surpassed consensus EPS estimates just once, and has topped consensus revenue estimates two times [2] 分组2 - The current consensus EPS estimate for the coming quarter is $0.82 on revenues of $768.04 million, and for the current fiscal year, it is $5.14 on revenues of $3.15 billion [7] - The estimate revisions trend for Kaiser is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] - The Metal Products - Procurement and Fabrication industry, to which Kaiser belongs, is currently in the bottom 20% of the Zacks industry rankings, which can materially impact stock performance [8]

Financial Performance - Fourth quarter 2024 net sales increased to $765 million, up from $722 million in the prior year, driven by a 3% increase in shipments[9] - Full year 2024 net sales decreased to $3.0 billion compared to $3.1 billion in the prior year, primarily due to lower shipments[12] - Fourth quarter 2024 adjusted EBITDA was $50 million, a decrease of $2 million compared to the prior year, with an adjusted EBITDA margin of 14.0%[11] - Full year 2024 adjusted EBITDA increased to $217 million, up $7 million from the prior year, with an adjusted EBITDA margin of 14.9%[16] - Fourth quarter 2024 net income was $7 million, or $0.43 per diluted share, compared to $8 million and $0.47 per diluted share in the prior year[10] - Full year 2024 adjusted net income was $41 million, or $2.51 per diluted share, down from $44 million and $2.74 per diluted share in the prior year[13] - Net income for the year ended December 31, 2024, was $46.8 million, a decrease of 0.8% compared to $47.2 million in 2023[29] - The company reported a diluted net income per share of $2.87 for the year 2024, compared to $2.92 in 2023[36] Operational Highlights - The new roll coat line in packaging operations is being commissioned, with customer qualifications underway[3] - The Phase VII expansion at the Trentwood rolling mill is expected to be completed in the second half of 2025, ahead of projected demand increases[3] Liquidity and Cash Flow - As of December 31, 2024, the company had total liquidity of $572 million, including cash and cash equivalents of $18 million and borrowing availability of $553 million[18] - Total cash provided by operating activities for the year 2024 was $167.1 million, down from $211.9 million in 2023[31] - Cash and cash equivalents decreased significantly to $18.4 million as of December 31, 2024, from $82.4 million in 2023[34] Balance Sheet - Current assets decreased to $976.4 million as of December 31, 2024, from $990.2 million in 2023[34] - Total liabilities increased to $1,646.9 million as of December 31, 2024, compared to $1,615.2 million in 2023[34] Future Outlook - The company expects consolidated conversion revenue to increase by 5% to 10% in 2025, with adjusted EBITDA margin improving by 50 to 100 basis points compared to 2024[20] Restructuring Costs - The company incurred restructuring costs of $7.6 million for the year ended December 31, 2024, compared to $5.0 million in 2023[29]

Core Insights - Kaiser Aluminum Corporation reported a fourth quarter net sales of $765 million, an increase from $722 million in the prior year, driven by a 3% increase in shipments [3][7] - The company’s full year net sales for 2024 decreased to $3.0 billion from $3.1 billion in 2023, primarily due to lower shipments [12][13] - Adjusted EBITDA for the fourth quarter was $50 million, reflecting a decrease of $2 million compared to the prior year, with an adjusted EBITDA margin of 14.0% [9][14] Fourth Quarter 2024 Highlights - Shipments for the fourth quarter were 292 million lbs, compared to 284 million lbs in the same quarter of the previous year [3][7] - Net income for the fourth quarter was $7 million, or $0.43 per diluted share, down from $8 million or $0.47 per diluted share in the prior year [8][13] - Conversion revenue for the fourth quarter was $358 million, a 1% decrease from the previous year [4][7] Full Year 2024 Highlights - Full year net income was reported at $47 million, or $2.87 per diluted share, consistent with the previous year [13][14] - Adjusted net income for the full year was $41 million, down from $44 million in 2023, with adjusted net income per diluted share at $2.51 compared to $2.74 in the prior year [13][14] - Adjusted EBITDA for the full year was $217 million, an increase of $7 million from the previous year, with an adjusted EBITDA margin of 14.9% [14][15] Management Commentary - The CEO expressed satisfaction with the company's performance in 2024, highlighting margin expansion despite a complex market environment [2] - The company anticipates stabilization in market conditions in 2025, which will allow it to leverage significant growth investments nearing completion [2] Cash Flow and Liquidity - As of December 31, 2024, the company reported total liquidity of $572 million, consisting of $18 million in cash and cash equivalents and $553 million in borrowing availability [16][30] - The company funded $35 million of working capital, $181 million of capital investments, and returned $51 million to stockholders through dividends in 2024 [15][16] 2025 Outlook - For 2025, the company expects consolidated conversion revenue to increase by 5% to 10% and an improvement in adjusted EBITDA margin by 50 to 100 basis points compared to 2024 [18]

Core Viewpoint - Kaiser Aluminum Corporation is set to release its fourth quarter and full year 2024 financial results on February 19, 2025, with a conference call scheduled for February 20, 2025 [1] Company Overview - Kaiser Aluminum Corporation, based in Franklin, Tennessee, is a prominent producer of semi-fabricated specialty aluminum products, catering to various industries including aerospace, automotive, and packaging [3] - The company has been operational since 1946 and emphasizes quality, innovation, and service in its production of value-added aluminum products such as plate, sheet, coil, and extrusions [3] - Kaiser Aluminum's stock is part of the Russell 2000® index and the S&P Small Cap 600® index, indicating its standing in the market [3] Investor Information - The company provides a dedicated investor relations section on its website, offering access to financial performance notifications, SEC filings, and earnings announcements [4] - A live webcast of the quarterly earnings call will be available, along with an audio archive post-call [2][4]

Leadership Changes - Jack A Hockema, Executive Chair of the Board of Directors and Chair of the Executive Committee, retired effective January 1, 2025 [1] - Keith A Harvey, President and CEO, appointed as Chairman of the Board effective January 1, 2025 [1] - Kimberly T Glas appointed as a new independent director, serving as a Class I director with a term expiring at the 2025 annual meeting of stockholders [1] New Director Background - Kimberly T Glas brings over 20 years of experience in government policy development and advocacy for the manufacturing industry [2] - Currently serves as President and CEO of the National Council of Textile Organizations, representing nearly 500,000 manufacturing jobs nationwide [2] - Previously served as Commissioner of the US-China Economic and Security Review Commission and Executive Director of BlueGreen Alliance [2] Company Overview - Kaiser Aluminum Corporation is a leading producer of semi-fabricated specialty aluminum products, serving customers worldwide [3] - The company's North American facilities produce value-added plate, sheet, coil, extrusions, rod, bar, tube and wire products [3] - Founded in 1946, the company is headquartered in Franklin, Tenn and its stock is included in the Russell 2000 and S&P Small Cap 600 indices [4] Investor Information - The company provides financial performance updates, SEC filings, investor events, and earnings press releases on its website [5] - Quarterly earnings calls and certain management-hosted events are available via webcast [5]

Financial Performance - Net sales for Q3 2024 totaled $747.7 million, reflecting a 2% decrease in shipment volume and a 3% increase in average realized sales price per pound [95][96]. - Net income for Q3 2024 was $12.0 million, with a net income per diluted share of $0.74 [95]. - For the nine months ended September 30, 2024, net sales totaled $2,258.6 million, a 4% decrease from the same period in 2023 [96]. - Net income for Q3 2024 was $12.0 million, compared to $5.4 million in Q3 2023, while net income for the nine months ended September 30, 2024 was $39.7 million, slightly up from $39.6 million in the same period last year [101]. - Adjusted EBITDA for Q3 2024 was $50.4 million, an increase of $2.8 million from Q3 2023, driven by improved pricing and product mix [102]. - Adjusted EBITDA for the nine months ended September 30, 2024 was $166.3 million, up $8.3 million from $158.0 million in the same period of 2023, primarily due to improved pricing and lower major maintenance costs [103]. Cost and Expenses - COGS for Q3 2024 was $671.8 million, representing 90% of net sales, an increase from 89% in Q3 2023 [96]. - SG&A and R&D expenses for Q3 2024 were $28.8 million, down from $30.5 million in Q3 2023 [96]. - Depreciation and amortization expenses for Q3 2024 were $29.0 million, up from $27.2 million in Q3 2023, with total expenses for the nine months at $86.8 million, compared to $79.9 million [101]. - Environmental expenses for Q3 2024 were $3.3 million, while total non-run-rate items for the nine months were $13.9 million, up from $4.0 million in the same period last year [101]. - Restructuring costs for Q3 2024 were $0.7 million, down from $1.6 million in Q3 2023, while total restructuring costs for the nine months ended September 30, 2024 were $7.6 million, compared to $4.2 million in the same period last year [99]. Revenue and Sales Insights - Conversion Revenue for Q3 2024 was $362.0 million, indicating a higher pricing and improved product mix [95][96]. - The total shipments for the quarter were 292.2 million pounds, down from 299.3 million pounds in the previous year, while conversion revenue per pound was $1.24, up from $1.19 [104]. - The company expects overall conversion revenue for the full year 2024 to remain stable with growth up to 1% compared to 2023, driven by strategic growth initiatives [108]. - Approximately 75% of shipments are sold directly to manufacturers or tier one suppliers, with 25% sold to metal service centers [94]. Liquidity and Capital Management - The company reported total liquidity of $594.9 million as of September 30, 2024, slightly down from $599.1 million at the end of 2023 [109]. - Borrowing availability under the Revolving Credit Facility increased to $549.2 million as of September 30, 2024, compared to $516.7 million at the end of 2023 [109]. - The company had no outstanding borrowings under its Revolving Credit Facility as of September 30, 2024, indicating strong liquidity management [110]. - Cash provided by operating activities for the nine months ended September 30, 2024 was $123.7 million, a decrease of 10.3% from $137.6 million for the same period in 2023 [111]. - At September 30, 2024, $93.1 million remained authorized for future repurchases of common stock under the stock repurchase program [123]. Market Outlook and Strategic Focus - The company maintains a focus on technically challenging applications to achieve premium pricing and long-term profitable growth [91]. - In the Aero/HS Products end market, the company remains cautious due to potential short-term impacts from customer negotiations, while the Packaging end market is expected to see performance improvements [107]. - The Automotive Extrusions end market maintains a positive outlook as production for light and heavy truck platforms has outpaced broader automotive production rates [107]. - Total capital spending in 2024 is anticipated to be approximately $180.0 million to $190.0 million, primarily focused on growth initiatives including a fourth coating line at Warrick [119]. - The company anticipates total capital expenditures may be adjusted based on business plans and market conditions, with no assurance on timing or operational benefits [120]. Risk Management - The company estimates that a $0.10/lb decrease in the LME market price of aluminum would have resulted in an unrealized mark-to-market loss of $5.2 million as of September 30, 2024 [130]. - The company has forward swap contracts to mitigate risks from fluctuating prices of zinc and copper, estimating a $0.10/lb decrease would lead to an unrealized mark-to-market loss of $1.0 million as of September 30, 2024 [131]. - Other income for Q3 2024 was a net loss of $8.7 million, compared to a gain of $2.2 million in Q3 2023, with a total loss of $19.1 million for the nine months ended September 30, 2024 [101]. - Income tax provision for Q3 2024 was $3.4 million, significantly higher than $0.1 million in Q3 2023, with a total provision of $11.7 million for the nine months compared to $8.0 million last year [101]. Dividend and Shareholder Returns - The company has consistently paid a quarterly cash dividend since Q2 2007, but future payments will depend on financial results and liquidity position [121].

Kaiser Aluminum (KALU) came out with quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -23.88%. A quarter ago, it was expected that this aluminum products company would post earnings of $0.94 per share when it actually produced earnings of $0.65, delivering a surprise of -30.85%.Over the last four qu ...

Kaiser Aluminum Q3 2024 Financial Results [Financial & Operational Highlights](index=1&type=section&id=Third%20Quarter%202024%20Highlights) Kaiser Aluminum reported stable financial performance in Q3 2024, highlighting progress on strategic initiatives like margin expansion at Warrick packaging facility, with a $0.77 per share quarterly dividend declared Q3 2024 Key Metrics | Metric | Value | | :--- | :--- | | Net Sales | $748 Million | | Conversion Revenue | $362 Million | | Net Income | $12 Million | | Net Income per Diluted Share | $0.74 | | Adjusted Net Income | $8 Million | | Adjusted Net Income per Diluted Share | $0.51 | | Adjusted EBITDA | $50 Million | | Adjusted EBITDA Margin | 13.9% | | Quarterly Dividend | $0.77 per share | - Management emphasized strong progress on strategic initiatives and the execution of a margin expansion plan, with performance enhancements at the Warrick packaging facility expected to be complete by the end of 2024, providing a clear path to **sustained margin improvement**[2](index=2&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Third%20Quarter%202024%20Consolidated%20Results) Q3 2024 saw net sales increase, conversion revenue grow 1%, and Adjusted EBITDA rise to $50 million with margin improving to 13.9% YoY Consolidated Results Summary (Q3 & Nine Months Ended Sep 30) | Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | | :--- | :--- | :--- | :--- | :--- | | Shipments (millions of lbs.) | 292 | 299 | 880 | 913 | | Net Sales ($M) | $748 | $744 | $2,259 | $2,365 | | Conversion Revenue ($M) | $362 | $357 | $1,098 | $1,105 | | Net Income ($M) | $12 | $5 | $40 | $40 | | Diluted EPS ($) | $0.74 | $0.34 | $2.44 | $2.46 | | Adjusted Net Income ($M) | $8 | $7 | $36 | $35 | | Adjusted Diluted EPS ($) | $0.51 | $0.46 | $2.18 | $2.14 | | Adjusted EBITDA ($M) | $50 | $48 | $166 | $158 | | Adjusted EBITDA Margin (%) | 13.9% | 13.3% | 15.1% | 14.3% | - Reported net income for Q3 2024 was **$12 million** (**$0.74/share**), up from **$5 million** (**$0.34/share**) in Q3 2023[7](index=7&type=chunk) - Adjusted net income was **$8 million**, compared to **$7 million** in the prior year period[7](index=7&type=chunk) - Adjusted EBITDA increased by **$2 million** YoY to **$50 million** in Q3 2024, with the margin expanding to **13.9%**[8](index=8&type=chunk) - This was primarily driven by an increase in conversion revenue, partially offset by higher energy costs and a larger GAAP LIFO charge[8](index=8&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) Q3 2024 packaging conversion revenue increased, aerospace/high strength declined, and other segments experienced modest growth Q3 2024 Segment Revenue Performance (YoY) | Application Segment | Net Sales ($M) | Conversion Revenue ($M) | Conversion Revenue Change (YoY) | Key Drivers | | :--- | :--- | :--- | :--- | :--- | | Aerospace/High Strength | $213 | $128 | -5% | 7% decrease in shipments due to supply chain challenges | | Packaging | $320 | $128 | +9% | Improved product mix and pricing | | General Engineering | $151 | $76 | Modest Increase | 5% increase in shipments with stable pricing | | Automotive Extrusions | $62 | $29 | +3% | Improved pricing and product mix | [Cash Flow and Liquidity](index=3&type=section&id=Cash%20Flow%20and%20Liquidity) Total liquidity was $595 million as of Sep 30, 2024, with no revolving credit borrowings, enabling capital investments and dividend payments - In the first nine months of 2024, cash was used to fund **$47 million** of working capital, **$125 million** of capital investments, **$31 million** of interest payments, and **$38 million** in dividends[9](index=9&type=chunk) - Total liquidity stood at **$595 million** as of September 30, 2024, with no outstanding borrowings under the revolving credit facility[9](index=9&type=chunk) - The company declared a quarterly cash dividend of **$0.77 per share**, payable on November 15, 2024[9](index=9&type=chunk) [2024 Outlook](index=3&type=section&id=2024%20Outlook) The company reaffirmed its 2024 guidance, expecting conversion revenue growth and Adjusted EBITDA margin improvement, alongside mixed segment outlooks - The company's end-market outlook for the remainder of 2024 is as follows[10](index=10&type=chunk) - **Aerospace/High Strength**: Cautious near-term outlook due to customer commercial and labor negotiations - **Packaging**: Momentum and performance improvements expected to continue, with margin improvement driven by the new coating line starting in 2025 - **General Engineering**: Destocking has concluded, with shipments now better aligned with demand - **Automotive Extrusions**: Positive outlook as light/heavy truck and SUV platform production outpaces broader auto rates - For the full year 2024, the Company expects overall conversion revenue to grow **up to 1%** compared to 2023 and Adjusted EBITDA margin to improve by **50 to 100 basis points** compared to 2023[11](index=11&type=chunk) Financial Statements [Statements of Consolidated Income](index=6&type=section&id=Statements%20of%20Consolidated%20Income) Q3 2024 net sales were $747.7 million, with net income significantly increasing to $12.0 million, while nine-month net income remained stable Consolidated Income Statement Highlights (in millions) | Account | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $747.7 | $743.6 | $2,258.6 | $2,365.3 | | Operating Income | $17.4 | $19.1 | $65.6 | $74.1 | | Net Income | $12.0 | $5.4 | $39.7 | $39.6 | | Diluted EPS | $0.74 | $0.34 | $2.44 | $2.46 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of Sep 30, 2024, total assets increased to $2.31 billion, total liabilities rose, and stockholders' equity grew to $667.0 million Consolidated Balance Sheet Highlights (in millions) | Account | As of Sep 30, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $994.9 | $990.2 | | Total Assets | $2,311.4 | $2,267.4 | | Total Current Liabilities | $382.2 | $370.0 | | Long-term Debt, net | $1,041.2 | $1,039.8 | | Total Liabilities | $1,644.4 | $1,615.2 | | Total Stockholders' Equity | $667.0 | $652.2 | [Summary of Cash Flows](index=7&type=section&id=Summary%20of%20Cash%20Flows) Nine-month operating cash flow decreased to $123.7 million, investing activities used $118.6 million, and financing activities remained stable Nine Months Ended Sep 30 - Cash Flow Summary (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Operating Activities | $123.7 | $137.6 | | Investing Activities | $(118.6) | $(105.0) | | Financing Activities | $(41.8) | $(41.2) | [Reconciliation of Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The company provided reconciliations for its non-GAAP measures, including Adjusted EBITDA and Adjusted Net Income for Q3 2024 Reconciliation to Adjusted EBITDA (Q3, in millions) | Account | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | GAAP Operating Income | $17.4 | $19.1 | | Non-run-rate (NRR) items | $4.0 | $1.3 | | Operating Income, excluding NRR | $21.4 | $20.4 | | Depreciation and Amortization | $29.0 | $27.2 | | **Adjusted EBITDA** | **$50.4** | **$47.6** | Reconciliation to Adjusted Net Income (Q3, in millions) | Account | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | GAAP Net Income | $12.0 | $5.4 | | Operating NRR items | $4.0 | $1.3 | | Non-operating NRR items | $(8.6) | $1.4 | | Tax impact of NRR items | $1.0 | $(0.7) | | **Adjusted Net Income** | **$8.4** | **$7.4** | | **Adjusted EPS, diluted** | **$0.51** | **$0.46** |

Third Quarter 2024 Highlights: Net Sales $748 Million; Conversion Revenue $362 MillionNet Income $12 Million; Net Income per Diluted Share $0.74Adjusted Net Income $8 Million; Adjusted Net Income per Diluted Share $0.51Adjusted EBITDA $50 Million and Adjusted EBITDA Margin 13.9%; Inclusive of $4 Million GAAP LIFO ChargeDeclared Quarterly Dividend of $0.77 FRANKLIN, Tenn., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Kaiser Aluminum Corporation (NASDAQ: KALU) (the "Company" or "Kaiser"), a leading producer of semi-fabr ...