Group 1: Company Highlights - Kaiser Aluminum (KALU) is a leading producer of semi-fabricated specialty aluminum products, with a 13% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Yara International ASA (YARIY) is the world's leading supplier of mineral fertilizers, particularly nitrogen-based fertilizers, with a 12% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - South Plains Financial (SPFI) provides commercial and consumer financial services to small and medium-sized businesses and individuals, with a 10.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Nomad Foods Limited (NOMD) manufactures and distributes frozen foods primarily in Europe, with a 6.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Pegasystems (PEGA) is a leading provider of Customer Relationship Management software, with a 6.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [5]

First Quarter 2025 Earnings Conference Call April 24, 2025 © Kaiser Aluminum All Rights Reserved 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 event ...

Financial Performance - Consolidated net sales for the quarter ended March 31, 2025, totaled $777.4 million, with approximately 275.6 million pounds shipped, reflecting a 5% increase in net sales compared to $737.5 million in the same quarter of 2024[121][128] - Net income for the quarter was $21.6 million, with a diluted earnings per share of $1.31[129] - Net income for the quarter ended March 31, 2025, was $21.6 million, an increase of 19% compared to $18.2 million for the same quarter in 2024[137] - Adjusted EBITDA for the quarter ended March 31, 2025, was $73.4 million, reflecting a $19.4 million increase from $54.0 million in the prior year[139] - Total net sales for the quarter ended March 31, 2025, were $777.4 million, up from $737.5 million in the same quarter of 2024[141] Sales and Shipments - The average realized sales price per pound increased by $0.29, or 11%, despite a 5% decrease in shipment volume of 15.4 million pounds[128] - Shipments in the Aero/HS Products segment decreased by 10% to 56.3 million pounds, while net sales decreased by 3% to $214.7 million[128] - The Packaging segment saw a 9% decrease in shipments to 130.2 million pounds, but net sales increased by 5% to $314.2 million[128] - GE Products shipments increased by 12% to 65.1 million pounds, with net sales rising by 19% to $181.6 million[128] - Shipments for Aero/HS Products decreased to 56.3 million pounds in Q1 2025 from 62.9 million pounds in Q1 2024[141] Costs and Expenses - Cost of Goods Sold (COGS) for the quarter was $673.4 million, representing 87% of net sales, a slight decrease from 88% in the prior year[129] - The company reported a decrease in SG&A and R&D expenses to $30.8 million for Q1 2025, down 6% from $32.6 million in Q1 2024[136] - Restructuring costs increased to $1.8 million for the quarter ended March 31, 2025, compared to $0.1 million in the prior year[132] Liquidity and Cash Flow - Total liquidity as of March 31, 2025, was $576.7 million, slightly up from $571.8 million as of December 31, 2024[142] - Cash provided by operating activities for the quarter ended March 31, 2025, was $57.0 million, down from $63.3 million in the same quarter of 2024[145] - Cash flows from investing activities for the quarter ended March 31, 2025, were $(38.2) million, compared to $(29.9) million in the same quarter of 2024[145] Inventory and Valuation - The company transitioned from LIFO to WAC inventory valuation methodology effective January 1, 2025, impacting financial reporting[113] - The hedged cost of alloyed metal for Q1 2025 was $414.2 million, compared to $370.6 million in Q1 2024[141] Capital and Investments - Total capital spending is anticipated to be approximately $120.0 million to $130.0 million in 2025[156] - Significant investments have been made in modernization projects to enhance manufacturing cost efficiency and product quality[155] Stock and Dividends - At March 31, 2025, $93.1 million remained authorized and available for future repurchases of common stock under the stock repurchase program[161] - The company has consistently paid a quarterly cash dividend since Q2 2007, but future payments will depend on various financial factors[158] Risk and Financing - A $0.10/lb decrease in the LME market price of aluminum would have resulted in an unrealized mark-to-market loss of $5.0 million as of March 31, 2025[169] - A $0.10/lb decrease in the market price of zinc and copper would have resulted in an unrealized mark-to-market loss of $0.7 million as of March 31, 2025[170] - A $1.00 per mmbtu decrease in natural gas prices would have resulted in an unrealized mark-to-market loss of $2.7 million as of March 31, 2025[171] - A 10% decrease in the exchange rate of hedged foreign currencies to U.S. dollars would have resulted in an unrealized mark-to-market loss of $0.6 million as of March 31, 2025[173] - The company does not believe that covenants in the indentures governing the Senior Notes will limit its ability to obtain additional financing in the next 12 months[154] Customer and Market Strategy - The company maintains a strategy of metal price neutrality, allowing it to pass through aluminum and alloy cost fluctuations to customers[117][118] - Approximately 70% of shipments are sold directly to manufacturers or tier one suppliers, with the remaining 30% sold to metal service centers[122]

Kaiser Aluminum Corporation (NASDAQ:KALU) Q1 2025 Earnings Conference Call April 24, 2025 10:00 AM ET Company Participants Kim Orlando - Investor Relations Keith Harvey - Chairman, President and Chief Executive Officer Neal West - Executive Vice President and Chief Financial Officer Conference Call Participants Bill Peterson - JPMorgan Operator Greetings. And welcome to the Kaiser Aluminum Corporation's First Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. A question-an ...

Financial Data and Key Metrics Changes - The company reported conversion revenue for Q1 2025 of $363 million, a decrease of approximately $4 million or 1% year-over-year [13] - Adjusted operating income for Q1 was $43 million, up $18 million year-over-year [16] - Reported net income for Q1 was $22 million or $1.31 per diluted share, compared to $18 million or $1.12 per diluted share in the prior year [17] - Adjusted EBITDA for Q1 was $73 million, an increase of approximately $19 million from the prior year period [18] - The effective tax rate for Q1 was 25%, compared to 23% in Q1 2024 [17] Business Line Data and Key Metrics Changes - Aerospace and high strength conversion revenue totaled $121 million, down $16 million or approximately 12%, reflecting a 10% decline in shipments [13] - Packaging conversion revenue totaled $127 million, up $9 million or approximately 8% year-over-year, despite a 9% decline in shipments [14] - General engineering conversion revenue for Q1 was $84 million, up $3 million or 4% year-over-year, with a 12% increase in shipments [15] - Automotive conversion revenue of $32 million increased modestly by 2% year-over-year, despite a 9% decrease in shipments [16] Market Data and Key Metrics Changes - The company noted strong demand in business jet, defense, and space sectors, while commercial aircraft OEM demand was down [13] - Trade policies have created a favorable environment for general engineering, driving higher demand and solid pricing [15] - The company expects to see continued orders in the aerospace sector as production ramps up [54] Company Strategy and Development Direction - The company is focused on optimizing overhead and maintaining its position as a low-cost producer [6] - Major investments include a new coating line at the Warwick rolling mill and the Trentwood Phase seven project, expected to drive EBITDA and margin performance [9][10] - The company is well-positioned to navigate market volatility due to its North American supply chain and metal-neutral contracts [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong momentum through 2025, despite ongoing trade policy volatility [6] - The outlook for all end markets remains consistent, with expectations of 5% to 10% growth year-over-year in conversion revenue for 2025 [27] - The company raised its full-year 2025 EBITDA expectations by 5% to 10% above recasted 2024 adjusted EBITDA [27] Other Important Information - The company changed its inventory valuation methodology from LIFO to weighted average cost effective January 1, impacting comparability of results [12] - The company generated solid cash flow from operations of $57 million during Q1, with capital expenditures totaling $38 million [20] - A quarterly dividend of $0.77 per common share was declared, reflecting confidence in long-term strategy [20] Q&A Session Summary Question: Margin progression and guidance - Management clarified that the margin progression was influenced by inventory changes and market price recognition, with expectations of returning to mid-20% margins as investments come online [31][35] Question: Shipments in packaging - Management indicated that the focus on coated and value-added products will continue, with significant increases expected in conversion revenue in the second half of the year [40] Question: Automotive market resilience - Management expressed confidence in the automotive segment, noting strong positions in light trucks and SUVs, and highlighted the relatively small impact of automotive on overall business [44][46] Question: Aerospace destocking cycle - Management believes the company is midway through the destocking cycle in aerospace, with expectations of continued orders as production ramps up [54]

Kaiser Aluminum (KALU) came out with quarterly earnings of $1.44 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $1.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 171.70%. A quarter ago, it was expected that this aluminum products company would post earnings of $0.46 per share when it actually produced earnings of $0.33, delivering a surprise of -28.26%.Over the last four qu ...

While investors have been through several bouts of market volatility since the turn of the century, many of those episodes, such as the GFC and the collapse of Silicon Valley Bank, were rooted in the banking sector and financial system. AndAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compe ...

Financial Results and Adjustments - Kaiser Aluminum Corporation will release its Q1 2025 financial results on April 23, 2025, and host a conference call on April 24, 2025[1]. - For the year ended December 31, 2023, net income was adjusted to $67.8 million, up from $47.2 million previously reported, reflecting a $20.6 million increase due to the WAC change[5]. - The basic net income per share for 2023 increased from $2.95 to $4.25 after adjustments[5]. - For the year ended December 31, 2024, net income was adjusted to $65.7 million, an increase of $18.9 million from the previously reported figure[6]. - The basic net income per share for 2024 increased from $2.91 to $4.08 after adjustments[6]. - For the nine months ended September 30, 2024, net income was adjusted to $45.9 million, an increase of $6.2 million from the previously reported figure[8]. - The basic net income per share for the nine months ended September 30, 2024, increased from $2.47 to $2.85 after adjustments[8]. - For the year ended December 31, 2023, GAAP net income was $67.8 million, compared to $65.7 million for the year ended December 31, 2024, reflecting a year-over-year increase of approximately 3.2%[10]. Accounting Changes - The company changed its inventory accounting method from LIFO to weighted average cost (WAC) effective January 1, 2025, to improve comparability of operational results[3]. - The accounting change resulted in an increase to inventory and retained earnings of $46.8 million and $35.6 million, respectively, as of January 1, 2023[4]. - As of June 30, 2024, inventories increased to $532.7 million, reflecting an adjustment of $85.8 million due to the accounting change[7]. - The effect of inventory methodology change contributed $26.7 million to adjusted EBITDA for the year ended December 31, 2023, compared to $24.5 million for the year ended December 31, 2024, reflecting a decrease of approximately 8.2%[10]. Financial Performance Metrics - Adjusted EBITDA for the year ended December 31, 2023, was $236.3 million, while for the year ended December 31, 2024, it is projected to be $241.0 million, indicating a growth of about 2.0%[10]. - The company reported operating income, excluding non-run-rate items, of $127.7 million for the year ended December 31, 2023, compared to $124.6 million for the year ended December 31, 2024, showing an increase of approximately 2.5%[10]. - Interest expense decreased from $46.9 million for the year ended December 31, 2023, to $43.7 million for the year ended December 31, 2024, representing a reduction of about 6.8%[10]. - The company incurred restructuring costs of $5.0 million for the year ended December 31, 2023, which increased to $7.6 million for the year ended December 31, 2024, reflecting a rise of 52.0%[10]. - Depreciation and amortization expenses were $108.6 million for the year ended December 31, 2023, and are projected to increase to $116.4 million for the year ended December 31, 2024, indicating an increase of approximately 7.2%[10]. Market Focus - Kaiser Aluminum Corporation continues to focus on expanding its market presence in aerospace and high-strength applications, leveraging its expertise in semi-fabricated specialty aluminum products[12]. Other Financial Events - The company experienced a mark-to-market loss of $2.2 million in the quarter ended June 30, 2024, which was offset by a gain of $2.2 million in the quarter ended September 30, 2024[10]. - Non-cash asset impairment charges were recorded at $0.4 million for the year ended December 31, 2024[10].

Financial Performance - Net sales for 2024 were $3,024.0 million, a decrease of 2.0% from $3,087.0 million in 2023[263] - Operating income for 2024 was $87.7 million, down from $95.8 million in 2023, reflecting a decline of 8.5%[263] - Net income for 2024 was $46.8 million, slightly down from $47.2 million in 2023, representing a decrease of 0.8%[263] - The company reported a comprehensive income of $54.2 million for 2024, down from $57.1 million in 2023, a decrease of 5.1%[266] - The basic net income per share for 2024 was $2.91, slightly lower than $2.95 in 2023, a decrease of 1.4%[263] - Cash flows from operating activities provided $167.1 million, down from $211.9 million in the previous year, reflecting a decrease of 21%[273] - Total expenses related to all benefit plans for the year ended December 31, 2024, were $35.0 million, a decrease from $38.3 million in 2023[370] Assets and Liabilities - Total assets increased to $2,314.9 million in 2024, up from $2,267.4 million in 2023, marking a growth of 2.1%[261] - Total liabilities rose to $1,646.9 million in 2024, compared to $1,615.2 million in 2023, an increase of 1.9%[261] - Cash and cash equivalents decreased significantly to $18.4 million in 2024 from $82.4 million in 2023, a decline of 77.7%[261] - The company’s retained earnings decreased to $6.2 million in 2024 from $10.1 million in 2023, a decline of 38.6%[261] - Total stockholders' equity increased to $668.0 million in 2024, up from $652.2 million in 2023, reflecting a growth of 2.7%[261] Capital Expenditures and Investments - Capital expenditures for 2024 totaled $180.8 million, an increase from $143.2 million in 2023, representing a rise of 26%[273] - The company reported a net cash used in investing activities of $174.6 million, compared to $128.2 million in 2023, indicating a 36% increase[273] - The fair value of plan assets increased from $73.6 million in 2023 to $76.6 million in 2024, with significant contributions from equity and fixed income investments[369] Derivative Contracts and Hedging - In 2024, the company settled derivative contracts for 154.9 million pounds of hedged shipments, compared to 207.5 million pounds in 2023[238] - The company uses derivative financial instruments to mitigate exposure to changes in market prices of aluminum and other commodities, without engaging in trading or speculative purposes[308] - The total loss recognized in the Statements of Consolidated Income (Loss) related to non-designated hedges for 2024 was $5.0 million[409] Pension and Employee Benefits - The company has a defined benefit pension plan with an accumulated benefit obligation of $29.8 million as of December 31, 2024, compared to $29.6 million in 2023[364] - The net funded status of the pension plans is $(8.2) million as of December 31, 2024, improving from $(10.0) million in 2023[360] - The company recorded a service cost of $3.6 million for pension plans in 2024, slightly down from $3.8 million in 2023[360] - The company expects to contribute approximately $4.5 million to the pension plans in 2025[364] Environmental Matters - Environmental accruals rose to $18.4 million in 2024, compared to $17.0 million in 2023, marking a 8.24% increase[431] - The company expects potential undiscounted costs related to environmental matters could exceed current accruals by up to $13.4 million over the remediation period[432] - The company is actively pursuing remediation activities for historical use of oils containing PCBs, collaborating with regulatory authorities[429] Revenue Recognition - Revenue is recognized over time for products with no alternative use, primarily in the Aero/HS Products and Automotive Extrusions markets[255] - The company identified revenue for over time contracts as a critical audit matter due to the volume and complexity of contracts[257] - Revenue is recognized as performance obligations are fulfilled, with a significant portion recognized over time for Aero/HS Products and Automotive Extrusions[316] Stock and Compensation - Total non-cash compensation expense for 2024 was $13.8 million, down from $15.4 million in 2023[389] - The aggregate fair value of awards that vested in 2024 was $8.5 million, compared to $6.2 million in 2023[390] - The expected volatility of Kaiser Aluminum's stock was 45.59% for 2024, down from 49.72% in 2023[387] Audit and Internal Controls - The company maintained effective internal control over financial reporting as of December 31, 2024, based on COSO criteria[248] - The company has been audited by Deloitte & Touche LLP since 2002[259]

Fourth Quarter 2024 Earnings Conference Call February 20, 2025 © Kaiser Aluminum All Rights Reserved 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 e ...