UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 ☐ 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 of inc ...

Kaiser Aluminum (KALU) came out with quarterly earnings of $0.65 per share, missing the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $1.26 per share a year ago. These figures are adjusted for non-recurring items. Kaiser shares have added about 36.6% since the beginning of the year versus the S&P 500's gain of 16.5%. Ahead of this earnings release, the estimate revisions trend for Kaiser: unfavorable. While the magnitude and direction of estimate revisions could change following ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) Kaiser Aluminum reported solid Q2 demand, particularly in aerospace, but financial results were impacted by a **$9 million** LIFO charge, leading to a revised 2024 outlook reflecting lower jet build rates and an extended facility outage Q2 2024 Key Financial Highlights | Metric | Value (in millions) | | :--- | :--- | | Net Sales | $773 | | Conversion Revenue | $369 | | Net Income | $3 | | Net Income per Diluted Share | $0.19 | | Adjusted Net Income | $11 | | Adjusted Net Income per Diluted Share | $0.65 | | Adjusted EBITDA | $54 | | Adjusted EBITDA Margin | 14.5% | - Management noted that while demand was strong, net income of **$3 million** and adjusted EBITDA of **$54 million** were negatively affected by a **$9 million** non-cash LIFO charge related to significant inventory reductions[4](index=4&type=chunk) - The company revised its 2024 financial outlook due to reduced commercial jet build rates and an extended outage at the Warrick facility during the second quarter[4](index=4&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) Q2 2024 financial performance declined year-over-year across key metrics, including net sales and adjusted EBITDA, primarily due to lower shipment volumes and operational challenges [Consolidated Results](index=2&type=section&id=Consolidated%20Results) In Q2 2024, consolidated net sales decreased to **$773 million** from **$814 million** in the prior-year period, driven by a 6% reduction in shipments, with net income dropping to **$3 million** compared to **$18 million** year-over-year, and adjusted EBITDA also declining by **$10 million** to **$54 million** Q2 2024 vs Q2 2023 Consolidated Results | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Shipments (millions of lbs.) | 297 | 314 | -5.4% | | Net Sales (in millions) | $773 | $814 | -5.0% | | Conversion Revenue (in millions) | $369 | $379 | -2.6% | | Net Income (in millions) | $3 | $18 | -83.3% | | Adjusted EBITDA (in millions) | $54 | $64 | -15.6% | | Adjusted EBITDA Margin | 14.5% | 16.8% | -230 bps | - The decrease in net sales was primarily driven by a **6% reduction** in shipments compared to the prior year period[10](index=10&type=chunk) - Adjusted net income for Q2 2024 was **$11 million** (**$0.65 per diluted share**), a decrease from **$20 million** (**$1.26 per diluted share**) in Q2 2023[12](index=12&type=chunk) [Segment Performance](index=4&type=section&id=Segment%20Performance) Q2 2024 segment performance varied, with aerospace showing resilience, packaging significantly impacted by an outage, and general engineering and automotive extrusions reporting modest growth Q2 2024 Conversion Revenue by Application (vs. Q2 2023, in millions) | Application | Net Sales | Conversion Revenue | Change in Conversion Revenue | | :--- | :--- | :--- | :--- | | Aerospace/High Strength | $226 | $133 | +2% | | Packaging | $312 | $119 | -11% | | General Engineering | $163 | $83 | Modest Increase | | Automotive Extrusions | $70 | $33 | +9% | - The **11% decrease** in packaging conversion revenue was mainly due to an **11% reduction** in shipments resulting from an unplanned outage at the Warrick facility[18](index=18&type=chunk) - Automotive extrusions conversion revenue increased by **9%**, driven by a modest increase in shipments and improved pricing[18](index=18&type=chunk) [Cash Flow and Liquidity](index=4&type=section&id=Cash%20Flow%20and%20Liquidity) As of June 30, 2024, the company maintained a strong liquidity position of **$618 million** with no outstanding revolving credit borrowings, while funding capital investments and returning capital to stockholders - As of June 30, 2024, total liquidity was **$618 million**, comprising **$70 million** in cash and **$548 million** in borrowing availability under the revolving credit facility[15](index=15&type=chunk) - In the first half of 2024, the company funded **$74 million** of capital investments and returned **$25 million** to stockholders via dividends[14](index=14&type=chunk) - A quarterly cash dividend of **$0.77 per share** was declared on July 15, 2024, payable on August 15, 2024[16](index=16&type=chunk) [2024 Outlook](index=4&type=section&id=2024%20Outlook) Kaiser Aluminum revised its full-year 2024 guidance, anticipating flat to 1% conversion revenue growth and improved adjusted EBITDA margins, reflecting a cautious aerospace outlook and packaging recovery Full Year 2024 Guidance | Metric | Outlook (vs. 2023) | | :--- | :--- | | Conversion Revenue | Flat to Up 1% | | Adjusted EBITDA Margins | Improve 50 to 100 basis points | - The near-term outlook for the commercial aerospace market is cautious due to lower than expected 2024 build rates, which will reduce anticipated shipments and conversion revenue[17](index=17&type=chunk) - Packaging shipments are expected to improve from levels that were negatively impacted by outages in the first half of 2024[17](index=17&type=chunk) [Financial Statements and Reconciliations](index=8&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides unaudited consolidated financial statements as of June 30, 2024, including income statements, balance sheets, cash flows, and reconciliations of GAAP to non-GAAP measures [Statements of Consolidated Income](index=8&type=section&id=Statements%20of%20Consolidated%20Income) The unaudited Statements of Consolidated Income show a net income of **$3.1 million** for Q2 2024, a significant decrease from **$18.3 million** in Q2 2023, primarily due to lower net sales of **$773.4 million** (vs. **$814.1 million** YoY) and an increase in restructuring costs to **$6.8 million** (vs. **$1.2 million** YoY) Q2 2024 Statement of Income Highlights (in millions) | Line Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net sales | $773.4 | $814.1 | | Operating income | $15.5 | $35.9 | | Income before income taxes | $3.9 | $21.3 | | Net income | $3.1 | $18.3 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, the company's consolidated balance sheet showed total assets of **$2.32 billion**, a slight increase from **$2.27 billion** at year-end 2023, with total liabilities increasing to **$1.65 billion** from **$1.62 billion**, while total stockholders' equity rose to **$662.0 million** Balance Sheet Highlights (in millions) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $70.4 | $82.4 | | Inventories | $446.9 | $477.2 | | Total current assets | $1,010.5 | $990.2 | | Total assets | $2,315.7 | $2,267.4 | | Long-term debt, net | $1,040.7 | $1,039.8 | | Total liabilities | $1,653.7 | $1,615.2 | | Total stockholders' equity | $662.0 | $652.2 | [Summary of Cash Flows](index=11&type=section&id=Summary%20of%20Cash%20Flows) For the six months ended June 30, 2024, cash provided by operating activities was **$89.6 million**, a significant improvement from **$47.8 million** in the same period of 2023, with cash used in investing activities increasing to **$73.6 million**, while cash used in financing activities was **$28.0 million** Six Months Ended June 30 Cash Flows (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Operating activities | $89.6 | $47.8 | | Investing activities | $(73.6) | $(67.7) | | Financing activities | $(28.0) | $(13.0) | [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides a detailed reconciliation from GAAP to non-GAAP measures, where for Q2 2024, GAAP operating income of **$15.5 million** was adjusted for **$9.0 million** in non-run-rate (NRR) items, including restructuring costs, to arrive at an adjusted operating income of **$24.5 million**, with adjusted EBITDA reaching **$53.5 million** after adding back depreciation and amortization Q2 2024 Reconciliation of GAAP Operating Income to Adjusted EBITDA (in millions) | Line Item | Q2 2024 | | :--- | :--- | | GAAP operating income | $15.5 | | Mark-to-market loss | $2.2 | | Restructuring costs | $6.8 | | Operating income, excluding operating NRR items | $24.5 | | Depreciation and amortization | $29.0 | | **Adjusted EBITDA** | **$53.5** | Q2 2024 Reconciliation of GAAP Net Income to Adjusted Net Income (in millions) | Line Item | Q2 2024 | | :--- | :--- | | GAAP net income | $3.1 | | Operating NRR items | $9.0 | | Non-operating NRR items | $0.7 | | Tax impact of above NRR items | $(2.2) | | **Adjusted net income** | **$10.6** | [Supplementary Information](index=5&type=section&id=Supplementary%20Information) This section provides additional investor information, including conference call details, business description, and important legal disclosures regarding non-GAAP financial measures and forward-looking statements - The company will host a conference call on **Thursday, July 25, 2024, at 10:00 am (Eastern Time)** to discuss its second quarter 2024 results[21](index=21&type=chunk) - The earnings release contains non-GAAP financial measures, including conversion revenue, adjusted EBITDA, and adjusted net income, which exclude non-run-rate items, and management uses these measures to monitor financial results and trends[24](index=24&type=chunk)[25](index=25&type=chunk) - The press release includes forward-looking statements that are subject to various risks and uncertainties, and the company undertakes no duty to update them[26](index=26&type=chunk)

Available Information About Kaiser Aluminum Corporation This press release contains 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 involving known and unknown risks and uncertainties that may cause actual results, performance or achievements of the Company to be materially different from those expressed or implied. These factors include: (a) general econom ...

The conference call can be directly accessed from the U.S. and Canada at (877) 423-9813, and accessed internationally at (201) 689-8573. The conference call ID number is 13747332. A live webcast and related presentation slides will be available through the Investors portion of the Company's website at https://investors.kaiseraluminum.com. An audio archive will be available on the Company's website following the call. Available Information Addo Investor Relations Investors@KaiserAluminum.com 949-614-1769 FRA ...

The conference call can be directly accessed from the U.S. and Canada at (877) 423-9813, and accessed internationally at (201) 689-8573. The conference call ID number is 13747332. A live webcast and related presentation slides will be available through the Investors portion of the Company's website at https://investors.kaiseraluminum.com. An audio archive will be available on the Company's website following the call. Available Information Contact: FRANKLIN, Tenn., July 11, 2024 (GLOBE NEWSWIRE) -- Kaiser Al ...

Net sales for the aerospace/high-strength applications were $221 million and conversion revenues were $137 million, reflecting a 12% increase year over year. The improvement reflects higher pricing, along with growth in shipments, driven by demand for diversified applications. Net sales for general engineering applications were $153 million and conversion revenues were $80 million, reflecting a modest year-over-year increase on a 2% rise in shipments. Sales for general engineering applications rebounded fro ...

FRANKLIN, Tenn., May 30, 2024 (GLOBE NEWSWIRE) -- Kaiser Aluminum Corporation (NASDAQ: KALU) today published its 2023 Sustainability Report summarizing the Company's focus and initiatives around its sustainability program and practices, consistent with its corporate values to be a preferred investment, a preferred supplier, a preferred customer, a preferred employer, and a valued corporate citizen. The report is available on the Company's website at https://www.kaiseraluminum.com. "We view sustainability as ...

Core Points - Kaiser Aluminum Corporation announced the change of location for its 2024 Annual Meeting of Stockholders to its corporate office in Franklin, Tennessee, scheduled for June 11, 2024, at 9:00 a.m. Central Time [1][2] Company Overview - Kaiser Aluminum Corporation is a leading producer of semi-fabricated specialty aluminum products, serving various industries including aerospace, automotive, and packaging [3] - The company operates North American facilities that produce a range of value-added aluminum products such as plate, sheet, coil, extrusions, rod, bar, tube, and wire [3] - Kaiser Aluminum has been committed to quality, innovation, and service since its founding in 1946 and is included in the Russell 2000® index and the S&P Small Cap 600® index [3]

FRANKLIN, Tenn., May 21, 2024 (GLOBE NEWSWIRE) -- Kaiser Aluminum Corporation (the "Company") (NASDAQ: KALU) today announced that its upcoming 2024 Annual Meeting of Stockholders (the "Annual Meeting") will now be held at the Company's corporate office at 1550 West McEwen Drive, Suite 500, Franklin, Tennessee 37067. The Annual Meeting will be held at the originally scheduled date and time on Tuesday, June 11, 2024 at 9:00 a.m. Central Time. Further information regarding the change in the location of the Ann ...