Kaiser Aluminum(US:KALU)2025-04-24 21:00Financial 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]