Century Aluminum(CENX) - 2025 Q1 - Quarterly Results

Century Aluminum Company First Quarter 2025 Results First Quarter 2025 Financial and Business Highlights In Q1 2025, Century Aluminum's net sales increased slightly by $3.0 million sequentially to $633.9 million, driven by higher aluminum prices and premiums, while net income and Adjusted EBITDA decreased due to higher input and energy costs Q1 2025 vs Q4 2024 Financial Results | $ million (except shipments and per share data) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Aluminum shipments (tonnes) | 168,672 | 166,677 | | Net sales | $633.9 | $630.9 | | Net income attributable to Century stockholders | $29.7 | $45.2 | | Diluted earnings per share | $0.29 | $0.44 | | Adjusted net income | $36.6 | $43.5 | | Adjusted earnings per share | $0.36 | $0.42 | | Adjusted EBITDA | $78.0 | $80.9 | - Net sales increased by $3.0 million sequentially, driven by higher LME aluminum prices, regional premiums, and favorable volume, partially offset by lower third-party alumina sales[4] - Net income decreased by $15.5 million sequentially to $29.7 million, primarily due to higher input costs and losses on derivative instruments, with Adjusted net income at $36.6 million, a $6.9 million sequential decrease[5] - Adjusted EBITDA decreased by $2.9 million from the prior quarter to $78.0 million, mainly due to higher energy and raw material costs, partially offset by improved LME and regional price premiums[6] - Key operational achievements include a 38% increase in the realized Midwest premium, a new five-year labor contract for the Grundartangi smelter, and an extension of the power purchase agreement in Iceland through Q1 2032[7] Second Quarter 2025 Outlook The company anticipates an improvement in financial performance for the second quarter of 2025, with Adjusted EBITDA expected to be in the range of $80 to $90 million - The company expects second quarter Adjusted EBITDA to range between $80 million to $90 million[8] - The expected increase in Adjusted EBITDA is driven by higher Midwest regional premiums and lower energy costs, partially offset by planned major maintenance and seasonal labor expenses[8] Consolidated Financial Statements This section presents the unaudited consolidated financial statements for Q1 2025, including the Statements of Operations, Balance Sheets, and Cash Flows, detailing the company's financial performance, position, and cash movements Consolidated Statements of Operations For Q1 2025, the company reported total net sales of $633.9 million and a gross profit of $60.6 million, resulting in a net income attributable to Century stockholders of $29.7 million, or $0.29 per diluted share Q1 2025 Statement of Operations (in millions) | | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Total net sales | $633.9 | $630.9 | | Gross profit | $60.6 | $66.3 | | Operating income | $46.1 | $49.3 | | Net income attributable to Century stockholders | $29.7 | $45.2 | | Diluted EPS | $0.29 | $0.44 | Consolidated Balance Sheets As of March 31, 2025, Century Aluminum's total assets stood at $1,954.5 million, with total equity increasing to $690.7 million and cash and cash equivalents rising to $44.9 million Balance Sheet Highlights (in millions) | | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $44.9 | $32.9 | | Total current assets | $821.9 | $802.8 | | Total assets | $1,954.5 | $1,939.4 | | Total current liabilities | $447.4 | $463.7 | | Total equity | $690.7 | $662.7 | Consolidated Statements of Cash Flows In Q1 2025, the company generated $72.3 million in net cash from operating activities, a significant turnaround from a $14.8 million use of cash in Q1 2024, ending the quarter with a $12.0 million increase in total cash Cash Flow Summary (in millions) | | Three months ended Mar 31, 2025 | Three months ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $72.3 | $(14.8) | | Net cash used in investing activities | $(15.5) | $(29.7) | | Net cash (used in) provided by financing activities | $(44.8) | $49.2 | | Change in cash, cash equivalents and restricted cash | $12.0 | $4.7 | Selected Operating Data Total primary aluminum shipments increased by 1% sequentially to 168,672 tonnes in Q1 2025, with an increase from United States operations and a slight decrease from Iceland Primary Aluminum Shipments (Tonnes) | | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | United States | 94,601 | 89,613 | 97,602 | | Iceland | 74,071 | 77,064 | 77,025 | | Total | 168,672 | 166,677 | 174,627 | Reconciliation of Non-GAAP Financial Measures This section provides a detailed reconciliation from GAAP to non-GAAP financial measures, adjusting net income to $36.6 million and calculating Adjusted EBITDA at $78.0 million for Q1 2025 Reconciliation to Adjusted Net Income (in millions) | | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net income attributable to Century stockholders (GAAP) | $29.7 | $45.2 | | Unrealized loss (gain) on derivative contracts, net of tax | $3.0 | $(5.8) | | Mt. Holly emergency energy charges | $3.5 | $— | | Adjusted net income attributable to Century stockholders (Non-GAAP) | $36.6 | $43.5 | Reconciliation to Adjusted EBITDA (in millions) | | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net income attributable to Century stockholders (GAAP) | $29.7 | $45.2 | | Adjustments (Interest, Tax, D&A, etc.) | $48.3 | $35.7 | | Adjusted EBITDA attributable to Century stockholders (Non-GAAP) | $78.0 | $80.9 | Legal Disclosures This section contains important legal information, explaining the company's rationale for using non-GAAP financial measures and providing a cautionary statement about forward-looking statements and associated risks - The company uses non-GAAP measures like adjusted net income and adjusted EBITDA to facilitate period-to-period comparisons by excluding items management believes are not indicative of ongoing operating performance[10] - The report contains forward-looking statements concerning future events and performance, which are based on current expectations but are subject to significant risks and uncertainties[11][13] - Key risk factors include global economic conditions, aluminum and raw material prices, power availability and costs, geopolitical events like the wars in Ukraine and the Middle East, and the impact of trade actions like Section 232 tariffs[11]