Century Aluminum(US:CENX)2025-11-06 21:21Financial Performance - Century Aluminum's net sales for the nine months ended September 30, 2025, reached $1.894 billion, an increase from $1.589 billion in the same period of 2024, reflecting a year-over-year growth of approximately 19.2%[159] - The company experienced a gross profit of $174.1 million for the nine months ended September 30, 2025, compared to $118.7 million for the same period in 2024, reflecting a year-over-year increase of about 46.8%[159] - Net sales increased by $4.1 million for the three months ended September 30, 2025, driven by a $52.0 million increase in realized regional price premiums, partially offset by a $42.6 million unfavorable volume and sales mix[161] - Gross profit increased by $41.1 million for the three months ended September 30, 2025, primarily due to favorable realized regional price premiums of $52.0 million and favorable raw material price realization of $16.0 million[163] - For the nine months ended September 30, 2025, net sales reached $1,531.2 million[192] - Gross profit for the same period was $198.1 million[192] - Income before income taxes was reported at $98.0 million for the nine months ended September 30, 2025[192] - Net income for the nine months ended September 30, 2025, was $40.0 million[192] Production and Operational Challenges - The Grundartangi smelter faced a temporary production reduction of approximately two-thirds due to an electrical equipment failure, with an expected 11 to 12 months for resumption of full production[141] - Jamalco experienced a production loss of approximately 84,000 tonnes in 2023 due to a power disruption, impacting gross margin by about $30.4 million[150] Capital and Funding - The company secured up to $500 million in funding from the U.S. Department of Energy to build a new aluminum smelter, marking the first new U.S. primary aluminum smelter in 45 years[144] - The company completed the issuance of $400 million of Senior Secured Notes due 2032 on July 22, 2025, and redeemed the 2028 Notes at a total redemption price of approximately $261.1 million[178] - The company entered into a Cooperative Agreement with the DOE's Office of Clean Energy Demonstrations for up to $500 million in IRA funding to build a new U.S. primary aluminum smelter[186] Tariffs and Pricing - The average price of primary aluminum per tonne for the three months ended September 30, 2025, was $2,617, compared to $2,383 for the same period in 2024, indicating an increase of about 9.8%[154] - The Midwest Premium (MWP) for aluminum sold in the U.S. averaged $1,567 per tonne for the three months ended September 30, 2025, up from $411 in the same period of 2024, representing a significant increase of approximately 282%[154] - The Section 232 aluminum tariffs were increased from 25% to 50% effective June 4, 2025, which positively impacted the company's financial position and results of operations[143] Expenses and Cash Flow - Selling, general and administrative expenses increased by $3.9 million for the three months ended September 30, 2025, primarily due to increased share-based compensation costs[165] - Net cash provided by operating activities was $82.2 million for the nine months ended September 30, 2025, compared to $16.8 million for the same period in 2024[181] Assets and Liabilities - As of September 30, 2025, the company had cash and cash equivalents of approximately $151.4 million and unused availability under credit facilities of $336.8 million, totaling a liquidity position of $488.2 million[175] - As of September 30, 2025, current assets totaled $674.5 million, an increase from $414.0 million as of December 31, 2024[192] - Non-current assets amounted to $717.3 million as of September 30, 2025, compared to $698.4 million as of December 31, 2024[192] - Current liabilities were reported at $271.1 million as of September 30, 2025, up from $247.1 million as of December 31, 2024[192] - Non-current liabilities increased to $641.2 million as of September 30, 2025, from $490.4 million as of December 31, 2024[192] - Intercompany receivables from Non-Guarantor Subsidiaries totaled $58.2 million as of September 30, 2025, compared to $40.4 million as of December 31, 2024[192] - An intercompany non-current loan due to the Company from Non-Guarantor Subsidiaries was $380.1 million as of September 30, 2025, up from $358.1 million as of December 31, 2024[192] Derivative Contracts - The net loss on forward and derivative contracts - nonaffiliates increased by $14.6 million for the three months ended September 30, 2025, compared to the previous quarter, primarily due to fluctuations in forward prices related to LME hedges[167]