Kaiser Aluminum(US:KALU)2026-02-18 21:40Financial Performance - Fourth quarter 2025 net sales reached $929 million, a 21% increase year-over-year, with net income of $28 million or $1.68 per diluted share[2]. - Full year 2025 net sales totaled $3.37 billion, up 12% from the previous year, with net income of $113 million or $6.77 per diluted share[2]. - Adjusted EBITDA for the full year 2025 was $310 million, resulting in an adjusted EBITDA margin of 21.3%[4]. - Operating income for the year ended December 31, 2025, was $188.8 million, compared to $112.2 million in 2024, reflecting a 68.2% increase[25]. - Adjusted EBITDA for the year ended December 31, 2025, was $310.2 million, compared to $241.0 million in 2024, representing a 28.7% increase[34]. - Total cash provided by operating activities for the year ended December 31, 2025, was $167.1 million, compared to $111.4 million in 2024, indicating a 50.1% increase[28]. - The company reported a diluted net income per share of $1.68 for the quarter ended December 31, 2025, compared to $1.21 for the same quarter in 2024, a 38.8% increase[34]. Revenue and Shipments - Shipments for the fourth quarter 2025 were 274 million lbs, a 1% sequential increase but a 6% decrease year-over-year due to commercial aerospace OEM destocking[8]. - Conversion revenue for the fourth quarter 2025 was $365 million, a 2% increase compared to the prior year period[9]. - Full year 2025 conversion revenue was $1.45 billion, relatively flat compared to the previous year[11]. - Total shipments across all segments for the year ended December 31, 2025, were 1,108.2 million pounds, compared to 1,172.3 million pounds in 2024[12]. - Shipments for the Aero/HS Products segment were 46.8 million pounds in Q4 2025, with net sales of $213.0 million at an average price of $4.55 per pound[12]. - In the Packaging segment, net sales were $440.6 million in Q4 2025, with shipments of 145.1 million pounds at an average price of $3.04 per pound[12]. - The GE Products segment reported net sales of $200.0 million in Q4 2025, with shipments of 58.6 million pounds at an average price of $3.41 per pound[12]. Financial Health - The net debt leverage ratio improved to 3.4x, indicating better financial health[4]. - Adjusted EBITDA for 2025 was reported at $310 million, with a net debt leverage ratio improving to 3.4x from 4.3x at the end of 2024[13]. - As of December 31, 2025, total liquidity was $547 million, consisting of $7 million in cash and $540 million available under the Revolving Credit Facility[14]. - The company incurred interest expenses of $50.1 million for the year ended December 31, 2025, compared to $43.7 million in 2024, a 14.6% increase[34]. - Total assets as of December 31, 2025, were $2,564.8 million, an increase from $2,409.9 million as of December 31, 2024[31]. - Total liabilities as of December 31, 2025, were $1,738.7 million, compared to $1,666.8 million in 2024, showing a 4.3% increase[31]. - The company’s inventories increased to $725.2 million as of December 31, 2025, from $601.9 million in 2024, reflecting a 20.5% rise[31]. Future Outlook - The company plans to focus on cost reductions in manufacturing and operations while enhancing shareholder value in 2026[3]. - Management highlighted a favorable metal pricing environment as a key factor in performance, with a metal price lag contributing approximately $93 million in 2025[4]. - The company expects Conversion Revenue to improve by 5% to 10% and Adjusted EBITDA to increase by 5% to 15% in 2026, driven by enhanced operational performance[16]. - The hedged cost of alloyed metal for the year ended December 31, 2025, was $1,946.8 million, reflecting the cost of aluminum and alloys used in production[12]. Dividends - The company declared a quarterly cash dividend of $0.77 per share, which was paid on February 13, 2026[15].