Century Aluminum(US:CENX)2026-02-19 21:46Financial Performance - Fourth quarter 2025 net sales were $633.7 million, a slight increase from $632.2 million in Q3 2025, while full year 2025 net sales reached $2.5 billion, up from $2.2 billion in FY 2024[3][5] - Fourth quarter 2025 reported net income attributable to Century stockholders was $1.8 million, a decrease of $13.1 million sequentially, with full year 2025 net income at $41.8 million, down $295.0 million from FY 2024[4][8] - Adjusted net income for Q4 2025 was $128.2 million, a sequential improvement of $70.3 million, while full year 2025 adjusted net income was $253.8 million, an increase of $152.4 million from FY 2024[4][8] - Total net sales for the three months ended December 31, 2025, were $633.7 million, a slight increase from $632.2 million in the previous quarter and $630.9 million in the same quarter of 2024[17] - Total net sales for the twelve months ended December 31, 2025, reached $2,527.9 million, an increase from $2,220.3 million in 2024, indicating a year-over-year growth of approximately 13.8%[19] - Net income for the twelve months ended December 31, 2025, was $15.8 million, a decrease from $306.7 million in 2024[25] Profitability Metrics - Adjusted EBITDA for Q4 2025 was $170.6 million, a sequential increase of $69.5 million, and for full year 2025, it was $425.1 million, up $180.9 million compared to the previous year[6][9] - Gross profit for the same period was $90.0 million, up from $74.9 million in the previous quarter and $66.3 million in the same quarter of 2024, reflecting a gross margin improvement[17] - Operating income decreased to $40.7 million for the three months ended December 31, 2025, compared to $55.9 million in the previous quarter and $49.3 million in the same quarter of 2024[17] - Gross profit for the twelve months ended December 31, 2025, was $256.4 million, significantly higher than $172.0 million in 2024[19] - Operating income for the twelve months ended December 31, 2025, was $158.1 million, compared to $108.4 million in 2024, reflecting a year-over-year increase of approximately 45.9%[19] Cash and Liquidity - Century's liquidity position at December 31, 2025, included cash and cash equivalents of $134.2 million and total liquidity of $418.0 million[7] - Cash and cash equivalents increased to $134.2 million as of December 31, 2025, compared to $32.9 million as of December 31, 2024[21] - Cash provided by operating activities for 2025 was $183.6 million, a significant improvement from a cash used of $24.6 million in 2024[25] - The company reported a net cash increase of $99.9 million for the year, compared to a decrease of $54.6 million in 2024[27] Production and Shipments - Shipments of primary aluminum in Q4 2025 were 140,257 tonnes, a 14% decrease from Q3 2025, while full year shipments totaled 647,112 tonnes, down 5% from FY 2024[3][7] - Total shipments of primary aluminum for 2025 were 647,112 tonnes, generating sales of $2.2 billion, compared to 677,967 tonnes and $1.9 billion in 2024[29] Strategic Initiatives - The company announced a joint development agreement with Emirates Global Aluminium to build a new smelter in Oklahoma, marking the first new primary aluminum smelter in the U.S. since 1980[5] - The Mt. Holly restart project aims to bring back over 50,000 tonnes of idled production by the end of Q2 2026[5] - The company expects first quarter 2026 adjusted EBITDA to range between $215 million and $235 million, driven by improved metal pricing and regional premiums[10] Expenses and Adjustments - The company incurred a share-based compensation expense of $47.0 million in 2025, significantly higher than $11.3 million in 2024[25] - The unrealized loss on derivative instruments was $62.8 million in 2025, compared to a gain of $5.0 million in 2024[25] - The company incurred a net loss on forward and derivative contracts of $94.7 million, a significant increase from a loss of $2.5 million in the prior year[34] - Share-based compensation expenses rose to $47.0 million in 2025, compared to $15.5 million in 2024, indicating a substantial increase of 203%[34] - The impact of equipment failure at the Iceland casthouse resulted in costs of $46.6 million, which were expected to be covered by business interruption insurance[34] - The company reported a loss on extinguishment of debt amounting to $7.7 million, with no similar expense recorded in the previous year[34] - The lower of cost or NRV inventory adjustment was $10.5 million in 2025, contrasting with a gain of $6.4 million in 2024[34] - The company experienced a bargain purchase gain of $245.9 million in 2024, which was not repeated in 2025, impacting year-over-year comparisons[34] Future Outlook - Future outlook includes addressing operational inefficiencies and potential market expansions, particularly in response to recent equipment failures and natural disasters affecting production[33]