Kaiser Aluminum Corporation Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Kaiser Aluminum Corporation reported a fourth quarter net sales of $765 million, an increase from $722 million in the prior year, driven by a 3% increase in shipments [3][7] - The company’s full year net sales for 2024 decreased to $3.0 billion from $3.1 billion in 2023, primarily due to lower shipments [12][13] - Adjusted EBITDA for the fourth quarter was $50 million, reflecting a decrease of $2 million compared to the prior year, with an adjusted EBITDA margin of 14.0% [9][14] Fourth Quarter 2024 Highlights - Shipments for the fourth quarter were 292 million lbs, compared to 284 million lbs in the same quarter of the previous year [3][7] - Net income for the fourth quarter was $7 million, or $0.43 per diluted share, down from $8 million or $0.47 per diluted share in the prior year [8][13] - Conversion revenue for the fourth quarter was $358 million, a 1% decrease from the previous year [4][7] Full Year 2024 Highlights - Full year net income was reported at $47 million, or $2.87 per diluted share, consistent with the previous year [13][14] - Adjusted net income for the full year was $41 million, down from $44 million in 2023, with adjusted net income per diluted share at $2.51 compared to $2.74 in the prior year [13][14] - Adjusted EBITDA for the full year was $217 million, an increase of $7 million from the previous year, with an adjusted EBITDA margin of 14.9% [14][15] Management Commentary - The CEO expressed satisfaction with the company's performance in 2024, highlighting margin expansion despite a complex market environment [2] - The company anticipates stabilization in market conditions in 2025, which will allow it to leverage significant growth investments nearing completion [2] Cash Flow and Liquidity - As of December 31, 2024, the company reported total liquidity of $572 million, consisting of $18 million in cash and cash equivalents and $553 million in borrowing availability [16][30] - The company funded $35 million of working capital, $181 million of capital investments, and returned $51 million to stockholders through dividends in 2024 [15][16] 2025 Outlook - For 2025, the company expects consolidated conversion revenue to increase by 5% to 10% and an improvement in adjusted EBITDA margin by 50 to 100 basis points compared to 2024 [18]