Investment Rating - Industry rating: Recommended [5] Core Insights - In Q4 2025, the conversion processing revenue increased by 4% quarter-on-quarter to $365 million, while net profit decreased by 30% to $28 million [2][4] - The total shipments for Q4 2025 were 27.4 million pounds (12.43 thousand tons), a 1% increase from the previous quarter but a 6% decrease year-on-year [2] - The net sales for Q4 2025 reached $929 million, reflecting a 10% quarter-on-quarter increase and a 21% year-on-year increase, primarily due to rising average selling prices [3] Summary by Sections Operating and Performance Overview - Q4 2025 shipments were 27.4 million pounds, with a quarter-on-quarter increase of 1% and a year-on-year decrease of 6% [2] - The annual shipment volume for 2025 was 110.8 million pounds, down 5% year-on-year [2] Financial Performance - Q4 2025 net sales were $929 million, up 10% quarter-on-quarter and 21% year-on-year, driven by an increase in average selling prices [3] - The average selling price increased by 48% due to alloy metal hedging costs [3] - Q4 2025 net profit was $28 million, a 30% decrease quarter-on-quarter but a 40% increase year-on-year [4] Revenue by Business Segment 1. **Aerospace/High-Strength Applications** - Q4 2025 shipments were 46.8 million pounds, a 12% increase quarter-on-quarter but a 23% decrease year-on-year [9] - Q4 2025 net sales were $213 million, a 17% increase quarter-on-quarter but a 5% decrease year-on-year [9] 2. **Packaging Applications** - Q4 2025 shipments were 145.1 million pounds, a 1% increase quarter-on-quarter but a 5% decrease year-on-year [9] - Q4 2025 net sales were $440.6 million, a 12% increase quarter-on-quarter and a 33% increase year-on-year [9] 3. **General Engineering Applications** - Q4 2025 shipments were 58.6 million pounds, a 3% decrease quarter-on-quarter but a 6% increase year-on-year [9] - Q4 2025 net sales were $200 million, a 4% increase quarter-on-quarter and a 32% increase year-on-year [9] 4. **Automotive Extrusions** - Q4 2025 shipments were 23.5 million pounds, a 2% decrease quarter-on-quarter but a 9% increase year-on-year [9] - Q4 2025 net sales were $75.4 million, unchanged quarter-on-quarter and a 33% increase year-on-year [9] Cash Flow and Liquidity - The adjusted EBITDA for 2025 was $310 million, with total liquidity of $547 million as of December 31, 2025 [10] - The company announced a quarterly cash dividend of $0.77 per share on January 13, 2026 [10] 2026 Outlook - For 2026, the company expects conversion revenue to grow by 5% to 10% year-on-year, with adjusted EBITDA projected to increase by 5% to 15% [11]