Core Insights - Century Aluminum has made significant progress on its proposed Oklahoma smelter, partnering with Emirates Global Aluminium (EGA) to create the first new U.S. smelter in nearly 50 years, with EGA holding a 60% stake and Century 40% [2][6] - The Oklahoma smelter is expected to utilize EGA's EX smelting technology, which integrates Industry 4.0 and AI applications, improving production capacity by over 20% compared to previous technologies [1][6] - The project is anticipated to benefit from a $500 million grant from the U.S. Department of Energy, with management emphasizing the need for an enabling power contract and attractive financing options to finalize the investment [2][6][7] Operational Updates - In Q4 2025, Century's shipments fell to approximately 140,000 tons due to operational disruptions, but higher LME and regional premiums resulted in an adjusted EBITDA of $171 million and adjusted net income of $128 million [4][16][17] - The company expects to ship around 630,000 tons in fiscal 2026, ramping up to 750,000 tons per year once ongoing projects are completed [4][22] - Century has seen recovery in its smelter operations, with improved performance at Grundartangi and Mt. Holly, despite challenges from Hurricane Melissa and electrical grid issues in Jamaica [11][12] Financial Performance - Century reported net sales of $634 million in Q4, a slight increase from the previous quarter, driven by higher pricing despite lower shipment volumes [16][17] - The company ended the quarter with $134 million in cash and reduced net debt to $421 million following a senior notes refinancing [18] - For Q1 2026, Century projects adjusted EBITDA between $215 million and $235 million, with expectations of higher pricing offsetting some operational headwinds [20][21] Strategic Initiatives - Century completed the sale of its Hawesville site for $200 million, retaining a 6.8% stake in a planned data center, which is expected to create jobs and support local economic development [5][8][10] - The company is also pursuing the installation of a new on-site power generation turbine at Jamalco to improve cost efficiency and reduce reliance on the Jamaican electrical grid [13] - Management is focused on securing financing options beyond the DOE grant to support the Oklahoma smelter project and other growth initiatives [7][10]

Core Insights - Century Aluminum Company reported its fourth quarter and full year 2025 results, highlighting a significant decrease in net income due to operational challenges and exceptional items [1][5][11]. Fourth Quarter 2025 Highlights - Shipments of primary aluminum decreased by 14% sequentially to 140,257 tonnes, primarily due to idled production at the Iceland facility caused by equipment failure [6][7]. - Net sales for Q4 2025 increased slightly to $633.7 million, driven by higher aluminum prices and regional premiums [8]. - Reported net income attributable to Century stockholders was $1.8 million, a decrease of $13.1 million from Q3 2025 [7]. - Adjusted net income attributable to Century stockholders improved to $128.2 million, up $70.3 million sequentially [7][8]. - Adjusted EBITDA for Q4 2025 was $170.6 million, reflecting a sequential improvement of $69.5 million [8][9]. Full Year 2025 Highlights - Total shipments of primary aluminum for the year decreased by 5% to 647,112 tonnes [10]. - Net sales for FY 2025 increased by $307.6 million to $2.5 billion, primarily due to higher realized aluminum prices [10]. - Reported net income attributable to Century stockholders was $41.8 million, down $295.0 million from FY 2024 [11]. - Adjusted net income for FY 2025 was $253.8 million, an improvement of $152.4 million from the previous year [11][12]. - Adjusted EBITDA for FY 2025 was $425.1 million, an increase of $180.9 million compared to FY 2024 [12]. Operational Developments - In January 2026, Century 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 [8]. - The company also announced plans to restart over 50,000 MT of idled production at the Mt. Holly facility by the end of Q2 2026 [8]. Financial Position - As of December 31, 2025, Century had cash and cash equivalents of $134.2 million and total liquidity of $418.0 million [8][9]. - The company reported a gross profit of $256.4 million for FY 2025, compared to $172.0 million in FY 2024 [11][21].

Financial Data and Key Metrics Changes - In Q3 2025, consolidated shipments totaled approximately 162,000 tons, a decrease from the prior quarter due to operational instability at Mount Holly and transformer failures at Grundartangi [16] - Net sales for the quarter were $632 million, a $4 million increase primarily due to higher realized Midwest premium, partially offset by lower shipments [16] - The company reported net income of $15 million, or $0.15 per share, with adjusted net income of $58 million, or $0.56 per share, excluding exceptional items [16] - Adjusted EBITDA was $101 million for the quarter, driven by increased Midwest premium price, partially offset by lower volumes and product premiums at Mount Holly [16][18] - Liquidity increased to $488 million, up $125 million quarter over quarter, with a cash balance of $151 million [17] Business Line Data and Key Metrics Changes - Mount Holly experienced production instability in Q3, resulting in production falling below expectations by approximately 4,000 tons [9] - Grundartangi smelter faced a temporary production halt due to transformer failures, with a timeline for restart expected to take 11-12 months [6][8] - Sebree plant achieved near-record performance across operational and financial KPIs [10] Market Data and Key Metrics Changes - Q3 saw aluminum prices rise, with realized LME prices at $2,508 per ton and spot aluminum prices around $2,850 [13] - U.S. and European regional premiums strengthened, with realized Midwest and European premiums averaging $1,425 and $193 per ton, respectively [14] - The market is experiencing a shortage of aluminum units, leading to a contraction of global inventories to post-financial crisis lows [13] Company Strategy and Development Direction - The company is focused on the Mount Holly expansion project, with plans to restart production of over 50,000 metric tons per year by Q2 2026 [9][12] - A strategic review process for the Hawesville site is ongoing, with significant interest from new parties [10][11] - The company is exploring a new greenfield aluminum smelter project, which is expected to double the size of the existing U.S. industry and create over 1,000 full-time jobs [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong market conditions persisting into 2026, driven by global demand growth and supply challenges [13] - The company anticipates an approximately $0.05 year-over-year increase across its 2026 bill of sales, generating an additional $30 million of EBITDA [15] - Management is optimistic about achieving net debt targets of $300 million early in 2026, supported by strong cash flows and Section 45X receivables [26] Other Important Information - The company received a fiscal year 2024 45X payment of approximately $75 million from the IRS in October, which will help lower net debt [17][21] - The company is assessing options for capital returns, with a preference for share buybacks as indicated by shareholder feedback [28] Q&A Session Summary Question: Mount Holly Restart EBITDA potential and CapEx - Management indicated that the Mount Holly Restart could generate over $60 million in EBITDA at spot prices, with total project spend expected to be around $50 million [31][32] Question: Capital allocation and returns - Management noted that there is a clear preference for buybacks among shareholders, and they are considering this as the most likely form of capital return once net debt targets are met [33][34] Question: Transformer repairs and insurance coverage - Management confirmed that repairs could potentially accelerate the restart timeline, and insurance is expected to cover losses during the outage period [38][39] Question: Hawesville strategic review timeline - Management stated that there is no specific timeline for the final decision on the Hawesville site, but positive interest has been received [40][41] Question: Impact of tariffs and market conditions - Management emphasized that Section 232 tariffs are driving U.S. aluminum production and are expected to remain in place, supporting domestic industry growth [53][54]

Core Insights - Net profit is a crucial indicator of a company's financial health, reflecting its ability to convert sales into profits [1] - A low profit margin indicates higher risks, while companies like Mission Produce, Electromed, Great Lakes Dredge & Dock, and Century Aluminum demonstrate solid net profit margins [2] Financial Metrics - Net Profit Margin is calculated as Net Profit divided by Sales, multiplied by 100, serving as a reference for operational strength and cost control [3] - A higher net profit is essential for rewarding stakeholders and attracting investors and skilled employees, providing a competitive edge [4] Investment Considerations - Net profit margin offers clarity on a company's business model, but it varies significantly across industries, making comparisons challenging [5] - Differences in accounting treatments, especially for non-cash expenses, complicate performance analysis [6] Investment Strategy - A healthy net profit margin and solid EPS growth are key elements for a successful business model [7] - Screening parameters include a net margin of at least 0%, positive EPS growth, and a broker rating of 1, indicating strong bullishness [8] Selected Companies - Mission Produce, Electromed, Great Lakes Dredge & Dock, and Century Aluminum were selected for their strong net profit margins and upward EPS estimate revisions [9] - Each of these companies has a Zacks Rank of 1 or 2, indicating strong performance potential [10] Company Profiles - **Mission Produce**: Engaged in avocado sourcing and distribution, with a Zacks Rank of 1 and a VGM Score of A. The fiscal 2025 earnings estimate was revised upward by 13.6% to $0.67 per share [11][10] - **Electromed**: Manufacturer of airway clearance therapy products, holding a Zacks Rank of 1 and a VGM Score of B. The fiscal 2026 earnings estimate increased by $0.04 to $1.04 per share [12][13] - **Great Lakes Dredge & Dock**: Largest U.S. dredging service provider, with a Zacks Rank of 2 and a VGM Score of A. The fiscal 2025 earnings estimate rose by $0.03 to $1.02 per share [14][15] - **Century Aluminum**: Engaged in primary aluminum production, with a Zacks Rank of 2 and a VGM Score of A. The fiscal 2025 earnings estimate increased by 11.6% to $2.30 per share [15][16]