About Kaiser Aluminum Corporation
Kaiser Aluminum Corporation (NASDAQ: KALU), headquartered in Franklin, Tenn., is a leading producer of semi-fabricated specialty aluminum products, serving customers worldwide with highly-engineered solutions for aerospace and high-strength, packaging, general engineering, and automotive extrusions. The Company’s North American facilities produce value added plate, sheet, coil, extrusions, rod, bar, tube, and wire products, adhering to traditions of quality, innovation, and service that have been key components of the culture since the Company was founded in 1946. The Company’s stock is included in the Russell 2000 index and the S&P Small Cap 600 index.
Management Comment
Keith A. Harvey, Chairman, President and Chief Executive Officer, stated that the company’s fourth-quarter performance reflected a year of consistent execution, marking its fifth consecutive quarter ahead of internal expectations and full-year results that exceeded its 2025 outlook. He noted that favorable metal pricing had provided a tailwind and that, despite non-recurring costs mainly related to the new roll coat line and the Phase VII planned outage, the company delivered record full-year adjusted EBITDA of $310 million with an adjusted EBITDA margin above 21%.
He added that the company entered 2026 with a solid foundation, clear visibility into its end markets, and sufficient capacity to benefit from recent major investments, while remaining focused on reducing manufacturing and operational costs, deleveraging the balance sheet, and delivering meaningful value to customers and shareholders in the year ahead.
Fourth Quarter 2025 Financial Highlights
Net sales for the fourth quarter 2025 increased to $929 million compared to $765 million in the prior year period, driven primarily by an increase in average realized sales price. The increase in average selling price reflects a 48% increase in the Hedged Cost of Alloyed Metal, a direct pass through as a function of contracted selling price. Shipments for the fourth quarter 2025 improved 1% sequentially from the third quarter 2025 as the Company ramped up operations following the planned outage at its Trentwood facility in support of the Phase VII expansion and continued to benefit from improved coated packaging shipments at Warrick. These gains were partially offset by normal seasonality in the general engineering end market. Shipments for the fourth quarter 2025 decreased 6% year-over-year, primarily due to continued commercial aerospace OEM destocking and the slower than anticipated ramp up of the new coating line in the Company’s packaging operations.
Conversion Revenue for the fourth quarter 2025 was $365 million, reflecting a 2% increase compared to the prior year period, primarily due to lower aerospace shipments from the Company’s Trentwood facility, which was more than offset by improved product mix in its Packaging end market.
Full Year 2025 Financial Highlights
Net sales for the full year 2025 increased to $3.37 billion compared to $3.02 billion in the prior year period, driven primarily by an increase in average realized sales price. The increase in average selling price reflects a 29% increase in the Hedged Cost of Alloyed Metal, a direct pass through as a function of contracted selling price.
Shipments for the full year 2025 decreased 5% year-over-year, primarily due to commercial aerospace OEM destocking, the impact of the planned outage in connection with the Phase VII investment at the Trentwood facility, and the slower than anticipated ramp up of the new coating line in the Company’s packaging operations.
Conversion Revenue for the full year 2025 was $1.45 billion, relatively flat compared to the prior year period.
Cash Flow and Liquidity
Adjusted EBITDA of $310 million reported in the full year 2025 and cash on hand funded $168 million of working capital, $137 million of capital investments, $50 million of interest payments, and $51 million of cash returned to stockholders through quarterly dividends. As of December 31, 2025, the Company’s net debt leverage ratio improved to 3.4x from 4.3x at December 31, 2024.
As of December 31, 2025, the Company had total liquidity of $547 million, consisting of cash and cash equivalents of $7 million and borrowing availability under the Company’s Revolving Credit Facility of $540 million. There were $22 million of outstanding borrowings under the Revolving Credit Facility as of December 31, 2025.
On January 13, 2026, the Company announced the declaration of a quarterly cash dividend of $0.77 per share, which was paid on February 13, 2026 to stockholders of record as of the close of business on January 23, 2026.
2026 Outlook
For the full year 2026, the Company expects to improve Conversion Revenue by 5% to 10% and Adjusted EBITDA by 5% to 15% year-over-year, primarily due to strengthening operational performance with metal assumptions that are closely aligned with current market futures curves.
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