Century Aluminum Company Stock Earnings Reports

Key points for investors:

- Operations: Q3 shipments ~162k tonnes; consolidated adjusted EBITDA $101M. Q3 was impacted by brief Mt. Holly instability (~4k tonnes) and a forced shutdown of Grundartangi potline 2 after two transformer failures. Grundartangi restart timeline is estimated at 11–12 months for replacement transformers, with a potential faster restart if damaged transformers can be repaired. Management expects insurance (after a $15M deductible) to cover property and business interruption losses. Jamalco restarted after Hurricane Melissa with no injuries and minimal financial impact expected. Sebree delivered near-record operational and financial KPIs.

- Mt. Holly: Power agreement extended through 2031; restart of >50k tpa incremental capacity is on track. Total project CapEx ~ $50M, initial hiring and early spend underway, incremental production to begin in Q2 2026 and reach full run rate by Q3 2026 (restart complete by end of June 2026). Management expects ~ $25M incremental EBITDA per quarter at spot once at full run rate (about $100M annualized).

- Markets & pricing: Q3 realized LME ~$2,508/ton and Midwest premium ~$1,425/ton; spot metal and premiums strengthened into Q4 (midwest spot cited ~ $1,950 premium, LME spot ~ $2,850). Company expects ~ $0.05/ton year-over-year increase across 2026 billet sales, implying ~ $30M additional 2026 EBITDA.

- Financial position & guidance: Liquidity $488M, cash $151M, net debt $475M (Q3). Company received a $75M Section 45X (2024) payment in October and had $220M of 45X receivables at quarter end. Q4 adjusted EBITDA guidance $170–180M (management says at current spot it could be ~$220M). Management targets net debt of $300M early in 2026.

- Capital allocation & strategy: After meeting debt and liquidity targets, priority is sustaining and organic growth (e.g., Mt. Holly) and then disciplined M&A or returns; shareholder feedback favors share buybacks and buybacks are the most likely form of return once targets are met. Hawesville strategic review remains open with extended timeline due to renewed interest. New greenfield U.S. smelter discussions progressing with a likely JV structure and single site/power provider identified.

- Risk/other: Grundartangi outage reduces Q4 shipments by ~37k tonnes and EBITDA by ~$30M (management expects insurance recovery but timing may lag). Q4 includes expected $10–15M headwind from realized hedge settlements and ~ $5M tax expense.