Kaiser Aluminum Stock Earnings Reports

Kaiser Aluminum reported a strong Q1 2026 with results ahead of expectations and management raising its full-year outlook. Key financials: conversion revenue of $404 million (up ~11% YoY), adjusted EBITDA of $129 million (up $55 million YoY) and adjusted EBITDA margin of 31.8%. Reported net income was $63 million, or $3.71 diluted EPS. Drivers of performance included stronger-than-expected customer demand across end markets, continued mix shift to higher-value coated products at the Warrick rolling mill, improved operational performance after recent capacity investments, and a metal price tailwind (metal lag gain of about $36 million and improved scrap spreads). Balance sheet and cash flow highlights: first-quarter free cash flow of $69 million, total liquidity of roughly $596 million, net leverage improved to 2.8x, and full-year free cash flow expected at $140–150 million (subject to metal price movements). Capital expenditures are expected to be $120–130 million for 2026. The board declared a quarterly dividend of $0.77 per share. Outlook by end market: aerospace/high-strength shipments +15%–20% (conversion revenue +10%–15%); packaging shipments +10%–15% (conversion revenue +20%–25%) driven by coated-product mix and continued ramp of the 4th coating line (target ~80% utilization this year); general engineering shipments and conversion revenue +5%–10%; automotive flat to -5%. Overall full-year guidance: conversion revenue +10%–15% and EBITDA +20%–30%. Management emphasized execution, sustained demand, and that the business is moving from investment/ramp-up into a harvest phase, while noting metal-price volatility remains a risk.