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Mar 31, 2023
Kaiser Aluminum Q1 2023 Earnings Report
Reported better-than-anticipated results due to focused execution, pricing traction, and favorable demand trends in key markets.
Key Takeaways
Kaiser Aluminum Corporation reported first quarter results with net sales of $808 million and net income of $16 million, or $0.99 per diluted share. The company's performance was driven by strengthening aerospace demand and a strong market position, which helped offset destocking in the packaging market. The company remains focused on cost reductions, improving manufacturing efficiencies, and commercial actions to improve margins.
Net sales reached $808 million with conversion revenue of $369 million.
Net income was reported at $16 million, translating to $0.99 per diluted share.
Adjusted EBITDA stood at $47 million with a margin of 12.7%.
Aerospace demand continued to strengthen, leading to shipments and conversion revenue exceeding expectations.
Revenue by Segment
Forward Guidance
The Company expects its consolidated adjusted EBITDA margin in the second quarter 2023 to be flat to slightly higher compared to the first quarter 2023. The Company remains cautiously optimistic its consolidated adjusted EBITDA and adjusted EBITDA margin will continue to strengthen in 2023 as it pursues cost reductions in its operations, improves manufacturing efficiencies and continues commercial actions to improve pricing.
Positive Outlook
- Commercial aerospace demand is expected to continue strengthening towards pre-pandemic levels.
- Business jet, defense, and space sectors are expected to remain strong.
- The company is focused on cost reductions in its operations.
- Improvements in manufacturing efficiencies are expected.
- Commercial actions are being taken to improve pricing.
Challenges Ahead
- Continued destocking is expected in the packaging market.
- Lingering impacts from higher metal input costs are anticipated.
- There is a lag in passing through certain costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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