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Mar 31, 2024
Kaiser Aluminum Q1 2024 Earnings Report
Kaiser Aluminum reported first quarter results surpassing internal expectations due to improved operating efficiencies.
Key Takeaways
Kaiser Aluminum's first quarter 2024 results exceeded internal expectations, driven by improved operating efficiencies. Net income increased to $25 million, or $1.51 per diluted share, compared to $16 million, or $0.99 per diluted share, in the prior year period. Adjusted EBITDA was $62 million with a margin of 17.0%. The company is maintaining its full year 2024 outlook.
Net sales were $738 million and conversion revenue was $367 million.
Net income was $25 million, with net income per diluted share at $1.51.
Adjusted net income reached $17 million, resulting in adjusted net income per diluted share of $1.02.
Adjusted EBITDA stood at $62 million, with an adjusted EBITDA margin of 17.0%.
Revenue by Segment
Forward Guidance
Kaiser Aluminum expects demand will improve across the majority of its end markets throughout 2024 and continues to expect conversion revenue for the full year 2024 to improve 2% - 3% and adjusted EBITDA margins to improve 70 - 170 basis points over 2023.
Positive Outlook
- Demand will improve across the majority of its end markets throughout 2024.
- Conversion revenue for the full year 2024 to improve 2% - 3%.
- Adjusted EBITDA margins to improve 70 - 170 basis points over 2023.
- Implementing cost reduction measures in operations.
- Increasing manufacturing efficiencies and pursues its strategic growth initiatives.
Challenges Ahead
- A more cautious outlook is warranted on expected build rates for domestic large commercial jet production in the near-term.
- Anticipated flat conversion revenue in 2024 following a strong 2023 in aerospace/high strength applications.
- Long-term demand outlook for these platforms remains unchanged.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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