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Jun 30, 2024
Kaiser Aluminum Q2 2024 Earnings Report
Kaiser Aluminum reported second quarter 2024 results, with net sales of $773 million and net income of $3 million.
Key Takeaways
Kaiser Aluminum's second quarter 2024 results showed a decrease in net sales to $773 million compared to $814 million in the prior year period, driven by a 6% reduction in shipments. Net income was $3 million, impacted by a $9 million unfavorable non-cash LIFO charge. The company is revising its financial outlook due to reduced commercial jet build rates and an extended outage at the Warrick facility.
Net sales were $773 million; conversion revenue was $369 million.
Net income was $3 million, or $0.19 per diluted share.
Adjusted net income was $11 million, or $0.65 per diluted share.
Adjusted EBITDA was $54 million with a margin of 14.5%.
Revenue by Segment
Forward Guidance
The Company expects demand across its end markets in 2024 to remain relatively consistent with 2023 with the potential for a modest upside. Accordingly, for the full year 2024, the Company expects conversion revenue to be flat to up 1% and adjusted EBITDA margins to improve 50 to 100 basis points over 2023.
Positive Outlook
- Demand across end markets expected to remain consistent with 2023.
- Potential for a modest upside in demand.
- Shipments expected to improve from current levels in the packaging market.
- Conversion revenue expected to be flat to up 1% for the full year 2024.
- Adjusted EBITDA margins expected to improve 50 to 100 basis points over 2023.
Challenges Ahead
- Cautious near-term outlook for the commercial aerospace market.
- Lower than expected 2024 build rates resulting in reduced anticipated shipments and conversion revenue year-over-year in aerospace.
- Typical seasonality in general engineering market expected to result in a slight headwind to shipments.
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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