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Sep 30, 2023
Kaiser Aluminum Q3 2023 Earnings Report
Reported third quarter results largely within expectations, with adjusted EBITDA increasing over the prior year period.
Key Takeaways
Kaiser Aluminum Corporation reported third quarter 2023 results with net sales of $744 million and net income of $5 million. Adjusted EBITDA was $48 million, an increase of $19 million over the prior year period. The company saw strong demand for aerospace products, while demand for packaging and general engineering faced headwinds.
Net sales reached $744 million; conversion revenue was $357 million.
Net income was $5 million, with net income per diluted share at $0.34.
Adjusted EBITDA stood at $48 million, with an adjusted EBITDA margin of 13.3%.
Aerospace conversion revenue aligned with expectations due to strengthened demand.
Revenue by Segment
Forward Guidance
Kaiser expects commercial aerospace demand to continue to strengthen, while packaging shipments are expected to decline due to destocking and seasonality. General engineering demand is expected to decline, and the automotive market is expected to remain consistent with the third quarter. Consolidated adjusted EBITDA in the fourth quarter 2023 is expected to be in line to slightly higher as compared to its adjusted fourth quarter 2022 results.
Positive Outlook
- Commercial aerospace demand is expected to continue to strengthen and meet or exceed record pre-pandemic 2019 levels by the end of 2023.
- Business jet, defense and space markets all remaining strong.
- Contractual minimums in place with its customers will partly offset the decline in packaging shipments.
- Company continues to believe its full year 2022 adjusted EBITDA represented the trough
- Company remains cautiously optimistic its full year 2023 consolidated adjusted EBITDA and adjusted EBITDA margin will improve as it pursues cost reductions in its operations, improves manufacturing efficiencies and continues commercial actions to improve pricing.
Challenges Ahead
- Packaging shipments are expected to decline as destocking has shifted to coated food products, along with anticipated fourth quarter seasonality
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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