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Sep 30, 2024
Kaiser Aluminum Q3 2024 Earnings Report
Reported stable financial performance despite mixed market conditions, made progress on strategic initiatives, and delivered margin expansion plan.
Key Takeaways
Kaiser Aluminum Corporation reported a net sales increase to $748 million, a net income of $12 million, and an adjusted EBITDA of $50 million for Q3 2024. The company is optimistic about the coming year and their ability to continue to advance their strategic plan.
Net sales reached $748 million; conversion revenue was $362 million.
Net income was $12 million, with net income per diluted share at $0.74.
Adjusted net income was $8 million, with adjusted net income per diluted share at $0.51.
Adjusted EBITDA was $50 million with an adjusted EBITDA margin of 13.9%, inclusive of a $4 million GAAP LIFO charge.
Revenue by Segment
Forward Guidance
The Company expects demand to be consistent with its previous expectations for the balance of 2024. For the full year 2024, the Company continues to expect overall conversion revenue to remain stable with growth up to 1% compared to 2023. Adjusted EBITDA margin, less the full year impact from GAAP LIFO charges, is expected to improve 50 to 100 basis points compared to 2023.
Positive Outlook
- Industry momentum and performance improvements at the Company’s Warrick facility are expected to continue as it nears the completion of its fourth coating line investment, which will drive margin improvement starting in 2025.
- In general engineering, destocking within the Company’s long products has concluded with shipment levels now in better alignment with end market demand.
- In automotive extrusions, the Company is maintaining a positive outlook as production for light and heavy truck and sport utility vehicle platforms has outpaced broader automotive production rates.
- Company continues to expect overall conversion revenue to remain stable with growth up to 1% compared to 2023.
- Adjusted EBITDA margin, less the full year impact from GAAP LIFO charges, is expected to improve 50 to 100 basis points compared to 2023.
Challenges Ahead
- In aerospace/high strength applications, the Company remains cautious on its near-term outlook due to the timing of certain customer commercial and labor negotiations which may have a short-term impact on demand and 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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