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Dec 31, 2021
Kaiser Aluminum Q4 2021 Earnings Report
Kaiser Aluminum reported mixed fourth quarter results due to complex integration of the Warrick acquisition, but was optimistic about the future.
Key Takeaways
Kaiser Aluminum Corporation reported an increase in net sales for the fourth quarter of 2021, driven by a significant rise in shipments and a modest increase in average selling price per pound. Value added revenue also saw substantial growth, primarily due to the company's packaging business. However, the adjusted EBITDA margin decreased compared to the prior year period due to higher costs related to magnesium and metal supply chain issues.
Net sales increased due to higher shipments and average selling price.
Value added revenue grew, mainly from the packaging business.
Aerospace/high strength revenue increased due to strength in defense and business jet applications.
Adjusted EBITDA increased, but the margin decreased due to higher costs.
Revenue by Segment
Forward Guidance
Kaiser Aluminum anticipates continued long-term growth with a diversified portfolio and strong secular growth trends in each of its served end markets. For the full year 2022, the company anticipates total value added revenue to be up 20% to 25% year-over-year and consolidated adjusted EBITDA margin is expected to improve to 17% to 20%.
Positive Outlook
- Well-positioned for continued long-term growth with a diversified portfolio.
- Strong secular growth trends in served end markets.
- Fundamentals of aerospace, automotive and general engineering end markets are solid.
- Significant margin expansion expected for the packaging business.
- Costs and operating efficiencies will continue to improve as magnesium supply chain challenges and Warrick’s metal supply issues are resolved.
Challenges Ahead
- Near-term challenges exist.
- Semiconductor chip shortages continue to impact automotive production.
- Magnesium supply chain issues persist.
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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