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Dec 31, 2022
Kaiser Aluminum Q4 2022 Earnings Report
Kaiser Aluminum reported a net loss for Q4 2022, with adjusted EBITDA decreasing compared to the prior year period, impacted by higher inflationary manufacturing costs and supply chain disruptions.
Key Takeaways
Kaiser Aluminum Corporation reported a net sales of $776 million and a net loss of $26 million for the fourth quarter of 2022. The adjusted EBITDA was $30 million with a margin of 8.4%. The company faced challenges including supply chain disruptions and inflationary cost pressures.
Net sales decreased to $776 million compared to $806 million in the prior year period, reflecting a 9% decrease in shipments.
Net loss was $26 million, or $1.66 loss per diluted share, compared to net income of $2 million in the prior year period.
Adjusted EBITDA decreased $19 million compared to the prior year period, impacted by higher inflationary manufacturing cost.
Conversion revenue for the fourth quarter 2022 was $356 million.
Revenue by Segment
Forward Guidance
The Company anticipates total capital investments in 2023 will be in the range of $170 million to $190 million, of which approximately 60% will be focused on growth initiatives, primarily reflecting investments in the new roll coat line at the Warrick facility.
Positive Outlook
- Demand in commercial aerospace to continue to strengthen throughout 2023 towards pre-pandemic levels
- Business jet and defense market remaining strong
- Packaging operations will return to more normalized levels in 2023 now that the most significant supply chain issues have been resolved
- Expects consolidated adjusted EBITDA margin to improve by approximately 200 basis points from the fourth quarter 2022 for Q1 2023
- Capital investment plans remain focused on supporting demand growth through capacity expansion
Challenges Ahead
- Continuing impacts from higher metal costs and a lag in passing through certain costs
- General Engineering demand is expected to soften for plate and rod & bar products
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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