KALU · Kaiser Aluminum Corporation

Kaiser Aluminum delivered record first quarter 2026 financial results, driven by robust demand across its end markets and favorable metal price dynamics. Net sales surged to $1.1 billion, up 42% year-over-year, primarily due to a 70% increase in the Hedged Cost of Alloyed Metal—which passes through to customers—and a 7% increase in shipments. The Packaging end market led volume growth, supported by strong demand for coated products, while Aerospace shipments benefited from abating destocking trends. Conversion Revenue, a key profitability metric, rose 11% to $404 million, fueled by a strong pricing environment and an improved product mix in Packaging. Profitability expanded significantly, with Adjusted EBITDA reaching $129 million and margins widening to 31.8%, compared to 20.2% in the prior year period. This margin expansion was driven by higher value mix, widening scrap spreads, and approximately $36 million in favorable metal price lag gains. The company strengthened its balance sheet, reducing its net debt leverage ratio to 2.8x from 3.4x at the end of 2025. Demonstrating confidence in the sustainability of these results, management raised its full-year 2026 outlook, now guiding for 10-15% growth in Conversion Revenue and 20-30% growth in Adjusted EBITDA year-over-year. Chairman, President, and CEO Keith A. Harvey attributed the performance to structural improvements and the unlocking of earnings power through strategic initiatives.