Kaiser Aluminum Corporation · NASDAQ:KALU
Kaiser Aluminum — Q4 2024 Earnings Presentation
27 slides from Kaiser Aluminum's earnings presentation, Feb 20, 2025
Slide 1: Fourth Quarter 2024 Earnings Conference Call
Fourth Quarter 2024 Earnings Conference Call February 20, 2025 © Kaiser Aluminum All Rights Reserved
Slide 2: Forward Looking Statements
Forward Looking Statements The information contained in this presentation includes statements based on management’s current expectations, estimates and projections that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements
Slide 3: Non-Run-Rate Items
Non-Run-Rate Items Non-run-rate items to us are items that, while they may recur from period to period, (1) are particularly material to results, (2) impact costs as a result of external market factors and (3) may not recur in future periods if the same level of underlying performance were to occur.
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures This information contains certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculate
Slide 5: Commonly Used or Defined Terms and Measures
Commonly Used or Defined Terms and Measures Term/Measure Description Adjusted EPS Reported net income per diluted share excluding non-run-rate items. Adjusted Net Income Reported net income excluding non-run-rate items. Annualized Quarterly Average Calculated as the four-quarter average for prior ye
Slide 6: 2024 Highlights
2024 Highlights Keith A. Harvey Chairman, President & Chief Executive Officer © Kaiser Aluminum All Rights Reserved 6
Slide 7: FY 2024 Highlights
FY 2024 Highlights Financial results met expectations in a highly complex and dynamic market environment • Second consecutive year of EBITDA margin expansion • Conversion Revenue consistent with record 2023 levels • FY 2024 EBITDA of $217 million; EBITDA margin of 14.9%, up ~60 basis points year-ove
Slide 8: 2024 Financial Recap
2024 Financial Recap Neal E. West Executive Vice President & Chief Financial Officer © Kaiser Aluminum All Rights Reserved 8
Slide 9: End Market Summary
End Market Summary Conversion Revenue Consistent with Record 2023 Shipments Levels Despite Modest Decline in Shipments 13 1,196 9 20 3 5 1,172 • Aero/HS reflects short-term disruptions in commercial aircraft OEMs, offset by strength of customer contracts, superior customer service and diverse portfo
Slide 10: Consolidated Financial Highlights
Consolidated Financial Highlights Quarterly Full Year (in $millions except Shipments & EPS) 4Q24 3Q24 2Q24 1Q24 4Q23 2024 2023 Shipments (in millions of lbs.) 292 292 297 291 284 1,172 1,196 Net Sales $765 $748 $773 $738 $722 $3,024 $3,087 Conversion Revenue $358 $362 $369 $367 $361 $1,456 $1,466 As
Slide 11: EBITDA & EBITDA Margin Summary
EBITDA & EBITDA Margin Summary Continued Year-over-Year EBITDA and EBITDA Margin Improvement in EBITDA and EBITDA Margin $millions EBITDA Margin • Maintained strength in Conversion Revenue despite challenging market dynamics $217 • Improved pricing along with favorable product mix $209 $210 $185 • M
Slide 12: 2025 Outlook Update
2025 Outlook Update Keith A. Harvey Chairman, President & Chief Executive Officer © Kaiser Aluminum All Rights Reserved 12
Slide 13: 2025 Outlook – Aero/HS
2025 Outlook – Aero/HS Aero/HS Conversion Revenue Aero/HS 2025 Outlook $millions Shipments in millions lbs. • Aero/HS shipments and Conversion Revenue expected $533 $530 to decline 5-7% year-over-year on near-term OEM $511 destocking $369 • Expect large commercial aircraft production rates to increa
Slide 14: 2025 Outlook – Packaging
2025 Outlook – Packaging Packaging Conversion Revenue Packaging 2025 Outlook $millions Shipments in millions lbs. • Packaging shipments to increase ~3-5% and $555 Conversion Revenue to increase by ~20-25% year- $503 $490 over-year $389 • Warrick roll coat line commissioning underway • Expect to begi
Slide 15: 2025 Outlook – General Engineering
2025 Outlook – General Engineering General Engineering Conversion Revenue General Engineering 2025 Outlook $millions Shipments in millions lbs. • GE shipments and Conversion Revenue to increase 5-10% year-over-year $367 • Improved pricing and product mix $305 $313 $297 • Highly dynamic market enviro
Slide 16: 2025 Outlook – Automotive Extrusions
2025 Outlook – Automotive Extrusions Automotive Extrusions Conversion Revenue Automotive Extrusions 2025 Outlook $millions Shipments in millions lbs. • Automotive Conversion Revenue to increase 3-5% year- over-year on ~5-7% lower shipments $120 • Favorable resets on existing and new customer contrac
Slide 17: FY 2025 Summary Outlook
FY 2025 Summary Outlook Kaiser remains well positioned for sustainable, long-term growth following the completion of a multi-year investment cycle • FY 2025 consolidated Conversion Revenue expected to increase 5-10% year-over-year • FY 2025 consolidated EBITDA margin expected to increase 50-100 basi
Slide 18: Appendix
Appendix © Kaiser Aluminum All Rights Reserved 18
Slide 19: Sales Analysis by Application - Quarterly
Sales Analysis by Application - Quarterly 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Shipments (lbs, mm) Aero/HS 36.1 40.8 42.1 42.6 45.5 48.3 38.0 54.7 58.2 63.9 64.2 68.0 62.9 62.2 59.5 60.6 Packaging - 185.9 173.6 182.2 174.7 179.8 147.5 153.3 153.7 163.3 154.
Slide 20: Sales Analysis by Application - Annual
Sales Analysis by Application - Annual 2019 2020 2021 2022 2023 2024 Shipments (lbs, mm) Aero/HS 273.6 173.3 161.6 186.5 254.3 245.2 Packaging - - 541.7 655.3 612.4 592.7 General Engineering 236.3 235.6 298.2 303.9 215.6 228.7 Automotive Extrusions 94.3 84.1 94.0 96.5 104.5 101.4 GOVERNANCE Other Ap
Slide 21: Reconciliation of Net Sales to Conversion Revenue - Quarterly
Reconciliation of Net Sales to Conversion Revenue - Quarterly 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Net Sales ($mm) Aero/HS $111.7 $133.9 $ 142.0 $ 146.1 $ 176.6 $ 175.4 $ 140.8 $ 183.3 $ 214.0 $ 225.1 $ 223.3 $ 236.9 $ 220.5 $ 226.1 $ 213.1 $ 223.3 Packagin
Slide 22: Reconciliation of Net Sales to Conversion Revenue - Annual
Reconciliation of Net Sales to Conversion Revenue - Annual 2019 2020 2021 2022 2023 2024 Net Sales ($mm) Aero/HS $ 803.2 $ 537.9 $ 533.7 $ 676.1 $ 899.3 $ 883.0 Packaging - - 1,119.3 1,585.3 1,315.2 1,260.9 General Engineering 480.1 458.8 706.1 883.8 596.5 618.1 Automotive Extrusions 190.5 161.4 225
Slide 23: Adjusted Net Income and EPS – Quarterly
Adjusted Net Income and EPS – Quarterly (in $ millions except EPS) GOVERNANCE 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Reported Net Income (Loss) $ 4.5 $(22.4) $ (2.3) $ 1.7 $ 8.1 $ (13.8) $ 2.5 $ (26.4) $ 15.9 $ 18.3 $ 5.4 $ 7.6 $ 24.6 $ 3.1 $ 12.0 $ 7.1 Opera
Slide 24: Adjusted Net Income and EPS – Annual
Adjusted Net Income and EPS – Annual GOVERNANCE (in $ millions except EPS) 2019 2020 2021 2022 2023 2024 Reported Net Income (Loss) $ 62.0 $ 28.8 $ (18.5) $ (29.6) $ 47.2 $ 46.8 Operating NRR Items 34.5 18.1 28.9 31.0 5.3 12.4 Non-Operating NRR Items 26.9 4.7 38.1 (4.6) (9.0) (19.6) Tax impact of ab
Slide 25: Reconciliation of Reported Net Income to Adjusted EBITDA - Quarterly
Reconciliation of Reported Net Income to Adjusted EBITDA - Quarterly (in $ millions) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Consolidated - Reported Net Income (Loss) $ 4.5 $ (22.4) $ (2.3) $ 1.7 $ 8.1 $ (13.8) $ 2.5 $ (26.4) $ 15.9 $ 18.3 $ 5.4 $ 7.6 $ 24.6 $
Slide 26: Reconciliation of Reported Net Income to Adjusted EBITDA - Annual
Reconciliation of Reported Net Income to Adjusted EBITDA - Annual (in $ millions) 2019 2020 2021 2022 2023 2024 Consolidated - Reported Net Income (Loss) $ 62.0 $ 28.8 $ (18.5) $ (29.6) $ 47.2 $ 46.8 Interest Expense 24.6 40.9 49.5 48.3 46.9 43.7 Other Expense (Income) 20.7 1.4 38.9 (6.4) (7.4) (19.
Slide 27: Thank You
Thank You kaiseraluminum.com © Kaiser Aluminum All Rights Reserved