Century Aluminum Company · NASDAQ:CENX
Century Aluminum — Q4 2024 Earnings Presentation
25 slides from Century Aluminum's earnings presentation, Feb 20, 2025
Slide 1: Century Aluminum Company 4th Quarter Earnings Call
Century Aluminum Company 4th Quarter Earnings Call February 20, 2025
Slide 2: Cautionary Statement
Cautionary Statement Certain statements in this presentation, and those made by Century Aluminum Company management on the quarterly conference call, relate to future events and expectations and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 19
Slide 3: Speakers
Speakers • Jesse Gary – President and Chief Executive Officer • Jerry Bialek – Executive Vice President and Chief Financial Officer • Peter Trpkovski – Senior Vice President, Finance and Treasurer 2
Slide 4: Company and Market Update
Company and Market Update • Aluminum prices continued upward move in Q4 on tighter global balances Industry • Alumina supply remained tight, but disruptions are easing in 2025 with spot prices nearing $500/mt Fundamentals • Global aluminum inventory levels continue to stay near historical lows • Low
Slide 5: Industry Environment: LME, Regional Premiums, Power and Alumina Prices
LME $/MT Regional Premiums $/MT - 1,400 1,600 1,800 2,000 2,200 2,400 2,600 3,000 3,200 3,400 2,800 100 200 300 400 500 600 700 800 900 Q121 Q121 Q221 Q221 Q321 Q321 Q421 Q421 LME Aluminum Q122 Q122 Q222 Q222 Regional Premiums Q322 Q322 Q422 Q422 Q123 MWP Q123 Q223 Q223 Q323 Q323 1) Q423 Q423 EDPP Q
Slide 6: Industry Environment: Aluminum Supply and Demand Balance
Industry Environment Aluminum Supply and Demand Balance – FY25 Primary Aluminum Balance – US and EU - Primary Aluminum Balance (MT in MM's) 73.6 74.2 (1.0) 45.3 45.4 Primary Aluminum (MT in MM's) (2.0) 28.2 28.7 (2.3) (3.0) (2.9) (3.0) (3.0) (2.9) (3.1) (3.1) (0.1) (0.5) (0.6) (4.0) (3.5) (3.5) (4.0
Slide 7: Industry Environment: Smelter and Refinery Input Prices
Industry Environment Indy Hub $/MWh Coke $/MT $70 Smelter Input Prices $701 $41 $558 $40 $33 $438 $425 $31 $392 $27 $23 $287 $242 2019 2020 2021 2022 2023 2024 Spot 2019 2020 2021 2022 2023 2024 Spot Caustic $/MT HFO $/bbl $824 $85 $71 Refinery Input Prices $68 $70 $57 $58 $505 $418 $405 $384 $380 $
Slide 8: Summary of Financial Results
Summary of Financial Results ($MM, except per share and tonne amounts) Q324 Q424 FY23 FY24 Income statement Shipments (tonnes) 168,755 166,677 700,680 677,967 Net sales $ 539 $ 631 $ 2,185 $ 2,220 Net income/(loss) 47 48 (43) 339 Earnings/(loss) per share 0.46 0.47 (0.47) 3.29 Adjusted net income/(l
Slide 9: Financial Results: Q324 to Q424 Adjusted EBITDA
Financial Results Q324 to Q424 Adjusted EBITDA ($MM) 104 12 (3) 82 4 2 (5) 73 (31) Q324 IRA 45X Normalized LME / Energy FM Raw OPEX / Q424 EBITDA1 1x True-Up 2 Q324 EBITDA Delivery Prem. Settlement 3 Materials Other EBITDA1 1) See reconciliation to comparable GAAP financial measure in appendix 2) Ca
Slide 10: Financial Results: Q324 to Q424 Cash Flow
Financial Results Q324 to Q424 Cash Flow ($MM) 42 82 (53) (13) (14) (12) (9) 33 33 (21) Q324 Cash Adj. Net WC / Capex Interest FM Taxes 45X Q424 Cash 1 2 EBITDA Borrowing Other Settlement Receivable 1) See reconciliation to comparable GAAP financial measure in appendix 2) Payment expected in FY25 fr
Slide 11: Q1 Outlook at Realized Prices
Q1 Outlook at Realized Prices Adjusted EBITDA1 GUIDE Q4 Actual Adjusted EBITDA Attributable to Century $82 LME / Delivery Premiums $35 – $40 LME $2,575/MT US Midwest Premium $600/MT European Duty Paid Premium $345/MT Energy ~$(15) Indy Hub $43/MWh HFO $65/bbl Henry Hub $3.60/mmbtu Raw Materials ~$(5
Slide 12: 2025 Financial Assumptions
2025 Financial Assumptions Income Statement ($MM) FY24 FY25 Cash Flow ($MM) FY24 FY25 Aluminum shipments (kMT) 678 700 Sustaining Capex1 $19 $45-50 Investment Capex2 $50 $25-30 D&A $82 $85-90 SGA $44 $40-45 SGA $57 $45-50 Interest $36 $40-45 Interest Expense $43 $40-45 Varies based Hedge Settlements
Slide 13: Section 232 Tariffs Benefit U.S. Production
Section 232 Tariffs Benefit U.S. Production • Tariffs support investment in U.S. production and American jobs • Reliable domestic supply to U.S. customers • Century evaluating locations in Mississippi/Ohio River Basins for new U.S. aluminum smelter Aluminum Smelter Norðurál Grundartangi Corporate Ic
Slide 14: Appendix
Appendix
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted net income (loss), adjusted earnings (loss) per share, adjusted EBITDA and net debt are non-GAAP financial measures that management uses to evaluate Century's financial performance. These non-GAAP financial measures facilitate comparisons of this period’s results
Slide 16: Adjusted Net (Loss) Income Attributable to Century Non-GAAP Reconciliation
Adjusted Net (Loss) Income Attributable to Century Non-GAAP Reconciliation Q324 Q424 $MM EPS $MM EPS Net income attributable to Century stockholders $ 47.3 $ 0.51 $ 47.7 $ 0.51 Less: net income allocated to participating securities 2.5 0.03 2.5 0.03 Net income allocated to common stockholders 44.8 0
Slide 17: Financial Hedge Landscape
Financial Hedge Landscape Volume (unit) / % Hedged / Price/unit1 Commodity (unit) FY25 Q2-Q4 FY26 Volume % Hedged Price Volume % Hedged Price LME (MT) 22,000 4% $ 2,650 4,000 1% $ 2,610 MWP (MT) 22,000 8% $ 490 4,000 1% $ 525 Indiana Hub (MWh) 406,000 16% $ 44 68,000 2% $ 45 HFO (bbls)2 225,000 39%
Slide 18: 2025 Financial Information
2025 Financial Information Sensitivities ($MM) Variance Annual EBITDA7 Pricing Convention LME +/- $100/MT $ 46 U.S.:50% ~1 month lag / 50% ~3 month lag LME MWP 1 +/- $22.04/MT 9 Iceland: primarily ~3 month lag MWP ~1 month lag EDPP2 +/- $22.04/MT 7 EDPP ~3 month lag Alumina Price Index +/- $10/MT -
Slide 19: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation $MM Q324 Q424 Net income attributable to Century stockholders $ 47.3 $ 47.7 Add: Net (loss) attributable to noncontrolling interests (5.0) (4.8) Net income 42.3 42.9 Interest expense 11.9 11.7 Interest income (0.4) (0.3) Net loss (gain) on forward and derivati
Slide 20: Capacity and Production Information
Capacity and Production Information Aluminum facilities (kMT) Plant Country Capacity % Operating Sebree U.S. 220 100 Hawesville U.S. 250 0 Mt. Holly U.S. 230 75 Grundartangi Iceland 320 100 Total 1,020 70 Carbon anode facility (kMT) Plant Country Capacity % Operating Vlissingen Netherlands 150 100 T
Slide 21: Value-Added Products
Value-Added Products Value-added products capacity (kMT) FY24 FY25 Sebree – Billet/Slab 175 175 Mt. Holly – Billet/Slab 120 120 Grundartangi – Natur-Al TM Foundry Alloy 120 120 Grundartangi – Natur-Al TM Billet 150 150 Total 565 565 20
Slide 22: Capital Allocation
Capital Allocation Capital Allocation Framework Current Status Update • $250-$300MM liquidity Q424 Target Maintain Liquidity Through the target Investment Cycle Capital Liquidity $245 $250-300 • $300MM net debt target Projects Net Debt $497 $300 Sustaining Capital • $45-50 MM in historical Projects1
Slide 23: New Century Aluminum Smelter Project
New Century Aluminum Smelter Project Investing in the future of U.S. aluminum production with first primary smelter in 50 years, doubling the size of the domestic industry • The U.S primary aluminum • Under award with the U.S. • Multiphase planning / market is short ~4.2 million Department of Energy
Slide 24: Natur-Al products are made with energy from 100% renewable sources
“Natur‐Al products are made with energy from 100% renewable sources” 23
Slide 25: For Additional Information
For Additional Information Ryan Crawford investorrelations@centuryaluminum.com 312-696-3132 (Office) Century Aluminum Company One South Wacker Dr, Suite 1000 Chicago, IL 60606 312-696-3102 (Fax) www.centuryaluminum.com 24
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