Kaiser Aluminum Corporation · NASDAQ:KALU

Kaiser Aluminum — Q1 2025 Earnings Presentation

27 slides from Kaiser Aluminum's earnings presentation, Apr 24, 2025

  1. Slide 1: First Quarter 2025 Earnings Conference Call

    First Quarter 2025 Earnings Conference Call April 24, 2025 © Kaiser Aluminum All Rights Reserved

  2. 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

  3. 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.

  4. 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

  5. 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

  6. Slide 6: 2025 Q1 Highlights

    2025 Q1 Highlights Keith A. Harvey Chairman, President & Chief Executive Officer © Kaiser Aluminum All Rights Reserved 6

  7. Slide 7: Q1 2025 Highlights

    Q1 2025 Highlights Strong 1Q 2025 Financial Results; Raising Full Year Expectations • 1Q 2025 EBITDA of $73 million, up 35% year-over-year • Operations and end market performance met expectations • Positive tailwind from rapid metal price changes through the quarter • Continuing focus on optimizing

  8. Slide 8: 2025 Q1 Financial Recap

    2025 Q1 Financial Recap Neal E. West Executive Vice President & Chief Financial Officer © Kaiser Aluminum All Rights Reserved 8

  9. Slide 9: End Market Summary

    End Market Summary Shipments Conversion Revenue In-line with Expectations 291 7 7 12 3 276 • Aero/HS reflects short-term disruptions in commercial aircraft OEM supply chains; strength in business jet, defense and space applications (10%) (9%) +12% (9%) continues 1Q24 Aero/HS Packaging General Automo

  10. Slide 10: Consolidated Financial Highlights

    Consolidated Financial Highlights Quarterly Full Year (in $millions except Shipments & EPS) 1Q25 4Q24 3Q24 2Q24 1Q24 LTM 2024 Shipments (in millions of lbs.) 276 292 292 297 291 1,157 1,172 Net Sales $777 $765 $748 $773 $738 $3,064 $3,024 Conversion Revenue $363 $358 $362 $369 $367 $1,453 $1,456 As

  11. Slide 11: EBITDA & EBITDA Margin Summary

    EBITDA & EBITDA Margin Summary Continued Improvement EBITDA and EBITDA Margin Towards EBITDA and EBITDA Margin Goals $millions EBITDA Margin • Key drivers include improved pricing and favorable product mix $74 $73 • Positive benefit from metal tailwinds $67 • Ongoing focus on improving operating eff

  12. Slide 12: 2025 Outlook Update

    2025 Outlook Update Keith A. Harvey Chairman, President & Chief Executive Officer © Kaiser Aluminum All Rights Reserved 12

  13. 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 to decline 5-7% year-over-year on near- $533 $530 $511 $514 term OEM supply chain disruption $369 • Aircraft production ramping as expected

  14. Slide 14: 2025 Outlook – Packaging

    2025 Outlook – Packaging Packaging Conversion Revenue Packaging 2025 Outlook • Packaging shipments to increase ~3-5% and $millions Shipments in millions lbs. Conversion Revenue to increase by ~20-25% year- $555 over-year $503 $490 $499 • Warrick roll coat line commissioning underway $389 followed by

  15. Slide 15: 2025 Outlook – General Engineering

    2025 Outlook – General Engineering General Engineering & Other Applications1 Conversion Revenue General Engineering 2025 Outlook • GE shipments and Conversion Revenue to increase $millions Shipments in millions lbs. 5-10% year-over-year $376 • Trade policy uncertainty driving stronger demand $311 $3

  16. 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 • Differentiated, end market applications mainly serve $

  17. Slide 17: FY 2025 Summary Outlook

    FY 2025 Summary Outlook Well-positioned to deliver enhanced growth following the largest investment cycle in Company history • FY 2025 consolidated Conversion Revenue expected to increase 5-10% year-over-year • FY 2025 consolidated EBITDA expected to increase 5-10% year-over-year; raising full year

  18. Slide 18: Appendix

    Appendix © Kaiser Aluminum All Rights Reserved 18

  19. Slide 19: Sales Analysis by Application – Quarterly

    Sales Analysis by Application – Quarterly 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Shipments (lbs, mm) Aero/HS 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 56.3 Packaging 185.9 173.6 182.2 174.7 179.8 147.5 153.3 153.7 163.3 154.4

  20. Slide 20: Sales Analysis by Application – Annual

    Sales Analysis by Application – Annual 2019 2020 2021 2022 2023 2024 LTM Shipments (lbs, mm) Aero/HS 273.6 173.3 161.6 186.5 254.3 245.2 238.6 Packaging - - 541.7 655.3 612.4 592.7 580.5 General Engineering¹ 236.3 235.6 298.2 303.9 215.6 228.7 238.9 Automotive Extrusions 94.3 84.1 94.0 96.5 104.5 10

  21. Slide 21: Reconciliation of Net Sales to Conversion Revenue – Quarterly

    Reconciliation of Net Sales to Conversion Revenue – Quarterly 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Net Sales ($mm) Aero/HS $ 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 $ 214.7 Packag

  22. Slide 22: Reconciliation of Net Sales to Conversion Revenue – Annual

    Reconciliation of Net Sales to Conversion Revenue – Annual 2019 2020 2021 2022 2023 2024 LTM Net Sales ($mm) Aero/HS $ 803.2 $ 537.9 $ 533.7 $ 676.1 $ 899.3 $ 883.0 $ 877.2 Packaging - - 1,119.3 1,585.3 1,315.2 1,260.9 1,277.0 General Engineering¹ 480.1 458.8 706.1 883.8 596.5 618.1 654.4 Automotive

  23. Slide 23: Adjusted Net Income and EPS – Quarterly

    Adjusted Net Income and EPS – Quarterly (in $ millions except EPS) GOVERNANCE 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q231 2Q231 3Q231 4Q231 1Q241 2Q241 3Q241 4Q241 1Q25 Reported Net Income (Loss) $(22.4) $ (2.3) $ 1.7 $ 8.1 $ (13.8) $ 2.5 $ (26.4) $ 40.7 $ 21.8 $ (3.1) $ 8.4 $ 18.2 $ 18.9 $ 8.8 $ 19.8

  24. Slide 24: Adjusted Net Income and EPS – Annual

    Adjusted Net Income and EPS – Annual (in $ millions except EPS) GOVERNANCE 2019 2020 2021 2022 20231 20241 LTM Reported Net Income (Loss) $ 62.0 $ 28.8 $ (18.5) $ (29.6) $ 67.8 $ 65.7 $ 69.1 Operating NRR Items 34.5 18.1 28.9 31.0 5.2 12.4 13.5 Non-Operating NRR Items 26.9 4.7 38.1 (4.6) (8.9) (19.6

  25. Slide 25: Reconciliation of Reported Net Income to Adjusted EBITDA – Quarterly

    Reconciliation of Reported Net Income to Adjusted EBITDA – Quarterly (in $ millions) 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q231 2Q231 3Q231 4Q231 1Q241 2Q241 3Q241 4Q241 1Q25 Consolidated - Reported Net Income (Loss) $ (22.4) $ (2.3) $ 1.7 $ 8.1 $ (13.8) $ 2.5 $ (26.4) $ 40.7 $ 21.8 $ (3.1) $ 8.4 $ 18

  26. 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 20231 20241 LTM Consolidated - Reported Net Income (Loss) $ 62.0 $ 28.8 $ (18.5) $ (29.6) $ 67.8 $ 65.7 $ 69.1 Interest Expense 24.6 40.9 49.5 48.3 46.9 43.7 43.4 Other Expense (Income) 20.7 1.4 38.

  27. Slide 27: Thank You

    Thank You kaiseraluminum.com © Kaiser Aluminum All Rights Reserved

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