Kaiser Aluminum (KALU) investor relations material

Executive summary

• Q3 net sales were $1,214.5M and Conversion Revenue was $439.1M, up 25% YoY; shipments rose 11% to 300.2M lbs on higher realized prices and volume.

• Adjusted EBITDA increased to $84.0M from $81.3M despite metal price lag, planned outages and execution challenges.

• Customer visibility improved, with discussions increasingly focused on long-term supply and capacity needs for 2027 and beyond.

Financial highlights

• Q3 operating income was $55.2M versus $48.8M; net income was $31.0M versus $39.5M, and diluted EPS was $1.84 versus $2.38.

• Adjusted operating income was $56M versus $49M; adjusted net income was $31.9M versus $31.0M, and adjusted diluted EPS was $1.89 versus $1.86.

• Adjusted EBITDA was $84.0M versus $81.3M, with a 19.1% margin; a $29M unfavorable YoY metal price lag swing offset operational improvement.

• Nine-month net sales were $3,577.9M; operating income was $286.7M, net income $190.3M and Adjusted EBITDA $378.8M.

Outlook and guidance

• FY26 Adjusted EBITDA growth guidance remains 45%–55% YoY, with results expected toward the low end due to outages, execution, inventory timing and metal headwinds.

• FY26 Conversion Revenue growth is expected near the high end of the 10%–15% range.

• FY26 free cash flow is expected to exceed $200M; capital expenditures are forecast at ~$130M.

• Packaging shipment growth outlook was revised to 5%–10% from 10%–15%; automotive shipment outlook changed to a 5%–10% decline from a 0%–5% decline.