Kaiser Aluminum (KALU) investor relations material

Executive summary

• Achieved record second quarter results with net sales of $1.26 billion, driven by strong demand, favorable pricing, and increased shipment volumes across key end markets.

• Adjusted EBITDA reached $166 million with a 38.1% margin, reflecting operational execution and strategic investments at key facilities.

• Net income for Q2 2026 was $97 million, with diluted EPS of $5.72, up significantly year-over-year.

• Demand exceeded expectations in most key end markets, with bookings extending well into 2027.

• Quarterly dividend of $0.77 declared, and net debt leverage ratio improved to 2.1x.

Financial highlights

• Net sales increased 53% year-over-year to $1.26 billion, with shipments up 6% to 306 million lbs.

• Conversion revenue rose 17% to $437 million, and adjusted EBITDA was $166 million, up from $68 million in the prior year.

• Adjusted net income was $94 million ($5.53/share), up from $20 million ($1.21/share) prior year.

• Free cash flow for Q2 was $35 million; full-year guidance is $150–$175 million.

• Cash provided by operating activities for the first half was $147 million, funding working capital, capex, interest, and dividends.

Outlook and guidance

• Full-year 2026 Conversion Revenue expected at the high end of 10–15% year-over-year growth.

• Adjusted EBITDA outlook raised to 45–55% year-over-year growth, assuming neutral metal price lag for the remainder of the year.

• Free cash flow forecast increased to $150M-$175M; capital expenditures maintained at $120M-$130M.

• Outlook reflects continued strong demand, favorable pricing, and improved mix in Packaging.

• Second half to reflect normalized metal-related contributions, higher planned spending, and seasonal factors.