Century Aluminum Company (CENX) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a sharp rebound in profitability, with net income attributable to stockholders at $47.3 million, reversing prior losses, and adjusted EBITDA reaching $104 million, driven by higher LME prices, expanded Section 45X tax credits, and stable operations.

• Jamalco acquisition contributed a $245.9 million bargain purchase gain and enhanced supply stability, with operations fully restored after Hurricane Beryl.

• Section 45X tax credits provided significant cost reductions, with $34.9 million recognized in Q3 and $133 million receivable at quarter-end.

• Market conditions for aluminum and alumina remain favorable, with global inventories at multi-year lows and demand growth outpacing supply.

• U.S. smelters operated at or near capacity, while Grundartangi in Iceland faced power curtailments due to low reservoir levels.

Financial highlights

• Q3 2024 net sales were $539.1 million, down sequentially due to lower third-party alumina sales, partially offset by higher realized LME prices and premiums.

• Adjusted EBITDA was $104 million, up $70 million sequentially, and adjusted net income was $60 million, or $0.63 per share.

• Q3 2024 aluminum shipments were approximately 169,000 tonnes, slightly higher than the previous quarter.

• Liquidity at quarter-end was $279 million, including $33 million in cash and $246 million in available credit.

• Gross profit for Q3 was $81.8 million, up from $20.4 million in Q2.

Outlook and guidance

• Q4 2024 adjusted EBITDA is expected between $70–$80 million, with lower LME and regional premium prices but stable power costs.

• Spot aluminum prices above $2,600/ton could add $100 million in annualized EBITDA starting Q1 2025.

• Full-year 2024 aluminum shipments are forecast at 685,000 tonnes; sustaining capex expected at $10–$15 million for the remainder of 2024.