Century Aluminum Company (CENX) Q4 2024 earnings summary

Executive summary

• Achieved strong 2024 results with Adjusted EBITDA of $245.2 million and net income of $339.4 million, driven by high aluminum prices, low energy costs, and a $245.9 million bargain purchase gain from the Jamalco acquisition.

• Q4 2024 net sales reached $631 million, with Adjusted EBITDA of $82 million and net income of $47.7 million.

• Section 232 tariffs will increase to 25% effective March 12, 2025, supporting U.S. profitability and new smelter investment.

• New U.S. smelter project is advancing, with engineering phase completed, site selection underway, and a $500 million DOE grant awarded.

• Jamalco refinery achieved targeted output, implemented a 5% workforce reduction, and recovered from Hurricane Beryl.

Financial highlights

• Q4 net sales were $631 million, up 17% sequentially, driven by higher alumina sales, aluminum prices, and regional premiums.

• Q4 Adjusted EBITDA was $82 million; full-year 2024 Adjusted EBITDA totaled $245.2 million.

• Q4 net income was $47.7 million (EPS $0.47); full-year net income was $339.4 million (EPS $3.29); adjusted net income for Q4 was $45.9 million (EPS $0.49); full-year adjusted net income was $104 million (EPS $1.11).

• Liquidity at year-end was $245 million, including $33 million in cash and $212 million in credit facilities.

• Net debt increased to $497 million at year-end.

Outlook and guidance

• Q1 2025 Adjusted EBITDA is expected between $75 million and $85 million, with Midwest Premium increases to impact results mainly in Q2.

• Full-year 2025 shipments projected at 700,000 tons as all plants reach targeted utilization.

• Sustaining CapEx for 2025 estimated at $45–$50 million, with an additional $25–$30 million for efficiency projects.

• Tax expense expected to decrease to $5 million in FY25.

• Each $0.01 increase in Midwest Premium adds $9 million annualized EBITDA; recent $0.20 increase implies significant upside.