Kaiser Aluminum (KALU) Q1 2026 earnings summary

Executive summary

• Achieved record first quarter results with net sales of $1.1 billion and conversion revenue of $404 million, driven by higher shipments, improved pricing, and strong demand in packaging and aerospace.

• Net income reached $63 million ($3.71 per diluted share); adjusted net income was $63 million ($3.74 per diluted share).

• Adjusted EBITDA rose to $129 million, with a margin of 31.8% on conversion revenue, reflecting operational gains and favorable metal price lag.

• Recently completed investments are nearing capacity, supporting growth in General Engineering and Aerospace plate segments.

• Full-year outlook raised due to rapid improvement in demand, pricing, and operational execution.

Financial highlights

• Net sales increased 42% year-over-year to $1.1 billion, with shipments up 7% to 294 million lbs.

• Conversion revenue for Q1 2026 was $404 million, up 11% year-over-year.

• Adjusted EBITDA was $129 million, up $55 million year-over-year, with EBITDA margin improving to 31.8%.

• Free cash flow was $69 million for the quarter, with total liquidity at $596 million as of March 31, 2026.

• Cash flow from operations was $87.9 million; capital expenditures were $19 million in Q1.

Outlook and guidance

• Full-year 2026 conversion revenue expected to rise 10–15%; adjusted EBITDA outlook raised to 20–30% growth year-over-year.

• Aerospace and high strength shipments projected to grow 15–20%, with conversion revenue up 10–15%.

• Packaging shipments expected to grow 10–15%, with conversion revenue up 20–25%.

• General engineering shipments and conversion revenue both forecasted to increase 5–10%.

• Automotive shipments and conversion revenue expected to be flat to down 5% for the year.

• Full-year free cash flow guidance set at $140–$150 million; capital expenditures expected at $120–$130 million.