Century Aluminum Company

Consolidated second-quarter shipments were approximately 131 thousand tons, up 6% sequentially. Net sales were $752 million, up $103 million sequentially. Net income was $249 million, or $2.39 per share; adjusted net income was $257 million, or $2.46 per share. Adjusted EBITDA was $327 million, up $96 million sequentially. The company ended June with $388 million in cash, repaid $66 million of debt in the quarter, and had no outstanding borrowings on its credit facilities at quarter-end; by the end of July, cash exceeded total debt. For Q3, management expects realized LME of $3.33 thousand per ton, U.S. Midwest premium of $1.09 per pound, and European duty paid premium of about $520 per ton. Q3 adjusted EBITDA is expected to be $325 million to $345 million, with a $20 million to $25 million hedge settlement headwind and $10 million to $15 million of tax expense also flowing through adjusted EPS.

Jesse E. Gary emphasized execution, saying Century achieved its goal of having all assets running at full capacity by the end of July. He framed Mt. Holly and Grundartangi as major operational wins that restore meaningful U.S. and European tons into what he described as a very tight market, and highlighted strong market conditions driven by industrial demand, aerospace, defense, and reshoring. He was also upbeat on the Oklahoma smelter, the Hawesville monetization potential, and the new U.S. policy support for domestic aluminum investment.

Peter A. Trpkovski focused on the financial lift from higher volumes and pricing, noting that the quarter benefited from higher realized LME and regional premiums as well as increased shipments. He said cash generation was strong, cash ended June at $388 million, and the company repaid $66 million of debt, leaving no revolver borrowings and net debt of $98 million at quarter-end; in July, Century received $94 million of 45X tax credit cash and $19 million of insurance recoveries. He also outlined Q3 bridge items: a $5 million to $10 million EBITDA benefit from pricing, $10 million to $15 million of energy headwinds, a $5 million raw-material headwind, flat OpEx, and $15 million to $25 million of volume/mix upside, leading to Q3 EBITDA guidance of $325 million to $345 million.

Analysts pressed management on the new executive order, asking how Century would source metal and how much the tariff benefit could be worth; Jesse said Commerce rules are still pending, but suggested a simple way to think about it is the 25% versus 50% tariff difference applied to roughly 300 thousand metric tons of Century’s share, with the benefit flowing through both EBITDA and cash flow. Questions also focused on Oklahoma financing and the DOE grant, with management saying the $500 million grant is secured subject to milestones and that multiple financing sources, including government sources, are being explored. On Mt. Holly and Grundartangi, management said Mt. Holly is not expected to be eligible for the new import program because it is already complete, while Grundartangi’s transformer work in Q4 should not interrupt production.