Kaiser Aluminum Corporation

Second-quarter 2026 conversion revenue was $437 million, up approximately $63 million or 17% year over year. Reported operating income was $134 million versus $38 million last year, and adjusted operating income was $137 million versus $38 million. Reported net income was $97 million, or $5.72 per diluted share, compared with $23 million, or $1.41 per diluted share; adjusted net income was $94 million, or $5.53 per diluted share, versus $20 million, or $1.21 per diluted share. Adjusted EBITDA was approximately $166 million, up $99 million year over year. For 2026, management now expects conversion revenue growth to finish near the high end of the previously communicated 10% to 15% range, EBITDA to increase 45% to 55% year over year, free cash flow to be $150 million to $175 million, capital expenditures to be $120 million to $130 million, and the effective tax rate before discrete items to remain in the mid-20% range.

Keith Harvey struck a notably upbeat tone, saying the quarter showed continued strengthening demand across key end markets and that the recovery had become broader and stronger than expected. He emphasized that Kaiser’s prior investments across Trentwood, Warrick, and other operations were designed for exactly this type of environment, and said the company is now seeing benefits in utilization, throughput, and pricing. He also framed the back half more cautiously on metal and seasonality, but stressed that the underlying business trajectory is better than anticipated and that long-term earnings power has increased.

Neal West focused on the financial bridge behind the quarter: $437 million in conversion revenue, $134 million in reported operating income, and $166 million in adjusted EBITDA. He said the EBITDA increase was driven by $41 million of higher pricing, shipments, and mix, plus $58 million of metal-related tailwinds, including a $27 million total metal lag gain; he also noted higher shipping and employee-related costs. On cash and capital allocation, he said free cash flow was $35 million in the quarter, full-year free cash flow is now expected at $150 million to $175 million, capex is still expected at $120 million to $130 million, cash was about $59 million with $570 million of revolver availability, and leverage improved to 2.1x from 3.4x at year-end. He also highlighted the quarterly dividend of $0.77 per share and no debt maturities until 2030.

Analysts pressed management on what drove the earnings beat beyond metal lag, and Keith said the upside was broad-based, with particularly strong general engineering demand, solid aerospace recovery, strong packaging demand, and better-than-expected automotive demand. On the second-half guide, he explained that the company is assuming metal tailwinds normalize, shipping days are lower, and planned maintenance and higher spending ramp up, which should pressure year-over-year EBITDA even though underlying demand remains strong. Questions on Warrick centered on quality and ramp progress; Keith said throughput and qualifications improved in the quarter, delivery performance is rising from low levels, and the strategy is working, though some equipment issues remain. When asked whether packaging conversion revenue can keep improving, he said there was no reason to think it would not continue to improve.