Kaiser Aluminum Q2 sales and adjusted net income beat estimates;  FY outlook raised

Overview

• U.S. specialty aluminum producer's Q2 sales and adjusted net income beat analyst expectations

• Company raised full-year outlook on strong demand, pricing and improved product mix

• Quarterly dividend declared and net debt leverage ratio improved to 2.1x

Outlook

• Kaiser Aluminum now expects 2026 Conversion Revenue at the high end of 10%-15% y/y growth

• Company raises 2026 Adjusted EBITDA outlook to 45%-55% y/y growth

• Company outlook assumes neutral metal price lag for the rest of 2026

Result Drivers

• PACKAGING MIX - Higher-value packaging mix and strong pricing in packaging drove conversion revenue growth

• AEROSPACE DEMAND - Improving aerospace demand and easing destocking supported shipment growth

• METAL PRICE LAG - Favorable metal price lag provided a tailwind to earnings

Company press release: ID:nBw6GJPlNa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the aluminum peer group is "buy."

• Wall Street's median 12-month price target for Kaiser Aluminum Corp is $179.00, about 8.9% above its July 21 closing price of $164.37

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• July 22 - Norsk Hydro tops Q2 profit view as higher prices offset Qatar hit

• July 20 - Trump says he signed proclamation to adjust tariffs on aluminum imports

• July 20 - Crown Holdings beats Q2 revenue on beverage can growth, raises FY adjusted diluted EPS guidance

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)