NASDAQ$KALU

Kaiser Aluminum Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported better-than-anticipated results due to focused execution, pricing traction, and favorable demand trends in key markets.

Kaiser Aluminum Corporation reported first quarter results with net sales of $808 million and net income of $16 million, or $0.99 per diluted share. The company's performance was driven by strengthening aerospace demand and a strong market position, which helped offset destocking in the packaging market. The company remains focused on cost reductions, improving manufacturing efficiencies, and commercial actions to improve margins.

  • Net sales reached $808 million with conversion revenue of $369 million.
  • Net income was reported at $16 million, translating to $0.99 per diluted share.
  • Adjusted EBITDA stood at $47 million with a margin of 12.7%.
  • Aerospace demand continued to strengthen, leading to shipments and conversion revenue exceeding expectations.

Headline financials

Total Revenue

$808M

Previous: $949M-14.9%
EPS (adj)

$0.42

Previous: $0.66-36.4%
Adjusted EBITDA

$47M

No prior period
Adjusted EBITDA Margin

12.7%

Previous: 14.8%-14.2%
Free Cash Flow

$15.9M

Previous: $8.1M+96.3%
Net Income

$15.9M

Previous: $8.1M+96.3%
Operating Income

$19.1M

Previous: $25.2M-24.2%
Gross Profit

$76.5M

Previous: $82.9M-7.7%
Cash & Equivalents

$31.5M

Previous: $261M-87.9%
Total Assets

$2.33B

Previous: $2.54B-8.3%
Stock-Based Comp

$3.4M

Previous: $4M-15.0%

Revenue & EPS history

Kaiser Aluminum · Revenue · Quarterly

$808M

Q1 2023-14.9%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Kaiser Aluminum · $164M total across 2 segments · Q1 2023

  • Packaging
    $133M
  • Automotive Extrusions
    $31M+29.2%

Forward guidance

The Company expects its consolidated adjusted EBITDA margin in the second quarter 2023 to be flat to slightly higher compared to the first quarter 2023. The Company remains cautiously optimistic its consolidated adjusted EBITDA and adjusted EBITDA margin will continue to strengthen in 2023 as it pursues cost reductions in its operations, improves manufacturing efficiencies and continues commercial actions to improve pricing.

Tailwinds

  • Commercial aerospace demand is expected to continue strengthening towards pre-pandemic levels.
  • Business jet, defense, and space sectors are expected to remain strong.
  • The company is focused on cost reductions in its operations.
  • Improvements in manufacturing efficiencies are expected.
  • Commercial actions are being taken to improve pricing.

Headwinds

  • Continued destocking is expected in the packaging market.
  • Lingering impacts from higher metal input costs are anticipated.
  • There is a lag in passing through certain costs.
  • General engineering demand is expected to be similar to the first quarter 2023 with some softening for plate resulting from the reduced demand for semiconductors and for rod and bar products due to destocking.
  • A meaningful recovery in the automotive market is not expected until mid-to late 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.4%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-1.2%

Avg return

30 days after

46%

32 / 69 earnings

Positive

+19.4%

Q3 2025

Best reaction

-19.7%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%+6.0%+7.6%
Q4 2025-9.0%-7.8%-23.2%
Q3 2025+19.4%+20.1%+17.8%
Q2 2025-0.3%-1.2%+1.3%
Q1 2025+5.9%+9.7%+18.6%
Q4 2024+4.9%-0.7%-7.1%
Q3 2024-5.9%+6.3%+14.1%
Q2 2024-19.7%-21.3%-23.6%
Q1 2024-1.3%+6.2%+6.8%
Q4 2023+7.4%+9.6%+23.4%
Q3 2023-10.0%-12.1%-7.2%
Q2 2023+5.2%-0.2%-8.4%
Q1 2023+12.1%+10.9%+10.6%
Q4 2022-7.4%-10.3%-17.3%
Q3 2022+10.2%+11.8%+28.8%
Q2 2022+2.9%+6.0%+8.7%
Q1 2022-1.7%-8.8%-5.5%
Q4 2021-7.2%-5.7%-5.8%
Q3 2021-9.1%-13.0%-10.3%
Q2 2021-2.4%+6.2%+6.7%
Q1 2021+0.5%+5.3%+8.1%
Q4 2020-1.3%+1.5%-5.0%
Q3 2020-0.1%-2.7%+16.7%
Q2 2020-4.4%-5.7%-9.9%
Q1 2020-3.4%-5.2%-11.9%
Q4 2019+3.2%+0.2%-46.7%
Q3 2019+2.2%+10.2%+8.8%
Q2 2019+0.2%+1.2%-9.6%
Q1 2019-6.0%-7.2%-13.6%
Q4 2018+2.6%+4.6%-3.5%
Q3 2018-9.6%-7.1%-9.5%
Q2 2018+3.6%+2.6%+0.2%
Q1 2018+0.4%-1.4%+8.7%
Q4 2017-2.0%-0.5%-5.6%
Q3 2017-3.3%-3.9%-8.0%
Q2 2017+3.2%+5.1%+1.8%
Q1 2017+5.9%+6.1%+2.2%
Q4 2016+0.3%-6.4%-1.3%
Q3 2016-12.5%-12.2%+0.7%
Q2 2016-5.8%-7.3%-5.7%
Q1 2016+0.8%
Q4 2015+0.1%
Q3 2015-0.1%
Q2 2015+4.8%
Q1 2015-0.4%
Q4 2014-0.7%
Q3 2014-4.8%
Q2 2014+2.0%
Q1 2014-3.1%
Q4 2013-0.7%
Q3 2013-7.3%
Q2 2013+0.5%
Q1 2013+7.0%
Q4 2012-4.6%
Q3 2012+3.1%
Q2 2012+9.1%
Q1 2012+6.2%
Q4 2008-1.9%
Q4 2011-1.9%
Q3 2011+9.0%
Q2 2011-0.6%
Q1 2010-0.1%
Q1 2011-0.3%
Q4 2010-9.4%
Q3 2010-2.2%
Q3 2009-2.2%
Q2 2010+0.5%
Q2 2009+0.5%
Q4 2009+0.5%

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