NASDAQ$KALU

Kaiser Aluminum Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Second quarter 2022 results reflected a challenging environment due to metal and magnesium supply chain issues, which negatively impacted results.

Kaiser Aluminum Corporation reported a net sales increase to $954 million compared to $741 million in the prior year period. However, the company faced challenges due to metal and magnesium supply chain issues, resulting in a net loss of $14 million, or $0.87 loss per diluted share.

  • Net sales reached $954 million, with value added revenue of $376 million.
  • The company experienced a net loss of $14 million, with a net loss per diluted share of $0.87.
  • Adjusted EBITDA was $41 million, with an adjusted EBITDA margin of 10.9%.
  • Strong demand persisted for general engineering and packaging, and the aerospace recovery continued as expected.

Headline financials

Total Revenue

$954M

Previous: $741M+28.8%
EPS (adj)

-$0.03

Previous: $1.00-103.0%
Adjusted EBITDA

$41M

Previous: $59M-30.5%
Adjusted EBITDA Margin

10.9%

Previous: 18.5%-41.1%
Free Cash Flow

-$13.8M

Previous: -$22.4M+38.4%
Net Income

-$13.8M

Previous: -$22.4M+38.4%
Operating Income

-$2M

Previous: $11.1M-118.0%
Gross Profit

$55.8M

Previous: $67.7M-17.6%
Cash & Equivalents

$235M

Previous: $283M-16.9%
Total Assets

$2.46B

Previous: $2.41B+2.0%
Stock-Based Comp

$3.8M

Previous: $3.9M-2.6%

Revenue & EPS history

Kaiser Aluminum · Revenue · Quarterly

$954M

Q2 2022+28.8%vs Q2 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Kaiser Aluminum · $180M total across 2 segments · Q2 2022

  • Packaging
    $154M
  • Automotive Extrusions
    $26M+4.0%

Forward guidance

The company continues to aggressively address supply chain issues, while executing on strategic plans for further growth. The company remains well positioned for continued long-term growth with a diversified portfolio and strong secular growth trends in each of our served end markets.

Tailwinds

  • Warrick transformation into a highly efficient and independent operation
  • Execution of strategic plans for further growth
  • Diversified portfolio
  • Strong secular growth trends in served end markets
  • Solid fundamentals in aerospace, packaging, automotive and general engineering end markets

Headwinds

  • Warrick rolling mill’s supply chain issues remain challenging
  • Specific challenges with the September 2021 force majeure declaration of its primary magnesium supplier US Magnesium, LLC,
  • Significant reduction in deliveries
  • Impacted by the operational challenges Alcoa Corporation (“Alcoa”) was experiencing at its adjacent smelter, which supplies primary aluminum to Warrick
  • US Mag deliveries unexpectedly stopped while performance of the Alcoa smelter also rapidly deteriorated, negatively impacting Warrick’s operating efficiency and financial performance

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 Q2 2022

Historical avgQ2 2022

-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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