NASDAQ$KALU

Kaiser Aluminum Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported third quarter 2022 results, which were significantly impacted by magnesium and molten metal supply chain issues. However, these challenges have been successfully resolved, positioning the company to operate on a more normalized basis for the remainder of the year.

Kaiser Aluminum Corporation reported third quarter 2022 results, with net sales of $749 million and a net income of $3 million, or $0.16 per diluted share. The results were impacted by supply chain issues and costs, but the company has resolved these challenges and expects improved performance in the fourth quarter.

  • Net Sales $749 Million; Value Added Revenue $356 Million
  • Net Income $3 Million; Net Income per Diluted Share $0.16
  • Adjusted Net Income $10 Million; Adjusted Income per Diluted Share $0.60
  • Adjusted EBITDA $31 Million; Adjusted EBITDA Margin 8.8%

Headline financials

Total Revenue

$749M

Previous: $751M-0.2%
EPS (adj)

$0.60

Previous: $0.57+5.3%
Adjusted EBITDA Margin

8.8%

Previous: 16.5%-46.7%
Free Cash Flow

$2.5M

Previous: -$2.3M+208.7%
Net Income

$2.5M

Previous: -$2.3M+208.7%
Operating Income

$3M

Previous: $19.8M-84.8%
Gross Profit

$54M

Previous: $72.8M-25.8%
Cash & Equivalents

$129M

Previous: $296M-56.3%
Total Assets

$2.37B

Previous: $2.44B-2.6%
Stock-Based Comp

$3.3M

Previous: $3.5M-5.7%

Revenue & EPS history

Kaiser Aluminum · Revenue · Quarterly

$749M

Q3 2022-0.2%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Kaiser Aluminum · $173M total across 2 segments · Q3 2022

  • Packaging
    $147M
  • Automotive Extrusions
    $26M+23.8%

Forward guidance

The company anticipates its adjusted EBITDA and margin in the fourth quarter will be similar to the first half 2022 and they remain focused on continuing to address inflationary challenges through pricing and cost reduction initiatives.

Tailwinds

  • The company has successfully resolved the magnesium and molten metal supply chain issues at its Warrick rolling mill.
  • The company is positioned to operate on a more normalized basis.
  • The company anticipates its adjusted EBITDA and margin in the fourth quarter will be similar to the first half 2022.
  • The company remains focused on continuing to address inflationary challenges through pricing and cost reduction initiatives.
  • The fundamentals of the aerospace, packaging, general engineering and automotive end markets continue to be solid.

Headwinds

  • Third quarter 2022 results were significantly impacted by the magnesium and molten metal supply chain issues at the Warrick rolling mill.
  • The company incurred incremental costs and inefficiencies of ~$24 million driven by outage and supply chain issues.
  • The company continues to incur inflation driven higher energy, manufacturing and employee related costs.
  • Economic uncertainty persists.
  • Value added revenue for packaging applications decreased 15% in shipments reflecting the impact of the force majeure during the quarter.

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 Q3 2022

Historical avgQ3 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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