NASDAQ$KALU

Kaiser Aluminum Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported third quarter results largely within expectations, with adjusted EBITDA increasing over the prior year period.

Kaiser Aluminum Corporation reported third quarter 2023 results with net sales of $744 million and net income of $5 million. Adjusted EBITDA was $48 million, an increase of $19 million over the prior year period. The company saw strong demand for aerospace products, while demand for packaging and general engineering faced headwinds.

  • Net sales reached $744 million; conversion revenue was $357 million.
  • Net income was $5 million, with net income per diluted share at $0.34.
  • Adjusted EBITDA stood at $48 million, with an adjusted EBITDA margin of 13.3%.
  • Aerospace conversion revenue aligned with expectations due to strengthened demand.

Headline financials

Total Revenue

$744M

Previous: $749M-0.7%
EPS (adj)

$0.46

Previous: $0.60-23.3%
Adjusted EBITDA

$48M

No prior period
Adjusted EBITDA Margin

13.3%

Previous: 8.8%+51.1%
Capital Expenditures

-$37.4M

No prior period
Free Cash Flow

$5.4M

Previous: $2.5M+116.0%
Net Income

$5.4M

Previous: $2.5M+116.0%
Operating Income

$19.1M

Previous: $3M+536.7%
Gross Profit

$78.4M

Previous: $54M+45.2%
Cash & Equivalents

$44.6M

Previous: $129M-65.5%
Total Assets

$2.27B

Previous: $2.37B-4.4%
Stock-Based Comp

$3.9M

Previous: $3.3M+18.2%

Revenue & EPS history

Kaiser Aluminum · Revenue · Quarterly

$744M

Q3 2023-0.7%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Kaiser Aluminum · $146M total across 2 segments · Q3 2023

  • Packaging
    $118M-19.7%
  • Automotive Extrusions
    $28M+7.7%

Forward guidance

Kaiser expects commercial aerospace demand to continue to strengthen, while packaging shipments are expected to decline due to destocking and seasonality. General engineering demand is expected to decline, and the automotive market is expected to remain consistent with the third quarter. Consolidated adjusted EBITDA in the fourth quarter 2023 is expected to be in line to slightly higher as compared to its adjusted fourth quarter 2022 results.

Tailwinds

  • Commercial aerospace demand is expected to continue to strengthen and meet or exceed record pre-pandemic 2019 levels by the end of 2023.
  • Business jet, defense and space markets all remaining strong.
  • Contractual minimums in place with its customers will partly offset the decline in packaging shipments.
  • Company continues to believe its full year 2022 adjusted EBITDA represented the trough
  • Company remains cautiously optimistic its full year 2023 consolidated adjusted EBITDA and adjusted EBITDA margin will improve as it pursues cost reductions in its operations, improves manufacturing efficiencies and continues commercial actions to improve pricing.

Headwinds

  • Packaging shipments are expected to decline as destocking has shifted to coated food products, along with anticipated fourth quarter seasonality
  • General engineering demand is expected to decline due to continued plate destocking and the anticipated fourth quarter seasonal decline.
  • In automotive, the Company expects the market to remain relatively consistent with the third quarter 2023 due to the anticipated fourth quarter seasonal decline and uncertainties from the UAW strike.
  • Rising inflationary costs
  • Challenging, short-term demand issues impacting our operational efficiencies

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 2023

Historical avgQ3 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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